Earnings call transcript Q2 2023

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Operator

Hello, and welcome to the Nauticus Robotics Earnings Conference Call for the Second Quarter ended June 30, 2023. My name is Maria, and I will be your operator today.

Today's press release, including the financial tables, are available at the Investor Relations section of the company's website at www.nauticusrobotics.com. The company also plans to file its Form 10-Q with the SEC later today.

Joining us on today's call are Nauticus' Founder and CEO, Nic Radford; and its CFO, Rangan Padmanabhan.

will call we questions. remarks, their open for the Following

forward-looking would formal remind making Before uncertainties. law considered risks their number we involve today under like a and be we're management begins and statements remarks, to of securities some everyone may statements that

forward-looking factors, control, to result, a the which described actual and events of could materially you which from are in are a that cause As of there beyond differ those caution number we many statements. the company's results

For company's detailed assumptions made to and more uncertainties risks, relating the filings the and see please disclosures forward-looking with public earnings statements, the SEC. in the release

are undertaking to release will you circumstances disclaims that the date to financial occur discuss obligation or statements statements required reconciliation consider and tables forward-looking the non-GAAP measures encourage carefully the or as except law. by GAAP to made, Nauticus metrics. also metrics as Nauticus events read reflect to and earnings these after disclosures in any forward-looking applicable you its update the

risks the to of in We descriptions SEC uncertainties company's detailed but the for its circumstances, uncertainties limited with under Factors filings. other filings and including, not to, to well identified variable business disclosures and caption as the Risk you as and the refer

filings You the SEC may by free SEC get website Nauticus' visiting for at www.sec.gov.

in and I would available like Relations Nauticus' made Investor be will recorded for call everyone available via that being to website. link the remind section is replay a this of

Nauticus' over Now I'll Radford. turn the Founder and Nic to CEO, call

Nicolaus Radford

earnings second to and call. welcome everyone, morning, XXXX our Good quarter

significant finalizing Aquanaut. our commissioning the commercial in and as Nauticus quarter our Fleet. to fleet quarter of launch We closer was production Nauticus second The transitional second-generation move for a of first progress the made the we

and excitement seem share the signals to feelings customers high, autonomous for is are application as increasing. revolutionary demand Our our this robot about market

commercial Petrobras, Norwegian Stinger as we Shell, deals energy leading quarter, partner the for and our signed Equinor. During with companies such

this work engagements do. hundreds other These Aquanaut dollars of type with energy in actively are for household companies customers. spend can of that millions year of working We named a

is So us of the opportunity set ahead significant.

to During defense the a programs. also phase quarter, in we couple the of next transitioned our

While authorizations. dip, it's our in us revenue to in impacted and which is expect to delays this sometimes during temporary future rebound the in phases, quarter. view advance there's government contract we That always the new great sourced down QX, as quarter. We was see revenue a current to why

to was XXX exercises I in you to do just on our the oversee date. robots tell commissioning firsthand some for to Vancouver our Let's doing water start We've can our commissioning we're work, making the Aquanauts. will the of be that up with the and things I customers. and of able production new some logged amazing the it's in more progress unit had first than offshore hours

is Assembly expect completion both and other them nearing year. Aquanaut this the in still we to water on later two the units, of have

autonomous as world's subsea large be Petrobras. offshore our toolKITT, deployed services in autonomous with of its kind flagship date. Aquanaut, contract competitively This to to of start robot one ranks let's and Nauticus So a our awarded was Petrobras' active Aquanaut of technology. energy Petrobras' supervised Field, one software At inspection using perform offshore the Jubarte activities in-field will in most basins. will

is opportunity XX offshore was worth Brazil days' much the over larger. for While $X.X just in for work, initial Petrobras Nauticus contract million, market of approximately the

million this a a worth award year. over for success places a $XXX in relevant subsequent initial winning player and awards Our potential market Nauticus

of XXX% opportunities opportunity, wins ever you size the can company any no market chasing. we're of the some see While of

contracts Stinger tasks Shell very Equinor. will highlighting flexibility our with contracts have but Both with Aquanaut, We of different the will offering. partner and for utilize also recently our signed require

subsea tools. their contact cathodic enables Aquanaut Shell, For and place of protection, and pick

utilize For to leaks advanced novel the in system project Equinor, Aquanaut's will detect ways. perception

Our to some absolutely customers. details serve a they're and [NautiWorks], confidential, wholly-owned government such, think national and subsidiary, projects. We're give as they recently and we save you of incorporated government these but to more continues We lives our on progress security. wish working, better we've also division we could will enhance

As inflection this we've Hopefully, our of year. to programs be be in discussed a materially more we'll some where are previously, could later position revenues an nearing point, higher. comment

comment before on to financials Rangan plans. to the like I'd turn quarter, call cover the the our Lastly, over I for financing to

we're offering our the we at on customers' to autonomous and build reshape think fleet. service to environment. this, the our Nauticus, safety, In industry. order to And our costs, hugely have trying impact do Here will positive we a need

this, To capital and additional from currently of the been $X of $XX the finalizing is funded help July, non-dilutive for million investors, equity an has million finance expected in existing already we're to which shortly. commitments close balance

service discussions investors for larger will in our round, also with active round offering are expansion. which We support a of capital, second a

our turn to Rangan, financials. With Rangan? over CFO, our I'll said, discuss call that the to

Rangan Padmanabhan

Thank you, everyone. and Nic, hello,

For quarter, revenue in in we $X.X The delays authorization government with contract year comparable revenue $X.X to ago the due compared decrease million of to entities. the period. second in generated million was primarily

net positive the Our share to in was due warrant the liabilities. prior primarily period. of impact value was the $X.XX the fair The of income to change share the a per loss per in net of increase quarter for compared year $X.XX

our quarter nonrecurring in Excluding year adjusted period. items, per prior was share the loss compared $X.XX $X.XX net the to for

was warrant given convertible the that increase net of plans less $XX.X our Nic resulted adjusted dilution gain a financing value The value million discussed. in Our in fair excludes from the existing that loss likely by determination liability. notes caused

to balance capitalization. our sheet on and Moving

had we our including of CD. $X.X end, cash quarter restricted equivalents, cash of million and As

end do spoke Our net the of at about. the These Nic position the was financing $XX.X capital working numbers include quarter options that million. not

And the are actually I today, clear mentioned also we on that Monday. to operator just later up. we're filing filing mistakenly wanted that

financial completes my summary. That

to Now Nic. I'll turn the call back

Nicolaus Radford

multibillion-dollar real I'm accomplish right can We we in minds our we're and easy, best bring to trying and we're Nauticus, change change not economy, ocean real goal. of At into the employ positioned optimistic the but industry with the right as Rangan. the market. is the some early substantial driving Thanks, to this start commercial customers expect growth follow, both and government disrupt at high. contracts, ones from the to we of time future we significant product some for working more And through is company. Demand our

why We been the capital. a has funding know secure concern is market, which for diligently been to working we've

an give at update additional time, to While this details the we to we can't quarter. expect later market provide this

our and This for your remarks, we're ready completes Operator. prepared now questions.

Operator

Thank you.

Markets. session. your with Brian proceed from question We first [Operator Our will Dobson question. a be now comes Instructions] question-and-answer Chardan conducting Capital with Please

Brian Dobson

on morning. program recent wins. good the Congratulations Hi,

early contracts share awards? you will some those momentum business forward? you can for do If from And feedback believe going generate these new

Nicolaus Radford

you. from referring or commercial you in Yes, or And Brian, are the to the government side? good totality hear just to

Brian Dobson

government First, on the commercial have a side, the side. and question then I

Nicolaus Radford

Shell. moving We've for culmination offshore sure. type gates, we've regard Shell. Yes, the from their of that We've working different time with to activities some has stage as and been disclosed assets. With to live the trial been now progressed through real

negotiating And later performing we're outcome what that, them successful And we'll so be for what doing Shell are currently. on of additional based the currently year. we for this That's work. follow-on that's

performance this pending the say, up that into successful more longer-term visibility -- we opens larger, So are, that hopeful I'd contracts.

our future lot goes that priori for of our hard honestly, this now all saying our the history, prototypes in said point, unlocks we operating we I we're as And from we're move now contracts be are units, into and with do since We And we're work benefit realizing inflection then right? contracts. production work it we them finally that think without well a of to as So to all our accomplish. expected. now preproduction winning a have it's more earlier, contingency, little and

But a mentioned, both with we Shell, very our Equinor us. going positive pretty active QX partner, to in for Norway, had we've for fall and perception, Petrobras, be now in it's Stinger as

Brian Dobson

Thanks much. Excellent. very

Nicolaus Radford

Yes. the overhead. apologize, defense I and flying And an there's right on airplane side,

platform all toolKITT, lot the already owned repackage us some package agnostic, Aquanaut they come the really and so In current assets to from And in things that. activity, we software has instances, do by continued It's for it the right? services. that have. to with the like contracts On other side, defense that follow-on using want us we've there's they so performing of toolKITT existing a in and instances,

completed And gates. so successfully we're We've in the continuing those both stage contracts. to perform

for I year. think the look team. of our it's of a starting Nauticus the last as again, compounding And to year of our and efforts stress next health of indicator going performance the an good effect we're to forward see the and into point technology inflection of we just this worth years' is I'm now and

Brian Dobson

that as be should [NautiWorks], we Excellent. source? regarding And new And will pick course up of your how that subsidiary, reported?

Nicolaus Radford

Yes.

a there entity hit allows contracting we more directly more of so It and from at But to reported it's lot stockworks will the that the any the atypical confusion works is owned. holistically a that obviously, wholly a government under sensitive we from be contracting us coast whatsoever government top lot it's what side. just and your falling sensitive So of won't having be with government umbrella. do flexibility. not inspiration It's have

Operator

question question. your comes from Lake [Operator Our next with Instructions] with Please Jacob proceed Street.

Jacob Stephan

my for taking Thanks questions.

to here? we the rebound So to in mean I'm kind Does I to QX -- are what you or...? revenue kind rebound just kind of get What expecting X.X the us with here. that QX referenced see back happen curious, of flat of

Nicolaus Radford

going Yes. bit of mentioned, was quarters QX longer. be they a you moment are said a And take so in would had what contracts relatively it's similar of to were -- can this previously sometimes in we and of and we we fashion, some in had going -- some renegotiating be to a had Because we have this if -- year the yes, little dip. these knew

really worth units production, I is think from, the we which contract. comes really however, the of build. and commercial That's under feel efforts on now we're the come So line those growth off momentum seeing get it's where longer-term side, and focusing the assembly that the like

little source and in our not we the upside, representative QX leads very negotiations of been which is kind revenue, is helpful of some The with. decline It's its of also performance. representative own government to a engaged of of bit had

And that back likely we on lot and the will commercial rebound stay been see be we've So side. running where before quarters. coming QX to a realized that pickup seeing to will the the in of appreciable we're until

So short of I the mean, the yes, that's long.

Jacob Stephan

That's million then of non-dilutive of $XX kind understood. on just that's financing. No, the And Okay. helpful.

of round. the get with kind million? does kind far road before see you revenue can that to how we what look at we of I So bigger here mean, expect levels that the down $XX

Nicolaus Radford

Yes.

want we the And pretty the balance nature, the reception high, closed closing five to working on given fleet. expanding it. we've currently and keep is of we're market first the So and in July, the capital-intensive

And you so -- very mentioned, in but additional as discussions, also that the we advanced are round.

work so and want are on keep signals strong, it, The due to foot hard be service the capture prefer gas to financing. we to there to organization delays have order our the in we'd not and build And and to we pedal. any demand very

Operator

concludes this back the time, now this like turn to Radford. to session. At over I our call Mr. question-and-answer would

Nicolaus Radford

our and your joining you Thank us interest for future. for vision the for in and today Nauticus the story

to are share the Have transforming progress we way. autonomous day. and our updates the committed blue cutting-edge you remain with economy a to robotics wonderful through We along excited technology,

Operator

today's conference. concludes This

your Thank for your disconnect lines may You participation. time. you this at

Nauticus Robotics (KITT) 11 Aug 232023 Q2 Earnings call transcript