Draganfly Inc. (NASDAQ:DPRO) Q2 2024 Earnings Conference Call August 13, 2024 5:30 PM ET

Company Participants

Rolly Bustos - Investor Relations
Cameron Chell - President and Chief Executive Officer
Paul Sun - Chief Financial Officer

Operator

Rolly Bustos

Okay, thank you. Respectful of everyone's time, even though I see people still coming in, I think we'll get started today.

Greetings, and welcome to all shareholders and stakeholders to today's Draganfly 2024 Q2 Earnings Call. My name is Rolly Bustos, and I am the internal Investor Relations representative here at Draganfly. I've talked to many of you in the past. We appreciate you joining us.

We will start with our CEO and President, Cameron Chell, recapping the second quarter earnings headline. We will then move right into a more detailed financial review with our CFO, Paul Sun, Cam will then jump back in and discuss some operational highlights and subsequent events, as well as go through the pre-submitted questions we have received. Like always, you are welcome to reach out to me at investor.relations@draganfly.com at any time.

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 will be found on page two of the presentation.

So, Cam, please go ahead.

Cameron Chell

Thanks, Rolly. Thanks everybody for taking the time to hook up with us today, we really appreciate it, to the 2Q 2024 earnings call for Dragonfly. As mentioned, the disclaimer, this presentation will be posted on the Web site under the Investor Relations tab immediately follow the call. And the disclaimer could be found on slide two.

So, just to hit the financial highlights, basically, in the Q2 2024, we had organic revenue of $1.732 million, that consisted of $1.3 million, close to $1.4 million in product sales, and then provision of services of $345,000. This is a 30% increase quarter-over-quarter from our last quarter, which I'll speak to why that's the case, and why we now see sales starting to move forward again here shortly. Also in Q2 2024, our gross profit was $461,000, with a gross margin of 26.6%. Paul Sun, our CFO, will speak to some of the detail around that of why the actual operating gross margin was a bit higher and healthy. And then, we have a cash balance of $5.2 million.