MOUNTAIN VIEW, Calif. - Knightscope, Inc. (NASDAQ: KSCP), a company specializing in robotics and artificial intelligence for public safety, has reported a significant increase in revenue and a reduction in net loss for the fiscal year ended December 31, 2023.
In 2023, Knightscope's revenue reached $12.8 million, marking a 128% increase from the previous year. This growth was driven by a $2 million increase in net service revenue to $7.2 million and a $5.2 million increase in net product sales to $5.6 million. The latter is attributed to the full-year sales of Emergency Communication Devices (ECDs), which were added to the company's product lines following the acquisition of CASE Emergency Management Systems.
Despite a gross loss of -$2.0 million, the company's gross margin improved significantly, from -59% in the previous year to -16% in 2023. This improvement, resulting from cost-of-service efficiencies, reduced payroll, and wireless communication fees, reflects Knightscope's efforts to scale and manage costs effectively.
Total operating expenses decreased by nearly $4.4 million to $24.3 million, primarily due to a $3.3 million reduction in sales and marketing costs and a $2.1 million decrease in R&D expenses. However, these savings were partially offset by a $0.9 million increase in general and administrative expenses and $0.1 million in one-time restructuring charges. Operating expenses as a percentage of revenue also improved, dropping from 509% to 190%.
The net loss for the year was $22.1 million, a $3.5 million improvement from the $25.6 million net loss in the prior year. Loss per share improved to a $0.34 loss in 2023, a 53% enhancement compared to the $0.72 loss per share in 2022.
Looking ahead to 2024, Knightscope has outlined a roadmap to further propel profitable growth. The company plans to streamline management, eliminate positions, automate processes, and engage in strategic outsourcing to reduce payroll expenses by over 30%. Knightscope is also consolidating manufacturing operations from three facilities to one and reducing its number of facilities from 13 to 1 to improve efficiencies and reduce costs.
This news article is based on a press release statement from Knightscope, Inc.
InvestingPro Insights
KnightScope's recent fiscal report highlights a notable uptick in revenue, with a 128% increase year-over-year, reaching $12.8 million. This surge in revenue aligns with the InvestingPro Data showing an impressive revenue growth of 194.02% over the last twelve months as of Q3 2023. The company's strategic moves, such as the acquisition of CASE Emergency Management Systems, have contributed to this growth, as evidenced by the increase in net product sales.
However, the company's financial health is nuanced. While Knightscope holds more cash than debt on its balance sheet, suggesting a degree of financial stability, the InvestingPro Data reveals a gross profit margin of -10.99% for the same period, indicating that despite increased revenues, profitability challenges persist. This is further corroborated by the InvestingPro Tips that Knightscope is not expected to be profitable this year and has been quickly burning through cash.
The company's stock price has experienced significant volatility, as highlighted by a one-week price total return of -16.24% and a six-month price total return of -29.93%. These figures reflect the market's reaction to Knightscope's financial performance and outlook. Investors seeking to understand the full picture can find additional insights with 13 more InvestingPro Tips available at Investing.com, which can help in making informed decisions. For those interested in a deeper analysis, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.