Knightscope (NASDAQ:KSCP) Releases Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Knightscope (NASDAQ:KSCP) issued its earnings results on Thursday. The company reported ($0.50) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.55) by $0.05, FiscalAI reports. The business had revenue of $8.68 million for the quarter, compared to analysts’ expectations of $8.85 million. Knightscope had a negative return on equity of 152.20% and a negative net margin of 217.29%.

Here are the key takeaways from Knightscope’s conference call:

• Third-quarter revenue rose 177% year over year to $8.7 million, marking the company’s third consecutive quarter of triple-digit growth. Gross margin improved by $2 million year over year to positive $0.4 million, with service gross margin reaching 8%.
• Knightscope reported a record approximately $27 million in renewals, bookings, and client awards secured since May, and said it has begun limited K7 manufacturing and deployments. The company emphasized that converting these awards into revenue and scaling deployments will require disciplined execution.
• The company is shifting toward an integrated managed-service model combining robots, software, and security personnel; service revenue was nearly all of third-quarter revenue. Management expects margins to improve as technology becomes a larger part of client solutions, but said that improvement will take time.
• Knightscope posted an $11.8 million net loss and ended the quarter with $6.8 million in cash; management did not provide a timeline for reaching profitability. Product revenue fell to $0.1 million from $1.2 million a year earlier, and the company is evaluating how to sell and bundle those products.
• The company received a Nasdaq bid-price deficiency notice and said it is evaluating options to regain compliance within the 180-day period.

Knightscope Stock Up 11.3%

Shares of NASDAQ:KSCP traded up $0.05 during mid-day trading on Thursday, hitting $0.44. The stock had a trading volume of 2,207,383 shares, compared to its average volume of 951,346. The company has a quick ratio of 0.98, a current ratio of 1.16 and a debt-to-equity ratio of 0.14. Knightscope has a 12-month low of $0.39 and a 12-month high of $5.96. The company’s 50 day moving average is $0.78 and its 200-day moving average is $2.28.

Analyst Ratings Changes

KSCP has been the subject of a number of recent analyst reports. Lake Street Capital set a $3.00 price target on Knightscope and gave the company a “buy” rating in a research report on Thursday, August 13th. Weiss Ratings reissued a “sell (e+)” rating on shares of Knightscope in a research note on Friday, September 4th. Three analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $12.67.

Knightscope Company Profile

Knightscope, Inc. develops autonomous security technology designed to help organizations monitor and protect public and private spaces. The company combines robotics, artificial intelligence, autonomous navigation, and communications technologies to support security personnel and provide a visible presence in environments such as corporate campuses, shopping centers, residential communities, hospitals, schools, and public facilities. Its product portfolio includes autonomous security robots such as the outdoor K5, indoor K3, and compact K1 models, as well as related systems including the K1 Blue Light Tower.