ST. JOHN’S, NEWFOUNDLAND, May 30, 2023 /GLOBE NEWSWIRE/ — Kraken Robotics Inc. (TSX-V: PNG, OTCQB: KRKNF) (“Kraken” or the “Company”), announced it has filed financial results for the quarter ended March 31, 2023 (“Q1 2023”). “With more than $120 million of large contract wins since the beginning of 2022, we are seeing an acceleration in end market demand driven mainly by a heightened geopolitical focus on maritime security and growth in offshore renewable energy,” said President and CEO Greg Reid. “We have started 2023 on solid footing. Q1 is seasonally our slowest quarter, and we expect to see accelerating results throughout the year driven by defense contracts in hand and normal ramping of activity in our services business focused on offshore wind.”


Q1 2023 Financial Highlights 

  • Total revenue was $7.6 million versus $5.5 million for the quarter ending March 31, 2022 (“Q1 2022”), a 38% increase.
  • Products revenue was $5.3 million compared to $3.7 million in Q1 2022, a 43% increase, which was driven by a record number of synthetic aperture sonar (SAS) being delivered, work on our large subsea battery order received in Q4 2022 as well as production of a KATFISH™ high-speed towed synthetic aperture sonar (SAS) system.
  • Services revenue increased 26% to $2.3 million over Q1 2022, driven by completion of a Robotics-as-a-Service (RaaS) contract utilizing our KATFISH system.
  • Gross margins in Q1 2023 were 59.4% as compared to 32.9% in Q1 2022 and increased due to a change in product and project mix.
  • Adjusted EBITDA[1] for the quarter was $0.9 million compared to an Adjusted EBITDA loss of $0.4 million in the comparable quarter. The impact was due to higher revenue and improved gross margins.
  • Net loss in the quarter was $1.3 million, compared to net loss of $2.6 million in Q1 2022.
  • Cash balance at March 31, 2023 was $4.0 million. Subsequent to the quarter, payments on large projects totalling over $8.0 million were received.
  • Total assets were $65.2 million at March 31, 2023, compared to $63.9 million at March 31, 2022.
  • At March 31, 2023, Kraken had $13.8 million in previously awarded non-repayable funding to draw upon from government agencies and project partners for research and development. Of this, $2.2 million of cash has been received for contracts to be completed.

[1]Adjusted EBITDA is a non-GAAP financial measure and gross margin, and adjusted EBITDA margin are non-GAAP ratios, in each case with no standard meaning under IFRS, and may not be comparable to similar financial measures disclosed by other issuers. Refer to the “Non-GAAP Measures” section of this press release.


Q1 2023 Operational Highlights

Product Business

  • During the quarter, Kraken announced $2.8 million in SAS purchase orders from defence customers. These systems will be integrated to Autonomous Underwater Vehicles (AUVs) for use in minehunting and security applications.
  • January 10, 2023: Appointed David Shea to Chief Technology Officer.

Service Business

  • Q1 is seasonally the slowest quarter for our Services business given offshore weather conditions in our main operating geographies.
  • During Q1, Kraken completed a 200-kilometer KATFISH seabed survey in coastal waters of a large Asia Pacific country.
  • During Q1, Kraken completed several smaller sub-seabed services jobs (cable depth of burial and boulder detection) for offshore wind projects.

Operational Highlights Subsequent to End of Q1 2023


Outlook for 2023 

Kraken Robotics reiterates its financial guidance provided on May 1, 2023. For fiscal 2023, we expect revenue to be in the $66 – $78 million range and adjusted EBITDA in the $12 – $17 million range.  The mid-point of our guidance range ($72 million in revenue and $14.5 million in EBITDA) implies revenue growth of 76% over 2022 and adjusted EBITDA growth of 275%. Capex in 2023 is expected to be $5-$6 million.   


Non-GAAP measures, including non-GAAP financial measures and non-GAAP ratios not recognized under IFRS are provided where management believes they assist the reader in understanding Kraken’s results. The Company utilizes the following terms for measurement within the MD&A that do not have a standardized meaning or definition as prescribed by IFRS and therefore may not be comparable with the calculation of similar measures by other entities and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

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 the MD&A 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. Adjusted EBITDA Margin is defined at Adjusted EBITDA divided by Total Revenue.


Q1 2023 Q1 2022
Net Loss (1,336) (2,559)

Income Tax

Financing Cost

Foreign Exchange (Loss) Gain

Share-Based Compensation

Depreciation and Amortization











EBITDA – excluding restructuring and other costs 868 (572)

Acquisition Costs and Restructuring

Adjusted EBITDA

Adjusted EBITDA Margin







Gross margin is defined as revenue less cost of total sales. Gross margin percentage is defined as gross margin dividend by total sales.

Q1 2023 Q1 2022


Cost of Sales





Gross Margin 4,503 1,816
Gross Margin Percentage 59.4% 32.9%




Kraken Robotics Inc. (TSX.V:PNG) (OTCQB: KRKNF) is a marine technology company providing complex subsea sensors, batteries, and robotic systems. Our high-resolution 3D acoustic imaging solutions and services enable clients to overcome the challenges in our oceans – safely, efficiently, and sustainably.  Kraken Robotics is headquartered in Canada and has offices in North and South America and Europe. Kraken is ranked as a Top 100 marine technology company by Marine Technology Reporter.











Forward Looking Statements

The Company and its management believe that the statements regarding 2023 revenue and adjusted EBITDA 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.

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.

Neither the TSX Venture Exchange Inc. nor its Regulation Services Provide (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release, and the OTCQB has neither approved nor disapproved the contents of this press release.


For further information:

Stephen Griffin, Group Marketing Manager

Joe MacKay, Chief Financial Officer
(416) 303-0605

Greg Reid, President & CEO
(416) 818-9822

Sean Peasgood, Investor Relations
(647) 955-1274