Drone Delivery Canada Q2 results

Photo: CNW Group/Drone Delivery Canada Corp.

TORONTO — Drone Delivery Canada Corp. reported the financial results for the second quarter of 2023, with revenue growth through the first six months, and a continued decrease in cash burn.

The company recorded revenues of $175,975 for the three months ending June 30, representing a 12 per cent decrease year-over-year.

This was driven primarily by the conclusion of contracts with each of the University of British Columbia, DSV Air & Sea Inc. Canada, and Bell Mobility Inc. that concluded subsequent to June 30, 2022, partially offset by the contract announced on March 23, 2023 with the Government of Canada to operate and evaluate the Company’s Condor drone. Year to date through the first six months of the year the Company recorded revenues of $751,360, representing a 120% increase year-over-year, which is largely due to the sale of a Condor drone to the Canadian Government.

In addition, the company realized a decrease in operating expenses of over $0.7M or approximately 19 per cent year-over-year in the second quarter as a result of operational efficiencies that the company continues to implement. Year to date, operating expenses have been reduced by over $1.3M or 17 per cent, which combined with the increase in revenue resulted in a reduction in operating loss of approximately $1.7M or 23 per cent compared to the same period last year.

For the six months ended June 30, the company realized a reduction in its cash used in operating activities by over $2.0M or 31% year-over-year as a result of the operational efficiencies that the Company has been putting into place.

“We are pleased with our progress and results to date, achieving strong revenue growth combined with reduced operating expenses to the business,” said Steve Magirias, CEO of Drone Delivery Canada. “These results demonstrate our ability to continue to advance our technology and make inroads in the commercial markets that we are focused on.”