Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Knightscope Inc (KSCP, Financial) reported a 29% increase in total revenue for Q1 2025, reaching $2.9 million compared to $2.3 million in Q1 2024.
- Service revenues grew by 25% to $2.1 million, driven by ASR subscriptions and full-service maintenance agreements.
- Product revenues increased by 44% to $809,000, attributed to successful distribution partnerships.
- Gross loss improved significantly, reducing to $700,000 from $1.4 million in the previous year.
- Operating expenses decreased by 9% year-over-year, reflecting cost discipline and strategic changes in sales and marketing.
Negative Points
- Despite improvements, Knightscope Inc (KSCP) still reported a net operating loss of $6.8 million for the quarter.
- The company is yet to achieve positive EBITDA and earnings, with timing for profitability still uncertain.
- There are risks of disruption due to the move to a new facility, which could impact production and operations.
- Macro uncertainties, such as tariffs, could potentially impact component pricing and supply chain lead times.
- The company faces challenges in scaling its customer base and becoming a household name, partly due to funding constraints.
Q & A Highlights
Q: How is the current macroeconomic uncertainty affecting conversations with potential customers?
A: Uncertainty primarily impacts financials, such as tariffs, which affect supplier costs and component lead times. However, the focus on security and national safety is favorable for Knightscope. The company is managing these challenges while benefiting from the "buy American" sentiment. (Respondent: Unidentified_2)
Q: Is the improvement in per share loss due to the reverse stock split?
A: Yes, the reverse stock split occurred in September last year. The per share price reflects this adjustment, ensuring a 1-to-1 comparison with previous figures. (Respondent: Unidentified_2)
Q: When will Knightscope report positive EBITDA and earnings?
A: The timing is yet to be determined. The company is focused on business growth and long-term shareholder value rather than immediate profitability. (Respondent: Unidentified_2)
Q: How does the company plan to manage costs as revenue scales?
A: Knightscope plans to scale revenue first and add costs only when necessary, ensuring responsible management of expenses. The focus is on automation and AI to improve efficiency without proportionally increasing costs. (Respondent: Unidentified_2)
Q: What is the status of the new facility, and what are the potential disruptions and costs?
A: The new facility is expected to be operational by August. Costs include moving, furnishing, and setting up operations. Disruptions are anticipated during the transition, but efforts are being made to minimize them. (Respondent: Unidentified_2)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
