AgEagle Aerial Systems (UAVS) 16 Aug 212021 Q2 Earnings call transcript

Please standby, we're about to begin. Good day everyone, and thank you for participating in today's conference call.

Joining us today from AgEagle is Chief Executive Officer Brandon Torres Declet, and Chief Financial Officer, Nicole Fernandez-McGovern.

Following Brandon's prepared remarks, both Company officers will respond to questions that were previously submitted via email by analysts and investors.

Before I introduce Brandon, I remind you that during today's call, including the question-and-answer session, statements that are not historical facts, including any projections, statements regarding future events or future financial performance, or statements of intent we believe are forward-looking statements and are covered by the safe harbor disclaimers contained in the Company's public filings with the SEC. may by from these results in is and implied or forward-looking outcomes differ what materially expressed Actual statements. With call that over the to AgEagle said, 's CEO, I'll turn Brandon. ahead. go Please

you to the update beyond. as closely CEO It's identified Company. team to product team current to a took every ran the and to our Thank appointment Texas, country, position and assets, Since with products, people the traveled skill The a team. the spoke competitive our my an of I've Kansas, the team of and board you, stock quarterly aspect be Through for in of of with in we achieve XXXX Tom. primary May, from process. joining strategic formal visiting first was process, all complete my our this customers, I top-to-bottom sets in the pleasure to more Florida, of success by AgEagle. Washington. the on the working leadership and refine objective and evaluated to analysis our my direction us of importantly, remainder our XXXX I review put We members business, stronger in even key unique and facilities of been a

the by of be clear. share drones, new developing sensors, position drone and business a and leadership significant me Let in our We intend our markets. to preserve software capturing grow global

Andrea SVP seasoned Business Lumish, leadership new team, of was comes CingMars. at In strategies additions has Software, our CEO AirMap. made our which our Enterprise Marketing, to pioneer drive Hangar have of over addition, with for a our teams through senior the of Development new people, Technology, the led key years, is and Business expansion strategic acquisitions. we formerly is past to to developing at and a years of When Development, revenue. of sales it innovative acquired and growth in implementing DroneDeploy, most Scott expect Director drone accelerate and XX executive our to experience industry, he by VP XX Andrea Scott Sales marketing including recently we and

intend bringing talent. size double the we in forward, to proven team, our of Moving nearly

comprised We importantly and expect passionate AgEagle to software. are drones, vibrant, individuals developing that sensors, most be new of diverse about and

MicaSense, Our to we begin new to At intend sensor continue year. product see drive is portfolio sales launches to strong. which you this product through should

see targeted from unique new and is the the new should bundled value enhance You of ground drone [Indiscernible] sensors software proposition further platform. Measure, that at the of should control integration like MicaSense the rapidly energy also verticals these capabilities with developing with construction Measure products.

expect third-party its can features. our platform designation high of integrity, we procedures customers. security, compliance. secure continuously meet and proud enterprises It collect sensitive see recognition confidentiality. achieving and agencies to our the standards, for of lead of of to Company. we'll a cyber-attacks, SOCX that with partner, team drones data. ensure The new product, also and our rigorous government for by these our team did Audit privacy & of code, availability, procedures and affirms audit pivotal that to using I'm our standards Our level processing we recently and practices at incredibly important SOCX validation the deployment customers Linford for an is a confirms to age a met of the increasingly work software gained an is Measure acknowledgment have security team and accelerated ran software six-month extensive This providing

MicaSense come standalone products both in the will integration efficient, the from growth high-quality largest the and and utmost we have growth of MicaSense the customers. near believe our confidence to we for data term capture potential of While a Measure ensure driver Measure, tight in

by and know planning, important partly solution sensor when products, enables why of tens seamlessly further is time. the integrate data creating service you and compliance, MicaSense with fleet it how providers [Indiscernible] a in a is largest turnkey our nation, iconic we the most control data drone Measure Measure range when thousands one to management We to capture complete solution decision first available. is the and like flights work products autonomous sensor drone our mission Our Ground experience easier have of of enables knowledge that completing owned operated of gained commercial available. And our the flight, enterprise the efficient we MicaSense customers. expect broad driven you and team for

and strategic have sensor, and with banking we The strategic government and energy, spectrum of broad can a implement construction, should the proven invest across across and us investment today believe James viable be research acquisitions. to fragmented, on to stack, technology remains to team agriculture, Stifel has offering, development, means at-the-market thus in Finally, beneficial and vision in This industry full that members, new ability verticals. we drone drone, for far. cash an pursue hire successful use the firms, our to highly AgEagle. solution with overall to provide cases unique We strong very Raymond and the strategy, teamed software execute QX position enable our will our which

there not acquisition our solution believe and out a potential opportunities am the we we round growth. position evaluating, currently While that accelerate targets to speak of full-stack will I are of are several in any

sure consider overall strategic business the any We will on near-term full-stack solution. drone aligns immediate we the have based benefits and with adopt discipline our we fundamentals, past, vision approach a of providing same has the in opportunity making

to areas organization business. sense continue functioned makes at our all and maximum growth, the that potential. asset historically drive We're we our cohesively to to resources and that As is utilize dedicating we products those looking ensure areas are ensure to properly we of efficiently together to several crucial services it offer it their of

our currently start within savings. cost and opportunities we're footprint to space operational In office of facilities consolidation evaluating U.S. across drive addition,

as key Before named Index. I recognized financial widely U.S. quarter of is Russell proud the earned have have of because our important companies. We're shines to one during The U.S. a you, XXXX XXXX AgEagle accomplishment smaller distinction. of it other note Company's economy on for companies Russell be among the the light very having cap that the high-growth Nicole to bellwether number small the review QX was highlights this

full-stack to our results driving building brands, building the to Our and research range innovative solutions broad new long-term government. shareholder including these and remaining AgEagle value collaboration focused and industries, within second-quarter construction, to growth of high-performance, development, how enduring, embolden across results Delivering talent implementation businesses drone and and on solutions by firm positively enterprises. to disrupt It internal energy, our a to verticals that bring operate. transform can strategies help global is belief of and agriculture,

it turn to past to to Nicole, to like have conclude answer I'd you. submitted will Nicole, Now over over several CFO, over the the webcast, that weeks. our been questions

be Thanks, our thank you all scc.gov for us XX-Q of will the website. the and and will AgEagle afternoon, on section SCC, Brandon joining which Investor Relations file the This on this with accessible morning. we

some like here. announced key to this morning we recap highlights the which Additionally, report, from I'd

largely MicaSense June months accounted in subscriptions January revenue into of for XX,XXX increase from revenue sales software due sensors year prior we ended April total revenue period. approximately and the approximately $X.X to the this was new million to XX the significantly For in million respectively. manufacturing of which $XXX,XXX X.X deeper This approximately revenue and totaled our increased and from significant year, XX,XXX contributions acquired XXXX, three totaled results, a Measure, of Drilling approximately approximately MicaSense sales. drone

ended note the in XXXX, XX.X three to to ended the three or the net compared with by totaled Our previous for associated million XXth, financing for were quarter. loss million non-cash loss per Company's X.X share activities June approximately loss June $X.XX net of $X.XX net same that loss the XX $X.X year. months share that million three impacted the It's loss of negatively XXXX, charges in or months per a for the months important

results prior and X growth first month June revenue new contributions nearly to period. acquisitions. at XXXX, increased largely X.XX was sales compared significant million, This looking XXth, when Measure months the year's from MicaSense Now, XXX% to due X to the in for the ended revenues XXX,XXX

revenues of our million, accounted Our approximately licensing of agriculture positively of Drilling and were software custom deeper HempOverview revenue the our and totaled drone XX,XXX, also XXX,XXX impacted totaled and for expanding by subscriptions X.XX by from total stemming revenue into X-month solution MicaSense manufacturing results, departments and sensors Iowa state Florida. software sales of sales. revenue the new in

loss net integration bottom line. compared share Despite for declined the MicaSense June XX.XX or the for cost months million same per Measure and as to $X.X to share X the and million AgEagle related of per moving to loss a and businesses, ended 's Now, loss expenses of XXXX, the to $X.XX acquisition XXXX. loss or net in $X.XX XXth, higher period X-month the

up position million cash as XXXX. Our approximately XXXX million end of from was $XX.X the XXth, of as XX.X of June

mentioned, in investment this year, through late agreement in entered briefly common we to Brandon As May stock James. XXX into of banking to Raymond Stifel our and million partners up sale a sales

financial I'm -- is cents transactions XX.X per Raymond months share balance shareholders strengthened capital to for stock the prices at-the-market AgEagle million three to pleased totaled ahead. our quarters XXXX, and sheet ended at the Stifel well-positioned cents flexibility. drive in X.X James and value from in increased business growth flexible our that During share. raised with for ranging our and to X.XX

on received With This times first that, years. plans we the question update it contracts? with have e-commerce you off is Brandon. any can a the questions to plan the Kicking many our received we've past But X provide let's go-forward from investors. over move that or with question.

I e-commerce with remains worked for we certainly a question of understand Thanks, high-profile investors. Nicole. top mind Yes, this customer.

at not of as as early would public like forward. going important to the entity, views details our I'm Company's AgEagle is serving contract for liberty relationship I important bolstering our provide this This in an proof-of-concept. disclose work, days the revenue a an on While to and

and environment support However, it application longer our simply regulatory no proof-of-concept, as does material to Since business. particular we here a this view not at scale. was the abroad it

building at revenue we vertical are industry forward, to and generate on applications scale. focused Moving

of are industries driving diligently and are the drone We a focused our across accordingly. globe, a full-stack strategic that we plan for variety growth resources dedicating solution revenue towards to applicable on operating

Great.

with Can you your an provide on question. Valqari? Next update relationship

Sure.

the my strategies. was all able which strategic AgEagle, our with evaluation growth near-term determine I to of mid-term part As reassess Company's relationships and and of align ones

pleased was our that and not resource provide, we this relationship While contract the allocated determined terminate we we be growth accretive would with as services elsewhere. strategy to our decided were manufacturing it we to better

with dealing been What the weeks? the is over the shareholder question. lawsuit you've Next of past status few that

As you may release to have seen press last of that put week, lawsuits have out proud been the we're announce we in the all dismissed.

were from to all claims expect a putting communicated and to stock clearly from this misleading As look price. these the further about happy matter X, this and were lawsuits short-sellers on to frivolous, and and matters. manipulate outcome inaccurate, these We're any AgEagle blatant day forward attempt don't really rest of

progress Wonderful. HempOverview in additional organization? Any on states with update

it's We're and for platform eager to continue existing to our customers. grow HempOverview the service

farm the grow is Florida our HempOverview HempOverview, oversight my continue Florida platform expanding advantage of Services breadth the to in and globally enforcement, leverage only reporting real-time platform licensing to full best registration, While the industry take power hemp to management growth, will the enables start. practices, going and and to them functions. opinion, and and are of Agriculture Consumer its hemp Department of Iowa, software manage this and of

native state a Department protection custom Consumer Agriculture platform XXX than the more and commercially and of compliance Florida Florida. to to to licensing, registration of general develop the endangered wild Services oversight exploited plants contracted and addition relating and enhance In software the communications, of AgEagle to

this question can our Is that AgEagle currently for models the new last is provide So working you drone any on day. on? details

mentioned I Nicole. agriculture, the drone acquisition. on drone, across are of from may a launch full-stack, including and of construction, our come customers our In focused providing an with any including the sensor work of question, we near earlier, number mid-term, A energy, and through talented team government. our airframe Great verticals software or

So our session. this Q&A concludes

how a I turn and of ample back industry position drone growth I of as AgEagle in have I the Operator, leadership the web we hemp excited to over within build the -- due Before to am from. reiterate and call front us, opportunities to to want webcast the strong

place sharing as like CEO, first I'd of our confidence employees, all I Additionally, the forward I and the plan success we the months shareholders thank necessary near in this have drone opportunities global got and customers, long-term and to both and that look industry. of now the with partners, to of I you. [Indiscernible] the capitalize couple in within on have have utmost my to Company believe all

As wins and provide and permanent always, to will via progress our the to continue press material share way. to the all release we updates market along

a strong foundation this place, the beginning. only have We just and is in

Let's back you. joining to go. webcast Thanks for today. again Operator, our

you, does today's Thank conclude teleconference. Sir. and Ladies this gentlemen,

your lines your participation disconnect a this Thank great at may time. day. you for and You have