Unusual Machines
San Juan, Puerto Rico, United States
Industry: Drone Technology
Region: US 🇺🇸
Founded: 2019
Expected Valuation: $35 million
IPO Date: 2023 (expected)
Unusual Machines, Inc.
Key Company Facts
| Founded | 2019 |
| Headquarters | San Juan, PR, US |
| Sector | Technology |
| Industry | Drone Technology |
| Founders | Matthew Newman, Brandon Declet JD, Brian Hoff |
| Number of employees | 3 |
| IPO Date | 2023 (expected) |
| Number of investors | 1 |
| Total funding | $4.81 million USD |
| Valuation estimate | $35 million USD |
Company Overview & History
Unusual Machines is a development stage technology company focusing on drone solutions and technology. The company plans to acquire Fat Shark and Rotor Riot, key entities in the drone industry.
Fat Shark is a market leader in first-person view (FPV) drone technology, designing and manufacturing ultra-low latency video goggles for drone pilots.
On the other hand, Rotor Riot is known for operating a drone-focused e-commerce marketplace, which is supported by one of the world’s largest communities of FPV drone pilots.
Over the next two years, Unusual Machines aims to expand its market share in the retail purchase of drone products for entertainment, recreational, and competitive racing purposes.
The company also plans to explore a potential expansion into new sub-markets, such as public safety and drone delivery functions, either organically or through strategic acquisitions.
Unusual Machines envisions enabling people to be part of the robotics revolution.
Financial Performance
Unusual Machines is set to go public soon, though the exact IPO date is still unknown. The IPO price range is expected to be between $4.00 and $6.00, with 1,000,000 shares being offered.
The deal size is anticipated to be around $5.00 million. As of 2022, the company’s market capitalization was $38 million, and the enterprise value was $34 million.
The debt-to-equity ratio stood at 0.12, while the quick ratio was 2.07, indicating a solid liquidity position.
Revenue
| Year | Revenue (USD) |
|---|---|
| 2021 | $6.43 million |
| 2022 | $4.89 million |
Business Model
Unusual Machines’ business model revolves around delivering drone solutions with a focus on FPV technology.
The company’s strategy includes organic growth through the development and sale of top-tier FPV drone technologies and the acquisition of promising companies with complementary businesses.
The company aims to expand its customer base and invest in product innovation for growth.
This includes exploring and pursuing acquisitions of products, teams, and technologies that complement and expand the functionality of products, add to their technology expertise, and bolster their position by providing access to new customers and markets.
Strategic partnerships with leading technology companies are also a part of their business model.
These partnerships will allow Unusual Machines to leverage their drone industry expertise and bring their products to more markets and customers.
Additionally, they plan to leverage marketing channels such as social media, a stable of world-class drone pilots, and valuable brand equity.
In the event they are unsuccessful in acquiring Fat Shark and Rotor Riot, they plan to seek other strategic acquisitions or alliances to obtain and expand upon these or similar benefits.
Beyond their current operations and development efforts, they are seeking to acquire established drone companies with high-quality technology from across the drone industry.
Estimated Valuation
| Year | Valuation (USD) |
|---|---|
| 2021 | $33.96 million |
| 2022 | $38.09 million |
Risk Factors
The drone industry, where Unusual Machines operates, comes with an array of risk factors. The threats associated with unmanned aerial systems (UAS) are generally categorized into three primary areas: hazard/threat risk, control risk, and opportunity risk.
The current state of the UAS ecosystem focuses on the uncertainty related to managing the threat level associated with UAS, which could stem from malicious actors exploiting them for harmful purposes or commercial gain, or unintentional actors who pose a hazard to infrastructure.
Risks create uncertainty and risk management is an essential part of organizations operating in this sector.
This need is increasingly important given the maturity of the UAS ecosystem and the need to mitigate the threats posed by UAS to an organization.
Market Opportunity
The drone industry has experienced significant growth in recent years. The drone services market size is projected to grow to $63.6 billion by 2025.
Furthermore, consumer drone shipments are expected to reach 29 million units by 2021. This growth presents a substantial market opportunity for companies like Unusual Machines, which are innovating and expanding in the drone industry.
Competitors
- DJI
- Parrot
- Yuneec
- Autel Robotics
- Skydio
- Insitu
- Delair
- EHANG