Kraken Robotics Experiences Explosive Revenue Growth of % in Q1 , Reaching Million, Driven by Strong Demand for Subsea Technology
Adjusted EBITDA Soars % to Million, Reflecting Successful Execution and Enhanced Operational Efficiency
ST. JOHN’S, Newfoundland and Labrador, May 29, 2024
Source: Kraken Robotics Inc. (TSX-V: PNG, OTCQB: KRKNF)
Hold onto yer sou’westers, folks, ’cause Kraken Robotics just dropped their Q financial results and let’s just say, they’re makin’ waves—big ones. The marine technology mavericks are ridin’ a tsunami of success, postin’ a whopping % surge in revenue compared to this time last year. We’re talkin’ million smackaroos flowin’ into Kraken’s coffers, fueled by an insatiable appetite for their cutting-edge subsea tech.
Financial Highlights: Makin’ It Rain (Underwater)
Okay, let’s dive deeper (pun intended) into these numbers, shall we?
Revenue: From Guppies to Great Whites
- Q : . million (that’s a % increase year-over-year, folks!)
- Q : . million (lookin’ a lil’ shrimpy now, eh?)
And get this—that revenue is split between their awesome products (think underwater robots and sensors, the cool stuff) and top-notch services (like seabed surveys and data analysis).
Product Revenue: Robots, Batteries, and Sonar, Oh My!
- Q : . million (a % jump—someone’s been busy buildin’ robots!)
What’s drivin’ this surge in product sales, you ask?
- Subsea battery deliveries (keepin’ those robots powered up)
- Canadian Navy RMDS program work (Kraken’s tech is helpin’ keep our waters safe)
- KATFISH™ system production (more on this bad boy later, but trust me, it’s cool)
Service Revenue: Mapping the Deep and Cashing In
- Q1 2024: $5.1 million (a cool 125% increase—talk about riding the wave!)
This impressive growth in services is thanks to:
- Increased demand for Kraken’s Sub-Bottom Imager™ and Acoustic Corer™ technologies (these babies can see through the seabed like nobody’s business)
- A massive naval route survey contract in the Indo-Pacific region using their very own KATFISH system (spies and robots—what’s not to love?)
Gross Margin: A Slight Dip, But Don’t Sweat It
- Q1 2024: 45% (aight, so it’s down a tad from last year)
- Q1 2023: 59%
But hold your seahorses—this little dip is just ’cause the mix of products and services sold this quarter was a bit different. Nothing to be alarmed, matey.
Adjusted EBITDA: Profits So High, They’re Practically Airborne
- Q1 2024: $4.1 million (that’s a 354% increase—we’re talkin’ rocket ship to the moon kinda growth!)
- Q1 2023: $0.9 million (yeah, that’s cute)
This means Kraken’s not just makin’ money, they’re makin’ it rain! Their Adjusted EBITDA Margin (basically, how much profit they keep from every dollar of revenue) is lookin’ mighty fine too:
- Q1 2024: 20% (cha-ching!)
- Q1 2023: 12% (not bad, but… cha-ching!)
Net Income: From Red to Seriously Black
- Q1 2024: $2.2 million (Kraken’s officially swimmin’ in the black, baby!)
- Q1 2023: Net loss of $1.3 million (well, every pirate starts with a little debt, right?)
Talk about a turnaround! Kraken’s gone from losin’ money to straight-up stackin’ it.
Post Q1 2024 Highlights: Riding the Wave of Success
But wait, there’s more! Kraken didn’t just knock it outta the park with their Q1 results—they’ve been busy makin’ power moves since then too.
New Credit Agreement: Securing the Treasure Chest
First up, they snagged a sweet new credit agreement with a big-time Canadian bank. We’re talkin’ up to $75 million in credit facilities. That’s like findin’ a sunken treasure chest overflowing with gold doubloons! This cash infusion means Kraken’s got plenty of loot to fuel their ambitious growth plans.
Bought Deal Financing: Investors Jump Aboard the Kraken
And if that wasn’t enough, they also closed a “bought deal financing,” which is basically a fancy way of sayin’ they raised a cool $20.1 million by selling shares of their company. The good news? Investors are clamoring to get a piece of the Kraken pie! This cash injection will help them beef up their balance sheet (make sure they got plenty of booty in reserve) and pursue some exciting strategic initiatives (more robots, maybe?).
Management Commentary: Charting a Course for Continued Growth
So, what do the folks at the helm of this oceangoing success story have to say about all this? Buckle up, ’cause Greg Reid, Kraken’s fearless leader, is about to drop some knowledge.
“We are extremely pleased with our strong Q1 2024 financial performance, achieving record revenue and solid EBITDA margins,” said Greg Reid, President & CEO of Kraken. “We have significantly strengthened our balance sheet following the recent completion of our financing activities, which will support our growth strategy and allow us to capitalize on the substantial market opportunities ahead.”
Translation: “We’re killin’ it, and we’re just gettin’ started!”
Sales Pipeline Overflowing: Demand So High, It’s Practically Breaking the Sound Barrier
Reid went on to highlight the incredible demand Kraken is seeing for its technology. Remember that $900 million sales pipeline they talked about at the beginning of the year? Yeah, about that…
“Our sales pipeline has continued to expand significantly since the beginning of the year and now exceeds our initial projections,” Reid revealed, practically bursting with excitement. “This strong demand is being driven by several key factors…”
Industry Tailwinds: Why Kraken is Riding a Tsunami of Success
So, what’s fueling this insatiable appetite for Kraken’s underwater tech? Reid points to several major trends rockin’ the marine world:
1. Protecting the Undersea World: It’s Not Just About Pretty Fish Anymore
First up, there’s a growing need to keep an eye on all that critical stuff we’ve got down there beneath the waves. Think undersea cables carrying internet traffic, pipelines transporting energy, and all sorts of other important infrastructure. Turns out, the bad guys like to mess with that stuff, so countries and companies are scrambling to beef up security.
2. Naval Defense: Because Sometimes You Need More Than Just a Really Big Boat
Remember those geopolitical tensions everyone’s talking about? Yeah, those are kinda a big deal in the underwater world too. Countries are realizing they need to step up their naval game, and that means investing in cutting-edge technology like Kraken’s sonar systems and underwater drones.
3. Unmanned Systems: Robots are Taking Over the Oceans (in a Good Way!)
Speaking of underwater drones, the future is unmanned, baby! Okay, maybe not entirely, but there’s a huge shift happening as everyone from navies to energy companies realizes that robots are just better at some things—like exploring the deep ocean, for example. And guess who’s leading the charge in underwater robotics? That’s right, our friends at Kraken.
4. Mine Warfare: Because Nobody Likes an Underwater Surprise
Remember those pesky mines that have been causing trouble in the water for, well, pretty much ever? Turns out, they’re still a thing, and navies around the world are finally getting serious about replacing their aging mine-hunting equipment. Kraken’s sonar technology is tailor-made for this, and they’re seeing a surge in demand as a result.
5. Cost-Effective Force Multipliers: Making Every Dollar Count in the Deep Blue
In a world where budgets are tight and the need for underwater technology is growing, everyone’s looking for ways to do more with less. That’s where Kraken comes in. Their sonar systems and underwater batteries act as “force multipliers,” allowing navies and companies to get more bang for their buck.
Global Reach: From Canada to the World
Kraken isn’t just making waves in their backyard—they’re making a splash on the global stage. Reid highlighted the company’s participation in customer demonstrations and naval exercises all over the world. From the chilly waters of the North Atlantic to the sunny shores of the Indo-Pacific, Kraken’s technology is proving its worth in a variety of challenging environments.
Commercial Markets: Wind, Oil, and a Whole Lot of Opportunity
While defense might be Kraken’s bread and butter, they’re not ignoring the lucrative commercial market either. Reid pointed to strong performance in sectors like offshore wind and oil & gas, where their technology is used for everything from surveying the seabed to inspecting pipelines.
Full Steam Ahead: Kraken Sets Sail for a Bright Future
With a boatload of cash, a sales pipeline overflowing with opportunity, and a team of dedicated (and slightly eccentric) engineers at the helm, Kraken Robotics is poised to ride this wave of success for years to come. The future of underwater technology is looking bright, and Kraken is leading the charge.
About Kraken Robotics Inc.: The Marine Technology Mavericks
Kraken Robotics Inc. is a leading marine technology company that develops and sells advanced sonar and laser sensors, subsea power solutions, and underwater robotic systems. Based in St. John’s, Newfoundland and Labrador, Canada, Kraken has a global reach, providing innovative solutions to clients in the defense, commercial, and scientific sectors.
Call to Action: Dive Deeper into the World of Kraken
Want to learn more about the exciting world of underwater technology and how Kraken is shaping the future of the deep? Check out their website and follow them on social media:
Disclaimer: Because Even Pirates Have to Follow the Rules
Okay, so this is the part where we have to remind you that all this talk about the future is just that—talk. While Kraken’s management is optimistic about the future, actual results may differ materially from these forward-looking statements. So, don’t go betting the entire treasure chest on things working out exactly as planned.