For the second quarter in a row, St. John’s-based Kraken Robotics has posted record revenue figures, revealing it brought in $28 million for the three months ended Dec. 31, a 218 percent increase over the same quarter the year prior.
Seventy percent of that revenue came from product sales, Kraken said in a statement, and 30 percent from its service business. The company’s revenue guidance for the full year is now $66 million to $78 million of revenue, with earnings of $12 million to $17 million.
The company also repeated a previous comment that it expects to make between $90 million and $100 million of revenue in 2024, and $18 million to $24 million of earnings, based on contracts it has already signed, mostly with the defence and offshore energy sectors.
“2023 was a very strong year for Kraken, with 70 percent growth in revenue and 166 percent growth in Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization),” said CEO Greg Reid. “We expect our strong growth trajectory to continue in 2024.
“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.”
One area of particularly strong growth for Kraken has been subsea batteries, particularly from the Canadian Navy, which uses them for mine hunting. On Thursday, the company also announced it had received a new $6 million order for subsea batteries from “a customer that cannot be disclosed.”
Kraken stock traded down slightly on the TSX Venture Friday and currently sits around 96 cents, with a market cap of more than $198 million.