DroneShield (ASX:DRO) share price soars 5% on rapid revenue growth

The company's shares are heading north today.

| More on:
Man puts thumb up next to stock market graph

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The DroneShield Ltd (ASX: DRO) share price is pushing higher during afternoon trade following a business update from the company.

At the time of writing, the defence contractors' shares are up 5.71% to 18.5 cents. In comparison, the All Ordinaries (ASX: XAO) is down 0.21% to 7,757.8 points.

What did DroneShield announce?

Investors are buying up DroneShield shares after the company reported a record performance for 2021.

In its statement to the ASX, DroneShield advised it achieved $10.5 million in revenue last year. This represents a 94% increase when compared against the prior comparable period (FY20 $5.4 million).

In addition, customer and grant cash receipts totalled $14.8 million in 2021, a 174% growth on 2020 levels.

Notably, the company broke new records, despite COVID-19 continuing to impact business operations. The diversity in receipts primarily came from Australia, the United States, and Middle Eastern customers.

This consisted of payments across multiple product lines such as DroneShield's $3.8 million contract with the Australian Department of Defence.

In addition, DroneShield is actively engaging in a potential US$55 million contract with a Middle Eastern customer. Although details are sketchy at this point in time on who the deal is for and what it involves.

The company noted that it has over $200 million in its sales pipeline across the globe. This is a small fraction of the total $6 billion addressable market for counter-drone, electronic warfare and signals intelligence products.

DroneShield declared a healthy cash balance of $9.5 million, with no debt.

Management commentary

Speaking on the outstanding achievement, DroneShield CEO Oleg Vornik said:

2022 is shaping as another record year, with over $200m in sales pipeline diversified across geographies and products, underpinned by our talented staff who are global leaders in their respective technology segments.

We have also taken advantage of our supply chain relationships to secure access to material amounts of complex circuit board and other inventory, which serves as a further differentiator to our customers, reducing final product delivery lead times, in the current environment of supply chain disruptions for much of the industry.

Importantly, Software as a Service (SaaS) and, generally, software-related revenues are expected to continue increasing as total percentage of customer cash receipts.

About the DroneShield share price

Over the last 12 months, the DroneShield share price has pushed marginally higher by around 3%.

The company's shares reached a 52-week high of 22.55 cents in September last year, before treading lower.

At today's price, DroneShield presides a market capitalisation of around $77.37 million, with approximately 418.23 million shares on issue.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended DroneShield Ltd. The Motley Fool Australia has recommended DroneShield Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

Man looking at digital holograms of graphs, charts, and data.
Technology Shares

2 amazing ASX tech shares I wish I'd bought last year

These tech companies are among the world’s best companies.

Read more »

A man in a business suit and tie places three wooden blocks with the numbers 1, 2, and 3 on them on top of each other.
Broker Notes

3 reasons to buy this booming ASX All Ords tech stock today

A leading broker forecasts more gains to come from this surging ASX All Ords tech stock.

Read more »

Man ponders a receipt as he looks at his laptop.
Technology Shares

Brokers rerate 3 leading ASX 200 tech stocks

Experts reveal their ratings on the ASX 200 tech sector's three biggest companies.

Read more »

Hologram of a man next to a human robot, symbolising artificial intelligence.
AI Stocks

Why Macquarie forecasts a big rebound for these 2 quality ASX All Ords tech stocks

Macquarie expects a big rebound is coming for these AI linked, ASX All Ords tech stocks.

Read more »

A young man goes over his finances and investment portfolio at home.
Technology Shares

Is it too late to buy DroneShield shares?

This high-flying stock is up 90% since this time last month. Where next? Let's find out.

Read more »

A frustrated male investor frowns with his hands and arms open asking why the share price has dropped today.
Technology Shares

Why this high-flying ASX 200 tech stock just got downgraded

Let's see which stock has been hit with a downgrade today.

Read more »

Delighted adult man, working on a company slogan, on his laptop.
Technology Shares

Up 10% in a day, why this ASX tech share is exciting investors

It’s been a good start to the week for this company’s shareholders.

Read more »

Two smiling work colleagues discuss an investment or business plan at their office.
Technology Shares

Which ASX 200 tech stock is jumping 8% to record high?

This high-flying stock had another strong quarter.

Read more »