Kraken Reports 126% Revenue Jump in 2019

Canadian marine technology company Kraken Robotics Inc. reported an annual revenue of $15 million (CAD) for 2019, up 126% from $6.7 million for 2018.

Revenue in 2019 was highlighted by the delivery of a $9 million order for SeaPower batteries to Ocean Infinity in the second half of the year; the delivery of a KATFISH system in the second quarter of 2019 as well as delivery of sensors to multiple customers, the company said.

“2019 was an extremely busy year for Kraken,” said Karl Kenny, Kraken’s President and CEO. "We are delighted to have generated positive Adjusted EBITDA in 2019 and continue to invest in our people and infrastructure to be able to scale our business and execute on some significant contract pursuits that are in our pipeline.”

Adjusted EBITDA for the year was $0.4 million compared to an Adjusted EBITDA loss of $3.3 million a year ago while adjusted EBITDA over the second half of 2019 was positive $2.1 million.

Net loss for the year was $3.0 million compared to a net loss of $2.9 million in the prior year. In addition to the change of control payment that occurred in Q4, we had a gain on the disposal of ThunderFish Alpha in Q3 of $0.6 million. The year was also impacted by share-based compensation expense of $1.4 million compared to $0.3 million in the prior due to the grant of stock options to employees, officers and directors during the year.

“With the recent delivery of another KATFISH and batteries to customers in Q1, we are off to strong start in 2020. We have put in the hard yards on many projects and we are excited about the opportunities ahead of us as our products and services are adopted in the military and commercial markets.”

Based on deliveries already made, Kraken said it is forecasting consolidated first quarter 2020 revenue of $6 million – $6.5 million compared to $1.4 million in the first quarter 2019.

Kraken said it is not currently experiencing major impacts from the recent oil price collapse and coronavirus pandemic, but noted these could affect its supply chain, customers, employees and operations and impact the number of contracts closed, sales cycle lengths and ability to deliver product and services in a timely manner.