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Knightscope, Inc. (KSCP)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 delivered a material beat vs consensus on EPS and revenue; GAAP EPS was -$0.78 vs S&P Global consensus of -$1.88, and revenue was $2.81M vs $2.52M consensus, driven by stabilization in services and improved execution following restructuring .
  • FY 2024 revenue was $10.8M (vs $12.8M in 2023); operating loss widened to -$29.7M, and net loss was -$31.7M with diluted EPS of -$10.97, reflecting restructuring, third‑party service costs, and inventory write‑downs; cash ended at $11.1M after ~$34.5M capital raised .
  • Management emphasized federal expansion (VA deployment, USAF Phase 1 SBIR, FedRAMP ATO), a Washington Office build‑out, and next‑gen products targeting 2026 (K7 ASR, K1 Super Tower) as core growth drivers .
  • The corporate 8‑K and attached presentation reiterated preliminary FY 2024 revenue of ~$11M and year‑end cash of ~$11M, and detailed a heavy 2024–H1’25 restructuring to position the company for growth from 2026 onward .

What Went Well and What Went Wrong

What Went Well

  • EPS and revenue beat in Q4 2024: GAAP EPS -$0.78 vs -$1.88 consensus and revenue $2.81M vs $2.52M consensus, signaling near‑term execution improvement post restructuring .
  • Federal pipeline traction: first K5 GOV unit at the U.S. Department of Veterans Affairs and USAF Phase 1 SBIR award; FedRAMP ATO enables direct federal sales .
  • CEO tone on transformation: “2024 was a pivotal year,” highlighting milestones that strengthen long‑term scalable growth across commercial and federal sectors .

What Went Wrong

  • FY 2024 top line declined to $10.8M from $12.8M in 2023 due to ECD product line restructuring and facility consolidation; gross loss increased to -$3.7M .
  • Operating loss widened to -$29.7M and net loss to -$31.7M (EPS -$10.97), driven by deliberate R&D/compliance investments and non‑cash warrant liability adjustments .
  • Q3 2024 was soft (revenue $2.54M, EPS -$3.58), reflecting transitional choppiness amid restructuring and third‑party service cost pressures noted across FY commentary .

Financial Results

Quarterly performance vs prior periods and estimates

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$3.20 $2.54 $2.81
GAAP EPS ($USD)-$2.50 -$3.58 -$0.78
Revenue Consensus ($USD Millions)N/AN/A$2.52
EPS Consensus ($USD)N/AN/A-$1.88

FY performance vs prior year

MetricFY 2023FY 2024
Revenue ($USD Millions)$12.8 $10.8
Service Revenue ($USD Millions)N/A$7.5
Gross Profit ($USD Millions)-$2.0 -$3.7
Operating Loss ($USD Millions)-$26.3 -$29.7
Net Loss ($USD Millions)-$22.1 -$31.7
Diluted EPS ($USD)-$16.77 -$10.97
Year‑End Cash ($USD Millions)N/A$11.1

Segment breakdown (FY 2024)

SegmentFY 2024 Revenue ($USD Millions)
Services$7.5
Products (ECD/ASR)Not disclosed

KPIs

KPIValueReference
Backlog (as of 3/27/2025)$1.8M (ASR $0.5M; ECD $1.3M)
Machines‑in‑Network~10,000
Year‑End Cash$11.1M
Capital Raised in 2024~$34.5M

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025None providedNone providedMaintained “no formal guidance”
Profitability/TimingMulti‑yearPrior stretch target for profitability by Q4 2024 (analyst commentary) Management positioning for growth and profitability ramp beginning 2026 (product launches) Reset expectations to medium‑term
OpEx/MarginsFY 2024N/ACommentary only: restructuring and cost optimization initiatives N/A
Federal pipeline2025N/ABuilding Washington Office; expanding VA/USAF traction New disclosure focus

Note: Company did not issue quantitative revenue/earnings guidance ranges for Q1/Q2 2025 or FY 2025 in the materials reviewed .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2: Q2 2024)Previous Mentions (Q-1: Q3 2024)Current Period (Q4 2024)Trend
Restructuring & cost actionsFacility consolidation (Irvine→Mountain View), severance charges; higher short‑term costs from third‑party services and scrap fees Limited disclosure available2024–H1’25 “fundamental restructuring” to align operations; reduced G&A payroll by 1/3; eliminated toxic warrants; converted preferred to common Stabilizing post‑reset
Federal expansionNot materialLimited disclosure availableVA K5 GOV deployment, USAF Phase 1 SBIR, FedRAMP ATO; Washington Office build‑out Positive momentum
Product roadmapR&D investment for next‑gen platforms noted Limited disclosure availableK7 ASR and K1 Super Tower targeting 2026 commercial availability; client K5 replacements at no cost Accelerating toward launches
Revenue mix & executionServices up modestly, product softness (ECD) Limited disclosure availableServices revenue +4% YoY to $7.5M; ECD product restructuring impacted FY top line Mix shift to services
Backlog & pipelineN/AN/ABacklog $1.8M as of 3/27/2025; pursuing multiple agency opportunities Improving efficiency

Note: A full Q4 2024 earnings call transcript was not available in company documents searched; themes reflect press release and 8‑K presentation content .

Management Commentary

  • “2024 was a pivotal year,” highlighting federal wins, strengthened financial position, and groundwork for scalable growth .
  • “2024 and first 2 quarters of 2025 [are] focused on fundamental restructuring… Executed and planned changes to yield near‑term choppy results intended to set the stage for growth in 2026” .
  • “We design, engineer, manufacture, deploy and monitor cutting‑edge autonomous machines and software… First mover advantage with 3+ million hours of autonomous operations… Achieved Authority to Operate (‘ATO’) with U.S. Federal Government” .

Q&A Highlights

  • A Q4 2024 call transcript/Q&A was not located in the company’s filings or investor materials; no formal Q&A highlights were available for inclusion .

Estimates Context

  • Q4 2024 delivered a significant beat: GAAP EPS -$0.78 vs consensus -$1.88; revenue $2.81M vs consensus $2.52M. Consensus data sourced from S&P Global via MarketBeat/Moomoo; actuals from the reported results .
MetricActual (Q4 2024)Consensus (Q4 2024)Surprise
Revenue ($USD Millions)$2.81 $2.52 +$0.29M
GAAP EPS ($USD)-$0.78 -$1.88 +$1.10

Implication: Consensus models likely need to reflect stabilizing services revenue and operational improvements; however, FY losses and restructuring indicate continued near‑term caution on margin trajectories .

Key Takeaways for Investors

  • Q4 2024 beat suggests near‑term operational stabilization post restructuring, despite FY 2024 losses and gross margin headwinds; monitor sustainability into 2025 .
  • Federal channel is a core growth vector (VA deployment, USAF SBIR, FedRAMP ATO); the new Washington Office supports pipeline conversion and could be a medium‑term catalyst .
  • Product roadmap (K7 ASR, K1 Super Tower for 2026) frames a 2026 inflection narrative; watch milestones (alpha/beta prototypes, pilot wins) as leading indicators .
  • Services revenue durability (+4% YoY in FY 2024) offsets product restructuring volatility; subscription MaaS can underpin recurring revenues as deployments scale .
  • Backlog at $1.8M implies order conversion focus; improving efficiency vs prior filings is constructive but needs sustained bookings momentum .
  • Balance sheet strengthened (cash $11.1M; capital raised ~$34.5M); liquidity supports R&D and federal compliance efforts but equity raises dilute—track capital needs vs growth .
  • Trading: Near‑term set‑ups tied to federal contract news, prototype progress, and continued quarterly estimate beats; risks include margin recovery timing and execution on product ramp .