How does Pix4D generate/calculate the elevation Z value?

I've used Pix4d Capture on several projects to create a 3d model, including DSM. The elevation values in the DSM seem to be way off of reality.

IE, I did a flight mission at the beach, and the DSM indicated that my elevation was -18 ft at the water's edge. 

So, I'm wondering how the Pix4d software generates the elevation data in the DSM--Does it pull information from the drone's GPS's sensors during the flight? Is it calculating Z based based on something else? 

Thank you, 

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