Draganfly Announces 30% Quarter Over Quarter Revenue Increase with Second Quarter Results for 2024
Draganfly Inc. (NASDAQ: DPRO) reported a 30.3% quarter-over-quarter revenue increase in Q2 2024, reaching $1,732,990. Product sales accounted for $1,387,350 of the total revenue. Gross profit rose by 64.9% quarter-over-quarter to $461,673, with a gross margin of 26.6%. The company recorded a comprehensive loss of $7,097,638. Draganfly launched its FlexModular FPV UAV System for government and military use, partnered with First Atlantic Nickel Corp. for drone surveys, and deployed record numbers of drone crews for wildfire support. The company also closed a $3.5 million offering and announced collaborations with ParaZero Technologies, Squamish Search and Rescue, Doodle Labs, and UXV Technologies to enhance UAV operations and safety.
Draganfly Inc. (NASDAQ: DPRO) ha riportato un aumento del 30,3% dei ricavi rispetto al trimestre precedente nel secondo trimestre del 2024, raggiungendo 1.732.990 dollari. Le vendite di prodotti hanno contribuito per 1.387.350 dollari del totale dei ricavi. Il profitto lordo è aumentato del 64,9% rispetto al trimestre precedente raggiungendo 461.673 dollari, con un margine lordo del 26,6%. L'azienda ha registrato una perdita complessiva di 7.097.638 dollari. Draganfly ha lanciato il suo FlexModular FPV UAV System per uso governativo e militare, ha collaborato con First Atlantic Nickel Corp. per sondaggi tramite droni, e ha impiegato numeri record di squadre di droni per il supporto agli incendi. L'azienda ha inoltre concluso un
Draganfly Inc. (NASDAQ: DPRO) reportó un aumento del 30,3% en los ingresos trimestre a trimestre en el segundo trimestre de 2024, alcanzando 1,732,990 dólares. Las ventas de productos representaron 1,387,350 dólares de los ingresos totales. El beneficio bruto aumentó un 64,9% trimestre a trimestre a 461,673 dólares, con un margen bruto del 26,6%. La compañía registró una pérdida integral de 7,097,638 dólares. Draganfly lanzó su FlexModular FPV UAV System para uso gubernamental y militar, se asoció con First Atlantic Nickel Corp. para encuestas con drones, y desplegó un número récord de equipos de drones para apoyo a incendios forestales. La empresa también cerró una oferta de 3.5 millones de dólares y anunció colaboraciones con ParaZero Technologies, Squamish Search and Rescue, Doodle Labs y UXV Technologies para mejorar las operaciones y la seguridad de los UAV.
드라간플라이 주식회사 (NASDAQ: DPRO)는 2024년 2분기 분기 대비 30.3%의 매출 증가를 보고하며 1,732,990 달러에 이르렀습니다. 제품 판매는 총 매출의 1,387,350 달러를 차지했습니다. 총 이익은 분기 대비 64.9% 증가하여 461,673 달러에 이르렀으며, 총 마진은 26.6%였습니다. 회사는 7,097,638 달러의 포괄적인 손실을 기록했습니다. 드라간플라이는 정부 및 군사 용도로 FlexModular FPV UAV System을 출시했으며, First Atlantic Nickel Corp.와 드론 조사를 위해 협력했습니다. 또한, 화재 지원을 위한 드론 팀의 기록적인 수를 배치했습니다. 회사는 350만 달러의 자금 조달을 완료하였으며, UAV 운영 및 안전을 향상시키기 위해 ParaZero Technologies, Squamish Search and Rescue, Doodle Labs, UXV Technologies와 협력한다고 발표했습니다.
Draganfly Inc. (NASDAQ: DPRO) a annoncé une augmentation du chiffre d'affaires de 30,3% par rapport au trimestre précédent pour le deuxième trimestre 2024, atteignant 1 732 990 dollars. Les ventes de produits ont représenté 1 387 350 dollars du chiffre d'affaires total. Le bénéfice brut a augmenté de 64,9% par rapport au trimestre précédent pour atteindre 461 673 dollars, avec une marge brute de 26,6%. L'entreprise a enregistré une perte complète de 7 097 638 dollars. Draganfly a lancé son FlexModular FPV UAV System pour un usage gouvernemental et militaire, s'est associé à First Atlantic Nickel Corp. pour des enquêtes par drone, et a déployé des équipes de drones en nombre record pour le soutien aux incendies de forêt. L'entreprise a également conclu une offre de 3,5 millions de dollars et a annoncé des collaborations avec ParaZero Technologies, Squamish Search and Rescue, Doodle Labs et UXV Technologies pour améliorer les opérations et la sécurité des UAV.
Draganfly Inc. (NASDAQ: DPRO) berichtete über einen Umsatzanstieg von 30,3% im Quartalsvergleich im 2. Quartal 2024, der 1.732.990 Dollar erreichte. Der Produktverkauf machte 1.387.350 Dollar des Gesamtumsatzes aus. Der Bruttogewinn stieg um 64,9% im Quartalsvergleich auf 461.673 Dollar, bei einer Bruttomarge von 26,6%. Das Unternehmen verzeichnete einen umfassenden Verlust von 7.097.638 Dollar. Draganfly führte sein FlexModular FPV UAV System für Regierungs- und Militärzwecke ein, arbeitete mit First Atlantic Nickel Corp. für Drohnensurveys zusammen und setzte rekordverdächtige Drohnenteams zur Unterstützung bei Waldbränden ein. Das Unternehmen schloss außerdem eine 3,5 Millionen Dollar umfassende Emission ab und kündigte Kooperationen mit ParaZero Technologies, Squamish Search and Rescue, Doodle Labs und UXV Technologies an, um UAV-Operationen und -Sicherheit zu verbessern.
- 30.3% quarter-over-quarter revenue increase to $1,732,990
- 64.9% quarter-over-quarter gross profit increase to $461,673
- Gross margin improved to 26.6% from 24.6% in Q2 2023
- Launch of FlexModular FPV UAV System for government and military use
- Strategic partnerships with First Atlantic Nickel Corp., ParaZero Technologies, and others
- Successful closing of $3.5 million offering to fund growth initiatives
- Comprehensive loss of $7,097,638 in Q2 2024
- Year-over-year revenue decrease from $1,899,039 in Q2 2023 to $1,732,990 in Q2 2024
- Working capital deficit of $3,690,940 as of June 30, 2024
- Shareholders' equity decreased to -$2,622,137 from $407,716 in December 2023
Insights
Draganfly's Q2 2024 results show mixed signals. The 30.3% quarter-over-quarter revenue increase to
Draganfly's product innovations are promising. The FlexModular FPV UAV System for military use demonstrates adaptability to high-demand markets. Collaborations with ParaZero, Doodle Labs and UXV Technologies enhance UAV safety and capabilities, potentially opening new revenue streams. The partnership with First Atlantic Nickel showcases practical applications in mineral exploration. These developments position Draganfly well in the competitive drone market. However, the impact on financials isn't yet evident and the company must translate these innovations into substantial revenue growth and profitability to justify its market position.
Draganfly's strategic moves in Q2 2024 show a focus on diversification and market penetration. The collaboration with Squamish Search and Rescue and increased wildfire support indicate expansion in emergency services. Partnerships in mineral exploration and military applications broaden the company's market reach. However, the
Vancouver, BC., Aug. 13, 2024 (GLOBE NEWSWIRE) -- Draganfly Inc. (NASDAQ: DPRO) (CSE: DPRO) (FSE: 3U8) (“Draganfly” or the “Company”), an award-winning, industry-leading drone solutions and systems developer, is pleased to announce its second quarter financial results.
Key Financial and Operational Highlights for Q2 2024:
- Revenue for the first quarter of 2024 was
$1,732,990 which represents a30.3% quarter over quarter increase. Product sales of$1,387,350 m ade up the bulk of the revenue with the remainder coming from drone services. This is compared to total Q2 revenue in 2023 of$1,899,039.
- Gross profit for Q2 2024 was
$461,673 which represents a64.9% increase quarter over quarter and was down1.2% over the same period in 2023. Gross margin percentage for Q2 2024 was26.6% up from24.6% in Q2 2023. Gross profit would have been$596,083 and gross margin would have been34.4% , not including a one-time write down of inventory of$134,410. T he increase is due to the sales mix of the products sold.
- The Company recorded a comprehensive loss of
$7,097,638 in the second quarter of 2024 compared to a comprehensive loss of$6,890,812 in the second quarter of 2023. The comprehensive loss for the period includes non-cash changes comprised of a positive change in fair value derivative of$2,604,394 , a write down of inventory of$134,410 , and an impairment gain on notes receivable of$4,110 and would otherwise be a comprehensive loss of$4,362,944. Contributors to the year-over-year decrease are lower office and miscellaneous, professional fees, research and development, and wages.
- Cash balance on June 30, 2024 of
$5,290,547 compared to$3,093,612 on December 31, 2023.
- Draganfly Inc. launched its FlexModular FPV UAV System, designed for Government and Military use in aerial reconnaissance and surveillance. The NDAA-compliant system features quick-exchange assemblies, offering flexibility in mission requirements with payload capacities up to 6.5 lbs and a maximum speed of 93 mph. It includes various flight modes, GPS-denied position hold, and an ultra-low latency video feed. The system was demonstrated and used for training to over 200 military personnel during a March 2024 event at Fort Liberty, North Carolina. Shipments to early adopters began in Q2 2024, with the system showcased at Special Operations Forces (SOF) Week 2024. CEO Cameron Chell emphasized the importance of FPV drones in defense, citing the company’s experience in Ukraine and the Drone Racing League.
- First Atlantic Nickel Corp. partnered with Draganfly Inc., a leading drone solutions company, to utilize advanced drone survey technology for exploring a potential large-scale nickel deposit in Atlantic Canada. The project aimed to identify zones rich in awaruite, a highly magnetic nickel-iron alloy, within a 30km nickel-bearing system. This collaboration was part of First Atlantic Nickel's strategy to secure North America's critical mineral supply chains. Draganfly's drones, equipped with specialized sensors, provided high-resolution data essential for the 2024 summer exploration and drilling programs. Both companies emphasized the importance of drone technology in reducing costs, speeding up data collection, and enhancing strategic insights in mineral exploration.
- Draganfly deployed a record number of drones crews and equipment in support of Wildfire Crews as part of its Government Wildfire Contract.
- Draganfly appointed Kim G C Moody as a new Director, bringing extensive expertise in tax law and governance. Scott Larson has been named Interim Chair of the Board, while Olen Aasen takes on the role of Lead Independent Director.
- Draganfly Inc. announced the closing of its offering of 13.5 million units, each consisting of one common share and one warrant, at a price of
$0.25 9 per unit, raising approximately$3.5 million in gross proceeds. The warrants are immediately exercisable at$0.25 9 per share and will expire in five years. Maxim Group LLC acted as the sole placement agent. Draganfly plans to use the net proceeds for general corporate purposes, including growth initiatives, product development, and potential acquisitions. Additionally, the company amended the terms of previously issued warrants, reducing the exercise price and changing the functional currency to Canadian dollars. The offering was made under a U.S. shelf registration statement and a Canadian base shelf prospectus, with securities sold exclusively in the United States.
- Draganfly Inc. announced a strategic collaboration with ParaZero Technologies Ltd. To enhance UAV safety in medical and emergency response operations. This partnership integrates ParaZero’s advanced safety systems into Draganfly’s UAVs, improving safety for projects like Mass General Brigham’s Home Hospital UAV Delivery Pilot and Squamish Search and Rescue. The collaboration enables safer operations over people and beyond visual line of sight (BVLOS) by incorporating parachute systems that mitigate accident risks, boosting the effectiveness of UAVs in challenging missions. Both companies emphasize the importance of advancing UAV safety standards to support critical missions, with Draganfly CEO Cameron Chell highlighting the partnership’s role in providing safer aerial support tools for emergency responders. ParaZero CEO Boaz Shetzer echoed this sentiment, stating that the collaboration will lead to better outcomes in time-sensitive and safety-critical situations.
- Draganfly Inc. announced a memorandum of understanding with Squamish Search and Rescue (SSAR), appointing Draganfly as SSAR’s UAV solutions partner. SSAR, one of Canada's busiest search and rescue organizations, will collaborate with Draganfly through joint proof-of-concept and field training exercises beginning in Spring 2024. The partnership aims to enhance SSAR's capabilities by integrating UAV technology, providing expert training, cutting-edge equipment, and specialized solutions tailored to SSAR’s needs. This collaboration is designed to validate and operationalize UAV use in search and rescue missions, ensuring swift and efficient aid delivery in challenging terrains. SSAR’s Director of Technology, Lianne Girard, expressed eagerness to explore how Draganfly's solutions could improve their operations. Draganfly CEO Cameron Chell highlighted the partnership as a testament to the company's commitment to using advanced technology for humanitarian causes, aligning with their mission to save time, money, and lives.
- Draganfly Inc. announced a collaboration with Doodle Labs and UXV Technologies to enhance UAV operations for law enforcement, first responders, and military applications. This partnership integrates Draganfly’s Commander 3XL UAV, Doodle Labs’ Helix Mesh Rider®️ Radio, and UXV Technologies’ Soldier Robotic Controller (SRoC) ground control station, creating a secure and adaptable platform for demanding missions. The combined technologies offer dynamic interference-avoidance, anti-jamming capabilities, and a rugged, user-friendly control interface. This collaboration underscores a commitment to innovation, aiming to set new standards for operational excellence, security, and reliability in challenging environments. Leaders from all three companies highlighted the significance of this partnership in advancing UAV capabilities to meet the critical demands of their clients.
Draganfly will hold a shareholder update and earnings call on August 13, 2024 at 2:30 p.m. PDT / 5:30 p.m. EDT.
Registration for the call can be done Here
Selected financial information is outlined below and should be read with Draganfly’s consolidated financial statements for the quarter ended June 30, 2024, and associated management discussion and analysis, which will be available under the Company's profile on SEDAR at www.sedar.com and filed on EDGAR at www.sec.gov.
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Total revenues | $ | 1,732,990 | $ | 1,899,039 | $ | 3,062,571 | $ | 3,500,525 | ||||
| Gross Margin (as a % of revenues) (1) | 26.6 | % | 24.6 | % | 24.2 | % | 26.0 | % | ||||
| Net income (loss) | (7,091,549 | ) | (6,908,964 | ) | (8,955,537 | ) | (13,976,590 | ) | ||||
| Net income (loss) per share ($) | ||||||||||||
| (0.10 | ) | (0.16 | ) | (0.14 | ) | (0.36 | ) | ||||
| (0.10 | ) | (0.16 | ) | (0.14 | ) | (0.36 | ) | ||||
| Comprehensive income (loss) | (7,097,638 | ) | (6,890,812 | ) | (8,982,054 | ) | (13,987,807 | ) | ||||
| Comprehensive income (loss) per share ($) | ||||||||||||
| (0.10 | ) | (0.20 | ) | (0.14 | ) | (0.40 | ) | ||||
| (0.10 | ) | (0.20 | ) | (0.14 | ) | (0.40 | ) | ||||
| Change in cash and cash equivalents | $ | 950,811 | (6,647,812 | ) | $ | 2,196,935 | $ | 1,173,657 | ||||
(1) Gross Profit (as a % of revenues) would have been
| As at | June 30, 2024 | December 31, 2023 | ||||||||
| Total assets | $ | 9,900,539 | $ | 8,330,292 | ||||||
| Working capital | (3,690,940 | ) | (717,017 | ) | ||||||
| Total non-current liabilities | 441,053 | 523,584 | ||||||||
| Shareholders’ equity | $ | (2,622,137 | ) | $ | 407,716 | |||||
| Number of shares outstanding | 75,399,769 | 49,229,563 | ||||||||
Shareholders’ equity and working capital as at June 30, 2024, includes a fair value of derivative liability of
| 2024 Q2 | 2024 Q1 | 2023 Q2 | |||||||
| Revenue | $ | 1,732,990 | $ | 1,329,581 | $ | 1,899,039 | |||
| Cost of sales(2) | $ | (1,271,317 | ) | $ | (1,049,570 | ) | $ | (1,431,922 | ) |
| Gross profit(3) | $ | 461,673 | $ | 280,011 | $ | 467,117 | |||
| Gross margin – percentage | 26.6 | % | 21.1 | % | 24.6 | % | |||
| Operating expenses | $ | (4,395,923 | ) | $ | (3,530,933 | ) | $ | (7,234,034 | ) |
| Operating income (loss) | $ | (3,934,250 | ) | $ | (3,250,922 | ) | $ | (6,766,917 | ) |
| Operating loss per share - basic | $ | (0.05 | ) | $ | (0.05 | ) | $ | (0.16 | ) |
| Operating loss per share - diluted | $ | (0.05 | ) | $ | (0.05 | ) | $ | (0.16 | ) |
| Other income (expense) | $ | (3,157,299 | ) | $ | 1,387,114 | $ | (142,046 | ) | |
| Change in fair value of derivative liability (1) | $ | (2,604,394 | ) | $ | 1,817,569 | $ | - | ||
| Other comprehensive income (loss) | $ | (6,089 | ) | $ | (20,608 | ) | $ | 18,152 | |
| Comprehensive income (loss) | $ | (7,097,638 | ) | $ | (1,884,416 | ) | $ | (6,890,812 | ) |
| Comprehensive income (loss) per share - basic | $ | (0.10 | ) | $ | (0.03 | ) | $ | (0.16 | ) |
| Comprehensive income (loss) per share - diluted | $ | (0.10 | ) | $ | (0.03 | ) | $ | (0.16 | ) |
(1) Included in other income (expense).
(2) Cost of goods sold would have been
(3) Gross profit would have been
About Draganfly
Draganfly Inc. (NASDAQ: DPRO; CSE: DPRO; FSE: 3U8) is the creator of quality, cutting-edge drone solutions, software, and AI systems that revolutionize the way organizations can do business and service their stakeholders. Recognized as being at the forefront of technology for over 24 years, Draganfly is an award-winning industry leader serving the public safety, public health, mining, agriculture, industrial inspections, security, mapping, and surveying markets. Draganfly is a company driven by passion, ingenuity, and the need to provide efficient solutions and first-class services to its customers around the world with the goal of saving time, money, and lives.
For more information on Draganfly, please visit us at www.draganfly.com.
For additional investor information, visit https://www.thecse.com/en/listings/technology/draganfly-inc, https://www.nasdaq.com/market-activity/stocks/dpro or https://www.boerse-frankfurt.de/equity/draganfly-inc-1.
Media Contact
Erika Racicot
Email: media@draganfly.com
Company Contact
Email: info@draganfly.com
Note Regarding Non-GAAP Measures
In this press release we describe certain income and expense items that are unusual or non-recurring. There are terms not defined by International Financial Reporting Standards (IFRS). Our usage of these terms may vary from the usage adopted by other companies. Specifically, gross profit and gross margin are undefined terms by IFRS that may be referenced herein. We provide this detail so that readers have a better understanding of the significant events and transactions that have had an impact on our results.
Throughout this release, reference is made to “gross profit,” and “gross margin,” which are non-IFRS measures. Management believes that gross profit, defined as revenue less operating expenses, is a useful supplemental measure of operations. Gross profit helps provide an understanding on the level of costs needed to create revenue. Gross margin illustrates the gross profit as a percentage of revenue. Readers are cautioned that these non-IFRS measures may not be comparable to similar measures used by other companies. Readers are also cautioned not to view these non-IFRS financial measures as an alternative to financial measures calculated in accordance with International Financial Reporting Standards (“IFRS”). For more information with respect to financial measures which have not been defined by GAAP, including reconciliations to the closest comparable GAAP measure, see the "Non-GAAP Measures and Additional GAAP Measures" section of the Company’s most recent MD&A which is available on SEDAR.
Forward-Looking Statements
This release contains certain “forward looking statements” and certain “forward-looking information” as defined under applicable Canadian securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of the Company to control or predict, that may cause the Company’s actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out here in, including but not limited to: the financial condition, the successful integration of technology, the inherent risks involved in the general securities markets; uncertainties relating to the availability and costs of financing needed in the future; the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, currency fluctuations; regulatory restrictions, liability, competition, loss of key employees and other related risks and uncertainties disclosed under the heading “Risk Factors“ in the Company’s most recent filings filed with securities regulators in Canada on the SEDAR website at www.sedar.com. The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents managements’ best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.
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