KITT - Earnings call transcript Q3 2024

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Operator

Good day, everyone, and welcome to today's Nauticus Robotics 2024 Q3 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, Special Projects lead.

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 J.B. and and CTO our members ], team. leadership Anko Government other Lead; of [

we provide will our call, today's On first financial operations prepared results. and concerning remarks

Following answer we questions. that, will

third released results available now our website. XXXX, have We on for the which quarter our are of

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

statements subject uncertainties, expectations. current uncertainties differ beyond These Forward-looking are of to to risks our and many our a and risks can number results from are cause actual of which materially control.

in the will our refer it discuss with Also, John. listeners please provided we release this SEC. reconciliations call. filings review I now We release advise and discussed to the to our earnings metrics on may as turn our earnings in non-GAAP press to the factors over risk

John Gibson

thank for Good open up for our we'll morning to revenue we before you performance. the our our and on prepared floor expectations remarks And morning, to of update At today. for set provide the questions, end and the QX call future. this conference us an try joining

of the quarter, for in business industry. they We leveraging projects. as closing consisting conducting success any Aquanaut's plan We're This industry focused Now first third the the we and first now release the commercial backlog both XXXX press for milestone is an achieved by us successfully a of commercial on significant occur. create first company's defense to our of and work. to contracts

on Gulf increasing Aquanaut existing of began Vicki strong they will more. and of our receive to which converting completed shareholder with allow remain which as We explain continue lenders in should materially QX equity, has listed vehicle XXXX qualifications to are the us execution the we support customer from commercial NASDAQ. debentures, in addition, our impact Mexico. our In

During an in that commercial anomaly discovered we resulted additional work. qualification,

discovered commercial the XXXX of yet the have season in these we've of as capabilities. active forward. the anomaly work current the to capabilities going around field, in versus resulted These in capabilities are Aquanaut for another ROV Here of Customers Aquanaut the scope vehicle. assess discoveries a work result capabilities to in discussions commercial an their vehicle expanding their unique unique the of include order fields unique

the eliminate winter working months, our for will XXXX concentrate actively our the During season. seasonality on to we We're building pipeline in golf business.

of should a well. more or do seasonality year-round operations of seasonality. minute To work allow just mitigate to that in that as will Daniel field with Hemisphere Northern modifications the American the also Daniel will section working American that, technical North our discuss South Gulf Mexico. customers in cover We're

on activities, operational progress NASDAQ's our to turn with update to we before you listing continued meeting Now the want I standards.

Our minimum spot price bid price. remains above $X

We exchange back agreement the debt just listing I'll NASDAQ's get an us to compliance stock. and to requirements, with announced This into section. financial action also intended preferred leave in is Vicki into to convert

operational over you it field Dehart, turn to give Now operations to with that, Daniel leader update. I'm to an going our Daniel?

Daniel Dehart

John. you, Thank

the using us Let and QX, a bring In first truth we vehicle. conducted on up the for Mexico. surveys Gulf is the project for Aquanaut an commercial customers milestone complete of for me recent active vehicle significant ready consistent the service. consisted of operational to field that to deepwater commercial projects our technology you of field utilizing in our Aquanaut an system. date represents and advantaged both Aquanaut The This project for solutions are

of and more exceeded our the the importantly, project report We are excited customers. expectations expectations to our

providing are contract, commercial future capabilities first. about we inspection achieved able to X,XXX have and With the to also was customer an survey assets Customers and and vehicle industry was on subsea our provide this utilizing the will deliverables. depths The excited operations. vehicle have untethered help The autonomy field in the able high-level data on assets of field up while Aquanaut Aquanaut impact it to high-quality meters.

the In differentiated and vehicles that in anomalies QX. in identified resulted early work Aquanaut addition, capabilities sensors additional

highly has With remain the season, expect expected the Aquanaut XXXX our the end of the business to been was near as the future. in vessel. so system demobilized from now This and is seasonal

extend and first are Contract negotiations backlog on to geographies and for service new differentiated eventually season. capabilities, our of work hope allow operate ongoing existing the the working as we to and a with and creating season However, will that of capabilities result upcoming customers quality techno are us year-round. operating company's new our

the We believe system provide demonstrated emissions. The of improve cost, safety, adoption and will dramatically rapid insights should catalyze Aquanaut reduce actionable autonomy. success subsea our reduce

technology In addition, shareholders to continue investment on and we attractive plan return provides to developing that an customers.

to second complete the ensure readiness beyond. XXXX in for QX XXXX Aquanaut in expected coming see demand The testing is vehicle we of and factory to acceptance

second We service available the to XXXX. sometime first vehicle expect this in of for quarter be commercial

employees we commitment to Robotics. of all dedication and not without of have We you. of have could at I accomplished the the like all would thank Nauticus all that

our Our customers highly result with provide, satisfied employees. we this and is service a are the of direct

basis. emphasize I our on a to turn John, for back [indiscernible] Before commercial I it product solutions just over want to customers

now back John. turn to will I it

John Gibson

data has capturing certainly you, has proven our of It to work we're beyond been other customers available the what's And thank valuable commercial a Well, vendors, journey, but we we capable truly collect differentiated. from today. Daniel. have

update leader who's our With that, software like for turn to I'd Jason it Jason? to over an on ToolKITT. Close, ToolKITT

Jason Close

good Thank you, morning. and

software and delivering The we efforts advance during and of of operations platform. functionality performed reliably now our market Mexico, ToolKITT to to in the the in the focus Gulf release both our a our XXXX. software will commercial commerciality continue We on

vehicle, for integration. for also to continues towards broader platform our the Aquanaut but will team value-added levels improve higher autonomy the and differentiation which commercial the technology only of Additionally, progress functionality, provide not capabilities third-party

and positive to progress forward manufacturers conversations we ROV service We move third-party look and XXXX. closely providers continue into working them as with with to

it ToolKITT. with that, first And I'll XXXX Our John. license to commercial is turn back goal sell to of our

John Gibson

Thanks, from system was did the expectations, Mexico. we Aquanaut the in customer we market that to excited all to general Gulf conducting It Jason. offshore missions exceeded are the vehicle that XXXX. to and of successfully The the critical us available make operating

With that, J.D. our over government to it on business. to I'm an going turn for update JD?

Unknown Executive

regarding Productive with possible morning. longtime good and conversations you, work. defense future partner contracting Thank continue our

praised to to National business Defense. complementary reconfigurable vehicle unit together the is leverage and companies large government for interest strengths both between seamless organizations. Our collect this serve monitoring. the Aquanaut investigating the The on in also of environmental samples. prior capacity collaboration of was the both seek their the by customer success, opportunities partnership payload Building Leveraging to

now Hay Vicki turn over discussion it for of our I'll results. our to financial

Victoria Hay

Thanks, J.D., and good morning.

related split press on equity stated a July references and post-split XX-Q the completed and reverse all As reminder, in releases are was XX, to items our XX:X on a basis.

NASDAQ discussed, XX us stockholders' previously our until exception resolve equity gave to December noncompliance. an As

We initiatives underway to address several have this.

currently the First, interest This have of secured dollar conversions we XX, the to $X shareholders' of debentures million entered our issued stock. a meeting at exchange result with of of convertible will agreement [ an preferred convertible investors as for principal, million million approximately ] of This December the $XX XXXX. comprises originally floor the into and $X senior ship discount item an devon have initial be below scheduled come additional of $X.XX. liabilities agenda that price to

at on are A working balance stage a are lot discussions we disclose deleverage sheet we where will increasing shareholders' Second, which of additional them can these more equity. items, detail. our further, in while yet

these on progress the to significant year. expect prior end of do we However, the

steps We time our are frame. into stockholders' will are confident back in the compliance bring that we taking allow to the us required equity

by we we new up cash regaining Daniel. funding million $X.X we to tranche to to compliance, million on need us debenture. are addition Friday, of we first will is a focused the as the while end To NASDAQ that effect, commercialization XX.X which the of ramp up of convertible through available keenly closed last In through XXXX, securing discussed

cash debt to XXXX, until to this agreements lenders to working their capitalize us have also willing allowing that use We for cash QX are capital. current payments modify effectively

will improvement period million in second quarter our $X.X quarter. quarter quarter. weather the in million of million improvement down year. detail for was third a revenue And third from this $X.X The was close to G&A, same I more in expenses to were the the discuss anticipate a results 'XX. to resulting improvement in for is 'XX revenue is of quarter million, the bad Revenue Mexico, decline shifting for improvement of which in to the the Gulf We which a $X.X driven late an close last and $X.X million million magnitude for now period the $X.X to sequentially. 'XX. the to QX. financial sequential the in quarter the start which million, million. And $X.X fourth third a Operating were $X.X $X.X million QX some from by is compared due costs same from down $X.X of largely

the focus the focus rate, Net continue and improve for quarter, and end change driven run sequentially. our of This the costs spend. sequentially into reducing quarter is this G&A This through reduction dedicated result The XXXX. and by 'XX loss on a quarter non-value-added Each will third $X.X is million. we of of to 'XX $XX.X noncash eliminating warrants. of outstanding from variance increase and fair the million the a is value million was $X continue large

a QX in With million a QX gain $X.X in million 'XX. gain 'XX $X.X versus

$X a $X.X between alternative prior the whereby debentures earlier, million loss prior the price $X.X million The XXXX of million third the third the charge the same mentioned period conversion price. net compared of to the holder the also quarter in floor was on the for in relating company the conversion $XX.X year. and to quarter for included owes million Adjusted quarter difference $X.XX debt

of XXXX. the This the third facility the $X.X million funding of at to the preferred quarter. $X.X million charge result adversely equity in exchange discussed. conversion $XX.X already debt $X.X the by XXXX impacted end received million in was along Cash preferred liability. end the million part related raising of be second first million our liability was to of a the compared to of to of is at-the-market $X.X This half with will at as converted XXXX quarter the QX Again,

vessel, signed [ ] the is We close quarter. on hydro to expected held XXXX. December have sale a for fourth of has been end since the prior off This to which a

the now call to will pass John. I back

John Gibson

results, in national Thanks, QX. odds. that on NCAA us QX earned performance We if game. as We delivered Vicki. our is the in we championship championship Reflecting were competing it beat really the

deliver cannot context, events. delivering our competitors achieved on market. means we on creating expectations that customer And Now a today. and defense this playing new in our promises by exceptional exceeding largest

the and we that seen sure Additionally, [ have sail we ]. before never defense introduced capabilities markets commercial and

However, only costs when which it and customer quarter comes our efforts late were intended These a while management. to goal. from offset was done. certification support, to produced offense a proof-of-concept our The revenues turnkey contract. R&D generated [indiscernible] revenue, contract fostering it's or testing field fourth

rate the last have XX generate This does not ability season. revenue the a commercial mere on for board a reflects figure XXXX day months, revenue we points to from or in Instead, it advanced the concept our to offering. represent that

in and we points. assured, single which QX. the surpass contracts, currently week, a We're office can the the consistently rate to more produced a rest understand of day lot number need higher negotiating in total score Now revenue for

is what While we QX championship apologize seem reason really modest, it. there for the no revenue accomplished. with national claimed may We to

licenses large as I that Now our into in achievements success deepwater Furthermore, gross technical QX that software surpassed capabilities in competitors. are quarter the translate soon all and ahead, margins XXXX our look competitors, stated. for the demonstrates Jason commercial previously way envy I contracts, that revenues closed of our of believe paving our autonomous as the will in

the Finally, remarks we stated conclusion XXXX, Today, Well, this at our are alternatives. for I the were of strategic today. concludes evaluating strategics we believe evaluating us.

back it and up you I open operator, turn over few it a questions. like for to And to

Operator

have we over back our program at no I or turn [Operator remarks. in the this the Instructions] queue will closing now And for any questions that appears it time. additional presenters to

Unknown Executive

owns a long-term to And that commitment First a And I Thank everyone you delivering just focused in for developing I is the and the just our you say things to This we're Nauticus. we that and off, want to is sound. being play. you great need thank to company. understand the to shares. offense I on and the market that. fully better appreciate team shares that play

the We conference Take again look on soon. call really appreciative of end call. the at you forward We'll year. We are up to the of QX the wrapping being care. talk and

Operator

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

may disconnect. You now

Nauticus Robotics (KITT) 13 Nov 242024 Q3 Earnings call transcript