Knightscope, Inc. Q1 FY2025 earnings call

• Revenue growth from service and product segments. - Gross loss improved due to cost savings and price optimization. - Operating expenses reduced through strategic changes in go-to-market, R&D investment, and cost discipline. - Focus on driving positive gross margins, scaling services and product footprint, and operating efficiently. - Significant changes made in the last 15 months including new Board, CFO, management team, and facility consolidation.

Total revenue for Q1 2025 was $2.9 million, a 29% increase from $2.3 million in Q1 2024. Service revenues grew to $2.1 million (25% increase from $1.7 million prior year) due to strength in ASR subscriptions and full service maintenance agreements. Product revenues increased 44% to $809,000 (vs $563,000 prior year) from distribution partnerships. Gross loss was $700,000, an improvement from $1.4 million prior year, driven by cost savings. Operating expenses were $6.2 million, down 9% year-over-year, with R&D up 35%, sales & marketing down 15%, and G&A down $800,000. Net loss was 11% lower than prior year, with cash balance at $11.2 million.

Management is focused on executing to achieve positive EBITDA and earnings, with a long-term focus on creating shareholder value rather than short-term gains. Emphasize scaling revenue and optimizing costs for future profitability.

• Macro uncertainty impacting financials, including tariffs and component lead times. - Disruption risk from moving to a new facility before August. - Uncertainty in government contract timelines and potential impacts of macroeconomic factors on customer decisions.

Q: How is macro uncertainty impacting conversations with potential customers?

A: Impact on financials like tariffs, but political focus on security is positive.

Q: When will positive EBITDA and earnings be reported?

A: Timing depends on business growth, focus on long-term value.

Q: Effects of Doge program on federal security customers?

A: Some negative impact on relationships, but potential $10B opportunity from AI task force input.