Kraken expects to report up 56% year-over-year in 2022 revenue

Kraken expects to report $40 million in 2022 revenue, up 56% year-over-year. Photo: Kraken Robotics.
Kraken expects to report $40 million in 2022 revenue, up 56% year-over-year. Photo: Kraken Robotics.

Although audited results will not be released until April, Kraken Robotics' non-audited preliminary results as of December 31 show that the company has reached the midpoint of its 2022 revenue guidance of between $38 million to $42 million, about $40 million. As reported by the company, this represents more than 50% year-over-year growth, specifically 56%. It also expects to be within its previously announced EBITDA guidance range of $5 million to $7 million.

A strong year behind and good prospects for 2023

Last year the company announced the largest award in its history, a $50 million contract for the Canadian Navy's Remote Mine Location and Disposal System, in addition to other major contracts such as a $14 million contract for underwater batteries and a $9 million contract for KATFISH with a NATO navy customer. "Against the headwinds of continued supply chain tightness, inflationary pressures, and a tight labor market, we still delivered record financial results", said Greg Reid, Kraken President and CEO. "2022 was a strong year for Kraken", he summed up.

"Based on our contract wins to date and our visibility into our sales pipeline, we expect continued strong growth in 2023 and beyond", he continued. "In the defense market, the macro environment is robust as countries adapt to the new geopolitical norm to monitor and protect seabed assets and we are winning new customers and selling more products and services to existing customers. In the commercial market, we expect continued growth driven by offering services to companies focused on offshore wind and offshore energy".

Looking for growth

"We ended 2022 with a cash balance of $8.2 million, up from $5.7 million at the end of September and accounts receivable/contract assets of $13.0 million", said Joe MacKay, Kraken Chief Financial Officer. And, while the company's 2023 financial guidance will be provided along with the year-end audited results next April, the CFO gave some hints of what's to come. "Combined with an expectation of solid EBITDA margins again in 2023 and advances from customer contracts, as well as a potential $6.0 million from warrants exercises, we feel confident that our balance sheet has sufficient flexibility to allow us to execute on our financial plan this year and beyond", he said.

Precisely related to the company's planned next phase of growth, just this week Kraken Robotics announced the appointment of David Shea as its new CTO. The company expects him to lead the execution of Kraken's cutting-edge technology and product development. "David's expertise in ocean technology, experience in product development, and leadership of our engineering teams provides valuable support to Kraken in continuing our mission of developing unique subsea intelligence solutions for clients to overcome the challenges in our oceans – safely, efficiently, and sustainably", Greg Reid said then.

About Kraken Robotic

Kraken Robotics Inc. is a marine technology company dedicated to the production and sale of software-centric sensors, subsea batteries, and underwater robotic systems. It provides high-resolution 3D acoustic imaging solutions and services to enable its clients "to overcome the challenges in our oceans – safely, efficiently, and sustainably". The company is ranked as a Top 100 marine technology company by Marine Technology Reporter. Headquartered in Canada, Kraken has offices in North and South America and Europe.

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