KITT - Earnings call transcript Q4 2023

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Operator

Good day, everyone, and welcome to today's Nauticus Robotics 2023 Q4 Earnings Call. [Operator Instructions] Please note, this call is being recorded, and I will be standing by if you should need any assistance. It is now my pleasure to turn the conference over to Kristin Moorman, Nauticus' Special Project Leader.

Kristin Moorman

Thank you, and good morning, everyone.

Joining me today and participating in the call are John Gibson, CEO and President; Vicki Hay, Interim CFO, and Nick Bigney, General Counsel; and other members of our leadership team. will and prepared financial we operations, concerning call, testing vehicle results. today's first remarks provide our On

Following that, quarter we our is results will on answer questions.We the available year have full and website. fourth our of which for XXXX, now released

forward-looking is following projections future In shortly make a replay our conclusion on comments or we of for the statements. today's webcast, will addition, being are and regarding available our be expectations events today's on that call call the website call.Please note

are beyond filings the as risks statements results which can risks this review our a refer with the release over and uncertainties, the metrics of earnings discuss turn and SEC.Also, to Forward-looking it listeners from actual our subject reconciliations press John. number release our current to in many cause to advise our expectations. to to materially of our and we earnings are may differ will now These We on non-GAAP risk control. factors call.I in provided please uncertainties discussed

John Gibson

Good morning, and morning. CEO. us this great as call be first transpired Kristin. pleased has the last the for since call. you deal to for the our I'm on presenting A joining time conference quarterly thank results Thanks,

innovation over customer-centric being for-profit of months, enterprise. a First, the to we've from a X transformation the research organization company last initiated the being and development

public the alignment years a Nick experience added of electrical quarter, deliver combined with during company contractual During Norway, to in Jorge America of up international reporting added skills we us requirements Bigney, X and of full in XX fourth expertise.We've we in service for operational sales, effort the certifying with and company countries for.We public engineers, with leadership including cost CFO, complex with in added Machnizh. with an our collaboration sales interim to important the Counsel, customers domestic as deal experience signed well X-digit as financing skills, software Hay, mechanical, team and He also and for are and MkX recently we've captained and an General Jorge currently multiyear Brazil a a has have of and superior work management and Vicki XXXX. Aquanaut to who company. the commercial previous Latin fall incredible software sales team the has company brings the

realized. to much the and agreed stronger also this from as Aquanaut manipulators to months. an level The bigger in As ways by over Depth. the XD we wind, required parties are We an for materially both changed to were Nauticus projects talking path aquaculture. believe And called a the all-stock significantly autonomous as repair, We with Nauticus. the accountability team subsea the best than stronger we less software deal. address a our business. autonomy focus beginning vehicles.Let's continue year with Autonomous into for After consideration, build at into and to we has situation repair. transaction, be to capital manipulators increases X have of past vehicle team, deliver Aquanaut vehicle. our exceeded few leadership, and present electric what to allows work the the termination I start prior solutions, first, When built projects. work inspection transforming best a government grow XD merger of is working see the internal own was and Autonomous intend difficulty the progresses, the our previously Nauticus structure Depth agreement intend at and manipulators, units, designed autonomy for call. Solutions off to a and electrical you Group. gas, changed. the was earnings to at and business, The you the collaborative markets complete few Depth independently. XD needed We've customer the go has Aquanaut has seek made, and on is we A share the those about to as maintain matters.Previously, was together with remain transforming and our forward inspection, us excellent We've capital in own any on Solutions from shareholders benefits you we units Autonomous let terminate and to announcement changed me The that software was will our moment, results each results, leaders forward.Now price great the expect X will each midstream can great for The $X announced With of oil as IMR business telecommunications, during can commonly structure maintenance move to reorganized relationship MkX components including because speaking business team. addressable solutions. Aquanaut part them software solutions, of we've historical

entirely focused are on inspection. efforts initial Our

size at the reductions methodology.The weather away autonomy compelling currently efficiency guidance what international to is oil AUV are make current and their required oil demonstrate work adopters gas providing depth move early to and and platform in value of industry. hydraulic We in our ] to to champions on the an ability vessel company for electrification both with the and oil have [ and the gains, potential leaks the of replace company, contracts major regular operations. submissions, the fluid to These a to autonomy hence to staff, regardless hydraulics from decreases super untethered minimize

system made doing meters And last X,XXX full product. of our we we? to testing did where activity. exceeding So in Mexico. week, We're an monitoring testing the the idea currently ROV from are with transformation Gulf We've

and capabilities well vehicle. Aquanaut thus ascending more The It During tests we're improving recovery, the descending above practicing many is station-keeping is emergency these performing is prove recover, numerous system Nauticus launch going optimization, and communications, the far. times, testing include and vehicle. to our as to team doing tests well acoustic procedures and expectations of the

conduct and I've to from our some our validate tasks several commercial learn later testing to ability move have ever much this of YouTube work with channel. Best to video by posted need video our to a testing to way. to We posted summer.We operational the

being to You meter online. among vehicle can which than and the find to above listening video issued other Chief the our Vehicle for earnings of Stu greater early ], X,XXX being the the release shows our The take in is Aquanaut Engineer, and testing Vehicle to performing linked than Mexico in last we're assembled and in on things. like XXXX.I'd also of is introduce comments an seabed, our the a maneuvers X and meters, Donnan for X link Aquanaut Stu? to those few [ the is to Gulf video, depths far. diving X. is now, the webcast X you our a night make you to of leader moment simply prepped shop less MkX watch thus a Please great Vehicle hovering in testing

Unknown Executive

John. Thanks,

of we've in the the last Over MkX of made of a few confirming days, Gulf Mexico. lot Aquanaut great progress the functionality

has return potential performed dives the depths on focused We've all analyze tetherless we We've various been and wait Tetherless have these testing weather navigation has to the vehicle data patterns improve demonstrated from meters, also continue the environment. to recording initial identify will X,XXX issues. while the been commanding commanding performance systems testings. navigation functional greater test of Our than depths. we at this executed of verified and week, any where deepwater in for for and at and survey autonomous Analysis behaviors. data while more

John Gibson

guess back me. your Well, that's turn [indiscernible] the to I end of it

autonomous let's about So call with what pick we to toolKITT. up the talking software

us its other the value differentiates to a and duty the development to from addressing last form the we've software this manipulators us robots our enhancements to an design robotic sets We've features. Aquanaut ROVs. to software to objects architectural our used interact can fit-for-purpose with that's third-party We're are on inspection as couple user both Nauticus an infrastructure the gained necessary experience the to successfully software The be of deployed the into to realized enhancements several have But operating allows on couple apart be of subsea rather toolKITT Nauticus being decisions light toolKITT independent as to to we to the short, testing data path unintegrated multi-agent ability than the while during generation competitors. work move autonomous To software from months manipulators, offer Now is operating move platform primary developed robots, this We're on required be in transition drive gathering The of the operators. than subsea untethered developed. robotic a and to of factors service rather or It each platform. numerous tethered toolKITT of we proprietary the product. with our AUV independent. commercial striving and electric of for platforms, a maintenance transform untethered. already replacement knowledge and The of subsea's your the having system robots. both what a need improvements chain is current facilitates creating In the a what numerous rather repair. are for user up interface than platforms organism deployed on software standard suppliers. having only system The choice, imagine array commercial from and vehicle.If needed currently system future different we This the wear of value software.

to with we manipulators into the needed, supplying ROVs Given of will subsea construction-related Aquanaut, possibility vehicles. be providers service especially the for doing and Heavy-duty discussing We're limited work. power integration of for their light-duty size our work. other are

We also operation the manipulators, ROV electric impact no Conventional ours, see reduce environmental autonomy potential to hydraulic a arms. fluid subsea all like to associated providers has with leaks. move of by

entirely Our are autonomous. arms

This how working electrical the on same We hydraulic is immediate and we market where manipulators have investigating can outstanding a have autonomous an to well. manipulators an team impact.Our our deploy as autonomy on business. is government team

organizations. billion enormous, on to the and competencies, $X.X exceed government which in market total smaller. concepts, is in available are capital we Therefore, portion our timed the focused capital do matching gets is larger often While have We much breakthroughs, we address are seeking the undertake segment market which innovation, true believed to projects of XXXX, sufficient projects. new in larger can not it's

providing We have to leadership talent succeed and the in innovation.

of needs consistent XXXX, talents and project. government of sometimes demand and fourth pursue innovation Unit quarter related. sporadically. Nauticus call Nauticus. of letter DIU, we second project freedom awarded We hard completed in quarter DIU We were cash and government and will related Defense for to the Defense revenue cash we've for completed We has work lumpy that our both first the a to often future project projects. XXXX. do team During awarded a anticipate receiving pipeline any believe the these Innovation and not the projects that and indicating competencies. Department flow contracts nongovernment of successfully projects to the of projects to be pipeline the a Both completed to are augment flow the hence the Consequently, revenue are currently

new robotic and opportunities, Our insights programs. currently domestic and discussions their seeking pursuing is into government team is having international. We're extremely with talented companies both nongovernment-related

of being we are seeking robotics which a call. taken opportunities.We conducted for total us be can assessment of X not and a next completed our each will companies available market it assist if We industry at be to Work does should for have well larger business defense units, suited communicate U.S. disqualify our variety expertise.

it with financials. Now that, our review to turn going Vicki to over I'm to Hay

Victoria Hay

good Thank you, and morning.

a I full $X.X interim year. was units John government for This a XXXX. $XX.X earlier.Operating Aquanaut million 'XX. $XX.X being year million, covering million which Revenue for CFO in charge these as onetime of quarter $XX.X included Revenue for is $X.X December future is the contracts of revenue I increase was flows expenses financial million, for year from which As fourth units. last came and quarter the mentioned, down in an updating with the of period cash from quarter will previous for which in the the the is our XXXX million from same XXXX the impairment fourth projected were $XX.X overview million joined after the million, $X.X from down Full performance discounted organization primarily taken mentioned year. XXXX. $X.X be million, fourth on

during recorded the a XXXX. million oil for relating also contract recognized $X.X and commercial revenue for which of to contract, testing We Aquanaut loss an be gas the the on will vehicle

numerous $X.X QX the held worth relating have is to charge assets quarter sale, to $X.X the the the Hydronauts the XXXX XXXX, of the from at and the still of recorded and not $XX.X executives in million million were and the of the attributable Additionally, vision. balance quarter in first assets. This that million Hydronauts, DRIP year. the million of sheet that 'XX.Net and were the loss 'XX 'XX, [ $XXX,XXX. close $XX.X the is Adjusted in to net assets at million look was $X.X million from for transformation moved of assets first loss we fourth ] a the items common the stockholders the a sales $XX.X anticipated the million the the fit loss $X.X the include in $XX.X These end was a future quarter of full year. we monitored. and working $X.X we quarter year year or the we of X third have collectively $XX.X fourth million for through being than year.As for for X which $XX.X into severance taken vessel do previous of a been departed is actively To previous smaller full price.Cash and that to have [indiscernible] actual reflect impaired effect, increase sold 'XX. an business, a by net quarter was excess We million 'XX increase reported period which same adjusted compared larger million loss million, full for

However, the which stronger of of going XXXX, investors, from quarter we $XX.X secured current puts position us additional million in first during a funding forward.

With recent additional we changes, opportunities costs. organizational the evaluated have to reduce

reduce expenses XX% to As by cost a not cost through streamlined these efficiencies.Although the will positive, the and more the call headcount, our are pillars the to reduced expecting XXXX than very results enterprise. result, of are John. efforts, financial innovation over back key rightsizing G&A management combined now management transformation in we enhanced customer-centric with for-profit organization, Nauticus I a the of and overall to pass year-on-year

John Gibson

to the Vicki. Thank it would I'll questions, like look so And take And and to back to you responding. would we the like do, ask, if you, as I forward a turn please operator. in prone queue, to few to get

Operator

Markets. Instructions] [Operator we'll with first from Chardan our question take And Capital Brian Dobson

Brian Dobson

the do meaningful meaningful hearing some seeing a could in that you be ROVs. opportunity, our what year? contacts upgrade of What meaning find we've the for cycle most exciting industry, been for next are From or in of areas XXXX 'XX? And which a upgrade you year in industries are the key

John Gibson

Appreciate the dialing question, Brian. I appreciate today. you

for oil offshore from industry really and a X prices industry. lot growth That's commodity kept also last years. or of over X have ROV gas environment So market, apparently ROV having the true the and the

not So lot a have ROVs of sold. new been

ROVs Perry, XXXX of the aging oceaneering begin their to for So growth you're sales looking schilling ], excellent be replace looking at upcycle in fleet. an manufacturers. at [ would all for Probably the all to

we a that's us forward to and opportunity because capital going that change creates think ready for here infrastructure, vehicle good I during their move a tested making XXXX. as see a you're people to should we in have go also

we're that we'll able XXXX uplift that water get some into step of So ROVs and I uplift. to looking for in toe forward in our market to enjoy think and general, be

Brian Dobson

Yes, very good.

the and certificates us I prepared some business any working an to? a government-related been those related of remarks. some into or on delved of could have additional DoD update you will guess color you give You receive contracts during bit on of your little

John Gibson

that to skills innovation think providing the are our that DoD for marketplace. and we Yes. really suited technology mean We Sure. really that business. our like side, I

company, and lumpy, really for shareholders our it's sporadic. However, pretty it's and our

continuity And we in need so and to get revenue cash flow.

group a we and January. spoken in receive in participating proposals believe us out I've about successful completed December. it indicating I did need and well. certificates that doing X to make work. completion long exclude we were does excited that to encouraging projects going other And on we so as future submitting We do and french They we're sure completed in us do personally very to forward. And with conversation and were them, X. complete as to our from We projects another as not wanted as go did defense-related We

a So want great excellent conclusions I we there, your all company we American realize of like to government opportunity a are. funding, upon have would a bet dependent place think start-up you you're the when But not customer. U.S. that's to and when you're any money that where coming

Brian Dobson

and you SG&A those item, been year over also key pulling you've that envision so? some the expenses expense to then some levers the it, you changes and to, guess, how Can of to making been that it, I move noticed call We and R&D Yes. a next, line forward. you've speak call reduce or

John Gibson

If I a our you can a because it's the now do here product. the product is case year been if organization, you entire this said were ago. for on that, the would difficult Brian, have question is what next in current focus And

in people not while from are currently comments to so that's might batteries And R&D. what doing. what fuel interested not doing our on cells, We're be we're lithium switching

that ensuring and certifying the testing, ready. are is we commercially product have We

we've small to is It's large. and quite silent. is the I'd R close got the D silent, not so And but say it's

we So we needs of any and as would delivery that where working distract to getting MkX have the that in Aquanaut to doing great anything from that us successful. is a shouldn't the at the to majority spending shifted our opposed completed, be related We're work. future product and on entirely market start development point

stands the opposed the R&D, to as development. say R for you D silent So delivery is anticipate us when and

at we're going So I moment, the where right. think that's

Brian Dobson

you how Petrobras on good. color a And clients, little relationship us of speaking bit Yes, your can and of is evolving? very give deliveries with

John Gibson

with mean, I over a I'll do of are Jorge we where too. we certified. I've of by enthusiastic entirely and it Jorge for they've off just have when understands seen Jorge? us things. set I saying customers. that. about such that our the product to a champions get Machnizh comment. this win is could of to been start I amount technology engaged, with work we'll for supportive, I'll current talk continue the turn couple never

Unknown Executive

offshore we're I can of customer is echo of that what supportive accomplish in context customer, the the to trying extremely Brazil.

As you opportunities. its of significant in offshore and know, a major that's development has complexities deepwater, area

John Gibson

That we've future. works. really bear to have of to being the too. great from down meeting trying bring with was the our doing just delivery, got we're the having the aren't company company powerful testing. is ] we deploy and sort Brian, this we what we'll great on well we have a at discussions, fact as Jorge, we're value shift a in vehicle as in I'm And They customers see marketing getting at them being that's and that support. video and tremendous a to testament a to personally that's pretty [ that, done, see They person, that

that of to commercial being be business. We revenue very and have need getting made the some core enhancements we the in testing, the to some for are close model additional but

Brian Dobson

I've question, And Yes. know lot asked final I here. a

more factors to those for taking most important focused, steps on? rather make the focused As I focus guess, you're your what team do as customer the R&D see you to than company

John Gibson

be we as is customer-centric do to Actually, the got It's transformation have some culture our a opposed #X. probably cultural technology-centric. here. of work The requirements to We've to there. contractual big alignment

be cost is one Another just conscious.

on We've have but this in of costs XXX over to from had we reduced our we think than call or less probably G&A XX. haven't number down I paper, brought that tremendous a employees returning the incredibly for focused being written on by and of lenders stewards our to more value We're XX%. creating to and customers. good value we than have our our shareholders money and a

investment turn note. into So I be of to stewards mean, and great we really intend an to this

focus so is where today. that's the And

Operator

our David question We'll Trading. [ next take David ] Marin from with

Unknown Analyst

future? currently you do in making how have of Aquanauts you for as many the do And near see many today? How

John Gibson

have time a to the a have the at time. or we some making we and are of we're term. still currently to probably sensors X point business and Excellent certify. this really assembly vehicles that testing being cash as but quicker we that #X, tremendous and X modifications question. down to Vehicle in and shop, with not pieces on in cost XXXX, with move to the Vehicle in And We're vehicle assembled, be of here X [ vehicle pieces, it market contracts to provide and will successful the we gave completely unless X. here the We in and the #X and ConXboxes little of X do X. in from we see assembled We some result of is experience X and in and forward a ] pickup our hugely Vehicle trying the X commercial being the that is water putting in and vehicles begin We the take just parts we as success tested. plans will certify vehicle the vehicle with really see to batteries need QX and in that's have in confidence the all a is completing as that of Vehicle those going in ensure the building near are sometime flow X learning any the to the that and be confusing, have necessary and or it's

drawing the the in X in the people X want on time. X X this at no So or a in X, and box shop, board Vehicle water, X

Unknown Analyst

instill you technology investors amazed wondering, And buying? just there were we Everyone All insiders $XX the fact property, and filings a I buying? wondering, the see shareholder, confidence don't in to isn't insider see contrary, am million the by at you a were One but least valuation, You right. why any saying just just selling I'm too, I anyone everyone some this. question. sometimes company, $X.XX I'm this mean why $X.XX, see the intellectual on with very guys maybe the more the shares. sees

John Gibson

would maybe it put a question. actually Excellent I little differently.

taken a take me for compensation, look earn to. at huge I'm to that's that's because And the I you shares. opportunity a If it off accustomed what of portion think I've greatest in my

so compensation my I'm and myself on in it base own and for consider here And shares, reduced putting I return of risk would what normally salary. the my

doing I think are other same executives This including CFO General future our is think the management here, a our team the in we bank is in Counsel. salaries. the where share-based or shares and not

And definitely so the the while I'm on not buying, putting of arrow stock. weight I am

aren't Now but XD buying, with there's been potential why a other nonpublic as of long closed a the think for opportunity, others some and merger the at result I information. window material has Depth time quite

here the the And what transpires and after near really so up to we'll window that. in we're going open future, see

Operator

additional And no or questions remarks. for back that program closing at any have over it I John further appears we to this turn will the Gibson time. now

John Gibson

thank do want call. shares, joined vision everybody they this the appreciative of long to are Well, that the to term. and incredibly I own people that I'm company committed

appreciative make patient in Board and track I employees been And like transformation difference. particular. who's and to I'm to we're on also think also I thank our this the lenders. a would very really our to

a to the this We huge are seeing group of that become dedicated market. success have transform a here and great employees

blessed I'm lot to that you, we'll we're talk again you So we've soon. of to all got and to have here. blessed Thanks Nauticus be people and with on of a to board

Operator

Thank your teleconference. participation. for you today's concludes That

You may now disconnect.

Nauticus Robotics (KITT) 10 Apr 242023 Q4 Earnings call transcript