Are you seeking to significantly boost the profitability of your automated drone delivery service business? Navigating the complexities of this rapidly evolving industry demands strategic foresight and innovative approaches to maximize revenue and minimize costs. Discover nine powerful strategies that can transform your operational efficiency and financial outlook; explore comprehensive insights and tools, including our specialized automated drone delivery financial model, to unlock your business's full potential.
Steps to Open a Business Idea
Embarking on the journey of establishing an automated drone delivery service requires meticulous planning and strategic execution. The following table outlines the essential steps to transform your innovative concept into a profitable and sustainable business, highlighting key considerations at each stage.
| Step | Super Short Description |
|---|---|
| Develop A Comprehensive Business Plan | Create a detailed plan covering market analysis, operational strategy (FAA compliance, drone types), financial projections (startup costs, ROI), and B2B marketing. |
| Secure Funding And Manage Finances | Develop a robust plan to attract venture capital, explore drone leasing, pursue government grants, and meticulously manage all operational expenses including insurance. |
| Navigate FAA Regulations And Insurance | Comply with FAA Part 107 and Part 135 for operations, secure comprehensive insurance (ranging from $5,000 to $200,000 annually), and stay updated on evolving regulations. |
| Optimize Routes And Fleet Utilization | Implement route optimization software and fleet management systems to maximize deliveries per drone (up to 60 orders/day) and reduce operational costs. |
| Implement Strategic Pricing Models | Set competitive pricing based on per-delivery fees, subscriptions, or tiered models, considering payload capacity and offering premium services for higher margins. |
| Market Your B2B Delivery Services | Focus on a B2B model, highlighting value propositions like reduced delivery times (up to 70%) and cost savings (up to 60%) to target businesses like pharmacies or retailers. |
| Scale The Business For Long-Term Success | Strategically expand into new markets, diversify services (e.g., medical supplies), continuously invest in technology, and prioritize customer retention for sustained growth. |
What Are Key Factors To Consider Before Starting Automated Drone Delivery Service?
Starting an Automated Drone Delivery Service like SkyDrop Express requires evaluating several critical factors for profitability and operational success. These include the significant upfront investment in technology, navigating complex regulatory frameworks, and thoroughly analyzing market demand alongside potential operational costs. The global drone package delivery market was valued at USD 314.4 million in 2023 and is projected to grow to USD 5,764.5 million by 2032, demonstrating a substantial compound annual growth rate (CAGR) of 36.7%. This market growth highlights the immense potential for profitable drone delivery services, provided foundational challenges are addressed.
A crucial factor for sustainable automated drone delivery profits is optimizing operational costs. While initial per-package delivery costs can be high, around $13.50 per single package by drone, this can drastically reduce to approximately $1.80 if one operator manages a fleet of 20 drones simultaneously. This efficiency gain is vital for achieving competitive pricing. In comparison, the cost per mile for drone delivery is estimated to be as low as $0.05, significantly cheaper than the $2.00 per mile for traditional delivery vans, underscoring the importance of drone delivery cost optimization to enhance overall drone logistics profitability. More details on cost optimization can be found in articles discussing the cost to open an automated drone delivery service.
Regulatory compliance presents a major hurdle for any aspiring UAV delivery business. In the United States, operators must obtain Part 135 certification from the Federal Aviation Administration (FAA). This certification involves rigorous safety demonstrations and creates a significant barrier to entry, directly impacting the ability to scale and achieve substantial drone delivery revenue. The FAA is actively working on new rules for beyond-visual-line-of-sight (BVLOS) operations, which are absolutely critical for scaling services profitably and expanding the reach of autonomous delivery systems. Staying updated on these evolving regulations is essential for long-term success and managing the regulatory compliance impact on drone delivery profits.
The technology investment for drone delivery profitability is substantial. A small-scale operation, focusing on initial last-mile delivery solutions, can require an initial investment ranging from $50,000 to $100,000. For a comprehensive setup with a full drone fleet, advanced software, and robust infrastructure, the investment can easily exceed $500,000. This capital is allocated to acquire professional delivery drones, implement sophisticated fleet management software, and develop necessary charging and maintenance infrastructure. The ROI analysis of automated drone delivery systems must factor in these significant upfront costs, which are foundational for building a successful drone delivery business strategy.
How Profitable Is Drone Delivery?
The profitability of an Automated Drone Delivery Service, like SkyDrop Express, hinges on operational efficiency, service diversification, and market density. While initial investments are substantial, automated drone delivery profits become achievable by reaching a very low cost-per-delivery. Some analyses suggest this cost could drop to as low as $0.88 per delivery for major players, making it highly competitive.
Food and grocery drone delivery profit margins are a significant focus area. Companies are actively working to achieve profitable unit economics. They are successfully lowering the cost per delivery from an initial $20-$30 down to under $4 by concentrating on high-demand categories. For instance, hybrid delivery models that utilize drones for short, time-sensitive deliveries have resulted in a 30% reduction in overall delivery costs for some e-commerce companies, demonstrating the potential for significant savings and increased efficiency.
Profit Potential by Location
- Rural Areas: These locations often present fewer regulatory hurdles and can benefit immensely from drones accessing remote or hard-to-reach areas, improving service accessibility.
- Urban Areas: While facing more complex regulations, urban environments offer significantly higher delivery density. This density is crucial for achieving the volume needed to drive down per-delivery costs and maximize profitability.
The average unit cost per delivery currently ranges from $6 to $25, but this figure is projected to decrease by over 70% in the next decade, making the future of drone delivery even more financially viable. For a deeper dive into the profitability aspects, you can refer to insights on automated drone delivery profits here.
One of the most profitable services for a drone delivery business is last-mile delivery for e-commerce and medical supplies. Businesses could potentially save up to 60% on last-mile delivery costs by transitioning to autonomous delivery systems offered by services like SkyDrop Express. This shift not only enhances customer satisfaction through faster service but also significantly boosts operational efficiency, directly contributing to increased drone logistics profitability and overall business growth.
What Are The Startup Costs?
Launching an Automated Drone Delivery Service like SkyDrop Express involves substantial initial investment. The startup costs for a profitable drone delivery business can vary significantly. For a minimal lean startup, expect expenses from $50,000, while a comprehensive operation might exceed $1,245,000. A typical budget for a small-scale local service usually falls between $50,000 and $100,000. This range accounts for essential equipment, software, and regulatory hurdles, which are crucial for achieving automated drone delivery profits.
A primary expense is the drone fleet investment. Professional delivery drones typically cost between $10,000 and $50,000 per unit. Beyond the physical drones, a significant part of the technology investment for drone delivery profitability lies in the infrastructure for management and tracking software, which can range from $30,000 to $150,000. This software is vital for efficient operations and optimizing routes for drone delivery profitability.
Regulatory compliance and licensing also represent a key expense. Initial fees for permits and FAA certification are estimated to be between $10,000 and $25,000. This includes necessary pilot training, which can cost around $5,000 per pilot to ensure safe and legal operations. Understanding these regulatory compliance impacts on drone delivery profits is essential from the outset.
Additional significant costs include insurance and marketing. Comprehensive insurance coverage for a drone delivery fleet can range from $20,000 to $50,000 annually, covering potential liabilities and asset protection. Initial marketing budgets, crucial for customer acquisition strategies for drone delivery companies, typically range from $20,000 to $75,000 to build a solid customer base for your UAV delivery business.
How Do Regulations Impact Profits?
Regulations significantly impact the profitability of an Automated Drone Delivery Service like SkyDrop Express. These rules impose operational limitations and increase costs, directly affecting the potential for automated drone delivery profits. The US Federal Aviation Administration (FAA) requires commercial operators to obtain Part 135 certification. This process is often slow and costly, creating significant barriers to market entry and hindering the ability to scale services.
The impact of regulatory compliance on drone delivery profits includes various direct costs. Businesses must allocate funds for certification fees, legal expenses, and the implementation of required technologies such as Remote ID. These costs can range from $2,000 to $10,000 annually. These expenses are essential for ensuring legal and safe operations, becoming a necessary part of the overall drone delivery service cost structure.
Operational limitations, particularly the initial requirement to fly within the pilot's visual line of sight (VLOS), restrict the efficiency and range of an Automated Drone Delivery Service. This directly impacts drone logistics profitability. For instance, without Beyond Visual Line of Sight (BVLOS) capabilities, a single drone operator cannot efficiently manage a fleet over large areas. The FAA is actively developing new rules for BVLOS operations, which are crucial for making drone delivery economically viable on a large scale and achieving higher drone delivery cost optimization.
Regulatory Impact on Drone Delivery Profitability
- Increased Operational Costs: Compliance with regulations like FAA Part 135 certification and Remote ID adds significant direct expenses, impacting the overall cost per delivery.
- Operational Limitations: Restrictions like VLOS requirements limit delivery range and efficiency, reducing potential delivery volume and revenue generation.
- Innovation Driver: Regulations push for advancements in safety and autonomous flight technologies, which can lead to long-term efficiency gains and new service opportunities.
- New Revenue Opportunities: As restrictions ease (e.g., operations over people or at night), new markets open up, improving potential for increased drone delivery revenue.
While regulations can initially slow the deployment of services, they also act as a catalyst for innovation in safety and autonomous flight technologies. The gradual easing of restrictions, such as allowing operations over people and at night under specific conditions, opens up new revenue opportunities. This improves the potential for automated drone delivery profits and supports the development of more advanced, reliable autonomous delivery systems.
What Are The Key Financial Metrics?
Understanding key financial metrics is crucial for assessing the profitability of an Automated Drone Delivery Service like SkyDrop Express. These metrics help identify areas for cost optimization and revenue growth. A primary focus is on the cost per delivery. A McKinsey report highlighted that the cost per single package delivery by drone was approximately $13.50. For SkyDrop Express to compete effectively, this must be significantly reduced, especially when compared to a delivery van's cost of around $1.90 per package. Automation and efficient fleet management are vital to driving these costs down, ensuring your drone delivery business strategies are sound.
Tracking revenue per delivery and overall profit margin is also critical for success. For instance, if SkyDrop Express can achieve a cost per delivery as low as $0.88 and charges $1.00 per delivery, it could see a substantial return on investment. This requires diligent monitoring of all operational expenses, including maintenance, insurance, and software subscriptions, to ensure positive drone logistics profitability. Effective drone delivery pricing models for maximum profit depend on this careful balance.
Key Financial Metrics for SkyDrop Express
- Cost Per Delivery (CPD): Measures the expense associated with each individual delivery. Lowering this metric through automation and route optimization is key to increasing automated drone delivery profits.
- Customer Acquisition Cost (CAC): The cost to acquire a new customer. Efficient customer acquisition strategies for drone delivery companies are essential for sustainable growth.
- Lifetime Value (LTV): The total revenue expected from a customer over their relationship with SkyDrop Express. High LTV indicates strong customer retention for drone delivery services.
- Drone Fleet Utilization Rate: Measures how efficiently your drone fleet is being used. Improving drone fleet utilization for higher ROI means more deliveries per drone per day.
The Return on Investment (ROI) analysis of automated drone delivery systems is a primary financial metric for SkyDrop Express. This involves calculating the return on the significant initial investment in drone technology and infrastructure. Professional delivery drones can cost between $10,000 and $50,000 per unit, with technology infrastructure potentially reaching up to $300,000. Understanding this ROI helps secure funding and demonstrates the long-term viability of the business.
Finally, revenue forecasts and operational expenses are essential for financial planning. The drone delivery market is projected to grow significantly, with a Compound Annual Growth Rate (CAGR) of over 30%, indicating strong potential for increasing drone delivery revenue. Operational expenses, such as insurance premiums, can account for 10-15% of total operational costs, as detailed in articles like this one, highlighting the importance of managing these fixed and variable costs effectively.
Develop A Comprehensive Business Plan
A comprehensive business plan is essential for any Automated Drone Delivery Service, like SkyDrop Express, to secure funding and establish a clear operational roadmap. This foundational document outlines your vision, market strategy, and financial viability, proving your ability to navigate the complex drone logistics market.
Key Components of Your Drone Delivery Business Plan
- Executive Summary and Market Analysis: Begin with a compelling executive summary that introduces your automated drone delivery service. Follow this with a detailed market analysis focused on last-mile delivery solutions and e-commerce trends. The drone logistics market is projected for significant growth, with some forecasts predicting a market size of $85 billion by 2031, growing at a CAGR of 38%. This section should highlight the market opportunity for profitable drone delivery services.
- Operational Strategy: Outline a clear operational strategy detailing your autonomous delivery systems. This includes drone maintenance schedules and plans for regulatory compliance with FAA Part 107 (for small UAS operations) and Part 135 (for commercial air carrier operations) certifications. Specify the types of goods you will deliver, such as food or medical supplies, as this influences the required drone technology and payload capacity. Optimizing routes for drone delivery profitability is also key here.
- Financial Projections: Create detailed financial projections covering startup costs, operational expenses, and revenue forecasts. A small-scale operation might start with $50,000-$100,000, while larger ventures can require over $1 million. Your plan must include an ROI analysis of automated drone delivery systems, demonstrating how to make automated drone delivery service profitable and detailing the profit potential.
- Marketing and Customer Acquisition: Detail your marketing and customer acquisition strategies for drone delivery companies. Identify target customers like retail brands or healthcare facilities and outline your B2B drone delivery service business models. Strategies to increase profits of a drone delivery business often involve expanding drone delivery services to new markets and increasing customer retention for drone delivery services.
Secure Funding And Manage Finances
Securing adequate funding is critical for launching and scaling an Automated Drone Delivery Service like SkyDrop Express. A well-structured business plan is your primary tool. This plan must clearly highlight the potential profitability of your drone delivery services and include detailed financial projections. Despite a recent market slump, venture funding for drone companies remains robust, reaching $151 billion in the first seven months of 2023. Major industry players, such as Zipline, have successfully raised significant investment rounds, demonstrating continued investor confidence in this sector.
When seeking investment, target venture capital firms that specialize in deep technology or logistics. Examples include Aventures Fund or Starburst Aerospace. During your pitch, emphasize the compelling Return on Investment (ROI) of investing in advanced drone technology. Highlight how adopting newer autonomous drone systems significantly reduces operational costs and improves overall efficiency. For instance, businesses can achieve savings of up to 60% on delivery costs by integrating autonomous drone solutions into their logistics framework. This efficiency gain is a powerful selling point for potential investors.
Financial Management Strategies for Drone Delivery
- Leasing Drones: To mitigate high upfront capital expenditures, consider leasing drones. This approach can reduce initial costs, as individual units can be leased for as low as $10,000 per unit. Leasing preserves capital for other essential operational aspects.
- Phased Rollout: Begin operations with a phased rollout in a limited geographic area. This strategy allows you to test market demand, refine your processes, and manage financial outlays more effectively before expanding.
- Government Grants and Incentives: Actively explore government grants and green technology incentives. In some regions, these programs can cover up to 30% of initial investment costs for environmentally friendly and innovative technologies like automated drone delivery.
Careful financial planning is essential to manage all operational expenses associated with a drone delivery service. This includes significant investments in your drone fleet, ongoing software development for navigation and logistics, and crucial insurance premiums. For a mid-sized drone fleet, annual insurance premiums can range from $50,000 to $200,000. Additionally, allocate funds for strict regulatory compliance costs, which are vital for legal and safe operation. Understanding and budgeting for these core expenses ensures the long-term profitability and sustainability of your automated drone delivery business.
Navigate FAA Regulations And Insurance
Operating an automated drone delivery service like SkyDrop Express requires strict adherence to Federal Aviation Administration (FAA) regulations in the USA. Primarily, businesses must comply with FAA Part 107 for basic commercial drone operations. However, for scaling complex delivery services, obtaining FAA Part 135 certification is crucial. This certification process is known to be both complex and costly, yet it is essential for the long-term success and expansion of a drone delivery business, allowing for operations like Beyond Visual Line of Sight (BVLOS) and flights over people.
Understanding Drone Delivery Insurance Costs
A significant operational expense for an automated drone delivery service is insurance and risk management. Annual insurance premiums for a drone delivery fleet can range from $5,000 to over $20,000.
For mid-sized operations, estimates can reach $50,000 to $200,000 annually, depending on the breadth of coverage.
Factors influencing insurance costs include the weight of your drones, the area of operation (urban areas often incur higher risk premiums), pilot experience, and the safety features integrated into your Unmanned Aerial Vehicles (UAVs).
While liability-only policies are cheaper, a comprehensive policy covering hull and payload is highly recommended to protect significant asset investments and potential damages.
Staying updated on evolving FAA rules is vital for increasing drone delivery revenue and operational capabilities. New regulations, such as those governing Beyond Visual Line of Sight (BVLOS) operations and flights over people, directly impact how and where SkyDrop Express can operate. Proactive compliance ensures uninterrupted service and opens avenues for new, profitable delivery routes and services, supporting the scalability of automated drone delivery profits.
Optimize Routes And Fleet Utilization
Optimizing routes and improving fleet utilization are fundamental strategies to significantly increase automated drone delivery profits. Efficient flight paths directly lower operational costs per delivery, making your drone logistics more competitive. This approach ensures that each drone contributes maximally to the business's bottom line.
Route Optimization for Profitability
- Implement route optimization software to enhance drone delivery profits. This technology plans the most efficient flight paths, directly reducing energy consumption and minimizing delivery times. Optimizing routes for drone delivery profitability is a key strategy for lowering the direct operational cost per delivery.
- Consider a hub-and-spoke operating model. This centralizes maintenance and battery-swapping, which can significantly improve the efficiency of your drone logistics. Combining multiple orders into a single trip is another key development that will further reduce costs and enhance profitability. This strategy supports profitable drone delivery services by streamlining operations.
Improving drone fleet utilization for higher ROI is crucial for any automated drone delivery service. Effective management ensures drones are active and generating revenue as much as possible, directly impacting the profitability of your drone delivery business. Maximizing the number of deliveries per drone per day is the core objective.
Maximizing Fleet Efficiency
- Use fleet management software to monitor drone locations, schedule maintenance, and minimize downtime. The goal is to maximize the number of deliveries per drone per day; some advanced systems are capable of servicing as many as 60 orders per day with a single drone. This directly improves drone fleet utilization for higher ROI.
- Leverage data analytics for drone delivery profit optimization. Analyze flight telemetry, delivery times, and battery performance to identify inefficiencies. This data can inform predictive maintenance schedules, reducing the risk of unexpected failures and associated costs, thereby improving drone logistics profitability.
These strategies combined lead to substantial drone delivery cost optimization. By reducing the time drones spend idle or on inefficient paths, businesses like SkyDrop Express can achieve higher throughput and lower per-delivery expenses. This focus on efficiency is vital for increasing drone delivery revenue and ensuring long-term financial success in the last-mile delivery solutions market.
Implement Strategic Pricing Models
Implementing strategic pricing models is crucial for increasing automated drone delivery profits. The best pricing strategies for a drone delivery business like SkyDrop Express must cover high operational costs while remaining competitive in the market. Common models include per-delivery fees, subscription-based services for regular clients, or tiered pricing based on factors like delivery speed or package weight. For instance, a per-delivery fee ensures a direct return on each service rendered, while subscription models can secure recurring revenue and foster customer loyalty. Analyzing market conditions and the value provided to clients is essential to set competitive yet profitable rates for drone delivery services.
Optimizing Drone Delivery Pricing for Profit
- Per-Delivery Fees: Charge a set amount for each completed delivery. This is straightforward and easily scalable.
- Subscription Services: Offer monthly or annual plans for frequent users, providing discounted rates per delivery in exchange for commitment. This builds consistent revenue streams.
- Tiered Pricing: Vary costs based on delivery urgency (e.g., standard vs. express), package size, weight, or distance.
Analyze Value and Market Conditions for Pricing
To set your drone delivery pricing models for maximum profit, it is vital to analyze the value provided to the client and local market conditions. For time-sensitive deliveries, such as medical supplies or hot food, businesses can command higher rates due to the critical nature of the service. For example, SkyDrop Express can differentiate its offering by guaranteeing rapid delivery for urgent items. The average unit cost per delivery currently ranges from $6 to $25, but this figure is expected to fall dramatically as technology advances and economies of scale are achieved. Understanding what customers are willing to pay for speed and convenience directly impacts revenue generation for profitable drone delivery services.
Payload Capacity and Its Profitability Impact
Consider how payload capacity directly impacts the profitability of drone deliveries. Drones carrying less than 5 kg are common for last-mile logistics, suitable for small packages, documents, or single food orders. However, drones handling over 10 kg represent a fast-growing segment, enabling the delivery of larger groceries, multiple items, or more substantial industrial components. Your pricing should reflect the capability and operational cost of the specific drone used for each delivery type. Utilizing higher-capacity drones for appropriate tasks can lead to increased drone delivery revenue by serving a broader range of customer needs and optimizing fleet utilization for higher ROI.
Premium Services for Increased Drone Delivery Profits
Offering premium services can significantly increase automated drone delivery profits. These specialized services allow businesses to charge a premium over standard deliveries. Examples include guaranteed 30-minute delivery windows for critical items, real-time advanced tracking that provides granular updates to customers, or temperature-controlled transport for sensitive goods like pharmaceuticals or gourmet food. SkyDrop Express can leverage these offerings to attract clients willing to pay more for enhanced reliability, security, and specialized handling, thereby boosting overall drone logistics profitability. This strategy caters to specific market demands and differentiates the service from basic offerings.
Market Your B2B Delivery Services
Focusing on a Business-to-Business (B2B) model is a highly effective marketing strategy for an Automated Drone Delivery Service like SkyDrop Express. This approach, targeting sectors such as e-commerce, healthcare, and food delivery, provides a more consistent and predictable revenue stream compared to serving individual consumers directly. Businesses often have higher volume delivery needs, leading to more stable contracts and increased drone delivery profits.
Highlighting your unique value proposition is crucial. For instance, an automated drone delivery system can reduce average delivery times by up to 70% compared to traditional ground transport. Emphasize significant cost savings and efficiency gains for potential B2B clients; autonomous systems can reduce their delivery costs by up to 60%. These tangible benefits are key selling points for improving drone logistics profitability.
Develop targeted customer acquisition strategies for drone delivery companies. Identify businesses that would benefit most from last-mile delivery solutions. This includes local restaurants needing faster food delivery profit margins, pharmacies requiring rapid medical supplies delivery profitability, and fulfillment centers for large retailers. Major players like Amazon and Walmart are already investing heavily in autonomous delivery, indicating a clear market demand.
Effective B2B Marketing Elements for SkyDrop Express
- Build a Strong Online Presence: Develop a professional website showcasing your services and capabilities.
- Create Case Studies: Showcase the ROI analysis of automated drone delivery systems for your partners. For example, demonstrate how a specific client reduced their delivery expenses by 45% over six months.
- Invest in a Marketing Plan: A well-researched marketing plan is imperative to build a customer base. This is a critical part of your startup budget, often requiring an initial investment of $20,000 to $75,000 to effectively reach target businesses.
- Highlight Scalability: Emphasize how your services can scale with client needs, contributing to scaling a drone delivery business for long-term success.
Scale The Business For Long-Term Success
Scaling an automated drone delivery service profitably requires careful expansion. Begin by targeting new markets strategically, especially suburban and rural areas. These locations often have simpler regulatory environments compared to dense urban centers. Traditional ground delivery can be less efficient and more costly in these areas, presenting a clearer path to profitability for drone services. For instance, a delivery to a rural farm might take 30-60 minutes by car but only 5-10 minutes by drone, significantly improving service speed and reducing operational costs.
To increase drone delivery revenue while scaling, diversify your service offerings. Do not limit your business to a single niche like food delivery. Expand into higher-margin services, such as the drone delivery of medical supplies or high-value B2B logistics. Medical deliveries, for example, often involve critical, time-sensitive items like lab samples or emergency medications, allowing for premium pricing. Integrating these services can significantly boost your SkyDrop Express profitability and broaden your market appeal, moving beyond typical last-mile delivery solutions.
Continuous investment in technology is crucial for improving efficiency and reducing long-term operational costs. This includes adopting advanced AI for route optimization, which can reduce flight times and energy consumption by 15-20%. Upgrade your drone fleet to models with longer range and higher payload capacity to handle more diverse delivery needs and larger orders. Automating ground operations, such as battery swapping and package loading, further enhances operational efficiency. These technological advancements are vital for profitable drone delivery services and for maintaining a competitive edge in the UAV delivery business.
Boosting Customer Retention for Sustainable Growth
- Focus on increasing customer retention for your automated drone delivery services by prioritizing reliability, speed, and excellent service. High customer satisfaction directly leads to repeat business, which is critical for a stronger bottom line.
- Implement feedback mechanisms to continuously improve service quality. For example, a 90% customer satisfaction rate can translate into a 20-30% higher lifetime value per customer in the drone logistics profitability sector.
- Offer loyalty programs or subscription models to encourage ongoing use. This strategy builds a stable customer base, essential for scaling a drone delivery business for long-term success and ensuring consistent drone delivery revenue.