Draganfly Inc. (NASDAQ:DPRO) Q1 2024 Results Conference Call May 14, 2024 5:30 PM ET

Company Participants

Rolly Bustos - Investor Relations
Cameron Chell - President and Chief Executive Officer
Paul Sun - Chief Financial Officer
Scott Larson - Lead Director

Rolly Bustos

All right. To respect everybody's time, I think we will get started today. So as usual, greetings, and welcome to all shareholders and stakeholders in today's Draganfly 2024 Q1 Earnings Call. My name is Rolly Bustos, and I am the internal Investor Relations representative here at Draganfly. We appreciate you joining us.

We will start with our CEO and President, Cameron Chell, recapping the first quarter earnings headline.

Cameron Chell

Good afternoon.

Rolly Bustos

Then quickly, we will have a more detailed financial review from our CFO, Paul Sun, then Cam will discuss some operational highlights and subsequent events. As usual, we will conclude with our Lead Director, Scott Larson, moderating the pre-submitted questions we have received. As always, you are welcome to reach out to me at investor.relations@draganfly.com.

Once 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 financial results may differ from what might be discussed here. The forward-looking disclaimer can be found on Page 2 of this presentation.

So Cam, if you're ready, please go ahead.

Cameron Chell

Great. Thanks, everybody, for your patience. I appreciate that. Okay. So our Q1 revenues were $1.3 million, somewhat by design, that included $1.2 million in product sales and just under $100,000 of services. Now it's important to note that this is a 45% increase Q-over-Q from our Q4 of last year.

Now as most of you probably realize, we've gone through a major upgrade of two plants last year, and we're able to bring on our main plant in the end of Q3, beginning of Q4 of last year. And we've been preparing, or throttling, if you will, basically for expected incoming orders that we've been working on now for about 1.5 years and particularly from our military customers.

A number of announcements leading up to this, you will have noticed, are sales into military customers, which are all kind of the precursor in order for us to be able to meet the demand signals that were given to us by the military. And I'll talk a little bit more about this after Paul runs through the numbers, exactly where we're at in this cycle and the steps that we've taken in order to prepare for it.