Drone company Volatus Aerospace Corp. (VOL:TSX; VLTTF:OTCQB) on Monday announced a record third-quarter revenue of CA$11.12 million, an increase of 68% over the previous quarter and a 238% increase YOY.

The company said the increase was driven by organic growth, scale in drone services activities, and increased aviation revenue.

Company officials said that the market for drones has remained strong as the war in Ukraine continues unabated and will continue to expand when it is over.

“Drones will have a major role to play in the reconstruction . . .  of the country,” Volatus Chief Executive Officer Glen Lynch said during a conference call about the results on Monday. “The conflict in Ukraine literally changed the way countries around the world are looking at the use of drones and modern warfare. So, we’re responding to numerous opportunities right now for sales in NATO countries that are not currently engaged in fighting directly in the conflict in Ukraine. While I’m hopeful for peace and would be grateful if that was to happen overnight, we’re not seeing that happen anytime soon. And even if it does, we’re really looking at a fairly robust future for drones in the defense sector.”

Its target market is worth as much as US$58.4 billion, the company said.

Gross profit for the third quarter was CA$3.3 million, an increase of CA$2.6 million YOY, and the company has experienced a gross margin of 30%, an increase of 127 basis points over the second quarter of 2022.

Volatus serves the commercial and defense markets with integrated drone solutions using a network of more than 1,200 contract pilots across the Americas, providing imaging and security, equipment sales and support, and training.

It also offers aerial surveillance and monitoring of oil and gas pipelines. Its target market is worth as much as US$58.4 billion, the company said.

The company stated some of its accomplishments for the quarter include introducing a financing program for rapid drone adoption, demonstrating the remote operation of a drone from more than 3,000 kilometers away, entering into a strategic partnership with a radar company, and launching its Environmental Social Governance (ESG) program.

The company said the cash it had on hand as of Sept. 30 was about CA$6 million but raised an additional CA$4.2 million from an oversubscribed prospectus and private placement that closed on Oct. 6.

Ownership and Share Structure

Top shareholders in the company include the CEO Lynch with 26.62% or 38.46 million shares and Ian Alexander McDougall with 27% or 39 million shares, according to the company.

It has a market cap of CA$36.18 million with 113.9 million shares outstanding, 36 million of them free-floating. It trades in a 52-week range of CA$0.89 and CA$0.27.