Kraken Robotics Updates 2023 Financial Guidance and Provides Strong 2024 Outlook

Sales Funnel Pipeline More than $900 Million

ST. JOHN'S, Newfoundland and Labrador, Feb. 15, 2024 (GLOBE NEWSWIRE) -- Kraken Robotics Inc. ("Kraken" or the "Company") (TSX-V: PNG, OTCQB: KRKNF) is updating financial guidance for the year ended December 31, 2023. While audited results will not be released until mid-April, unaudited preliminary results show that the Company’s strong momentum continued from Q3 2023 into Q4 2023. As a result, Kraken Robotics expects to report fiscal 2023 revenue at approximately the midpoint of our $66.0 million and $72.0 million guidance, representing top line growth of about 68% year over year. The Company also expects Adjusted EBITDA⁽¹⁾ toward the higher end of our $12.0 million to $15.0 million guidance, versus Adjusted EBITDA⁽¹⁾ of $5.3 million for the year ended December 31, 2022. Capital expenditures for 2023 are currently anticipated to be approximately $7.5 million, higher than our $5.0 million to $6.0 million guidance due to additional investments in assets for our engineering, customer success and services groups to drive growth in 2024 and beyond.

MANAGEMENT COMMENTS

"2023 was another strong year for Kraken Robotics, and we anticipate a strong 2024," said Greg Reid, Kraken President and CEO. "With our contract wins to date and visibility into our sales pipeline, we expect continued strong growth in 2024 and beyond. In the defense market, the macro environment is robust as countries adapt to the new geopolitical norm to monitor and protect critical underwater infrastructure and territories. We are winning new customers and selling more products and services to existing customers. In the commercial market, we expect continued solid growth driven by offering services to companies focused on offshore wind and offshore energy."

STRONG OUTLOOK FOR 2024 BACKED BY EXISTING CONTRACTS AND PIPELINE

For 2024, we currently expect revenue between $90.0 million to $100.0 million and Adjusted EBITDA⁽¹⁾ 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 largely driven by contracts in hand and reflects strength across both our Products and Services groups addressing defense and offshore energy customers.