Knightscope Announces Significant Financial Milestones

Knightscope, Inc. [Nasdaq: KSCP] (“Knightscope” or the “Company”), an innovator in robotics and artificial intelligence (“AI”) technologies focused on public safety, today announced its financial results for the fiscal year ended December 31, 2023, marking significant progress towards its goals of profitability and operational efficiency.

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Knightscope Announces Significant Financial Milestones (Graphic: Business Wire)

Key 2023 Financial Highlights

Substantial Revenue Increase

Knightscope reported $12.8 million in revenue for 2023, which marks a 128% increase from the previous year. Net revenue from services increased by approximately $2 million to $7.2 million while net revenue from product sales increased by $5.2 million to $5.6 million in 2023. Driven primarily by full-year sales of Emergency Communication Devices (“ECDs”) which were integrated into our product lines after the acquisition of CASE Emergency Management Systems, the year-over-year increase is a testament to the continued adoption of our public safety technologies.

Gross Margin Improvement

Despite reporting a gross loss of -$2.0 million for 2023, resulting in a gross margin percentage of -16% for the period, this figure significantly outperforms the previous year's -59% gross margin percentage. The $1.3 million year-over-year improvement, due primarily to efficiencies in cost-of-service, payroll and wireless communication fees, reflects our rigorous efforts to improve our costs related to revenue and scale.

Operating Expense Efficiency

Total operating expenses for the year amounted to $24.3 million, a nearly $4.4 million reduction from the previous year. Primary drivers for year-over-year savings include $3.3 million lower sales and marketing costs and $2.1 million lower R&D expenses which were offset by $0.9 million in higher G&A expenses and $0.1 million in one-time restructuring charges in 2023. Operating expenses as a percentage of revenue were 190% in 2023, down from 509% in the prior year, demonstrating a substantial improvement in efficiency.