NetworkNewsWire Editorial Coverage
New York, NY – December 7, 2022 – Seems there’s always something smoking hot or fiendishly clever on Wall Street that captures investor attention. Meme stocks were recently the rage as social media groups turned dogs into darlings by taking aim at short-positioned hedge funds. Before that, CNBC coined FAANG as an abbreviation for a group of must-have technology stocks. Point is, big money was made in both arenas, and savvy investors fully understand that the largest gains are usually found at the intersection of opportunity and momentum — both of which are converging now at the center of four extremely important technologies: robotics, artificial intelligence, autonomous self-driving technology and electric vehicles. There’s little doubt these technologies are rapidly changing the world and how we live. Uniquely combining these core technologies, Knightscope, Inc. (NASDAQ: KSCP) (Profile) is transforming the $500 billion security industry with its Autonomous Security Robots (ASRs) that provide 24/7/365 security anywhere we live, work, visit, study or play. The company continues to add big-name clients and is building real momentum in a sector desperately seeking solutions, unlike meme stocks such as AMC Entertainment Holdings Inc. (NYSE: AMC), which had their day. Other high flyers such as retail juggernaut Amazon.com Inc. (NASDAQ: AMZN), online trading platform Robinhood Markets Inc. (NASDAQ: HOOD) and EV maker Tesla Inc. (NASDAQ: TSLA) have lost some momentum but still have strong followings and opportunity ahead.
- Knightscope Autonomous Security Robots are approaching 2 million hours of operation.
- Statista estimates that ~2.7 million industrial robots were operating in 2020 as part of a $55 billion market expected to grow to $165 billion in the next six years.
- Knightscope recently completed the acquisition of CASE Emergency Systems, which is expected to spike 2022 corporate revenue.
- In just the last month, Knightscope received a bevy of new orders from existing and new customers for its robots and CASE Emergency products
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The Rise of the Robot Market
According to Statista, the global market for industrial robots in 2020 was estimated at around $55 billion and is projected to explode to more than $165 billion in 2028. There were approximately 2.7 million industrial robots in operation in 2020, and as robots continue to rise on the back of soaring installations and shipments, they will becoming increasingly important of efforts to make life safer and easier.
In a bit of a dystopian twist, robots will be protecting other robots. The market for security robots, which are used in multiple applications as a complement to human counterparts is building momentum. ResearchandMarkets estimates that the global security robot market will expand at an impressive 14.1% compound annual growth rate (CAGR), more than doubling from 2021’s $8.7 billion to hit $19.3 billion in 2027.
Every day, the TV screams about the growing frequency of criminal activity across the country. The increase in thefts, assaults, vandalism and worse, all against a backdrop of the fewest number of police in the United States since 2016. This has created even greater demand for the deployment of smart, autonomous sentry robots armed with HD cameras, recording and streaming, and reporting capabilities. It has been shown that the mere presence of robotic police can deter crime before it happens, interrupt should it begin, and provide invaluable evidence for the capture and prosecution of offenders. What’s more, these cost-efficient robotic officers are incorruptible and relentless in their duty while only needing minimal amounts of time to recharge.
From its headquarters in Silicon Valley, Knightscope, Inc. is recognized as a global leader in the design and build of ASRs that provide 24/7/365 security anywhere people live, work, visit, study and play in America. The robust capacity of its ASRs position Knightscope at the intersection of multiple important technologies today: autonomous driving, robotic, electric vehicles (EVs), and artificial intelligence (AI). The company incorporates all of these technologies across its portfolio of robots to provide its customers with extra eyes, ears and voices on the ground. Additionally, Knightscope offers Knightscope+, a professional monitoring service that employs former law enforcement and military personnel to receive alerts and respond accordingly to the customer’s security post orders.
Revenue Expected to Surge Threefold
In a recently published video, Knightscope CEO William Santana Li details the direction of the company and how it is “building a moat” to hold on to market share as the premier security robot company in the country. Before that, Li jumps right into the meat and potatoes of any business: the company’s numbers, which are getting a significant boost following the October acquisition of CASE Emergency Systems.
In the video, Li commented, “We’ll be filing the 8-K for the combined entity at the end of the year, but we expect that the two units together will likely be running at a revenue run rate in the range of $12 million to $14 million, delivering on the accelerated growth versus the $3.4 million from 2021 by significant amount.
“The size of our contracts continues to increase as we have announced numerous multi-unit deals such as the doubling of the contract with PG&E along with the growth of three major healthcare networks and universities,” he continued. “Plus, we recently signed the largest K5 order in the company’s history from a major retailer. We are gaining clients that can scale as we make more and more progress in multiple verticals.”
Knightscope’s ASR product lineup includes numerous different models, each with unique capabilities. Five of the models are stationary, and three are mobile and equipped for different environments (inside, outdoors and a rough terrain model currently being developed). The utility of these ASRs is exemplified in the diverse list of clients, including the federal government, public institutions, commercial businesses (a list comprised of many Fortune 1000 companies), hospitals, school campuses, entertainment venues, logistics, storage facilities, manufacturing plants and more.
Moreover, the ASRs are customizable to each client’s requirements, whether public safety or crime detection and prevention. A sampling of some of the capabilities includes fire detection, license plate recognition and two-way communication features. Knightscope robots have logged more than 1.8 million hours of operation during which their real-world value has repeatedly been demonstrated. Searching for options to combat crime in Huntington Park, Los Angeles County deployed one Knightscope K5 unit, which resulted in 46% fewer crimes reported and a 27% rise in arrests in just one year. Huntington Park Council, unsurprisingly, unanimously voted to extend the contract with Knightscope.
That is just one example from a long list. Knightscope robots have been instrumental in closing cases involving burglary, domestic violence, hit-and-run, auto theft, fraud, shootings and more. In its bid to make America the safest country in the world, Knightscope also developed a free mobile app that allows people to take and upload videos of areas that they think would benefit from a Knightscope surveillance and patrol.
Buying Revenue, Expanding the Portfolio
As explained, Knightscope gave its revenue a substantial increase with the recent acquisition of CASE Emergency Systems, a leader in blue-light emergency phones and an innovator in next-generation wireless emergency communications technology. Emergency blue-light phones are modern-day versions of police call boxes that were popularized in the late 1800s. The units use solar power and satellite communication tech to facilitate reliable communications to improve safety. They can be found in use across the nation’s freeways, bridges, tunnels, parking lots, campuses and industrial complexes, remote roadways, parks and recreational areas and much more.
Equally important are the go-forward synergies by bringing CASE clients into the Knightscope ecosystem, effectively widening the company’s nationwide footprint, while providing upsell opportunities. With the merger, Knightscope also added CASE’s multistate team, more than 7,000 devices deployed nationwide, and nine production and logistics facilities located across California, Texas and New York.
Orders, Activations Pouring In
Knightscope management is not shy about stating its goal to establish the U.S. as the world’s gold standard for public safety by deploying machines-in-network supporting law officers and security forces from coast to coast. Judging by the flurry of news releases in November, the company is hitting on all cylinders as it executes on that mission.
News during the month included activating more ASRs at a casino and gaming facility in Iowa for an existing client, a new contract with a Fortune 1000 hospitality firm in Seattle, a first installation order from a new Fortune 500 consumer foods manufacturer customer with the opportunity for 30 more locations, and a new contract with a multifamily housing developer with 25 properties in south Texas.
Additionally, the company signed a new contract at a New Jersey university for 31 of its K1 Blue Light Towers and 10 of its K1 Blue Light E-Phones. In Florida, a college placed an order for 22 K1 Blue Light Towers. Other new activations include 25 more ASRs and 16 K1 Blue Light Towers, along with five more orders for ASRs across multiple verticals and states.
Investors Love Momentum
This year has been tough sledding for tech companies that were the epitome of interest in recent years for multiple reasons. The stock market tends to be predictably cyclical, so a rebound in 2023 certainly would not be out of the question. Demand for innovation and new technologies is far too strong to keep good companies down. Before it came public, Knightscope attracted a passionate investor base of 35,000 investors that contributed more than $120 million to fund development. With that sort of following, Knightscope now finds itself at the intersection of momentum and opportunity, along with other companies working to establish footholds in the same sweet space.
Tesla Inc. (NASDAQ: TSLA) is the household name in electrification of vehicles as well as autonomous driving. The company develops and deploys autonomy at scale in vehicles, robots and more. While best known for its EVs and massive battery-building gigafactories, Tesla is invested in robots too, unveiling its Optimus humanoid robot at its AI Day 2022 in September. The humanoid robot is designed to perform general robotic tasks for humans.
Amazon.com Inc. (NASDAQ: AMZN) is investing in robotics, autonomy and security. The one-time book company spent more than $1 billion to acquire robotaxi company Zoox in 2020. In June, Zoox met a milestone when its vehicle operated, in the words of Jesse Levinson, Zoox cofounder and CTO, “with no one inside, no chase vehicle, and no emergency stop, all on open, private roads with non-Zoox agents, including pedestrians, cyclists, cars and trucks.”
Robinhood Markets Inc. (NASDAQ: HOOD) built its brand as a leader that set the retail investing world on its head by democratizing the practice with a mobile application. The Menlo Park, California-based company is an ideal example of a company riding momentum. Robinhood offers equity, cryptocurrency and options trading plus cash-management accounts. The company believes the financial system should be built to work for everyone, so it focuses on creating products that let individuals start investing at their own pace, on their own terms.
AMC Entertainment Holdings Inc. Preferred Equity Units (NYSE: AMC) was arguably one of the most popular stocks of 2021 during the so-called meme craze, where it was not uncommon to see billions shares of its common stock (AMC) trade in a single day. That momentum creates social awareness and presence. The company has 950 theaters and more than 10,500 screens across the country, operating 22 of the 50 highest grossing theatres in the country, including four of the top five.
Whether owing to market dominion, cutting-edge technology or a strong social media presence, investors looking for returns rally around certain companies with momentum. When a company can amalgamate that momentum with results, watch out — it can be an interesting ride.
For more information about Knightscope, Inc., please visit Knightscope, Inc.
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