Yahoo Finance Draganfly Inc. (NASDAQ:DPRO) Q4 2023 Earnings Call Transcript
Draganfly Inc. (NASDAQ:DPRO) Q4 2023 Earnings Call Transcript March 27, 2024
Draganfly Inc. isn't one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Rolly Bustos: All right. I think just to be considerate of everybody's time here today, I think we'll get started. So greetings, and welcome again to all shareholders and stakeholders to today's Draganfly 2023 Q4 and Full-Year Earnings Call. My name is Rolly Bustos and I remind all joining us today that I am the Internal Investor Relations representative here at Draganfly. We appreciate you joining us for this review and update. We will start with our CEO and President, Cameron Chell, discussing the fourth quarter and full-year operational highlights. From there, our CFO, Paul Sun, will review the financials. And we will conclude, as usual, by going through the pre-submitted questions that we've received. As always, you're welcome to reach out to me individually at investor.relations@draganfly.com.
Again, I remind everyone that this presentation may include forward-looking information and statements. These statements are not guarantees of future performance or financial results and undue reliance should not be placed on them. Any future events or results may differ from what might be discussed here. The full forward-looking disclaimer can be found on Page 2 and in your screen right now. So Cam, please go ahead.
Cameron Chell: Thanks, Rolly. I appreciate everybody taking the time today to [indiscernible] on the earnings call. We really appreciate your trust and consideration. So 2023 was a pivotal year for Draganfly, highlighted in particular by the fact that we have now shifted our production to organic capability to produce well over $100 million internally of product with two production lines on our two main products, which we'll talk about here shortly. We still maintain our full custom and contract engineering capabilities as well as our work benches, which enable us to produce smaller batches as well. So in 2023, we had a little bit, by design, especially in the last two quarters or three quarters, but two in particular with building out our new plants, understanding that we weren't going to grow the revenues because, in fact, we couldn't grow the revenue because of capacity issues.
So our revenue for the year was $6.5 million with product sales being $5.2 million and provision of services being $1.26 million. We did have a gross profit margin of $2 million on that, so fairly healthy and which is about 31.5%. And as of the end of December, we had a cash balance of just over $3 million. So some operational highlights from Q4, in particular, was us receiving special flight operation certificates for transport – from Transport Canada. We have received other certificates as well from other jurisdictions. And these ones, in particular, were for the wildfire services that we are providing up to the Canadian government. This is an area that's going to grow significantly for us this coming year, and we – as highlighted by the capabilities of the particular drones that we have manufactured.
We've also been working very, very closely with the United Nations on several initiatives that do relate to wildfires and in particular, climate change, and have had spoken a number of times and consulted several times as well with the World Meteorological Association in conjunction with the International Center of Digital Innovation, all part of The United Nations Convention to Combat Desertification. Further to that, and by far, the enormously fast-growing area of the entire drone market is the defense space. And a couple of the highlights from Q4, in particular, were not just our display, but our demonstrations at Modern Warfare Week, not just of the Commander 3XL, but also of several payload partners that participated in Modern Warfare Week with us.
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