Please refer to the Audited Consolidated Financial Statements, Management's Discussion and Analysis ('MD&A') and the Annual Information Form for the year ended
Q4 2023 Financial Highlights
Consolidated revenue for Q4 2023 was
Product revenue in the quarter was
Service revenue in the quarter was
Gross margin percentage([1]) in Q4 2023 was 42% compared to 50% in Q4 2022 with the change related to revenue mix by project in the quarter when compared to the prior year.
Adjusted EBITDA(2) for the quarter was
Net income in the quarter was
Gross margin percentage is a non-IFRS ratio with no standard meaning under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Refer to the 'Non-IFRS Measures' section of this press release.
Adjusted EBITDA margin is a non-IFRS ratio with no standard meaning under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Refer to the 'Non-IFRS Measures' section of this press release.
Financial Highlights for year ended
Consolidated revenue was
Product revenue was
Service revenue was
Gross margin percentage(1) was 49% as compared to 42% in 2022. The increase is due the sale of higher margin products during the current year compared to the prior year.
Adjusted EBITDA(2) was
Total assets were
Capital expenditures for 2023 were
Net Income for the year was
2024 Financial Guidance Unchanged
As outlined in our
Management Comments
'2023 was a very strong year for Kraken, with 70% growth in revenue and 166% growth in Adjusted EBITDA(2). We expect our strong growth trajectory to continue in 2024. To use a baseball analogy, we are in the second inning of a nine-inning ball game,' said Kraken President and CEO
There is a notable acceleration in demand for dual use defense and commercial technologies for subsea security, surveillance, and infrastructure inspection. Kraken provides advanced technology solutions to these markets.
In the mine countermeasures (MCM) market, Kraken is one of a small number of companies with proven operational solutions, solid reference customers, and has the best price/performance offering. This is against a backdrop where existing
This MCM renewal cycle is now being accelerated by challenging geopolitical situations across the globe (the
Defense industry spending is growing and the allocation of spending to unmanned maritime platforms is growing. Kraken provides sonar and energy solutions to some of the strongest positioned Uncrewed Underwater Vehicles (UUVs) manufacturers in the world such as HII, Teledyne, and Anduril. These companies are benefiting as demand grows for reasons noted above but also as technical capabilities improve and new classes of subsea vehicles emerge as force multipliers, such as the XLUUV.
Commercial market activity is also strong, driven by the development and maintenance of offshore wind and offshore oil and gas infrastructure. In these markets, we offer technology differentiating solutions for seabed and sub-seabed intelligence, that is needed in both the buildout phase as well as operations and maintenance phase of offshore energy. Momentum in this market is visible as numerous suppliers to this market post strong financial results and growth outlooks and M&A activity grows.
NON-IFRS MEASURES
Non-IFRS measures, including certain non-IFRS financial measures and non-IFRS ratios in this press release, are provided where management believes they supplement measures determined in accordance with IFRS and provide readers with an improved ability to evaluate the underlying performance of the Company. Non-IFRS financial measures and non-IFRS ratios do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. This data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
Adjusted EBITDA and Adjusted EBITDA Margin
The Company believes that, in addition to conventional measures prepared in accordance with IFRS, Adjusted EBITDA is useful to securities analysts, investors and other interested parties in evaluating operating performance by presenting the results of the Company on a basis which excludes the impact of certain non-operational items which enables the primary readers of this press release to evaluate the results of the Company such that it was operating without certain non-cash and non-recurring items. Adjusted EBITDA is calculated as earnings before interest expense, interest income, income taxes, depreciation and amortization, stock-based compensation expense and non-recurring impact transactions, if any.
ABOUT
Contact:
Marketing Lead
Email: jnorth@krakenrobotics.com
Chief Financial Officer
Tel: (416) 303-0605
Email: jmackay@krakenrobotics.com
Certain information in this news release constitutes forward-looking statements. When used in this news release, the words 'may', 'would', 'could', 'will', 'intend', 'plan', 'anticipate', 'believe', 'seek', 'propose', 'estimate', 'expect', and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Company's current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in the Company's public disclosure documents. Many factors could cause the Company's actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak only as of the date of this news release. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Financial Outlook
The Company and its management believe that the statements regarding 2024 revenue, Adjusted EBITDA and capital expenditures contained in this press release are reasonable as of the date hereof, are based on management's current views, strategies, expectations, assumptions and forecasts, and have been calculated using accounting policies that are generally consistent with the Company's current accounting policies. These statements are considered future-oriented financial outlooks and financial information (collectively, 'FOFI') under applicable securities laws. These statements and any other FOFI included herein have been approved by management of the Company as of the date hereof. Such FOFI are provided for the purposes of presenting information about management's current expectations and goals relating to the Company's expected growth in its Products and Services groups. However, because this information is highly subjective and subject to numerous risks, including the risks discussed in the disclaimer for forward looking statements below, it should not be relied on as necessarily indicative of future results. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the FOFI prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although management of the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company disclaims any intention or obligation to update or revise any FOFI, whether as a result of new information, future events or otherwise, except as required by securities laws.
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