Knightscope (NASDAQ:KSCP) Issues Quarterly Earnings Results, Misses Expectations By $0.13 EPS

Knightscope (NASDAQ:KSCP) posted its quarterly earnings results on Wednesday. The company reported ($0.79) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.66) by ($0.13), FiscalAI reports. Knightscope had a negative return on equity of 152.26% and a negative net margin of 217.29%.The firm had revenue of $9.02 million for the quarter, compared to analysts’ expectations of $9.00 million.

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

• Record revenue and client growth: Second-quarter revenue reached $9 million, up 228% year over year, driven by the Security Force acquisition and growth in core subscriptions and deployments. The company now serves 434 clients across 42 states.
• Margins improved after the acquisition: Knightscope generated $0.7 million of gross profit, or approximately 7% gross margin, versus a gross loss in the prior-year quarter. Management said service efficiencies, maturing machines, and the integrated hardware-software-services model should support further improvement.
• Operating losses and cash remain significant concerns: Operating expenses rose to $13.8 million, contributing to a $14.1 million net loss, while cash and equivalents ended the quarter at only $8.2 million. Higher R&D and headcount spending are intended to fund growth but continue to pressure profitability.
• Several product and commercialization milestones are planned for the second half: The company expects initial K7 robot deployments in the fourth quarter, an Autonomous Security Force launch at GSX in September, and an initial launch of its Signals orchestration platform. Management also highlighted cross-selling opportunities across its expanded client base.
• Additional acquisitions remain possible: Management is evaluating guarding-company roll-ups, remote-monitoring businesses, and technology or talent acquisitions, but emphasized that integration discipline and strategic fit matter more than simply adding revenue.

Knightscope Trading Up 9.5%

Shares of KSCP opened at $1.62 on Friday. The company has a current ratio of 1.51, a quick ratio of 1.34 and a debt-to-equity ratio of 0.12. The stock has a 50 day simple moving average of $1.79 and a 200-day simple moving average of $2.93. Knightscope has a 1 year low of $1.35 and a 1 year high of $7.62. The stock has a market cap of $32.17 million, a PE ratio of -0.47 and a beta of 1.29.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on KSCP shares. Wall Street Zen raised Knightscope from a “strong sell” rating to a “sell” rating in a report on Saturday, May 23rd. Lake Street Capital set a $3.00 target price on shares of Knightscope and gave the company a “buy” rating in a research note on Thursday. Ascendiant Capital Markets dropped their price objective on shares of Knightscope from $26.00 to $23.00 and set a “buy” rating on the stock in a report on Monday, June 15th. Finally, Weiss Ratings reiterated a “sell (e+)” rating on shares of Knightscope in a report on Tuesday, June 9th. Three analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Knightscope currently has a consensus rating of “Moderate Buy” and a consensus target price of $12.67.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Geode Capital Management LLC lifted its stake in Knightscope by 32.5% in the 2nd quarter. Geode Capital Management LLC now owns 53,372 shares of the company’s stock worth $264,000 after acquiring an additional 13,081 shares in the last quarter. Jane Street Group LLC purchased a new stake in shares of Knightscope in the second quarter worth approximately $77,000. Envestnet Asset Management Inc. purchased a new position in Knightscope during the third quarter valued at approximately $71,000. Vanguard Group Inc. grew its position in Knightscope by 9.6% during the third quarter. Vanguard Group Inc. now owns 276,857 shares of the company’s stock valued at $1,597,000 after purchasing an additional 24,283 shares in the last quarter. Finally, Kestra Private Wealth Services LLC acquired a new position in Knightscope in the 3rd quarter valued at approximately $151,000. Hedge funds and other institutional investors own 14.61% of the company’s stock.

About Knightscope

Knightscope, Inc (NASDAQ: KSCP) is a technology company specializing in the design and deployment of autonomous security robots. The firm offers a robotics-as-a-service platform that integrates self-driving devices with artificial intelligence and machine learning capabilities to enhance perimeter security, detect anomalies and deliver real-time incident reporting.

Since its founding in 2013 and headquartered in Mountain View, California, Knightscope has developed a series of fully autonomous models—designated K1 through K7—suited for indoor and outdoor environments.