Nauticus Robotics, Inc. Q1 FY2025 earnings call

• Successful acquisition of SeaTrepid in March, entering a new chapter with operational scale and expanded commercial opportunities.
• Q1 marked the start of the 2025 offshore season and integration efforts, with equipment mobilization, secured contracts, and enthusiastic interest in the Aquanaut platform.
• Daniel Dehart discussed mobilization of Comanche ROV, integration progress, and plans to mobilize Aquanaut vehicle. Steve Walsh highlighted strong market momentum, growing pipeline, and focus on scaling due to equipment and personnel capacity constraints, targeting high-impact sectors like deepwater energy, offshore infrastructure, and defense.
• Jason Close and Amin discussed progress on ToolKITT for Aquanaut and ROVs, design improvements for Aquanaut, and development of next-gen electric manipulators.

For the first quarter of 2025, revenue was $0.2 million, down $0.3 million sequentially and year-over-year. Operating expenses were $6 million, flat from Q1 2024 and down $0.5 million sequentially. G&A costs were $4.3 million, an improvement of $0.9 million compared to Q1 2024 but up $0.4 million sequentially due to nonrecurring fees from the SeaTrepid acquisition. Net loss for the quarter was $7.6 million, a $76.9 million decrease sequentially and $65.3 million decrease from Q1 2024. Adjusted net loss was $6.8 million. Cash at the end of Q1 2025 was $10.1 million. The SeaTrepid acquisition closed in March and contributed to revenue growth post-quarter.

• Full-year revenue outlook is $16 million. Approximately 3/4 of this is tied to utilization of current assets, with the remaining 1/4 related to software sales and proposals for advanced solutions. The sales team is actively working on proposals to reach the $16 million target, with a focus on managing budget and activities towards this goal.
• Confidence in the $16 million outlook but noting the need to monitor market dynamics, equipment performance, and competitive pressures.

• Forward-looking statements are subject to risks and uncertainties beyond control, which could cause actual results to differ materially from expectations. Listeners are advised to review earnings release and SEC filings for risk factors.

Q: On the broader oil and gas industry, with oil prices declining, what's the impact on consumer demand for vehicles?

A: John Gibson said lower oil prices open up opportunities to displace incumbents, as customers seek more efficient and cost-effective solutions. Nauticus is 20-25% below current price points of alternatives with good margins.

Q: How confident are you with the $16 million full-year revenue outlook? And breakdown of software revenue?

A: John Gibson mentioned the $16 million is the current planning horizon. About 3/4 is from utilization of current assets, with the remaining 1/4 from software sales and proposals. Confident in delivering results with strong commercial pipeline and partnerships like with Leidos.