AeroVironment, Inc. (NASDAQ:AVAV) Q4 2023 Earnings Call Transcript

We believe Group 2, 3 UAS actually is going to be a very strong growth market, specifically given the kind of conflicts that are going on around the world. Ultra long endurance and persistent ISR as a whole is a very large market and it’s going to have even a greater multibillion-dollar total addressable market. The TAM for Group 2, 3, especially the JUMP 20 system, is fairly large, and it’s actually growing faster than many other UAS markets. There’s even an opportunity on the Group 2, 3 category for us to conduct missions of Group 4, 5 UAS at a fraction of the cost and at a fraction of the logistical footprint. So overall, our investment thesis and Group 2, 3 UAS and in our Medium UAS business still is intact and it’s very bullish. We’re going to continue to invest in it.

We have a series of enhancements and improvements and upgrades that we have planned to do in the space, and we’re also engaged with multiple customers internationally to capitalize on those opportunities. And as you said, many of them have experimented and evaluated all the competitive offerings. And they do believe that the JUMP 20 is the best-in-class when it comes to its capability and value proposition against all competitors. So we feel bullish about that still.

Jan-Frans Engelbrecht: Okay, great. Thanks for the detail. I really appreciate it. I’ll jump back in the queue.

Wahid Nawabi: You’re welcome, Jans.

Operator: Thank you. [Operator Instructions] And I’d now like to turn the call back over to Jonah Teeter-Balin for any closing remarks.

Jonah Teeter-Balin: Thank you and thank you once again for joining today’s conference call and for your interest in AeroVironment. As a reminder, an archived version of this call, all SEC filings and relevant news can be found on our website at avinc.com. We wish you a good evening and look forward to speaking with you again following next quarter’s results. Thank you.

Wahid Nawabi: Thank you, everybody.

Kevin McDonnell: Thank you.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.