Knightscope (NASDAQ:KSCP) Posts Quarterly 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 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 analyst estimates of $9.00 million. Knightscope had a negative net margin of 257.99% and a negative return on equity of 143.53%.

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 Stock Down 1.3%

Knightscope stock traded down $0.02 during midday trading on Wednesday, hitting $1.48. 1,047,658 shares of the company were exchanged, compared to its average volume of 777,961. The company’s fifty day moving average price is $1.83 and its 200-day moving average price is $2.96. The company has a market cap of $29.39 million, a PE ratio of -0.42 and a beta of 1.29. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.51 and a quick ratio of 1.34. Knightscope has a fifty-two week low of $1.35 and a fifty-two week high of $7.62.

Institutional Trading of Knightscope

Hedge funds have recently made changes to their positions in the company. Geode Capital Management LLC boosted its stake in shares of Knightscope by 32.5% in the second 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 period. Jane Street Group LLC acquired a new position in shares of Knightscope in the second quarter worth about $77,000. Envestnet Asset Management Inc. purchased a new position in Knightscope in the third quarter valued at about $71,000. Vanguard Group Inc. boosted its holdings in Knightscope by 9.6% in 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 during the last quarter. Finally, Kestra Private Wealth Services LLC acquired a new stake in Knightscope during the 3rd quarter valued at approximately $151,000. Hedge funds and other institutional investors own 14.61% of the company’s stock.

Wall Street Analyst Weigh In

KSCP has been the subject of a number of research analyst reports. Wall Street Zen raised shares of Knightscope from a “strong sell” rating to a “sell” rating in a research report on Saturday, May 23rd. Weiss Ratings reiterated a “sell (e+)” rating on shares of Knightscope in a research note on Tuesday, June 9th. Finally, Ascendiant Capital Markets decreased their price objective on shares of Knightscope from $26.00 to $23.00 and set a “buy” rating for the company in a research note on Monday, June 15th. Three investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $14.33.

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.