AgEagle Aerial Systems (UAVS) 12 Apr 222021 Q4 Earnings call transcript

Good day, everyone, and thank you for participating in today’s conference call.

Joining us today from AgEagle is Chief Executive Officer and Chairman of the Board, Barrett Mooney; and Nicole Fernandez-McGovern, AgEagle’s Chief Financial Officer and Executive Vice President of Operations.

Following Barrett’s prepared remarks, both company officers will respond to questions that were previously submitted via e-mail by analysts and investors.

Before I turn it over to Barrett, I would like to 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 or belief are forward-looking statements and are covered by the safe harbor disclaimers contained in the Company’s public filings with the SEC. Actual outcomes and results may differ materially from what is expressed in or implied by the forward-looking statements. turn over I’ll Barrett. AgEagle’s said, that the to call CEO, With go Please ahead.

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helped network be phase grow our of of XXX to going in organically next critical XX worldwide, move us We year-over-year. approximately countries These into revenue which relationships continue growth. to are nurture we our as resellers

our possible experts the our around XXX of XXXX, would world. throughout achievements grown employee highly now fields. without respective been Over talented XX% their over considered of that engineers to now From stationed commitment team, year Our in not employees. the experienced consists end base the of the made and are have expanded of data full-time have we scientists

around would every centered expert we that day. company are expertise, be not are innovative Without by forward their is Our today. and the we work we pushed emerging technologies where with teams that

investment Index, investor expanded and profitable XXXX reach registration to I’m stepped on In role our to In our Overall, and addition growth back filed in and to set we pathway as significant into community. were also with we for investment an our Being guiding the we were for to Index benchmark who Russell this investment integration Russell a our capital achievements, us and which and as million in milestones our James funding catalyze AgEagle in to $XXX included pleased for lead investors instrumental to clear Raymond helped lay as more of and we clear May, greatly XXXX a up added strategies. of growth index With we the to realized the by Stifel active have made goal been provide Through institutional have increase foundation very is a initiatives. strides XXXX a process, growth. revenue June, to shelf institutional strong bankers for success. a we executing our awareness through and funding within CEO named everything strategy. markets used acquisition value significant unlike funds Then able accomplish, driving strategy. operator has

shareholder turnover I leadership very in years. past experienced come the over that stated few the optics recent negative has letter, my AgEagle with I’m of that As aware

excitement efficiently AgEagle global as transform but intend see to to commitments supports Company of possible. to want our my array an I strategy. I to opportunities and a includes hands-on autonomous based the and drone has solutions customers full-stack critical This their only perform ecosystem a help growth fully company execution a capabilities autonomous my the position, delivering an vision on of incredible small reiterate our ensuring remain for to and from manufacturer NYSE-listed However, entire It’s team, developing Kansas the been that leadership industries. not robotic work horizon. into growth that robotics drones Neodesha, in the in as

was XXXX execution year-over-year our XXXX by organic anticipate beyond. and acquisition successful will While by growth growth be initiatives trajectory of our revenue accelerated growth our strategy, in through we the numerous fueled

Nicole, our over to to over of Nicole share performance. you. like it of Fernandez-McGovern, our I our details to financial Before turn more I’d plans, growth CFO, XXXX provide to recap a

you Investor accessible the with XX-K website. all SEC, for Relations today. the our the of and Barrett, thank sec.gov section us is Thanks, our and we joining filed which on AgEagle Yesterday,

here. release this via morning, key some announced XX-K recap which we I’d Additionally, highlights press to from like our a

million sales was due contributing results and was Consolidated totaled today the approximately total sales year an face. full and a results This sensor the approximately marketplace climbing to Software-as-a-Service increased the that prior drone to year. decrease components mainly compared on This in period. million, total we Breaking our of result the supply year Altum the for in from increase gross sales of aforementioned XXX%, down $X.X totaled in custom XXXX. acquisitions totaled the to XXXX, throughout XX% profit and at and of $XXX,XXX. margin compared $X.X our was that to $X.X million $X.X Looking constraints the cost XX% revenue full parts, that revenues approximately million subscription was three revenue RedEdge result chain the revenues manufacturing meaningful increase primarily our

Our share stockholders or of loss was $XX.X a approximately for million $XX stockholders per available approximately common million net loss compared loss to available to net loss to XXXX common XXXX. for $X.XX $X.XX per share, or

was compared the at $XX.X XX, of as of million position XXXX, to cash end million $XX.X XXXX. December Our

compared $XX.X increased to In addition, of primarily XXXX. -- three as million of activities the investing related of total XX, million in was cash of acquisitions. increase as end substantially The aforementioned our as increased December result the equity activities $XX.X to stockholders’ investing XXXX, to a

James. resources Raymond the capital update ATM shareholders. Lastly, From raising approximately verticals, to XXXX, Stifel we increased XX, December provide These building through will substantial $XX.X with goal have efforts. us want XXXX utilizing provided government efforts delivering to value an solution I our on co-agents, for XX, to and our our raised by significant our full of across May that both, we believe commercial growth stack generate a defense pursue our opportunities and ultimately million

detailed to more and Barrett? Now, the vision a to I’ll review, over pass back state of Barrett forward. it go moving industry our

proverbial of robotics To increasingly This artificial reducing stage that Thank intelligence, software set operate labor a package leading generation span as companies you, respected actionable, people through look utilized while and had XX/X machine enabler industry to trusted robotics to in military for And previously I growth optimization. iceberg. learning our that robots of continues outdoor with to with they you, ability operational and foundation CEO and decision-making belief improve will and been remote outcomes increasing working autonomous just cost conducted to valuable, company ahead, in at prosper. bolsters and the since priorities the significantly in have progress unified more place, public solid mapping, top provide. industry more human a XXXX workforces. of capture will our to based and this forefront being they as safety, opportunities, UAVs transportation take thoughtful strategy laid the both commercialized. as of things one when and rejoining believe software, evolve, a that is is this far-reaching innovator line this coordinated streamline They It the process. efficiency ultimately matured technology repetitive, acquisition dangerous of insights Nicole. become on given impact our over and hardware on and architecture capitalizing industry connected with our evolutionary indoor environment AgEagle autonomous Autonomous to they being my will will entire in remain and the environments Serving for and it’s workflows increasingly in an in XXXX, integrated are advanced the and the a the as others. technology aligned requires among warehouse management, is innovating objectives and and and sensors on new at is backdrop how inspection, Autonomous our many and output ensure real-time operate. With realize drone industry defense, our are groundwork effort in Today, commercial that growth and intends software expertise data-driven well by organization navigation which years applications and tip specialized at and sensor agriculture, the we hand. the of delivery, intelligently in through that drones, technologies. our back in in focused on as

be for the solve ideas, goal we best-in-class excellence organic solutions a autonomous deliver our meaningful of industry of solutions. our safety interdisciplinary existing generate customers of To with fit immense defined growth our through engineers cross-pollinate standards challenged upon talented and and intelligent organic efficiently established scientists, this future and has aim centers world-class deliver insights XXXX sensors, leadership that performance utmost to needs. X ability customers. pool to operational The to possible confidence growth In meet skill the specific software objectives, our sales airframes, that we data is autonomous robotic business and fact, an With by sets. alongside solutions provide problems to we have our and in will highest as that their have

centric. with March innovation be more stated needs going I in knowing product to of We’ll we’re before than and customers my As letter do. shareholders, to they customer be the obsessed our just and

capitalize from experience will on in our solution, to application opportunities of energy and surveillance. mapping stemming the Looking sales expertise utilities and at agriculture, continue efforts, we our growth and

belief been reseller intensely events, the months government benefit combination a we’re shows To on people capabilities are our approach innovation. expertise also ensuring potential is Utilizing virtually and autonomous of evangelizing that trade to and right at from the numerous out channels, appropriate extensive across and direct-to-consumer force. every commercial We network these products we have it marketing an sales effective our a on robotic capitalize However, AgEagle’s we enterprise globe to proactive can really focused intend adopt also opportunities, and our through to tactics. our the industry conferences showcase in ahead. building

to can We to our also look to remarks, the forward community drive to to participating we back in ultimately multiple today apprised like investor on over all Nicole, conferences,, ahead. sustainable for institutional this in and Nicole progress but I’d shareholder so throughout the I’ll that you. Q&A value. to session. make you some closing come years journey turn return help for in look the inherent keeping value I it to we long-term and company forward the appreciate proposition investor our prepared

Barrett. Thanks, Great.

the received at from we’ve Let’s this investors point. address questions

conflict are and applications these situation? eBee this Ukraine, with the TAC to the Russia utilize for With ongoing

hearts transpiring between First, conflict, aggression. the we all which I’d such like active in go say to Ukraine. for Russia But a military out an and areas applications, as this a and people of peaceful offers end the variety to directly, support is platform speedy stand our the affected reconnaissance an contact to promoting military eBee including those that to TAC of and aerial by

available and when time drastically, competitors changing military effectiveness Our the to improvement thereby conditions provide of the improving forward-operating can the a and system to surveillance over personnel. safety flight increased for units offer significant our information are

short, yes. in So,

Great.

question. Next

what days, countries? versus in sensors U.S. the Company’s global other manufactured of percentage are the airframes and these Given footprint

the question really This because is prided manufacturing of Switzerland. hardware in is our United manufactured a and great ourselves States our we And all or on prowess capabilities. either

world, locations While of but supply around in few Switzerland. we facilities, of either our a continue shore of the a assembly sourced testing out up still chain, one variety our and from States United design, or comes our to all the are of components

Perfect.

question. Next

Unit, UAS cleared software? Defense there such or With the the meaningful other TAC offerings as Innovation Blue by list opportunities cross-selling sensors for the to added eBee are

our sector. software offer industries, ideal combining government Absolutely, for variety a in the partner makes And and We and expertise us hardware absolutely. an many of including development solutions. defense

of focal So, a growth point big cross-selling going our is strategy forward.

the solving actively We’re a our and have can customer we so don’t in coordinated we best the that training combining solution, sales solutions to If team for matrixed can work best build it. way we provide problems.

great. Okay,

achieve Next to some steps accomplish question. that the possible. you’ve the that And to are what to as of quickly are Barrett, was catalysts shareholder it this? you positive goal What taken your point? to flow mentioned cash as in the letter getting

believe end, matrix is way I as as business. mentioned to before. team approach that as team’s flow practicable and we’re that as our support expertise style cross-selling best a to quickly our the leadership regardless geography for development the opportunities, positive takes cash do growing the our advantage on focus to I of product of that best-in-class To reorganizing and

are manufacture at past really going better expresses the to then Switzerland, point going solution, going in We’re software together SaaS our challenges. catalyst in be catalysts their design solutions. and of wrapping growth us to that that That’s United organization answer can how big with data-driven sensors more States and element at under also It’s a new to able and being the innovative that. the innovative and of that our and by keen interaction our a that the some is customers to umbrella being to into and get hardware software integrated synergistic our key continue looking deeper accelerate approach, selling offerings build be to offering and by customers’ solutions able our to own

flow possible this to our and grow here cash synergy there So through innovation. way with as my quickly positive is goal the as really

Well, thank for that. you

As CFO, I truly do appreciate that.

What expect offerings you the to see from the our most term there? near growth to moving So in on do next product question. sales

most are areas all We sales the customers product synergistic we AgEagle have have products single that expect that multiple fastest are will growth using where sales, mean, ecosystem. and and growth strong revenue scalable categories. where product of I our in exciting we be driving integrated

sensors, unit and really the my a have shaping driving how We software in our is and up brand-new how outlook that sensor mentioned collaboration I utilization, good earlier is remarks. on with its as

for we innovative performance as the those of on well have units really hopes side units those. high hardware And TAC the from the as flight and so, coming some stuff eBee with

So, I our really we’re see is to for going with have the a mean in offerings positioned sales the I what mean mean products what all I marketplace, and excited about and very from of beyond. most product of growing them. are do growth room expect XXXX we to lot that’s

Great.

solution. a commercial as HempOverview with Any is plans it further opportunities? to into question Next new or states expand

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has our software the additional While that an features, state services add appreciate slowed, but offering. coming including of to contracts, crop flexibility the product we able our of even growth the to partnerships, feature who more opportunities, customers do our certainly for actively were to development. existing this Florida, from selling Recently, basically part additional continue of tracking leveraging business look key perspective, to news cycle we new

of expand on platform commercial to solutions, and that be our development the hope any whether whether a itself. always or new feature contracts through expanding there’s partnerships we’re So,

Great.

in to what the question out? to how opportunities done is are believe you final Do today there see AgEagle’s enough our regulatory is So, in, plans delivery? standby pans a for invest or landscape mode you are growth near-term for

a to UAVs, the drone companies and history ground testing ecosystem. AgEagle of looking has collaborating directly manufacture pipeline support and equipment equipment with delivery to related

unique current in the changing there suited with projects, prior to us set a several NDAs, While to and best safe regulation previous our point and drone as for delivery BXB protect of and we being work airborne partners, strict opportunities landscape, With of key delivery. package emerging still to systems focal challenges several option. is of are are cannot the develop or has mailbox where our including AgEagle our disclose either still which Valqari place a are our solutions relationships package due

autonomous always We So, our same as future, both, been delivery. that hardware is drone power several control flight to the the and and years. been we autonomous approach and software and of drones has look it’s for offer ground the solutions as components

-- to infrastructure delivery, these what’s be to continue we these on absolutely anticipate that package we and pushing the are So will the what’s and forefront, with of tools tools robotic critical capable producible.

the our session. our But end to wanted reiterate this future. Q&A So, webcast, I before for concludes just the we vision

with We company are one one vision.

few poised the to surface over While of be a start scratched some potential company. position focus of most made enough we’ve the this this we’ve get solutions on is the delivering only keep strong the fast-evolving today, to past in We our to industry. in at firmly market we’re the pack. autonomous substantial front progress years on intense the head believe of us innovative fortunate I And the true were in on the

thank all like shareholders for our to today, thank I’d you all forward our webcast to with and and letter, remain throughout We first month. to their objectives you and journey. committed sincerely With upon Operator, I that is Nicole I’d staying to to sharing laid this in you As my valuations like joining to It that, for we’ve promise look strong good quarter organization consistently XXXX we growth our back out shareholder stated to in deliver for I support. financial appreciate command fundamentals will next us results the you. the seeing performance. good businesses continued for reflect market. generate good my businesses,, our premium

teleconference. this conclude gentlemen, and does Ladies today’s

you at your disconnect participation. lines your may this Thank for time. You