Release Date: May 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Successful acquisition of SeaTrepid International, expanding operational scale and commercial opportunities.
- Mobilization of equipment and securing extended contracts, indicating growing demand for Nauticus Robotics Inc (KITT, Financial)'s technologies.
- Significant reduction in net loss compared to previous quarters, showing financial improvement.
- Strong cash position at the end of Q1 2025, primarily due to funding from the at-the-market offering.
- Positive customer response to the integration of SeaTrepid's operational legacy with Nauticus's technology, leading to new master service agreements.
Negative Points
- Revenue for Q1 2025 was only $0.2 million, a decrease from the previous quarter and the same quarter last year.
- Operating expenses remained high at $6 million, with non-recurring professional fees contributing to increased G&A costs.
- Net loss for the quarter was $7.6 million, although improved, still significant.
- The company faces challenges in scaling equipment and personnel capacity to meet growing demand.
- Potential pricing pressure from competitors in the oil and gas market could impact revenue.
Q & A Highlights
Q: With oil prices declining, how is the demand for Nauticus Robotics' vehicles changing in the broader oil and gas industry?
A: John Gibson, CEO, explained that while lower oil prices might challenge larger clients, they present an opportunity for Nauticus to offer more efficient and cost-effective solutions. Nauticus is positioned to be 20-25% below current price points of alternatives, which could lead to increased interest as companies seek to reduce costs.
Q: Can you bridge the Q1 revenue to the full-year revenue outlook of $16 million for 2025?
A: John Gibson noted that the $16 million revenue target is supported by a strong pipeline, with over three-quarters of it from day-rate work. The remaining portion involves software sales and proposals in defense and technology advancements. The company is actively working on closing these deals to meet the target.
Q: How confident are you in achieving the $16 million revenue target this year, and what is the expected contribution from software sales?
A: John Gibson expressed confidence in the target, with about 75% expected from asset utilization and 25% from software sales and proposals. The company is focusing on advancing autonomy solutions, which are gaining traction in the market.
Q: What is the impact of the SeaTrepid acquisition on Nauticus Robotics' operations and market opportunities?
A: The acquisition has expanded Nauticus' operational capacity and customer relationships, accelerating technology deployment. The integration has gone smoothly, and the company is seeing increased demand for its autonomous solutions, particularly in reducing environmental impact and improving safety.
Q: How does the partnership with Lidos fit into Nauticus Robotics' strategy, and is there a potential exit strategy?
A: John Gibson highlighted the value of the Lidos partnership, particularly in the defense sector. While he couldn't discuss exit strategies, he emphasized the importance of the partnership in bringing value to the maritime industry and navigating the defense sector's complexities.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
