Executive Summary

Q4 2023 revenue was $3.01 million, up 28% year over year; EPS was reported around a $0.07–$0.08 loss, with third‑party sources indicating a miss versus revenue and EPS expectations .
Management disclosed preliminary FY 2023 revenue of $12.8 million and outlined a stretch target to achieve profitability by Q4 2024, alongside actions to strengthen cash and streamline operations (ATM facility, bond offering, footprint reduction) .
The company emphasized improved cost structure and gross margin progress in 2023 (gross margin −16%, a notable improvement vs 2022), driven by services and ECD product revenue mix .
Narrative and catalysts centered on accelerating federal market entry (FedRAMP ATO achieved with the U.S. Department of Veterans Affairs) and scaling machines‑in‑network, plus manufacturing throughput improvements planned for 2024 .

What Went Well and What Went Wrong

What Went Well

Revenue growth: Q4 2023 revenue reached $3.01 million (+28% YoY), supported by continued adoption of public safety technologies .
2023 financial progress: FY 2023 revenue preliminarily $12.8 million, with gross margin improvement vs prior year through efficiencies in cost of service and scaling; “Town Hall” framing highlighted operational focus to drive profitable growth .
Strategic positioning: “Robots will be everywhere” and stretch target to be profitable in Q4 2024 signal confidence in long‑term recurring revenue model and scaling plans .

What Went Wrong

Estimates miss: Third‑party sources show Q4 2023 revenue ($3.01M) below a $3.70M consensus and EPS ($−0.08) below a $−0.06 consensus; S&P Global consensus was unavailable for verification .
Profitability: Quarterly gross loss persisted and net losses remained material despite margin improvement (FY 2023 gross margin −16%) .
Financing and execution risks: Management outlined multiple financing levers (ATM, bond offering) and facility consolidation to bolster liquidity and efficiency, underscoring dependence on capital markets and operational execution to reach Q4 2024 profitability goals .

Financial Results

Quarterly performance vs prior periods and estimates

Metric	Q2 2023	Q3 2023	Q4 2023 Actual	Q4 2023 Consensus	vs Consensus
Revenue ($USD Millions)	$3.56	$3.32	$3.01	$3.70	Miss ($0.69M)
EPS ($USD)	$(0.0838)	$(0.11)	$(0.08)	$(0.06)	Miss ($0.02)
Gross Profit ($USD Millions)	$0.009	$0.050	$(1.91)	N/A	N/A

Note: Multiple third‑party sources report Q4 2023 EPS as −$0.07 to −$0.08; S&P Global consensus data was unavailable at the time of analysis.

FY 2023 segment breakdown (context for Q4)

Segment	FY 2023 Revenue ($USD Millions)	Notes
Services	$7.2	Increased by ~$2.0M YoY
Product (ECD and other)	$5.6	Increased by ~$5.2M YoY
Total FY 2023	$12.8	Preliminary unaudited

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Profitability	Q4 2024	N/A	Stretch target to achieve profitability	Introduced
Machines‑in‑Network	FY 2024	N/A	Planned to exceed 10,000 (ASR + K1B)	Introduced
Cash/Liquidity	FY 2024	N/A	Improve cash via backlog deliveries, first bond offering, ATM facility, and operational efficiency	Introduced
Manufacturing Throughput	FY 2024	N/A	“Significantly improve” throughput; maintain “Made in the USA” focus	Introduced
Facility Footprint	Multi‑year	N/A	Reduce nationwide footprint from 13 to 1 over time	Introduced

Management did not provide quantitative Q4 2023 forward guidance; actions and targets above were disclosed in the March 2024 investor presentation and April 2024 communications .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2023)	Previous Mentions (Q3 2023)	Current Period (Q4 2023)	Trend
Profitability Path	Aim to reach profitability by end of 2024; margin improvements from cost reductions and scale	Continued focus on cost structure; bond offering launched to support operations	Stretch target: profitability Q4 2024	Consistent commitment; more explicit timing
Federal Market Entry	Building toward FedRAMP ATO	Continued progress and investor communications	Achieved ATO with VA; highlights dual‑use technology	Positive milestone reached
Recurring Revenue Model (MaaS)	Emphasis on scalable recurring revenue	Reinforced as core model	All‑inclusive MaaS model detailed; unit economics targets	Narrative strengthening
Manufacturing/Supply Chain	Supply chain pressures beginning to subside	Operational efficiency and facility consolidation efforts	Plan to significantly improve manufacturing throughput in 2024	Improvement emphasis
Financing/Liquidity	Cash ~$5.8M (Q2’23); convertible notes extinguished	Bond offering; rolling closes; investor focus	ATM facility “as needed”; bond offering; efficiency plan	Active financing toolbox

Management Commentary

“Robots will be everywhere.” Management reiterated ambitions to scale machines‑in‑network and leverage AI for autonomous cooperation across platforms to strengthen public safety .
“Our mission is to make the United States of America the safest country in the world.” The mission anchors investment in AI, autonomy, and expanding federal and commercial deployments .
“Our stretch target is to achieve profitability for the 4th quarter 2024…” supported by revenue strategy improvements, variable cost reductions, and fixed cost streamlining .

Q&A Highlights

Q4 2023 earnings call transcript was not available via our document tools or public transcript sources; however, the company scheduled a Town Hall and communicated 2023 milestones and 2024 roadmap via press release on April 2, 2024 (financial milestones, operational efficiency plans) .
Prior quarter Q&A emphasized financing (bond offering) and capital structure simplification to support growth and profitability efforts .
Clarifications centered on recurring revenue scaling, margin improvement drivers, and manufacturing throughput targets for 2024 .

Estimates Context

S&P Global consensus estimates for Q4 2023 were unavailable at the time of analysis. Third‑party sources indicated revenue consensus of $3.70 million and EPS consensus of $(0.06); Knightscope reported $3.01 million revenue and EPS around $(0.08), implying misses on both .
Given FY 2023 preliminary revenue of $12.8 million and disclosed cost actions, near‑term estimate revisions may focus on margin trajectory, cash needs, and conversion of backlog to revenue .

Key Takeaways for Investors

Q4 2023 delivered solid YoY revenue growth but missed non‑S&P third‑party consensus on both revenue and EPS, reflecting ongoing margin and scale challenges .
2023 operating improvements and product/service mix supported an improved gross margin profile vs 2022; watch for continued efficiency gains and throughput in 2024 .
Management’s explicit Q4 2024 profitability stretch target is the central narrative driver; execution on variable/fixed cost reductions and backlog delivery is critical .
Federal channel expansion (VA ATO achieved) and a broadened product roadmap (ASR + ECD, AGD) diversify growth vectors; monitor contract wins and federal pipeline conversion .
Financing levers (ATM, bond) and facility consolidation highlight liquidity management; equity sensitivity remains a consideration for near‑term trading .
For 2024, the focus should be conversion of orders to revenue, stabilization of gross margin, and verification of unit economics at scale; beats/misses vs future consensus will likely drive stock reactions .
Without S&P consensus, use caution interpreting third‑party estimates; prioritize company disclosures and future 8‑Ks for verified quantitative updates .

Sources

KSCP Form 8‑K and Exhibit 99.1 investor presentation (Mar 14, 2024): preliminary FY 2023 revenue, outlook, federal ATO, strategy .
InvestorPlace Q4 2023 earnings summary: revenue and EPS actuals and third‑party estimates .
MarketBeat Q4 2023 earnings page: event timing and actual revenue; Q3/Q4 EPS references .
GreenStockNews (Business Wire repost) April 2, 2024 “Significant Financial Milestones”: FY 2023 segment detail and margin improvement .
StockInvest quarterly table: historical quarterly revenue, gross profit, EPS for Q2/Q3/Q4 2023 .
Q2/Q3 2023 transcripts and Q&A context .

Knightscope, Inc. (KSCP)·Q4 2023 Earnings Summary