Demo
KITT Nasdaq· Nauticus Robotics Inc.
FundamentalsNews digest Peer analysis
Login
KITT Nasdaq· Nauticus Robotics Inc.
Earnings report Q3 2023

KITT Reports Decrease in Revenue for Q3 2023

Segments of Revenue

KITT's revenue for the third quarter of 2023 totaled $1.59 billion, a decrease of $1.39 billion or 47% compared to the same period in 2022. The company's revenue is derived from three segments: cost plus fixed fee, firm fixed-price, and firm fixed-price-vehicle lease.

  • Cost plus fixed fee revenue amounted to $1.08 billion in Q3 2023, representing a decline of $0.77 billion or 42% compared to Q3 2022.
  • Firm fixed-price revenue totaled $0.52 billion in Q3 2023, reflecting a decrease of $0.24 billion or 32% compared to Q3 2022.
  • Firm fixed-price-vehicle lease revenue was not generated in Q3 2023, whereas it amounted to $0.38 billion in Q3 2022.

Strengths

Despite the decline in revenue, KITT's management attributes the decrease primarily to delays in contract authorizations with government entities and the completion of several contracts during the quarter. These factors are temporary in nature and are expected to be resolved in the future. Additionally, KITT's performance obligations under service agreements are generally satisfied over time, indicating a consistent stream of revenue generation.

Challenges

The main weakness observed in KITT's financial performance is the significant decline in revenue for the third quarter of 2023. This decline can be attributed to delays in contract authorizations with government entities and the completion of contracts. These challenges highlight the company's dependence on government contracts and the potential impact of delays on its financial results.

Noteworthy

It is worth noting that KITT's revenue for the nine months ended September 30, 2023, decreased by $2.7 billion or 32% compared to the same period in 2022. This decline is consistent with the revenue decrease observed in the third quarter of 2023. The decrease in total revenue is primarily attributable to delays in contract authorizations with government entities and the completion of several contracts during the period.

Summary

KITT's financial performance in the third quarter of 2023 reflects a significant decline in revenue, primarily due to delays in contract authorizations and contract completions. However, these challenges are expected to be temporary in nature. The company's strengths lie in its ability to generate revenue over time through service agreements. Going forward, KITT will need to address the challenges related to government contract authorizations and focus on timely contract completions to improve its financial performance.

Source documents

Form 10-Q  filed on Nov 14, 2023
15 pages scanned

Reference data

Company financials Q3 revenue 1.1M
Analyst estimates Q3 EPS missed by -100.00%
Sign up to Fey

Get in-depth analysis on thousands of stocks for just $30/month. Cancel anytime.