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

Knightscope (NASDAQ:KSCP) issued its earnings results on Wednesday. The company reported ($0.79) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.66) by ($0.13), FiscalAI reports. The firm had revenue of $9.02 million during the quarter, compared to the consensus estimate 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, hitting $1.48. The company had a trading volume of 1,047,658 shares, compared to its average volume of 777,961. The company has a market cap of $29.39 million, a PE ratio of -0.42 and a beta of 1.29. Knightscope has a 12-month low of $1.35 and a 12-month high of $7.62. The company has a quick ratio of 1.34, a current ratio of 1.51 and a debt-to-equity ratio of 0.12. The business’s fifty day simple moving average is $1.83 and its 200 day simple moving average is $2.96.

Analyst Ratings Changes

Several research firms have weighed in on KSCP. Weiss Ratings restated a “sell (e+)” rating on shares of Knightscope in a report on Tuesday, June 9th. Ascendiant Capital Markets lowered their target price on Knightscope from $26.00 to $23.00 and set a “buy” rating for the company in a research report on Monday, June 15th. Finally, Wall Street Zen raised shares of Knightscope from a “strong sell” rating to a “sell” rating in a report on Saturday, May 23rd. Three investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Knightscope presently has an average rating of “Moderate Buy” and a consensus target price of $14.33.

Institutional Investors Weigh In On Knightscope

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in KSCP. Geode Capital Management LLC increased its position in shares of Knightscope by 32.5% during the 2nd quarter. Geode Capital Management LLC now owns 53,372 shares of the company’s stock valued at $264,000 after purchasing an additional 13,081 shares during the last quarter. Jane Street Group LLC bought a new stake in Knightscope in the second quarter worth $77,000. Envestnet Asset Management Inc. purchased a new position in Knightscope during the third quarter worth $71,000. Vanguard Group Inc. boosted its stake in Knightscope by 9.6% during the third quarter. Vanguard Group Inc. now owns 276,857 shares of the company’s stock worth $1,597,000 after buying an additional 24,283 shares during the period. Finally, Kestra Private Wealth Services LLC purchased a new position in Knightscope during the third quarter worth $151,000. 14.61% of the stock is currently owned by hedge funds and other institutional investors.

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.