Three Knightscope Clients Renew Security Robot Contracts

Rhea-AI Summary

Knightscope, Inc. [Nasdaq: KSCP], a robotics and AI company focused on public safety, has announced three client contract renewals for its K5 Autonomous Security Robot (ASR) services. The renewals include:

1. An entertainment company operating casinos renewed for a property in Illinois, part of a larger agreement covering 43 U.S. properties.

2. A tier-one automotive supplier in Kentucky renewed for its 8th year of service.

3. An Oregon healthcare organization with over 70 facilities renewed its initial agreement for a second year, expanding from one to three K5 ASRs.

These renewals demonstrate Knightscope's value in enhancing safety across various industries, including entertainment, automotive, and healthcare sectors.

Positive

• Three client contract renewals for K5 Autonomous Security Robot services
• Expansion of services with existing clients (e.g., healthcare organization increasing from 1 to 3 K5 ASRs)
• Long-term client retention (8th year renewal for automotive supplier)
• Diverse client base across entertainment, automotive, and healthcare industries

Negative

• None.

Insights

Financial Analyst

Knightscope's announcement of three client contract renewals for their K5 Autonomous Security Robot (ASR) services is a positive indicator for the company's business stability. The renewal by their largest ASR client, an entertainment company with a potential for expansion to 43 properties, suggests strong customer satisfaction and potential for revenue growth. The 8-year relationship with a tier-one automotive supplier demonstrates long-term client retention, which is important for recurring revenue models. The healthcare organization's expansion from one to three K5 units within a year indicates product efficacy and market penetration in a new sector. However, the financial impact remains unclear without specific contract values or overall revenue contribution. For investors, these renewals signal product market fit and customer loyalty, but the scale of impact on Knightscope's financials needs further clarification for a comprehensive assessment.

Tech Expert

Knightscope's K5 ASR represents a significant advancement in security technology, blending robotics and AI for public safety. Its adoption across diverse sectors - entertainment, automotive and healthcare - showcases the versatility and adaptability of the technology. The 8-year service history with the automotive supplier is particularly noteworthy, indicating robust performance and reliability over an extended period. In the healthcare sector, the K5's potential to aid in meeting Joint Commission Hospital Accreditation Standards and improve HCAHPS Scores demonstrates its value beyond basic security, integrating into broader operational and quality metrics. This multi-functionality could be a key differentiator in the competitive security technology market. The recent introduction of the K1 Laser suggests ongoing product innovation, which is important for maintaining a technological edge in this rapidly evolving field.

Market Research Analyst

Knightscope's contract renewals across three distinct industries - entertainment, automotive and healthcare - indicate a broad market appeal for their ASR technology. This diversification is a strategic strength, potentially buffering against sector-specific downturns. The entertainment sector client's large-scale deployment potential (43 properties) suggests a significant market opportunity in high-traffic, cash-intensive environments. In the automotive sector, Knightscope's role in protecting a $1.249 trillion industry that contributes 3% to US GDP underscores the critical nature of their service. The healthcare expansion is particularly noteworthy, as it opens doors to a vast, security-sensitive market. However, the competitive landscape and market share information is lacking, which would be important for assessing Knightscope's position relative to other security solutions providers. The company's ability to cross-sell and upsell within existing client relationships, as evidenced by the healthcare client's expansion, could be a key growth driver moving forward.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- Knightscope, Inc. [Nasdaq: KSCP] (“Knightscope” or the “Company”), an innovator in robotics and artificial intelligence (“AI”) technologies focused on public safety, today announces three new client contract renewals for their K5 Autonomous Security Robot (“ASR”) services.

Three Knightscope Clients Renew Security Robot Contracts (Photo: Business Wire)

Knightscope’s largest ASR client, an entertainment company and operator of integrated entertainment, sports content and casinos, renewed its contract for a property in Illinois under a larger master agreement announced in 2023 that enabled corporatewide expansion of Knightscope technologies to 43 properties across the United States. Knightscope’s technologies improve safety, leave a positive impression and enhance the guest experience in casinos due to their high-tech appeal. This is particularly important given the large amounts of cash being handled and the number of out-of-town guests with valuables locked in their rooms and cars.

A tier-one automotive supplier in Kentucky specializing in automotive seating, interior systems, and emission control technologies has renewed for its 8^th year of service. The company has more than 300 sites in 35 countries, and serves some of the biggest automotive manufacturers, including Volkswagen, Ford, Renault-Nissan, and the PSA Group. Helping to protect automotive supply chain workers and property is vital to ensuring the ongoing health of an industry that generates $1.249 trillion in US revenue and accounts for 3% of America’s GDP.

An Oregon healthcare organization with more than 70 primary care, specialty, and urgent care clinics; a hospital; a children’s hospital; and a 24-hour mental and behavioral health services center deployed its first K5 ASR in 2023 at its hospital. The client subsequently added 2 more K5s at other locations and is now renewing its initial agreement for the second year. When following Knightscope’s recommendations, ASRs can help healthcare clients meet or exceed the Joint Commission Hospital Accreditation Standards and potentially improve patient satisfaction that may in turn elevate Hospital Consumer Assessment of Healthcare Providers and Systems (HCAHPS) Scores – a key industry metric. Knightscope is proud to play an ongoing role in improving the safety of our nation’s healthcare providers, its patients and visitors.

Knightscope’s mission is to make the United States the safest country in the world. Clients that continue to renew their contracts strengthen the Company’s long-term value proposition, putting it one step closer to protecting all places people live, work, study and visit.

GET EXPERT HELP

To learn more about Knightscope’s portfolio of public safety technologies, including the recently announced K1 Laser or any of its Autonomous Security Robot, Blue Light Emergency Communication System or Automated Gunshot Detection Services, book a discovery call or demonstration today at www.knightscope.com/discover.

About Knightscope

Knightscope builds cutting-edge technologies to improve public safety, and our long-term ambition is to make the United States of America the safest country in the world. Learn more about us at www.knightscope.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified by the use of words such as “should,” “may,” “intends,” “anticipates,” “believes,” “estimates,” “projects,” “forecasts,” “expects,” “plans,” “proposes” and similar expressions. Forward-looking statements contained in this press release and other communications include, but are not limited to, statements about the Company’s goals, profitability, growth, prospects, reduction of expenses, and outlook. Although Knightscope believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks, uncertainties and other important factors that could cause actual results to differ materially from such forward-looking statements, including the factors discussed under the heading “Risk Factors” in Knightscope’s Annual Report on Form 10-K for the year ended December 31, 2023, as updated by its other filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of the document in which they are contained, and Knightscope does not undertake any duty to update any forward-looking statements, except as may be required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240916888961/en/

Public Relations:

Stacy Stephens

Knightscope, Inc.

(650) 924-1025

Source: Knightscope, Inc.

FAQ

What industries are renewing contracts with Knightscope (KSCP)?

According to the press release, Knightscope (KSCP) has received contract renewals from clients in the entertainment (casino), automotive, and healthcare industries.

How many K5 Autonomous Security Robots did the Oregon healthcare organization deploy?

The Oregon healthcare organization initially deployed one K5 ASR in 2023 and subsequently added two more, for a total of three K5 ASRs across different locations.

How long has the automotive supplier been using Knightscope's (KSCP) services?

The tier-one automotive supplier in Kentucky has renewed its contract for the 8th year of service with Knightscope (KSCP).

What is the potential impact of Knightscope's (KSCP) ASRs on healthcare facilities?

Knightscope's (KSCP) ASRs can help healthcare clients meet Joint Commission Hospital Accreditation Standards and potentially improve HCAHPS Scores by enhancing safety and patient satisfaction.