Leading Autonomous AI-Robot Security Company Generating Millions In Revenue

Robots Are No Longer Just for Hollywood…

Editorial Feature | Dec 6, 2022 

What once was restricted to the world of science fiction is now a reality.

This is not a movie, as robots are finally here to protect us—and thankfully, they appear a lot more like R2D2 than Skynet and the Terminator.

Autonomous Security Robots (ASR) are quickly becoming an essential part of our future 1 as the population continues to grow past 8 billion people and the very real problem of law enforcement and security guards becomes a reality.

Bringing us towards this robot-secured reality is a Silicon-Valley-based advanced security tech company that builds ASRs that deter, detect and report with groundbreaking technology that’s proven to help fight crime and has the potential to be the largest disruption of public safety in history.                                    

In the USA alone, where the population is over 331 million, there are only 660,288 full-time law enforcement officers2 and just over a million more security guards3—that’s roughly 200 people to every one protector. But the officers and guards need to work 24/7, so the math is even worse (i.e., you can’t triple shift a human).

The need isn’t being ignored. Since its inception in 2013, this company has raised over $120 million, amassed 35,000+ investors by the time it listed on the NASDAQ in January 2022 and taken four advanced technologies (autonomous self-driving, robotics, artificial intelligence and electric vehicles) to develop its own proprietary tech from scratch and roll out for over 1.8 million hours of field operation to date.

Crime Prevention Driving a HUGE Market Forward

As technology advances, ASRs could potentially replace security guards4, while greatly enhancing the tool sets of professionals tasked with public safety.

The Security Robots Market is estimated to currently be $31.7 billion in 2022, while being projected to reach $71.8 billion by 2027, growing at a whopping 17.8% CAGR along the way.5

Built to succeed in this rapidly growing market, this innovative tech is aspiring to build toward a $30 billion company. However, it’s difficult to point to a similar story arc in this burgeoning industry.

With a unique hardware-software Machine-as-a-Service (MaaS) business model, the company generates its recurring revenue from a growing number of satisfied clients both in the public and private sector.

The company also has a solid long-term and short-term plan in place to solidify its spot in the market.

Short Term:

  • Technology: Continue to invest in new product development focused on additional capabilities and form factors
  • Acquisitions: Selectively explore possible target with unique technologies and/or teams
  • Strategic Partnerships: Explore additional opportunities with InsureTech and PropTech firms

Long Term:

  • FedRamp: Continue working towards targets ATO (Authority to Operate with the US Federal government
  • Technology: Continue to invest in new product development focused on additional capabilities and form factors
  • Acquisitions: Selectively explore possible target with unique technologies and/or teams
  • Strategic Partnerships: Explore additional opportunities with InsureTech and PropTech firms

Machine-as-a-Service (MaaS) = Ongoing Recurring Revenues

As shown above, this company has already proven a capability to generate millions in revenue from its business model.

The nationwide average for a police officer falls mostly between $57k and $67k,6 and fully-fringed is estimated to be up to $149k.7

Using those metrics, budgeting for 24/7 patrol requires 4-8 humans for 1-2-up patrol, thus in many cases costing municipalities +$1M per year.

In comparison, the company’s service model has annual subscriptions at an effective price of approximately $0.75 to $9 per hour with an all-inclusive service including Deployment (needs assessment, virtual demo, site assessment, site survey, shipping, logistics, setup, configuration and training); Technology (Autonomous Security Robot (ASR), Knightscope Security Operations Center (KSOC) user interface, charging systems, and data storage).

A single K5 ASR can generate ~$309,700 of revenue over a 5-year period and is either paid up front by the client or financed by a funding partner.8

Total cash outflows over the period is ~($133,000) yielding a margin of $176,700 or 57% as an example.

The concept stands out, as it presents luxury automotive per-unit economics, with a Machine-as-a-Service (MaaS) business model, which is almost like the customer is buying a new Tesla every year.

On the surface, that may sound pricey to the client, but it’s potentially one of the most cost-effective ways for a user to provide security, especially since they run 24/7 (it takes four humans to do that), and be deployable both in indoor and outdoor settings.

Stacked and Growing Roster of Clients

Since the launch of its ASRs, the company has been working tirelessly to present this new technology to potential clients across the US, and its efforts are paying off immensely.

In November 2022 alone, they secured seven new contracts and deployed dozens of machines for clients, including a leading US-based casinos and gaming facilities operator, a Fortune 1000 hospitality company, a Fortune 500 consumer foods manufacturer, and a privately held multi-family housing developer with 25 properties in Texas.9

Some of their new clients include a global manufacturer and distributor of medical and laboratory products, two hotels, a sports complex in New York, a multi-family housing complex in Pennsylvania10, and a 41-machine contract with the University of New Jersey.11

These new clients join an already impressive roster of top-tier clients like PG&E, which just recently doubled its order due to positive ROI.12

But perhaps the most important deal they signed in the last month is the acquisition of CASE Emergency Systems13 and its flagship Blue Light Tower system – a high-visibility, solar-powered, weatherproof, wireless emergency phone designed to function in virtually every possible setting, including remote locations.14

What to do now…

The autonomous security space is still in its infancy with one company positioning itself as the first mover. 

Sign up with your email address to learn more about this startup that has taken the idea from the movies and created a real-life R2D2 security robot.  The company has been operating for nearly a decade since its founding, has over 1.8 million hours in operation in the field, and has the business model and technology to make a big impact on society.

8Knightscope Investor Presentation, Slide 10

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