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

Knightscope (NASDAQ:KSCPGet Free Report) posted its quarterly earnings data 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. The firm had revenue of $9.02 million during the quarter, compared to analysts’ expectations of $9.00 million. Knightscope had a negative return on equity of 143.53% and a negative net margin of 257.99%.

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 Down 1.3%

KSCP traded down $0.02 on Wednesday, reaching $1.48. 1,047,658 shares of the company traded hands, compared to its average volume of 777,961. The company has a market cap of $29.39 million, a P/E ratio of -0.42 and a beta of 1.29. The company has a quick ratio of 1.34, a current ratio of 1.51 and a debt-to-equity ratio of 0.12. Knightscope has a one year low of $1.35 and a one year high of $7.62. The firm has a fifty day simple moving average of $1.83 and a two-hundred day simple moving average of $2.96.

Hedge Funds Weigh In On Knightscope

A number of institutional investors have recently modified their holdings of KSCP. Price T Rowe Associates Inc. MD bought a new stake in shares of Knightscope during the fourth quarter valued at approximately $71,000. Jane Street Group LLC grew its stake in Knightscope by 253.0% in the fourth quarter. Jane Street Group LLC now owns 56,004 shares of the company’s stock worth $208,000 after purchasing an additional 40,141 shares in the last quarter. AlphaCentric Advisors LLC bought a new position in Knightscope in the fourth quarter worth approximately $278,000. LPL Financial LLC purchased a new position in Knightscope during the 4th quarter worth $53,000. Finally, Geode Capital Management LLC increased its holdings in Knightscope by 16.0% during the 4th quarter. Geode Capital Management LLC now owns 115,924 shares of the company’s stock worth $430,000 after purchasing an additional 16,004 shares during the period. 14.61% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the company. Wall Street Zen raised Knightscope from a “strong sell” rating to a “sell” rating in a research note on Saturday, May 23rd. Weiss Ratings reissued a “sell (e+)” rating on shares of Knightscope in a research note on Tuesday, June 9th. Finally, Ascendiant Capital Markets dropped their price objective on Knightscope from $26.00 to $23.00 and set a “buy” rating for the company in a report on Monday, June 15th. Three equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $14.33.

Get Our Latest Stock Report on Knightscope

Knightscope Company Profile

(Get Free Report)

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.

See Also

Earnings History for Knightscope (NASDAQ:KSCP)

Receive News & Ratings for Knightscope Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Knightscope and related companies with MarketBeat.com's FREE daily email newsletter.