Kraken Forecasts Continued Strong Growth after Record 2022 Financial Results

Kraken Robotics Inc. announces it has filed its financial results for the quarter and year ended December 31, 2022. Additional information concerning the Company, including its consolidated financial statements and related management's discussion and analysis ("MD&A") for the quarter and year ended December 31, 2022, can be found at www.sedar.com. Unless otherwise stated, all dollar amounts are Canadian dollar denominated.

CEO Comments

"2022 was a strong year for Kraken and we expect it to continue in 2023," said President and CEO Greg Reid. “Revenue growth of 60% and adjusted EBITDA margins of 13% reflect the right technical solutions, strong end markets, and improving execution. Investments we have made are positioning us well. The increasing demand for high resolution subsea data at the lowest possible costs combined with macro trends across our largest markets, defense and offshore energy, is showing up in our pipeline which is broader and deeper than ever before."

Outlook for 2023

For 2023, Kraken expect revenue to be in the $66 - $78 million range and adjusted EBITDA in the $12 - $17 million range. The mid-point of their guidance range ($72 million in revenue and $14.5 million in EBITDA) implies revenue growth of 76% over 2022 and adjusted EBITDA growth of 275%. Capex in 2023 is expected to be $5-$6 million. The 2023 outlook is largely driven by contracts in hand and reflects strength across both our Products and Services groups addressing defense and offshore energy customers.