- Earnings call transcript Q2 2023

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Operator

Ladies and gentlemen, thank you for standing by. Good afternoon and welcome to the Red Cat Holdings Fiscal 2023 Second Quarter Financial Results and Corporate Update Conference call. [Operator Instructions]. Participants of this call are advised that the audio of this conference call is being broadcast live over the Internet and is also being recorded for playback purposes. A webcast replay of the call will be available approximately one hour after the end of the call through March 15, 2023. to of call Relations CoreIR, like Delahoussaye, to firm. now President Vice the would turn over the Joey I Company's Investor Please sir. go ahead,

Joey Delahoussaye

for Red MJ. us and second corporate you, Good call. everyone, results thank Thank conference afternoon, quarter financial for Holdings Cat you the update fiscal XXXX and joining

statements Red Cat’s Holdings be Jeff Chief this for management will Thompson, Officer us or Financial Executive Officer; Joining operational During Red Cat today Chief forward-looking that statements future performance including making from expectations Hernon, are address and Joseph results. call,

and statements involve statements. factors Forward-looking actual cause results differ risks those other from that may materially to

XX-Q For more press release in accompanies factors recently contains risk Cat’s content Red this information the that most as Cat that cautionary call the this call, The Jeff? call about Except accurate revise time-sensitive Form to these filed only it. XX, periodic refer circumstances the by information reflect Form now update statements this is and to in of on in Red please Cat’s described reports particularly risks, It Jeff and my events turn any Chief that any Thompson, is to disclaims law, to pleasure or information call. or to XXXX. Officer. publicly required as after obligation occur over of Executive today, December Red XX-K

Jeff Thompson

not focused and the The for technology the economy Cat, second industry conference and are U.S. on call. earnings battening the down NATO. year brutal This Many quarter in growing, Joey. a defense at you, hatches. XXXX our and been tough to growth. Red are is Thank year fiscal Welcome stock we shrinking companies has But businesses a market.

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well-positioned growing drone. the is per can we factory tens are produce now have that meet to demand year. We for in made great drones. The Salt City believe a thousands a invested new We in Lake Teal drones of USA in drone of

it's nothing apps. an like iPhone, without the So

open allowed out-of-the-box Our great to complete partnerships two fighter has give for platform war a the system.

Kinesis add Tomahawk now Robotics, of licensed Robotics. ships software Teal to Reveal you fully with and expect the capabilities, of recently warfighter an with When partnerships list we with drone partners. seen mapping tactical bringing a announced hour Reveal the on these We advantages to spend this battlefield. and can to capabilities the from before version are have Tomahawk I table Technology on add not give could three the the you Each companies.

Skypersonic. expect produce the we is Let's Skycopter Bill an in inspection The contracts XXXX. drone about large talk and to late Infrastructure

We are is version Skycopter. second on reliable more of a It drone the now. our much

want We tunnels have great a GPS abandoned to The new Skycopter, at and risk. soldier market you the is a any caves, also flying. military. found other a includes buildings, Skycopter denied for the This place for solution don't put

have from received for feedback the Military Fort some recent demonstrations We great U.S. in Bragg. initial down

SRR then talk and the Let's about contracts gears current switch program. and

million Patrol. As you $XX a have we the Border contract with know,

We contract. gave companies. similar fleet. are in bake-off other They approximately the us contracts one for million. replace gave recently purchase We of a the in two are They a we Chinese $X believe handful a to to of existing order companies

SRR missions dominate to believe take mission according the January We and hope Cat's night expand Reconnaissance SRR, place. We Red of and to Short to we ship with otherwise XXXX. Border expect plan. capabilities Tranche contract throughout program Range is record. Patrol TX, to X, as are the X order Tranche we fly XXXX at known this in beyond. well to most our is when night, positioned going

version first alpha have is bird. X This Army January, the is We an Tranche with in flyoff meetings the weekly of the new and XXXX.

new capabilities We are drone demonstrate of our excited payload. and the to

our pleased X excited producing We the We Golden to the absorbs increase as factory report Tranche program. of are version now Eagle. this it believe the been brand X Tranche X has Tranche cancelled. newest They are to To the new we size capabilities. contract X will the of Tranche X to accelerate is are also Tranche that adding summarize,

explosive Thank going that that, drones. to be And expect hand Joseph. over XXXX year the We it to with I'm for an to you.

Joseph Hernon

contributions I for six on and fiscal wholly-owned months second and to some subsidiaries. Thank quarter, our from will to as our fiscal military the of today. 'XX Year-to-date, to This highlights revenues year-to-date from its Most now last compared revenues the first all for relationships. basis for increased revenues October you, Jeff, notably, results a on our significantly of Teal which XX% contracts generate provide increased the financial same call everyone year. of joining the for it reflects ended period year-over-year XXst. begins

the out quarter, acquired are and of house some more our size its We the Teal of and During which Teal. to the its on emerging, that we continued since its capacity than manufacturing be manufacturing Jeff workforce, it organization described. of just much to of opportunities tripled to facilities, building has for increase preparing doubled the focus multitude revenue both which

the internally best advantage has quarter strategy positions million sales process to costs, Operating operating on resulted we to that the opportunities $X take fiscal compared manufacturers. this the us in higher totalled in While deliberation, same million controlling second significantly than of expenses in quarter $X relying this careful increase completed. strongly segment, rather believe at manufacturing on and After focuses which decided the point and reflects Teal company which This exclusively to last our year. means Skypersonic. efforts and largely is and Enterprise Consumer sell the Teal, has at people expansion the resources facilities segment third-party

and additional a battlefield rules of As an Ukraine the initial changed contracts that scope positive our are regarding with indication the We contracts. future has believe playing Jeff size the the in role. noted, drones government war ever-increasing in

of for profit call our operator quarter ended capital the and growth million the to million a the $XX We and will cash will third remain provide marketable of securities the with the over turn support a questions. realize $XX will position. to financial sale Consumer We initiatives. the I on non-dilutive segment in proceeds in almost and strong now

Operator

CoreIR [Operator Instructions] At would the this for read Delahoussaye Joey? questions like of I to turn time, management. to Joey to pre-submitted call

Joey Delahoussaye

Thank over you for for divestiture just questions? on be of questions to and possibly a the And good chance investors. from these that weeks, will any provide segment the you right Why on all we address last you, when but don't recently. update dive this in Consumer -- few close? MJ. few we those a Can Jeff, the received would investors

Jeff Thompson

Yes.

which recently the a we track. to close ticking I deal. them, to is know the can They because SEC. part which have S-X they've IPO one gets process that conditions submitted And of filed I so their on close IPO -- the to their clock get S-X, of is their it's that's the think the for

So is a first that good step.

they'll to get able soon reviewed get get they as us as be the will and mentioned, as to non-dilutive okay, up market will Joseph so get the -- that of And And million we capital. IPO. for $XX to raise

Joey Delahoussaye

conflict update going? on and possible and you part how in Great. may Ukraine Okay. pipeline. international having efforts international conferences, exposure to some past being sales of you've of Do any And the be have the your press mentioned releases

Jeff Thompson

quite have of actually for will Europe because a no contract a in got months and of our with activity wins in there the -- and late RFPs, couple and that from but specifically of be back -- we'll bird RFPs Africa. a expected our of there's just be there, we still be we but because do lot Well, They there's are the timelines few in new bringing. Africa starting they'll and team January, yet, that's

to finding selected RFPs or we're hope them some least we out at I get So of if should a these in we good. which down is be January, that know couple of

activity to But lot there's we're and on pretty some are and a also two different large activity, we Europe right bit in not a working on quite So get Asia, of of Africa. yes, in Africa starting now, only NATO contracts. things in

Joey Delahoussaye

then where Great. an Okay. investors update gave Is a stands? the your prepared about you else Reconnaissance bit that there Short -- In program. anything update of one. possibly know that on last And should Range remarks, an Army's

Jeff Thompson

X Tranche just be all they get don't and drones Yes, warfighter. is that X. activity into the drones wait for out years need they for for to the X in Ukraine. needs them to that They Tranche required we absorbed took were now. We Everyone they also another found the to want X capabilities program believe the Tranche and Tranche about the this, because three and of basically this going the

And start they combined It's get three whole going right change So and X are finish that have far we're actually pretty May we us. we excited through how the in late to are September, and significant process along to in next pretty to in Tranche year. Tranche that process would that a for and that's years not X. going the for -- be this demo those all

Joey Delahoussaye

that a essentially combining, Wow, then guess, that's that possibly elements mean that now pretty bigger Does the program X? from value Tranche in Tranche X award interesting. I it's is

Jeff Thompson

larger by about program than a of it million. to much for little like record it absolutely, we beginning program the up when going looked be being was looked ended the the X would of be that it have billion ago. Tranche been was SRR $X.X Yes, program, Tranche would X And under at itself. years $XXX

if additional combined, also could contract are fill X typically Tranche it's out pretty be and very dollars. rest X a we Tranche X millions that of of capital prototypes. we program that of would And get hundreds exciting. it the the record, for now Army Tranche from So of Yes, substantial for

So prototyping. we Army features additional were hoping the for capital year from that additional early also the get we next and

camera for to So -- globe, got all And factory of that's camera can Tranche and the thermal capable that the in payload it's there production line. and the this for most It’s contracts down Cat new is and and a that flying now. missions shareholders. dominate really a far great. that’s that nighttime Red X now good Golden Red when the process. nighttime brand-new place. of Actually, understand pretty handling best industry, We've is for come there's lot and news the best just a great news the people We -- the to we X/X the means We're take capabilities, across We it’s us. that. with off out basically Cat for starting Eagle have

are with payload Army, So the Department specifically for the military, Marines made the for Teal and the much on of Defense Eagle focused capabilities Golden and new very the the and Navy. new

don't and So make consumer for only not focused some consumer military. the that happens drones a company to drones for the building We're the make on military. drones. we're military We're

it to XXXX. expect we an be So quite exciting

Joey Delahoussaye

for for the were closing the you Those the I'd Great. answers. other questions. submitted call any turn those of thanks to previously back And like remarks. Jeff, to Well, last over

Jeff Thompson

next jumping remarks. Well, have to we'll any I everybody. call, we for to when just and our the don't do talk everybody thank additional want Thanks, you on quarter. I

Operator

has for conference concluded. The participation. Thank you your now

You may now disconnect.

Red Cat (RCAT) 16 Dec 222023 Q2 Earnings call transcript