Knightscope 9-Month Financial Report: Company Triples Net Revenue, Reduces Backlog

Knightscope 9-Month Financial Report: Company Triples Net Revenue, Reduces Backlog

–News Direct–

By Faith Ashmore, Benzinga

Click here to learn more about the Knightscope Public Safety Infrastructure Bond.

Technology is advancing quicker than ever with robotics, AI and space technology becoming not just possible but integrated into everyday life. The robotics market was valued at $31.38 billion in 2021 and is expected to reach $110.39 billion by 2030 with a CAGR of 15% from 2022-2030. Similarly, the AI market had a valuation of $454.12 billion in 2022 and is projected to reach approximately $2,575.16 billion by 2032, with a CAGR of 19% between 2023 and 2032. While things like mainstream AI adoption raised questions just 10 years ago, it is undoubtedly the way of the future.

One company, in particular, took a gamble ten years ago and started combining technology in multiple multi-billion dollar markets such as robotics, AI, electric vehicles (EV), telecommunications and autonomous tech. Knightscope (NASDAQ: KSCP) is a technology company ushering in the dawn of Autonomous Security Robots (ASRs) and working hard to protect U.S. citizens from crime across the country. Its robots are designed to deter, detect and report potential security threats, providing valuable situational awareness to security and public safety professionals.

Q3 Earnings Report

Knightscope reported financial results for the nine months ending on September 30th, 2023. The company's net revenue for this period was approximately $9.8 million, which is almost triple the $3.3 million reported during the same time frame in 2022. This translates to an annual revenue run rate of around $13 million, which is more than double the previous year's net revenue of $5.6 million. The backlog for the company as of October 29th, 2023 was approximately $4.1 million, reflecting a decrease from the previous quarter. The backlog is subject to fluctuations as new orders come in, and the company has made significant progress in reducing its backlog. Although the backlog for autonomous security robots slightly increased, the backlog for K1B products was reduced by approximately $1.1 million.

Knightscope has been working to improve its production and supply chain processes to increase production output. With these efforts and the scaling up of operations, the company has improved its gross margins. During the first nine months of 2022, Knightscope had a gross loss of $2.1 million, while during the same period in 2023, the gross loss was only $154,000. The company expects to see continued improvements in the future as it executes its plan for profitability.

The company's performance has also improved on a per-share basis. The loss per common share for the period decreased from $0.40 to $0.26. As of September 30th, 2023, Knightscope had cash and cash equivalents of $4.6 million, and on December 31st, 2022, it had $4.8 million. The company also fully extinguished convertible notes secured in connection with the acquisition of CASE emergency systems by the end of the second quarter of 2023.

Bond Offering

Knightscope recently launched its public safety infrastructure bond offering. It is offering 10% interest, paid in cash annually, on up to a 5-year bond. For example, a $10,000 investment could yield $1,000 of interest in cash payments annually for 5 years. The company plans to conduct rolling closes of the bonds on a monthly basis and successfully completed its initial closing a few weeks ago. Investors begin earning interest on their closing date, and the bond offering will remain active for several months as per Reg A+ offering regulations.

Contracts Heading Into 2024

Knightscopes success has garnered national attention, and the company has won corporate contracts with major corporations such as PENN Entertainment (NASDAQ: PENN), PG&E (NYSE: PCG), ABM (NYSE: ABM) and Lowe's (NYSE: LOW). The company also recently announced a collaboration with the NYPD and MTA in New York City, as their robots will operate in the subway system during late-night hours. Known for their effectiveness and approachability, the K5 robots strike a balance between engagement and respect for privacy. These partnerships are among a long list of other collaborations.

Knightscope also offers an educational series about the increasing role robots are playing in the economy today and the companys mission to make the United States the safest country in the world. Click here to learn more about the Rise of the Robots.

This post contains sponsored content. This content is for informational purposes only and not intended to be investing advice. AN OFFERING STATEMENT REGARDING THIS OFFERING HAS BEEN FILED WITH THE SEC. THE SEC HAS QUALIFIED THAT OFFERING STATEMENT, WHICH ONLY MEANS THAT THE COMPANY MAY MAKE SALES OF THE SECURITIES DESCRIBED BY THE OFFERING STATEMENT. THE OFFERING CIRCULAR THAT IS PART OF THAT OFFERING STATEMENT IS AVAILABLE HERE.

Contact Details

Benzinga

+1 877-440-9464

info@benzinga.com

Company Website

http://www.benzinga.com

View source version on newsdirect.com: https://newsdirect.com/news/knightscope-9-month-financial-report-company-triples-net-revenue-reduces-backlog-853919720

Benzinga

comtex tracking

COMTEX_444131910/2655/2023-11-28T10:01:12

Post Disclaimer

Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No DigiShor journalist was involved in the writing and production of this article.