ST. JOHN’S, NEWFOUNDLAND, April 18, 2024 /GLOBE NEWSWIRE/ — Kraken Robotics Inc. (TSX-V: PNG, OTCQB: KRKNF) (“Kraken” or the “Company”), announced it has filed its financial results for the fourth quarter and year ended December 31, 2023 (“Q4 2023”). Please refer to the Audited Consolidated Financial Statements, Management’s Discussion and Analysis (“MD&A”) and the Annual Information Form for the year ended December 31, 2023, filed on for more information. The MD&A contains a comprehensive analysis of Fiscal 2023, the financial quarter ended December 31, 2023 (“Q4 2023”) and other information. Unless otherwise specified, all dollar amounts are denominated in Canadian dollars.


Q4 2023 Financial Highlights 

  • Consolidated revenue for Q4 2023 was $28.0 million compared to $8.8 million, an increase of 218% over the comparable quarter and marked the Company’s strongest quarter to date for both the product and service businesses. Revenue mix was 70% Product / 30% Service.
  • Product revenue in the quarter was $19.6 million, an increase of 287% over the comparable quarter. The increase was the result of continued delivery of subsea batteries, work with the Canadian Navy on its Remote Minehunting and Disposal Systems program, the production of our KATFISHTM product as well as the sale of Synthetic Aperture Sonar systems.
  • Service revenue in the quarter was $8.4 million, an increase of 124% over the comparable quarter due increased work with Sub-Bottom ImagerTM and Acoustic CorerTM
  • 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 $5.7 million compared to an Adjusted EBITDA(2) of $0.9 million in the comparable quarter. Adjusted EBITDA margin([2]) in the quarter was 20% compared to 10% in the year ago quarter.
  • Net income in the quarter was $2.6 million, compared to net loss of $1.3 million in Q4 2022.

[1] 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.

[2] 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.


Q4 2023 Q4 2022 % Change 2023 2022 % Change

Total Revenue

Gross Margin[1]

Gross Margin Percentage[1]

Adjusted EBITDA[2]

Adjusted EBITDA Percentage[2]
































Financial Highlights for year ended December 31, 2023 

  • Consolidated revenue was $69.6 million compared to $40.9 million, an increase of 70% over 2022.
  • Product revenue was $52.6 million compared to $24.9 million in 2022, an increase of 111% and was driven by growth in all our key products businesses including systems and subsea battery businesses.
  • Service revenue was $17.0 million, an increase of 6% compared to 2022.
  • 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 $14.1 million compared to an Adjusted EBITDA(2) of $5.3 million in 2022, an increase of 166%. Adjusted EBITDA margin(2) was 20% compared to 13% in the comparable year. This is due to higher revenue with improved gross margin(1).
  • Total assets were $76.4 million on December 31, 2023, compared to $71.4 million on December 31, 2022.
  • Capital expenditures for 2023 were $7.6 million, compared to $5.1 million in 2022, with the increase driven by the growth of the overall business.
  • Net Income for the year was $5.5 million, compared to a loss of $4.2 million in the prior year.


2024 Financial Guidance Unchanged

As outlined in our February 15, 2024 press release, Kraken is reiterating its 2024 financial guidance. For 2024, Kraken expects revenue between $90.0 million to $100.0 million and Adjusted EBITDA(2) in the $18.0 million to $24.0 million range. Capital expenditures in 2024 are expected to range from $6.0 million to $7.0 million. Our 2024 outlook is driven by contracts in hand and reflects strength across both our Products and Services groups addressing defense and offshore energy customers.


($ 000s) Actual 2024 Guidance Range Implied Change
2023 Low High Low High

Total Revenue

Adjusted EBITDA[2]

Adjusted EBITDA Percentage[2]

Capital Expenditures


















400 bps



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 Greg Reid. “We have a strong pipeline of opportunities and a unique competitive position. In 2023, we made significant improvements in our business, including strengthening our technical and commercial depth, adding specific skillsets to our board of directors, and making significant investments in headcount and infrastructure. While not always apparent to external parties, these changes are positioning us to capture significant new business and improve our execution in the future. Below, I highlight several points that give us confidence that our future looks bright as the Kraken team brings our world class solutions to existing and new customers across the defense and commercial markets.”

  • 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 Navy equipment is often dated, and a natural industry upgrade cycle is underway.
  • This MCM renewal cycle is now being accelerated by challenging geopolitical situations across the globe (the Middle East, the Black Sea, the Baltic, China/Taiwan and other Asia-Pacific areas, and the Arctic). Most navies around the world are in various stages of planning and executing these upgrades with multiple significant tenders in the market or coming to market in the next 12-36 months. Kraken has worked hard for the last 10 years throughout the naval defense community, working with end users, OEMs, shipbuilders, and policy makers to help shape the requirements for this upgrade cycle. While we have primed some programs ourselves, we are often involved as a subcontractor as a part of larger consortium bid processes. Often, we are part of multiple consortiums bidding on a program. We believe we are well positioned for success with maritime defense spending programs through the end of this decade.
  • 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, 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.

Adjusted EBITDA Margin is defined at Adjusted EBITDA divided by Total Revenue.

($ 000s) Q4 2023 Q4 2022 2023 2022
Net Income (Loss) 2,584 (1,270) 5,546 (4,243)

Income Tax

Financing Cost

Gain on Extinguishment of Contingent Consideration

Foreign Exchange Gain

Share-Based Compensation

Loss on Disposal of Assets

Impairment of Goodwill

Depreciation and Amortization


























EBITDA – excluding restructuring and other costs 5,728 330 12,962 4,045

Acquisition Costs and Restructuring

Impairment on Inventory

Adjusted EBITDA

Adjusted EBITDA Margin















Gross Margin and Gross Margin Percentage

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

Q4 2023 Q4 2022 2023 2022


Cost of Sales









Gross Margin 11,714 4,393 33,956 17,037
Gross Margin Percentage 42% 50% 49% 42%




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.











For further information:

Jack North, Marketing Lead

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

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

Sean Peasgood, Investor Relations
(647) 955-1274


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.

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.