Executive Summary
Parrot SA reported QQ2 2024 revenue of €30.593 million, representing a QoQ increase of approximately 99.95% from €15.30 million in Q1 and a YoY decline of about 3.04%. The company produced a gross profit of €12.65 million, translating to a gross margin of 41.35% on revenue. Despite this, operating expenses totaled €34.95 million, yielding an operating loss of €9.646 million and an EBITDA of €-9.375 million. Net income came in at €-5.05 million for the quarter, with basic and diluted EPS of €-0.33. The disparity between gross margin and net profitability is driven by substantial other expenses (€17.45 million) and ongoing R&D investment, underscoring Parrot’s continued push into hardware and software ecosystems (drones, Pix4D, SaaS offerings) that aim to monetize via data services and enterprise solutions over the longer term.
From a balance sheet and cash flow perspective, the group remains cash-rich on an absolute basis but shows signs of operating cash burn. Operating cash flow was negative at €-2.95 million for QQ2 2024, with capex at €-0.50 million, resulting in free cash flow of €-3.45 million. Net change in cash for the period was negative €8.50 million, bringing cash and cash equivalents to €19.57 million at period end. The company maintains a net cash position (net debt of €-13.20 million) despite a modest level of gross debt (short-term €4.88 million, long-term €6.35 million).
Strategically, Parrot benefits from its integrated hardware/software ecosystem, including Pix4Dmapper and drone-based vine monitoring and industrial applications, which position it to capitalize on growing enterprise and agricultural drone adoption. However, the QQ2 results highlight the ongoing challenge of translating top-line momentum into near-term profitability amid heavy R&D and other non-operational costs. Investors should monitor the trajectory of gross margin sustainability, operating expense discipline, and progress toward profitability as Parrot scales its software and services portfolio.
Key Performance Indicators
QoQ: -95.30% | YoY:48.21%
QoQ: -94.12% | YoY:55.41%
Key Insights
Revenue: €30.593m in QQ2 2024, YoY change -3.04%, QoQ change +99.95%.
Gross Profit: €12.650m; Gross Margin: 41.35%.
Operating Expenses: €34.949m; EBITDA: €-9.375m; EBIT: €-9.646m; EBIT Margin: -31.53%.
Net Income: €-5.050m; Net Margin: -16.51%; EPS: €-0.33.
Cash Flow: Operating cash flow €-2.95m; Capex €-0.50m; Free cash flow €-3.45m.
Liquidity/Balance Sheet: Cash and cash equivalents €19.57m; Total assets €77.50m; Total liabilities €31.50m; Total equity €45.60m; Curr...
Financial Highlights
Revenue: €30.593m in QQ2 2024, YoY change -3.04%, QoQ change +99.95%.
Gross Profit: €12.650m; Gross Margin: 41.35%.
Operating Expenses: €34.949m; EBITDA: €-9.375m; EBIT: €-9.646m; EBIT Margin: -31.53%.
Net Income: €-5.050m; Net Margin: -16.51%; EPS: €-0.33.
Cash Flow: Operating cash flow €-2.95m; Capex €-0.50m; Free cash flow €-3.45m.
Liquidity/Balance Sheet: Cash and cash equivalents €19.57m; Total assets €77.50m; Total liabilities €31.50m; Total equity €45.60m; Current ratio 2.78, Quick ratio 1.95; Net debt / cash position €-13.20m.
Valuation/context: Price-to-sales ratio ~1.99; Enterprise value multiple negative; Price to book ~1.34; Price to sales ~1.99; Dividend yield ~0%.
Notes on margins: Gross margin appears inconsistent across data fields; primary income statement shows 41.35% gross margin, while some ratio fields list much higher margins. The discrepancy warrants verification.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
30.59M |
-3.04% |
99.95% |
| Gross Profit |
12.65M |
-35.82% |
0.00% |
| Operating Income |
-9.65M |
48.21% |
-95.30% |
| Net Income |
-5.05M |
77.57% |
0.00% |
| EPS |
-0.33 |
55.41% |
-94.12% |
Key Financial Ratios
operatingProfitMargin
-32.3%
operatingCashFlowPerShare
$-0.19
freeCashFlowPerShare
$-0.23
Management Commentary
Management commentary themes (when available in earnings discussions) typically focus on: - Acceleration of product development and integration of hardware with Pix4D and other software services to monetize drones through data platforms and SaaS-based offerings. - Emphasis on enterprise and agriculture verticals as growth vectors for drone adoption and value-added services. - Acknowledgement of ongoing investments and cost structure to support new product generations and cloud capabilities, which weigh on near-term profitability but are expected to enable longer-term cash-generation and margin expansion if scale is achieved.
Forward Guidance
No formal quantitative guidance was disclosed for QQ3 2024 and beyond in the provided data. Given the current model, the near-term trajectory hinges on: (1) sustaining and growing enterprise software/data services (Pix4D and related SaaS offerings) to convert hardware-driven revenue into recurring margin-rich streams; (2) achieving operating leverage as R&D investments phase in and the company scales volume; (3) managing non-operational costs (as seen in other expenses) to improve EBITDA and margin profile. Investors should monitor quarterly revenue mix between hardware and software/services, progress toward profitability, and the effectiveness of cost controls as Parrot expands its software ecosystem and customer base.