Kraken Robotics Reports 70% Revenue Growth in 2023 Driven by Strong Product and Service Demand

Kraken Robotics Inc. reported a 70% year-over-year increase in consolidated revenue for the fiscal year 2023, reaching C$69.6 million. This substantial growth reflects strong market demand for the company's underwater robotics solutions.

In the fourth quarter ending December 31, 2023, Kraken Robotics generated C$28.0 million in revenue, marking a 218% increase compared to the same period last year. Product revenue rose by 287% to C$19.6 million, driven by deliveries of subsea batteries, contributions to the Canadian Navy's Remote Minehunting and Disposal Systems program, and sales of KATFISH™ and Synthetic Aperture Sonar systems. Service revenue increased by 124% to C$8.4 million, attributed to increased work with its Sub-Bottom Imager™ and Acoustic Corer™.

The company reported a gross margin of 49% for the full year 2023, an improvement from 42% in 2022, attributed to the sale of higher-margin products. Adjusted EBITDA grew by 166% to C$14.1 million, with the adjusted EBITDA margin increasing to 20% from 13% in the prior year. Net income for the fourth quarter was C$2.6 million, a recovery from a net loss of C$1.3 million in Q4 2022.

Kraken Robotics' total assets stood at C$76.4 million as of December 31, 2023, up from C$71.4 million at the end of 2022. Capital expenditures for 2023 were C$7.6 million. The company indicated that strong momentum is expected to continue into the next fiscal year.