- Earnings call transcript Q3 2022

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Operator

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 and Nicole'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. may by from these results in is and implied or forward-looking outcomes differ what materially expressed Actual statements. With the that call turn over to said, AgEagle's CEO. I will Barrett, please go ahead.

Barrett Mooney

details like Dagmar to commentary Nicole AgEagle's on our I'll in Nicole, the key on to accomplished afternoon, very third by relating review and QX highlights what provide performance to you this call over we QX much, everyone. Thank you for and provide I’d and our to financial quarter. start inviting which with good strategy then during After XXXX. you.

Nicole Fernandez-McGovern

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

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

September revenue our of of contributed three or attributable of part million million to $X.X $X months which the were increase as that of quarter. revenues eBee $X.X For prior an $X.X senseFly this quarter ended was from generated XXXX, primarily compared This period, increase of million acquisition the fourth drones completed XX, in the total year our XXX%. we to line XXXX, in to the sales million

to and compared revenue sensors, million which fueled our in sensor million by Altum-PT to was of prior growth period. $X.X the RedEdge-P Additionally, the pushed quarterly a in XX% sale increase sales the total $X.X

The to increased supply in due for is same The XXXX. from primarily compared increased compared third chain and senseFly million $X.X which was and the a operations year's to decrease Control. profit This costs subscription sales quarter, increase company's the to year a increased increase subscriptions due margins XXX,XXX also to administrative gross product in acquisition primarily totaled to development software XX% related sales in our in Ground increase in loss attributable costs million XXX,XXX attributable Our new to to $X.X general ago. to Measure is prior constraints. an

XXth, original and XXXX During September the at SA discount ended the XX% acquisition. amounts of senseFly, with acquisitions the a associated and three satisfied for months hold-back payment Inc. in of its AgEagle MicaSense, full

accrued months As this company a factoring debt for of compared the to of realized loss reported net accomplishment, company helped After foreign a $X.X $X.X result three million the gain $X.X to realized drive income increase XXXX. of significant million, extinguishment net accomplishment, the the a amortization in cumulative was of total $X.XX which comprehensive loss currency dividend of months per rising on S $X.XX $X.X in same a of compared or the million preferred translation pension adjustment loss and net stock to $X.X million on three costs periodic unrecognized share. common in XX, September XXXX, by period share million to our per attributable reporting a Series shareholders AgEagle's income of offset or

prior Total year million, at up climbed to $X.X the when compared up of first looking million XXX% the period. revenues XXXX. months the Now for $XX.X to nine results

operations from due the to As XX% The included not which million XX% which period. in Revenues $X.X the software incremental Altum-PT increased to the subscriptions $XXX,XXX part demand compared of $XXX,XXX to quarter the acquisition, which prior prior SaaS for year Ground down software $XXX,XXX. $XX,XXX, Control, for of with total to year $XXX,XXX sales million in Offsetting R&D in increase in to revenue a $XX a increase our in the sales and loss Measure XXX% from higher for subscriptions of prior compared subscriptions increased acquisition eBee sales million, were SaaS million. in of and from XXXX, expenses company year was was the from the senseFly HempOverview, sensor of rise decline SaaS from marketing financials. to fourth $X.X improvement saw largerly the XX% to strong drones occurred our senseFly which Due associated XXXX, attributable Again, in to subscription global and in RedEdge-P, the recorded period. to $X.X sales general $XXX,XXX. increased and administrative, million totaled $XX.X

XXXX for currency the Our compared million net a first first cumulative XXXX. months loss was nine net accounting the nine for months of for the loss million foreign to $XX.X of of $XX.X After totaled $X.XX loss and stockholders amortization on accrued by share. unrecognized Series our to million cost, preferred, dividends adjustment the available per comprehensive or loss F offset translation pension total $XX.X common of periodic

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

quarter of stockholders’ XXXX equity of million as compared XXXX. the million XX.X% addition, to $XX.X to $XX.X XX, September increased at end In

offering During $X.X with at James the million $XX.X co-agents a its registered Raymond $X.X approximately first and the raised direct investor. an net nine company market the in Stifel million existing million months offering at activities, of total of proceeds through its XXXX, with through financing including institutional

the Now, the go Barrett ahead, operational it over to review I'll forward. of Barrett. and back Go our highlights to pass strategy moving

Barrett Mooney

Essen, drones hello had operations over first States the an without RedEdge-P sensors. what aerial systems from significant team to attending a FAA our able another over the has exciting name of like very and over demand to I'm of the vehicles and prolongation the waiver. a in trade our We've by operators regulatory our proud we generated approved presenting everyone. several by audience. We quarter drew our for strong across the our the and the industries channels, here the construction, received XXXX both a in and United need attention we highlighted moving and for by Nicole, Through Altum-PT the broad energy unmanned in our and growth only Expo at accomplish been with milestone influence quarter. for Thanks people of expanding eBee AgEagle, drones and core front achieved including becoming shows, in also strong Expo just on overall of a UAV few, Commercial eBee Germany. Vegas sphere We utilities, revenue within INTERGEO net quarter Las and

We tangible their all hard together work are beginning into results. culminating see to

into starting wing dive our Let's specific with drones. fixed our segment updates,

defense eBee unlock us. is and looks tirelessly to part by open US eBee our for Our our a in as safety we the May the and will bolster this added tactical, Government We're the opportunities and demand new supplier we've into Defense, this TACs value our our a strong and approval over Department Department line of Darley in as partnership the fueled with significantly search up training Blue leading further Darley material opportunity of is since Cleared year, the we into a List. recently through exciting to This revenue FAA demand revenue and we're professionals TACs reach US to being received pipeline. to to quarter, added stream. government earlier worldwide contractor tactical pushing government first responder supply XX also of penetration the eBee this sold space. in UAS Defense’s increasing We've expertise we continuous US partnership Darley this contributor our began us Darley’s list support believe critical very strong the leveraging Citing market full applications for to with rescue additional by in the defense of missions, markets. is advantage. to to an to have Since and firefighting competitive

Vehicles. a our approved and a with put to be only for even distance our for wins Europe, earlier, regulatory competitive X bring our with the FAA practical our FAA additional cases without by As operations. and changing unmanned latest often has costly to more and Advanced to Operations approvals our difficult These as brings series our drones I demonstrates for We've customers. an that the This first process which moat industry alluded eBee People ourselves announced autonomous and for Vehicles, we the Over Brazil Drone competitors. to Waiver between system in well, and technology win and drones Over and allow and our ability recently Moving Moving eBee drones People Canada, use to became us is operate commercial built FAA

orders will catalysts commercial waivers minded these safety industries. be strong expect towards additional We from

segment on this solid we quarter a a trajectory potential growth our of is results glimpse and Our the have. give fixed believe wing our drones

and the have pipeline in are With approval, delivering best the our FAA we've capitalizing recent on gained. demand drones class on the to strong focused we we in momentum

segment. Moving on to our sensor

for broader consistent began top by our line. headwinds Our have to supply demand in In resulting to year, growth and the sensors backlog environment, of chain the continued providing our the strong quarter, sales generate meaningful first accruing a in the strong and half this marred we and sensors. the spearheaded by constraints Altum-PT RedEdge-P

to This orders quarter, of in we addressing the by we fully backlog our material made and year. service the that end progress expect

in Our a of and use sensors been have professionals. have venerated by multitude capabilities industry repeatedly proven their cases

unlock to unique continue customers quality increase charismatic insight sensors our data improve when high line paired and and agriculture sector. offer data We'll forestry, with that for and [insight]. Our tremendous analytics within correct tools the the and details who utility our of conservation, products require

software division, Measure our Control and HempOverView. Ground Moving to

developed a has within us we our and technology. we Since division, package division on allowing sales our much leveraged technology using embarked wing to what contributed stack our fixed full Our give journey, in-house than show. software figures AgEagle software customers this have sensor our to

particularly to the Ground we strategy. to to user the We Control assets and maximize in potential we'll has part integral our products. believe drone in experience continue space, continue We core drone that an our evolve other operators, and develop have overall that commercial with play

Now touch working our as approach. initiatives of on company on we've corporate I'd a been like part one to few

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better our in our being shows and towards site previous call, path a stack, is stack newly drone solution. core a mentioned our autonomous of reflection Web designed offerings As full

generation the the Web products communication. we our to marketplace, site as begin main serve introduce for into As hub product our will next

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way. will also will it company. make only AgEagle create or We a will any not This slowing foundation be manufacturing our and help US down costs, a capabilities stronger reduce our throughout reducing move more in us us connected

this believe organized core I will growing, is be and AgEagle in to which rooted move at speed stay to ability structurally integral disciplined, the With our our beliefs.

As the we costs should down operating through in next we some our beginning of spaces, see year. office wind reductions our flow

Carolina move and is Our identity an important North bringing together. reestablishing step culture to closer our team company our towards and core

we industries. AgEagle begin and in quarter first. Overall, for excited fast and capital software FAA on opportunities believe products, platform. for freed regulatory to capitalize we immediately projects Our delivered result approvals as bottom our our to We're are success. continue evolving we to place, be accretive will direct line position allocate will strong improving solid our consistent the to With are create we will growing assets seeing a demand commercial while that up our hardware value towards another in new

margin. profitability. steps evaluate to the the spend already to coming to and months like improve reduce we're Over term, on programs our We've reiterate to our focus more operating in long going our I'd taken

we various been proposition proven products and Our rigorously customers have industries. that have strong our platform has across a tested value our to

for has success, Our mission. profitable for to our we we remain believe and value ourselves and long position on track firmly to of the mission unlock been AgEagle that shareholders accomplish term always

for I'll over turn it Nicole Now, Q&A. some to

Nicole Fernandez-McGovern

Great Barrett.

next? adjust now do the Let's success approvals, new going our eBee from and the where the questions of eBee FAA the see TAC investors today. What's you we received line

Barrett Mooney

line great line very eBee and growing. our wing fixed is mean, I question. -- A eBee our

a of operators tool efficiency ahead to drone continues wing such opportunities sustainability, back and professionals. quality valuable in The us. a that to have that autonomous high tremendous manner can potential, lightweight, data We its high give industry remains market and continues to fixed with to endurance, have aircraft travel

UAVs year, of R&D a looking have this our we time, new spending tuned. quite We that generation can with more up our much tricks wisely say that so stay sleeve few about we next at into. been we've this time have the Not been but

Nicole Fernandez-McGovern

Great.

question. next So

reseller your a model focus sales with sales see a direct with distribution As to do overall you have and success approach? your network, you BXB still shifting

Barrett Mooney

for and model as to an very understand to that our this have we offer products that many deals to come with we specific in our us. them. overall are with within better handle thing VARs to readily, is and all One customer deliver through to value-added able that how able and training work knows advantages on own cases products They Well, additional has the may services that someone ours output. locally work announce be can our not reseller country of network value and their enhance the customers Many experience. operate

to suited areas offerings a VARs of wouldn't where to customers, while value partnership to I We market a reach. it no, us sales between maybe our simultaneously see fleet better continue of evaluate expanding So several customers. the direct core and being their our improve all direct call do our delivery we products enterprise, a opportunities or shift. to and to those We our large approach and

Nicole Fernandez-McGovern

Great.

question. Next

strategy the the industry do coming about As you drone are how you M&A near thinking in are term? how marketplace, and to remains -- in mid down fragmented the valuations

Barrett Mooney

we unifying M&A closely. the coordinating better the the the been we has a has and about very that At in market of moment, acquisitions us growth year strategy are made. been current have part watching past. already this for The

us the our evaluate we the and the take given assets the currently really has with to that So at opportunity a stock, course disposal. tools chart for future have

we to to interested shapes look see year acquisitions show market might up very partnerships, and that in the like. value customers. we that our And then at would up how time, collaborations are the increase what will coming landscape our looks watch the So to what start merger offerings at and

Nicole Fernandez-McGovern

any help industry other there whole? pipeline the partnerships your manufacturers footprint as to expand Are any a with the Great. in in drone

Barrett Mooney

my technical industry. highly So view to in success partnerships in key are growing fast a

experience. potential market, are within constantly own improve our user that reviewing We relationships org value will gaps the find to collaborators customer and add our

effective the AgEagle, So we grow at collaboration believe that continue will industry. to

through the we gains that our fighting the constantly revenue larger competitors are slice our So seeing of not pie collaboration actually that we growing expansion. through a pie, are for just and of portion meaningful

So months, forward. to there industry key we report opportunity see news follow UAV tuned this But for partnerships more at is the in the time. coming a an no like to do going because stay as industry for

Nicole Fernandez-McGovern

the last question company with the is, seeing your for a away multiple expect this you your organizations to So across eventually afternoon name? of portion success from of industries, do Ag move

Barrett Mooney

to We're its that that a community the a ideally of We variety suited company serve performance with with roots products agriculture agriculture. still meet needs. are high industry's in

field focused as to day going our techniques companies, might are And but like ag the we industries, rebranding is customers. for the that many like to at used based a transferable One and to plant in the the are products corporate growing [Technical part rebranding, big find and some are provide to with additional we still While discussion difficulty] corporate call that of a this, [level] delivering skills, yet. research a value we're not undertaking. question continue to be discussed value on

Nicole Fernandez-McGovern

shareholders I This does last for their back look like throughout to our you. with update continued continued Great. support, you for today. for Barrett us forward in Operator, we our webcast section. all webcast. next joining And our appreciate to our progress this you journey. to staying Q&A sharing thank corporate thank and conclude you like I'd our I'd all our question to

Operator

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

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

AgEagle Aerial Systems (UAVS) 16 Nov 222022 Q3 Earnings call transcript