Nauticus Robotics, Inc. Q1 FY2025 earnings call

• Successful acquisition of SeaTrepid in March, entering a new chapter with operational scale and expanding commercial opportunities.
• Q1 marked the start of the 2025 offshore season and integration efforts, with early signs encouraging like mobilizing equipment and securing contracts.
• Field operations: Mobilized a Comanche ROV, integrating SeaTrepid and Nauticus teams, with plans to mobilize Aquanaut vehicle and conduct 3,000-meter test.
• Sales: Strong pipeline growth, with focus on high-impact sectors like deepwater energy, offshore infrastructure, and defense, working towards order taking.
• Equipment/software: Progress on ToolKITT for Aquanaut and world-class ROVs, design improvements for Aquanaut, and development of next-gen electric manipulators.

For Q1 2025, revenue was $0.2 million, down $0.3 million sequentially and year-over-year. The acquisition of SeaTrepid closed on March 20, with revenue recognized from it in Q1 and continuing to grow post-quarter. Cash at the end of Q1 '25 was $10.1 million compared to $1.2 million at the end of 2024. Operating expenses for the quarter were $6 million, flat from Q1 2024 and down $0.5 million sequentially. Net loss for the quarter was $7.6 million, a $76.9 million decrease sequentially and $65.3 million decrease from Q1 2024.

• Q2 is expected to have a full quarter of operational revenue.
• Full-year 2025 revenue outlook is around $16 million, with about three-fourths from utilization of current assets and a quarter from software sales and proposals.
• Focus on managing budget and activities towards the $16 million target, with monitoring of market factors like pricing and competitive pressures.

• Forward-looking statements are subject to risks and uncertainties beyond control, which can cause actual results to differ materially from expectations.
• Market fluctuations, including oil price declines, can impact demand and pricing for their vehicles.

Q: On the broader oil and gas industry, with oil prices declining, what's being seen in terms of consumer demand and/or demand for your vehicles? How is that changing?

A: For larger clients at higher price points, oil price decline creates opportunity to displace incumbents. We're 20%-25% below current price points with good margins, opening up conversations.

Q: How confident are you with the $16 million this year? And what is the breakdown on software, command center revenue?

A: We have a pipeline covering the $16 million, with about 3/4 from utilization of current assets and 1/4 from software sales and proposals. Software is important with autonomy driving market changes, and we're working on commercial release of ROV software and platform agnostic solutions.

Q: How confident are you with the $16 million this year? And what is the breakdown on the software, command center, and Leidos partnership?

A: On the $16 million, we plan towards it but it's subject to market and equipment performance. Breakdown is 3/4 from current assets utilization and 1/4 from software and proposals. On Leidos partnership, excited about the collaboration but can't discuss exit strategies.