In This Article:
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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SKYX Platforms Corp (NASDAQ:SKYX) reported a 6% increase in revenue for Q1 2025, reaching $20.1 million compared to $18.9 million in Q1 2024.
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The company achieved its 5th consecutive quarter of year-over-year revenue growth.
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Gross margin improved by 4.8% and gross profit increased by 2% in Q1 2025 compared to Q4 2024.
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General and administrative expenses decreased by 17% compared to Q1 2024.
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SKYX Platforms Corp (NASDAQ:SKYX) secured approximately $4 million in additional equity, contributing to a broader financing round totaling $15 million.
Negative Points
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Cash equivalents and restricted cash decreased from $15.5 million as of March 31, 2024, to $12.3 million as of March 31, 2025.
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Net cash used in operating activities was $4 million in Q1 2025, although this was a decrease from $6.1 million in Q4 2024.
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The company reported an adjusted EBITDA loss of $3.6 million or $0.04 per share in Q1 2025.
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The net loss per share was $0.09 in Q1 2025, only a slight improvement from $0.10 per share in Q1 2024.
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There are ongoing uncertainties regarding the timeline and impact of mandatory standardization for their safety products.
Q & A Highlights
Q: Can you provide an update on the US manufacturing partnership and its cost implications compared to international manufacturing? A: Unidentified_2: The partnership with Profab Electronics in Florida aims to automate production, minimizing cost differences with international manufacturing. The goal is to fully automate production in the US, making it competitive despite not necessarily being cheaper. The advanced facility and machinery at Profab support this initiative.
Q: Is there potential for further investment from the Schaer Group, and how does this relate to the hotel distribution channel? A: Unidentified_2: The recent $4 million investment from strategic investors, including the Schaer Group, is part of a broader financing round. The company welcomes strategic investors who believe in its future. The hotel distribution channel is expected to benefit from the full product assortment, which will be available by the end of the quarter, facilitating partnerships with hotels.
Q: What percentage of products do you plan to manufacture domestically, and how long will it take to achieve full automation? A: Unidentified_2: The company is exploring domestic manufacturing options, with a goal to increase US production. The timeline for full automation is not specified, but the company is actively working on it. The recent tariff changes have brought Chinese manufacturers back into consideration, but the focus remains on establishing a domestic supply chain.