In This Article:
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Draganfly Inc (NASDAQ:DPRO) reported a 16% year-over-year increase in revenue, reaching $1.547 million for Q1 2025.
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The company signed an exclusive agreement with Safe Lane, the world's largest demining and unexploded ordinance removal company, to provide aerial surveys.
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Draganfly Inc (NASDAQ:DPRO) announced a teaming agreement with Autonomy Labs to use their heavy lift drones for demining operations, promising lower costs, faster speed, and greater safety.
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The company established a public safety board of advisors, enhancing access to top agencies globally and providing valuable expertise.
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Draganfly Inc (NASDAQ:DPRO) closed a $3.6 million financing round, supporting ongoing operations and future growth.
Negative Points
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Despite revenue growth, Draganfly Inc (NASDAQ:DPRO) reported a comprehensive loss of $3.4 million for the quarter.
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The company's gross margin decreased due to more sales coming from lower margin products compared to the previous year.
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Total assets decreased from $10.2 million to $6.9 million, largely due to a decrease in cash as the company operates.
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The company does not expect to be profitable in 2025 and anticipates needing $35 to $40 million in revenue to achieve profitability.
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Revenues have been stagnant since 2023, and significant capital investments have yet to translate into substantial revenue growth.
Q & A Highlights
Q: How many more equity raises do you plan on doing before being profitable, or more specifically, when do you plan on being profitable? A: Profitability is primarily dependent on sales. We estimate needing about $35 to $40 million in revenue to achieve profitability. While we don't provide official guidance, we expect to be well north of that number in terms of orders this year. We won't be profitable this year, but we have a good shot at profitability next year, potentially with just one large order. - Cameron Shell, CEO
Q: Are we still on track to get large meaningful contracts? A: Yes, we are actively pursuing large contracts, which are complex and intricate. Our sales funnel for these large contracts is well over $100 million. We are dealing with nation states, militaries, and large public safety orders, and we are in a position to deliver on these. We feel we are very close on several fronts. - Cameron Shell, CEO
Q: Do you think there will be consolidation in the drone industry? A: Yes, consolidation is likely to continue. We have not been aggressive in this regard due to our modest market cap and focus on organic growth. However, we frequently see interesting opportunities for consolidation. The industry is at a tipping point, and only a few companies have the resilience to get through this phase. - Cameron Shell, CEO