Draganfly (DPRO) Q2 2024 earnings summary

Executive summary

• Q2 2024 organic revenue reached $1.732 million, with $1.4 million from product sales and $345,000 from services.

• Revenue increased 30.3% quarter-over-quarter to $1.73M, though down from $1.9M in Q2 2023.

• Gross profit was $461,000, with a gross margin of 26.6%, up from 24.6% year-over-year.

• Cash balance stood at $5.29 million at quarter-end, up from $3.09 million at year-end.

• Board expanded with three new members, bringing significant military, audit, and entrepreneurial expertise.

Financial highlights

• Q2 2024 revenue: $1.73M; Q2 2023: $1.9M; six months ended June 30, 2024: $3.06M.

• Gross profit was $462,000, slightly down from $467,000 last year; adjusted for a $134,000 inventory write-down, gross profit would have been $596,000.

• Gross margin, excluding the write-down, was 34.4% versus 31.1% last year.

• Total comprehensive loss was $7.1 million, impacted by non-cash items; net loss per share was $(0.10) basic/diluted.

• Cash and cash equivalents at June 30, 2024: $5.29M.

Outlook and guidance

• Management expects meaningful contract wins in 2024, with full production capacity readiness by year-end.

• Expects continued scaling in military, commercial, and public safety markets, with focus on FPV drones in defense.

• Operational burn reduced to $6.4 million in the first half of 2024 from $11.6 million last year.

• Ongoing collaborations and new product launches are expected to drive future revenue and operational improvements.