Nauticus Robotics Q4 2024 Earnings Call Transcript

Quartr
Provided by Quartr
April 16, 2025

Key Takeaways

  • 2024 inaugural offshore operations of the Aquanaut vehicle proved commercial viability with two vehicles ready for 2025, positioning the company to exceed $16 million in revenue.
  • The acquisition of SeaTrepid (Ctripod) and integration of the Toolkit software onto the Comanche ROV enables autonomy for ROVs and expands sales opportunities.
  • A restatement of 2024 financials due to debt accounting corrections led to a $106.4 million non-cash loss, though the debt was exchanged for preferred stock and Nasdaq compliance was restored.
  • Operating expenses fell by $36.8 million year-over-year, G&A dropped by $4.9 million, and adjusted net loss improved by $8.2 million despite lower revenue.
  • Nauticus signed a long-term alliance with Leidos for defense sector work, offering more stable, larger-scale government contracting opportunities.
AI Generated. May Contain Errors.
Earnings Conference Call
Nauticus Robotics Q4 2024
00:00 / 00:00

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Operator

Good morning, ladies and gentlemen, and welcome to the Nauticus Robotics 2024 Q4 and full-year earnings conference call. At this time, all lines are in the listen-only mode. Following the presentation, we will conduct a Q&A session. If at any time during this call you require immediate assistance, please press star zero for the operator. Also note that this call is being recorded on Wednesday, April 16, 2025. I would now like to turn the conference over to Kristin Moorman, Corporate Development and Administration Leader. Please go ahead.

Kristin Moorman
Kristin Moorman
Corporate Development and Administration Leader at Nauticus Robotics

Thank you, and good morning, everyone. Joining me today and participating in the call are John Gibson, CEO and President; Vicki Hay, Interim CFO; Daniel Dehart, Field Operations Leader; Steve Walsh, Sales Leader; and other members of our leadership team. On today's call, we will first provide prepared remarks concerning our financial and operations results. Following that, we will answer questions. We have now released our results for the full year of 2024, which are available on our website. In addition, today's call is being webcast, and a replay will be available on our website shortly following the conclusion of the call. Please note that comments we make on today's call regarding projections or our expectations for future events are forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control.

Kristin Moorman
Kristin Moorman
Corporate Development and Administration Leader at Nauticus Robotics

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

John Gibson
John Gibson
CEO and President at Nauticus Robotics

Thank you. Good morning. I appreciate you guys joining us on the call today. 2024 was a transformational year for Nauticus, and we appreciate all of the support that we've had throughout the year. Our cultural shift from a research and development company into a commercial revenue-generating company is well underway. We continue to deliver high-value solutions to our customers by pushing technological boundaries. 2024 was our inaugural season of offshore operations for the Aquanaut vehicle. We were executing legacy contracts to prove the technology, and did. We are excited about the pipeline of new contracts, which we will begin press releasing soon. Our 2025 season should demonstrate significant improvement from 2024 as we implement the lessons learned from our first commercial offshore season and put them in place to succeed in 2025. We confirmed Toolkit software operation on a SeaTrepid ROV.

John Gibson
John Gibson
CEO and President at Nauticus Robotics

The initial test reinforced our belief that augmenting an ROV's existing software will enable autonomy, allowing our customers to reduce their overall subsea operational cost. This opens the market for Toolkit sales to ROV operators for the very first time. Stay tuned for an announcement of the official release of Toolkit for ROVs. Our Manipulator team continues to develop a fit-for-purpose Olympic car variant and plans to install the first set onto our Aquanaut vehicle in the second half of the year. This will make Aquanaut the first autonomous underwater vehicle with autonomous manipulators. In fact, it'll make it the only autonomous underwater vehicle with autonomous manipulators. The company had a year that was focused on raising money and exchanging our debt. Vicki's going to really cover the details of that in just a few minutes.

John Gibson
John Gibson
CEO and President at Nauticus Robotics

We anticipate an inflection point in 2025 as we begin to help the offshore industry move from legacy operations, which means man-operated as opposed to autonomy, to increased trust and reliance on a new way of executing work autonomously. Customers are already showing eagerness to fit our execution model into their current plans, and excitement is building around how their operational models will change. They're coming to us with questions and ideas, and this is sparking a lot of collaborative discussions. Now, Daniel and Steve are both with us today, and they'll describe that in their comments in just a moment. Our acquisition of SeaTrepid last month was a game changer for us. It provides an additional catalyst in this offshore execution transition. Existing SeaTrepid customers and contract relationships have given us easy access to a broader group of early adopters, which effectively reduces our customer concentration.

John Gibson
John Gibson
CEO and President at Nauticus Robotics

SeaTrepid and Nauticus legacy customers are welcoming this combined offering of a vessel with both the Aquanaut vehicle and an ROV on board, and in the near future, an autonomous ROV coupled with an autonomous underwater vehicle. By installing Toolkit on both vehicles, the first subsea robotic collaboration solution will be realized, and customers can see the immediate value. SeaTrepid's location in Robert, Louisiana, provides a testing facility with much closer proximity to our launching location for the Gulf of America, improving our logistics and reducing our cost. The government side of the company had a breakthrough in early 2025 by signing an alliance with our long-term customer, Leidos, to address emerging challenges in the defense sector. Government contracting has longer lead times, larger upside, and greater stability than seasonal commercial contracts. We're excited to pursue these opportunities.

John Gibson
John Gibson
CEO and President at Nauticus Robotics

Now, before I turn this call over to Vicki on her financial activities, I want to update you on our NASDAQ continued listing standards. We cured our non-compliance issues with NASDAQ in early 2024. We are closely monitoring the wider markets. With that, I'd like to turn it over to Vicki to talk about the financial details. Vicki.

Vicki Hay
Vicki Hay
Interim CFO at Nauticus Robotics

Thank you, John. Good morning, everyone. Let's first address the restatement that was announced on March 19th that was identified as part of the year-end audit. The company yesterday filed restated 2024 financial statements as of and for the quarters ended March 31, June 30, and September 30 due to a correction of accounting treatment for a complex Q1 2024 debt transaction. The reason for the restatement revolved around the debt transaction that occurred on January 30, 2024. The transaction was incorrectly treated as debt modification rather than debt extinguishment. Because of this change in accounting treatment, the debt was required to be fair valued quarterly using a Monte Carlo statistical model. The inputs variable include volatility, stock price variability, and risk-free rate. Given this, the change in fair value each quarter changed materially. All of these adjustments are non-cash and are excluded in our non-GAAP measures.

Vicki Hay
Vicki Hay
Interim CFO at Nauticus Robotics

The full-year non-cash impact of this treatment and the subsequent exchange to preferred stock resulted in an incremental net loss impact of $106.4 million. This does not impact our shareholders' deficit calculation as the offset to this sits in APIC, giving a net zero impact on our shareholders' deficit. Important to note, this debt no longer exists on the balance sheet as of December 2024, as it was exchanged into Series A preferred stock for a fair value of $110.3 million. This is a non-recurring fair value and will not be further fair valued in future quarters. This preferred exchange was part of our plan to deleverage our balance sheet and successfully regain listing compliance with NASDAQ, which occurred in February 2025. In addition to regaining NASDAQ compliance, we have been keenly focused on securing the cash we will need through 2025 while we ramp up commercialization.

Vicki Hay
Vicki Hay
Interim CFO at Nauticus Robotics

We have seen some great progress on this during Q1. In January 2025, the company conducted further at-the-market offerings in which we issued and sold almost 7.5 million shares for net proceeds of $19.4 million. A portion of the funds enabled us to do the acquisition of SeaTrepid, which will enhance our financial position as we move through 2025. In January 2025, we reduced the conversion price of the loans under the January 2024 term loan agreement to $1.59, which resulted in subsequent conversions, which further improved the position of our balance sheet. I will now discuss in more detail our financial results for 2024. Revenue for the year was $1.8 million, which is down $4.8 million from 2023. The decline in revenue was largely due to the reduction in government contracts in 2024.

Vicki Hay
Vicki Hay
Interim CFO at Nauticus Robotics

However, in 2024, the company did recognize revenue for commercial operations of the Aquanaut vehicle for the first time in the company's history, and will grow on this throughout 2025. Operating expenses for the year were $24.9 million, which is a $36.8 million improvement from 2023. Excluding non-recurring costs in 2023 of $25.4 million impairment of property and equipment, $2.5 million loss on contract, and $1.5 million severance costs, operating expenses dropped $7.4 million year-on-year, primarily due to continued focus on cost control. DNA costs for the year were $13.4 million, which is an improvement of $4.9 million compared to 2023. This is primarily due to headcount reductions and a result of dedicated focus on reducing costs and eliminating non-value-added spend. Net loss for the year was $134.9 million. This is an $84.2 million increase from the net loss in 2023.

Vicki Hay
Vicki Hay
Interim CFO at Nauticus Robotics

This is primarily due to the $127.6 million loss on extinguishment of debt recognized during the year, partially offset by the change in fair value of $21.1 million related to warrant liabilities and debentures, and $25.4 million impairment recognized in 2023 that did not occur again in 2024. Adjusted net loss for the year was $26.1 million compared to $34.3 million for the prior year. This shows an $8.2 million improvement, even considering the $4.8 million reduction in revenue year-on-year. Cash at the end of 2024 was $1.2 million compared to $0.7 million at the end of 2023. This is primarily a result of funding received through debt and equity financing and an at-the-market offering offset by cash used in operations. Last year, we did a lot of work to deleverage and clean up the balance sheet.

Vicki Hay
Vicki Hay
Interim CFO at Nauticus Robotics

Throughout the year, we converted debt with a principal value of $35.5 million to preferred stock in December 2024. We did take on new debt of $14.3 million in the first half of 2024 and a further $2.1 million with a fair value of $2.5 million in the second half of the year. With these actions, along with the raise through our at-the-market facility during Q1 2025, we are in a strong position in 2025 to continue the path of commercialization of the Aquanaut vehicle while staying appropriately funded. I will now pass the call back over to John.

John Gibson
John Gibson
CEO and President at Nauticus Robotics

Thank you, Vicki, and thank you a great deal for the company on all the tireless work you've done to get this prepared. Just to recap, we substantially reduced our run rate in 2024. We substantially improved our balance sheet, and we generated commercial revenue for the first time with the Aquanaut. Now, I'm going to turn this over to the exciting part of this call. Things have changed here. I much prefer talking about customers and revenue than I do about things that have passed. I'm going to turn it over to Daniel and Steve to discuss the emergence of Nauticus's first backlog of offshore commercial work.

Daniel Dehart
Daniel Dehart
Field Operations Leader at Nauticus Robotics

Thank you, John. I'll provide a summary of our readiness for the upcoming offshore season, and Steve will then cover the upcoming pipeline. Aquanaut Vehicle II, which completed work off the United States Gulf Coast last year, is currently scheduled to mobilize onboard a vessel along with a Comanche ROV in the coming weeks. With the SeaTrepid acquisition, we expect a significant backlog of work to be contracted for this year for the vessel and are currently working through the schedule to ensure commercial efficiency throughout the year. We plan on working for numerous new customers this year, which will effectively reduce our customer concentration. We will be conducting inspections highlighting the efficiency and cost reduction potential the Aquanaut system will provide while maintaining flexibility with high-quality ROV service. We also have contract discussions ongoing with our current customers who are eager to take advantage of our service.

Daniel Dehart
Daniel Dehart
Field Operations Leader at Nauticus Robotics

Previously, the deepest we have communicated with the Aquanaut system was at a depth of roughly 1,300 meters, but we are now excited for the opportunity to complete a deep-water communications test after mobilization of the vessel to a targeted goal of 3,000 meters. This untethered test will help set the standard for future applications and expand the operational functionality of the vehicle throughout the offshore industry. As we continue to focus on operational readiness for the offshore commercial work, we also want to continue pushing the Aquanaut technology further to enhance the capabilities of the platform. With that, I'm excited to update that we have completed our factory acceptance test in water on our second Aquanaut vehicle.

Daniel Dehart
Daniel Dehart
Field Operations Leader at Nauticus Robotics

We have identified another test location in Florida for further testing of the capabilities of the vehicle, with plans to complete a contracted demonstration on leak detection in addition to testing the Aquanaut system with an autonomous surface vehicle, or ASV. We are in communication with multiple customers who are interested in nearshore work without the use of a large vessel and believe we can support this concept with a successful test paired with the ASV. The third Aquanaut vehicle build plan is ongoing, and parts are consolidated to maintain readiness to assemble. Workload for this year has created demand for additional vehicles, but the goal is to focus on delivering exceptional service in 2025 and prepare for vehicle three assembly to perform future work. The SeaTrepid acquisition also provided a great opportunity to expedite the integration of our Toolkit software with the Comanche ROV.

Daniel Dehart
Daniel Dehart
Field Operations Leader at Nauticus Robotics

We successfully implemented our software into the existing Comanche operating software with plans to test our commercial release on the vehicle in the coming months. The results of this integration will provide the ROV technological advances that include station keeping and waypointing. These are the first steps towards automating the ROV functionality. We are currently seeing the busiest offshore market for the Gulf Coast region in quite some time, and we are in great position to take advantage of a hot market this year. With that, I will now turn it over to Steve for an update on our 2025 offshore commercial pipeline.

Steve Walsh
Steve Walsh
Sales Leader at Nauticus Robotics

Thank you, Daniel. I'm excited to be here today and looking forward to what our combined offering will bring to the offshore industry. I'm pleased to announce we recently commenced a long-term ROV contract with a leading marine transportation company to provide drill support operations off the United States Gulf Coast. The contract is confirmed for 120 days with the potential for additional days if needed. We're currently operating off the coast of New York in the offshore wind industry. The project started early this month and is scheduled to return back to the Gulf Coast in early May. Upon arrival of the ROV to Louisiana, we plan to mobilize onboard the DP2 vessel alongside the Aquanaut vehicle. The current customers are excited about the potential to utilize our autonomous technology this year.

Steve Walsh
Steve Walsh
Sales Leader at Nauticus Robotics

We have firm work to complete level two and level three inspections on multiple producing platforms off the Gulf Coast. These projects are expected to be completed within a 30-day block. In addition to that, we are in communication with a super major oil and gas company on a large inspection campaign for decommissioned assets. Based on the meetings with this customer, we feel strongly that we will be awarded a minimum of 30-45 days of work. We have continued work with other super majors who have previously utilized the Aquanaut vehicle, and due to the successful initial programs in 2024, they are excited to put the system back in the field this summer. The initial expected duration of these projects is a minimum of 25 days.

Steve Walsh
Steve Walsh
Sales Leader at Nauticus Robotics

Another scope that has recently presented itself off the eastern coast of the United States would include operating the technologies of both the Aquanaut vehicle and the ROV simultaneously, allowing for greater efficiency and utilization of the assets on board. This is an environmental assessment that could lead to another 20 days of work for the mobilized spread. With the work described and the additional work expected to come due to the intensity of the market, there is a great opportunity to demonstrate the effectiveness of autonomy in hazardous environments. 2025 is shaping up to be one of the busiest offshore markets of the past decade. We anticipate our contracts to return strong margins and a steady stream of revenue during the North American offshore season. I will now turn it back over to John.

John Gibson
John Gibson
CEO and President at Nauticus Robotics

I appreciate that, Steve. It's been a real pleasure to be a part of this team and witness all that has been accomplished. 2025 is expected to be another outstanding year as we continue to bring in more and more customers and increase the number of engagements we have. This is a target-rich environment offshore right now for equipment and bringing solutions much like what we have. During the last call, we mentioned being on the cusp of achieving what we set out to do when Nauticus Robotics was founded, and that's to provide collaborative autonomous underwater robotic solutions for our customers on a commercial basis. This really is going to help them reduce their operations cost and still have a great solution for our shareholders because it'll be a high-margin operation.

John Gibson
John Gibson
CEO and President at Nauticus Robotics

We created a new company and a new culture in 2024, and now we're focused on customer needs, not just new technology. We're positioned to have substantial revenue growth and margin improvement year over year. With us today is also the founder of SeaTrepid, Bob Christ, who joined, and I would say let him introduce himself. Bob.

Bob Christ
Founder at SeaTrepid

Hi, I'm Bob Christ. I am delighted to be a part of the team. We are so excited about the new possibilities of the combined companies, and we are working hard to get the Aquanaut technology and new autonomous technology onto our traditional menu of services and into the field.

John Gibson
John Gibson
CEO and President at Nauticus Robotics

Bob has been instrumental in enabling us to achieve our vision. Their support, their knowledge, and in particular, their customer relationships are transformational for us. I am glad to have both Steve and Bob on board. With that, I'd like to turn it over, operator, to questions.

Operator

Thank you, sir. Ladies and gentlemen, if you do have any questions, please press star followed by one on your touch-tone phone. You will then hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by two. If you are using a speakerphone, you will need to please lift the handset first before pressing any keys. Please go ahead and press star one now if you have any questions. First, we will hear from Kunal Madhukar at Water Tower Research. Please go ahead.

Kunal Madhukar
Managing Director and CFA at Water Tower Research

Hi, thank you for taking my questions. Excited about 2025. The first one would be about 2025 and trying to understand what the top line could be. Thank you for talking about the pipeline. Help us understand, one, in a simple P times Q, number of days in a season that you should be operational at least for 2025 and understand that could expand in later years. Number of days in the season, number of vehicles you have, and how should we kind of think of sizing the 2025 potential revenue opportunity?

John Gibson
John Gibson
CEO and President at Nauticus Robotics

Daniel, why don't you cover the number of days in a season?

Daniel Dehart
Daniel Dehart
Field Operations Leader at Nauticus Robotics

The season runs from anywhere kind of right where we're at now. March, April is the early portion of the season, and it goes through October, November based on weather. That's when weather starts picking up. From those months, it's about a seven-month window that can expand a little bit if we're lucky with weather. That's our target area. For our offshore assets, we actually have two Aquanaut vehicles working now, both Vehicle One and Number Two. We have two Comanches working. We also have a third Aquanaut that requires some capital and assembly and a third ROV. We're looking at the market, and if the demand's great enough and we see an opportunity to actually invest in those and put them in the market with a good return on capital, we would entertain doing that as well, Kunal.

Kunal Madhukar
Managing Director and CFA at Water Tower Research

Great. How should we think of the potential revenue for 2025?

John Gibson
John Gibson
CEO and President at Nauticus Robotics

Significantly higher than 2024. I mean, I'd say I think we announced that we'd be in, and I'll just repeat a number I've put out before, but I mean, I'm really confident we'll do greater than $16 million in 2025. I'm a little hesitant to say how much greater, but you can assume there's upside in that number, particularly if we found the capital to put the two additional assets to work.

Kunal Madhukar
Managing Director and CFA at Water Tower Research

Great. Thanks. The second one would be on the competitive landscape. There are a number of companies that have autonomous underwater vehicles. What is your differentiation? You kind of alluded to it in terms of manipulators and being the first one out there, but what makes your solution compelling to prospective customers?

John Gibson
John Gibson
CEO and President at Nauticus Robotics

It's another really good and hard question. To compare and contrast these, you'd almost have to put together a consumer chart where you had circles that you filled in. The place where we fill in really strong is we have a leadership position in manipulators for autonomous underwater vehicles. Those manipulators will be something that are not a part of competitive platforms such as Freedom or Oceaneering. We have a payload capacity in the front of the vehicle that allows us to take objects and place them on the sea bottom or pick objects up from the sea bottom and bring them back to the surface. That also can be advantageous in doing fluid sampling if we're looking at leak detection. Very differentiating. You wouldn't have to send an ROV out to catch fluid samples after the AUV had discovered a leak or indication.

John Gibson
John Gibson
CEO and President at Nauticus Robotics

We have been able to eliminate quite a lot of costs for customers. We are completely untethered. We still find most of the AUV operators working in this area due to collision avoidance, etc., are remaining tethered. Our vehicle is untethered, and we are depending on our collision avoidance software and continue to certify, verify, and test that as we go to make sure that we are on the very leading edge of collision avoidance for underwater vehicles. Fortunately, the speed that we are going makes this much simpler than trying to control a Tesla doing 90. We are just trying to control an underwater vehicle doing two, three knots. Our depth is quite good at 3,000 meters, and I think most of our competitors have not gone to that depth yet and tried to communicate with the surface.

John Gibson
John Gibson
CEO and President at Nauticus Robotics

If you compare us to, say, a Hugin, a Hugin is more of a torpedo, a missile in the water. It goes in a straight line, takes a long distance to turn, and it has to continue moving when it comes back. Our entire design is to work more like an Aquacopter. We can stop, hover, and rotate around objects so that we can get 360-degree views, and we can do that efficiently without passing by and coming back, passing by and coming back. Speed of operations is significantly higher, and the quality of imaging is quite high when you're able to orbit an object as opposed to do flybys.

Kunal Madhukar
Managing Director and CFA at Water Tower Research

That's great. The last question is about capital and understanding your liquidity. You talked about potentially investing in a third Aquanaut or a third ROV if there is demand. Can you talk about the capital requirements for the business?

John Gibson
John Gibson
CEO and President at Nauticus Robotics

Good question. Obviously, we were just becoming commercial last year, and so we used a substantial amount of capital in order to prove that the technology we have is commercial and ready for prime time. Now that we're out and we're seeing a tremendous amount of demand, based on this demand, we really need to try to put additional assets to work because the more assets we put to work, the greater our income will be here. The two we have, we have one Comanche and 25, and we have an Aquanaut Vehicle 3. We do think Steve and Daniel are tasked with the following. That is, if they can bring a contract in here for those two, then we believe we can get contract-based lending, so a non-dilutive approach to bringing in capital to put those two assets to work.

John Gibson
John Gibson
CEO and President at Nauticus Robotics

If you look at any one of those assets, you'd think that the total revenue, including the vessel, the asset, can generate in that $6 million-$8 million per season revenue. It's just a question of how soon in the season we can get those together and get those contracts in order to have the funds to assemble those without diluting shareholders.

Kunal Madhukar
Managing Director and CFA at Water Tower Research

That's great. Thank you so much.

Operator

Thank you. Once again, ladies and gentlemen, if you do have any questions, please press star followed by one on your touch-tone phone. Next question will be from Paul Edstrom. Please go ahead, Paul.

Operator

Yes, good morning. Thanks for taking the call. I was just curious that you mentioned this season in particular is sounding to be a very good one. What are the market dynamics that led to that or led to this, excuse me?

John Gibson
John Gibson
CEO and President at Nauticus Robotics

It's interesting. I'll let Steve answer this as well, but it does look like a really good season. Oil prices have been stable and in a position where people can make long-term plans. Offshore is a long-term investment cycle, so they're looking at full-cycle economics offshore, and it's not as much a short-term market like you have on onshore shallow drilling. These are extremely long-term commitments they make on platforms and development. Now they're doing the inspections, etc. Some of it's regulatory as well. Steve, what's driving the market?

Steve Walsh
Steve Walsh
Sales Leader at Nauticus Robotics

The atmosphere of drilling is being pursued and pushed by the government is attractive to our customers. The decommissioning aspects where companies have brought back old assets that they're looking to understand what's going on, inspect, and then work on removing. Just the general vitality of oil and gas right now, and additionally with wind, with some of the other environmental aspects, I guess it's many of the disciplines coming together that are working to.

John Gibson
John Gibson
CEO and President at Nauticus Robotics

Another real macro aspect of it, Paul, is this industry suffers from non-investment for long periods when the market's down, and that's where we are offshore at the moment. There's been a long lull in general investment. Now everybody is working on their infrastructures. They're expanding their infrastructure. They're improving their infrastructure. It's just creating a lot of subsea demand. Hopefully that helps some.

John Gibson
John Gibson
CEO and President at Nauticus Robotics

Yes, thank you. I guess having been an investor early on with you folks and the breadth of the market opportunity, I just wonder if it's causing you to pivot at all differently, or I guess it sounds that you're just staying with the opportunities that you've had over the last year or so, and executing on those is really where your focus continues.

John Gibson
John Gibson
CEO and President at Nauticus Robotics

I wouldn't characterize anything about a pivot. I mean, we have a great platform, and we're just approaching those markets that have high demand and look like they can return the margins that we need. First off, thank you for being a long-time investor in the company. Appreciate you sticking with us and asking some questions. The big difference for us, I was talking to someone earlier, is we're in a market now that's emerging, and there's a lot of demand for the Aquanaut, a lot of conversations going on. If I look at competition, this is a great place to invest because our competitor really is Oceaneering. If I had to talk about Oceaneering, I'd say if you combined both of these fleets together, there's not enough assets to meet the demand that we see coming for autonomous subsea vehicles.

John Gibson
John Gibson
CEO and President at Nauticus Robotics

I do not even think of them as a competitor. We both need to do well so that autonomy is adopted faster and the diffusion rate picks up. We are at that point where this technology's gone from a whiteboard to commercial, and it is a matter of getting these in, getting the operational processes in place, and just delivering great results for customers.

Steve Walsh
Steve Walsh
Sales Leader at Nauticus Robotics

Paul, I'd also like to mention that we've had the opportunity to visit and talk to some of our existing customer base and introduce Aquanaut and the excitement that our clients have to combine both the ROV capability and technology along with Aquanaut and the autonomy that it delivers is really exciting. That scope is expanding, and they are providing more and more opportunities for us. I think that the combined technologies are being very well received by the customer base.

Steve Walsh
Steve Walsh
Sales Leader at Nauticus Robotics

Thank you for your input.

Operator

Thank you. At this time, Mr. Gibson, we have no further questions. Please proceed.

John Gibson
John Gibson
CEO and President at Nauticus Robotics

No, I greatly appreciate all the people that are on the call, and particularly our employees and our customers that are listening. We have incredibly dedicated workers, and we would not have made all this progress without them. A lot of this work is hard, long hours, and I just appreciate their sacrifice. I am also excited about the fact that this is probably the last call that we will have to do where revenue is something that we do not really focus on as much as we should. Q2, we will be talking about our revenue. You will be able to see the revenue. You will be able to see the margins. We are excited about the fact that we are shifting into being a true commercial company from an R&D company. Stay tuned for Q2. I think good things are on the horizon. Thank you so much, operator.

Operator

Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. At this time, we do ask that you please disconnect your lines.

Executives
    • Daniel Dehart
      Daniel Dehart
      Field Operations Leader
    • Vicki Hay
      Vicki Hay
      Interim CFO
    • Kristin Moorman
      Kristin Moorman
      Corporate Development and Administration Leader
    • Steve Walsh
      Steve Walsh
      Sales Leader
    • John Gibson
      John Gibson
      CEO and President
Analysts
    • Kunal Madhukar
      Managing Director and CFA at Water Tower Research
    • Bob Christ
      Founder at SeaTrepid
    • Analyst
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