PARROT: 2024 FULL-YEAR EARNINGS

2024 FULL-YEAR EARNINGS

Consolidated revenues: €78.1m, up 20%

Commercial UAV business up 45% in 2024

Income from ordinary operations and net income positive over the second half of 2024

Cash at December 31, 2024: €33.6m

The PARROT Group, a European leader for professional microdrones, recorded €78.1m of consolidated revenues for 2024, up 20% from 2023. The Group was profitable during the second half of 2024. For 2024, operating expenditure was reduced by 11%, taking EBIT for 2024 to €(7.3)m, compared with €(30.0)m in 2023. At December 31, 2024, the Group had €33.6m of cash, compared with €28.1m at end-December 2023.

Key milestones were successfully achieved in 2024, including the launch of the new microdrone for the Defense and Security market. While the interest for secured microdrones integrating advanced AI features is highlighted by the current conflicts, PARROT is mobilized to capitalize on opportunities for development relating to the renewal of the European defense landscape.

Revenues for professional microdrones came to €48.1m in 2024, compared with €33.2m in 2023, up 45%. Following a first half of 2024 that showed virtually stable revenues, the Group's commercial development accelerated over the second half of the year (revenues up 118% between H1 and H2), driven by the good performances of the ANAFI USA and the first contributions from the next-generation ANAFI, launched in summer 2024.

Photogrammetry revenues totaled €30.0m in 2024, compared with €31.8m in 2023. Specifically, the 6% contraction is linked to the growth in SaaS / Cloud solutions, resulting in an increase in the deferred portion of revenues, recognized over time, as well as unfavorable exchange effects. The amounts invoiced are virtually stable (-1%) between 2023 and 2024: the growth in business solutions offset the contraction affecting the legacy solution.

(1) Of which, revenues from legacy products: €0.3m in 2024 and €1.2m in 2023.
(2) Intragroup transactions and revenues for PARROT SA (management fees), detailed previously, are systematically canceled: they are no longer presented.

2024 full-year earnings

The consolidated financial statements for the year ended December 31, 2024 were approved by the Board of Directors on March 20, 2025. The audit procedures have been carried out by the statutory auditors and the reports will be issued once the necessary procedures have been completed. The 2024 Universal Registration Document will then be published on https://www.parrot.com/uk/corporate/reports

The PARROT Group generated €78.1m of consolidated revenues in 2024, up 20% (idem at constant exchange rates), with a gross margin of €57.9m, giving a margin rate of 74.1%. It reflects the model's effective management and the change in the product mix, taking into account the increase in the percentage represented by the new generations of microdrones during the second half of 2024.

Following the strategic plan rolled out mid-2023 to get the Group on track for profitability, it reduced its operating expenditure by €(8.4)m (-11%) between 2024 and 2023. At end-December 2024, the Group's workforce - permanent and fixed-term contracts - represented 395 people, compared with 404 at December 31, 2023. 55% of the workforce is dedicated to microdrones, with 45% covering photogrammetry. The Group continued to use external contractors to cover ad hoc needs, with 30 in place at December 31, 2024 (versus 16 at December 31, 2023).

In 2024, R&D spending totaled €(39.7)m (-13%), allocated to the next generations of products and particularly the next-gen ANAFI, launched at the end of the first half of 2024. 66% of the Group's workforce, based exclusively in Europe, are focused on innovation and improving equipment and solutions.

Sales and marketing spending for 2024 came to €(10.4)m (-15%), benefiting from the streamlining of the product portfolio and also reflecting the strengthening of field marketing initiatives during product launch periods.

Administrative costs and overheads came to €(10.8)m (-8%) for 2024, thanks to the combined efforts of all of the Group's business units, offsetting the increase in head office rent.

Production and quality costs totaled €5.0m ( 5%) in 2024, reflecting the successful transition of the industrial organization in South Korea, following the end of production operations in China in 2023, and the ramping up of production of the new ANAFI microdrone.

In 2024, consolidated income from ordinary operations came to €(8.0)m, compared with €(27.3)m in 2023. €(2.3)m (vs. €(17.4)m in 2023) are attributable to the microdrone business, with €(3.0)m (vs. €(6.4)m in 2023) for the photogrammetry business. Other expenses, representing €(2.7)m (versus €(3.5)m in 2023), are linked to the support functions provided by PARROT SA.

During the second half of 2024, driven by the acceleration of sales of professional microdrones and the continued focus on cost management, the Group's income from ordinary operations is positive at €1.7m: €3.4m were generated by the microdrone business, with €(1.7)m for the photogrammetry business.

Other operating income and expenses for 2024 came to €0.7m, primarily including €1.0m of income linked to Outflier's inclusion in the basis for consolidation and the cost of selling the minority interest held in Fluktor. In 2023, other operating income and expenses totaled €(2.8)m, taking into account the costs of the strategic plan rolled out mid-2023.

In 2024, consolidated financial income and expenses came to €(0.5)m, compared with €(2.3)m in 2023. This primarily includes the charges relating to the application of IFRS 16 and the cost of transferring the research tax credit (€0.7m). In 2024, as part of its cash management approach, PARROT transferred its receivable from the French State under the research tax credit for 2022 and 2023, having received a total of €4.5m. The share in income from associates for €(0.7)m and the tax for €(0.9)m take net income (Group share) for 2024 to €(9.2)m, compared with €(32.5)m in 2023. Net income (Group share) for the second half of 2024 is positive at €0.8m.

Change in the cash position

The Group had €33.6m of cash at December 31, 2024, compared with €28.1m at end-December 2023. Cash flow from operating activities came to €6.7m in 2024, compared with €(40.7)m in 2023, linked primarily to the positive change in working capital requirements for €12.1m, partially offset by earnings for the period. The change in working capital requirements reflects the positive impact of €9.1m for the change in inventories and work-in-progress, and €3.3m for the change in tax receivables.

Cash flow from investment activities came to €(0.4)m, including €(1.9)m for acquisitions of production tools, offset by €1.4m of additional cash from Outflier on the date when the Group gained control of this subsidiary.

Cash flow from financing activities came to €(1.1)m, including €(2.7)m for the repayment of lease liabilities with the application of IFRS 16, €(0.9)m of financial interest, and €2.5m of financing granted by Horizon SAS, Parrot's main shareholder, under a partner current account agreement, for a total of €5m, approved by the Board of Directors in November 2024 to maintain its leeway to capitalize on opportunities for strategic technological investments.

The Group had €24.8m of net cash (excluding IFRS 16 debt) at December 31, 2024, compared with €19.7m at end-December 2023.

Outlook

While the interest in secure and autonomous microdrones is highlighted by the preponderance of new technologies in the current conflicts, PARROT aims to capitalize on the increase of the Defense budgets over the coming years, particularly in the geographical areas where it is present.

However, in an uncertain geopolitical and economic environment, the Group's commercial performance, and the microdrone business in particular, remains subject to changes whose direction and scope are difficult to anticipate over the medium term, given the latency of decision-making in the defense sector.

Parrot will continue to meet the technological and operational challenges faced to ensure the success of its new microdrone, which is driving trends in 2025. Specifically, PARROT plans to develop a next-gen ANAFI range around various versions tailored to the needs of end customers. It will also finalize the development of a model designed to be integrated into various drone platforms. In the photogrammetry sector, the expansion of the addressable market is a key pillar of the growth strategy, as in 2024. This involves developing a range of complementary equipment making it possible to use the solutions on optics other than drones, such as smartphones or tablets.

Revenues for the first quarter of 2025 are expected to contract compared with the same period in 2024, reflecting the uncertainty with the current context. However, this change does not preclude the Group's ability to capitalize on opportunities for growth in 2025 and continue working to get on track for profitability.