DroneShield (ASX:DRO) shares in focus on quarterly update

3 min read | April 27, 2022 06:09 PM AEST | By Sonal Goyal

DroneShield (ASX:DRO) shares in focus on quarterly update — Image source: © Ig0rzh | Megapixl.com

Highlights

DroneShield marked 89% rise in revenue compared to 2020.

The company recorded 32% surge in the customers and grant receipts.

The drone firm has been progressing well across geographies.

DroneShield Limited (ASX:DRO) has released a business update for the quarter ending 31 March 2022. Despite a strong set of numbers, today, shares had a little bumpy ride.

During the early trading hours, the shares were spotted trading 2% high on the ASX at AU$0.24 per share (10:30 AM AEST). At 2:45 PM AEST, the shares were spotted trading 1.28% low at AU$0.232 with a market cap of AU$101.64 million.

Key highlights of the DroneShield's quarterly update

Image source: © Tartilastock | Megapixl.com

The artificial intelligence-based platform recorded AU$10.6 million of revenue during the quarter, up by 89% compared to 2020. In three months, the company generated customer and grant cash receipts of AU$2.5 million, 32% higher than the previous year.

The company ended the quarter with an inventory balance of AU$14 million (by sales value), indicating that DroneShield can conduct rapid sales and mitigate supply chain-related risks. The company ended the quarter with AU$8 million in the bank.

DroneShield revealed that it has a sales pipeline of AU$155 million for the remaining 2022. In addition to this, for 2023, the company said it has an AU$175 million sales pipeline. Reportedly, the large opportunities continue to increase globally, especially in Ukraine and the Middle East.

How did DroneShield perform in different geographies?

Australia - DroneShield informed that it is progressing well with the Australian DoD (Department of Defence) and an AU$800,000 contract that relates to government agency applications and counterdrone space.

United States – DroneShield has reported continuous growth in the US market. Recently, it signed a deal with the State of Texas. Moreover, it is progressing with the two acquisition program processes with different US government agencies.

Europe and other geographies – DroneShield shred an update that it received an AU$2 million order from an international government customer and expects to finish the same in this quarter. The company also informed that it had received numerous inquiries due to the Ukraine situation.

Airports – airports segment also evolved as a potential growth segment as airports in Australia, the US and globally are assessing the deployment of counterdrone. In addition to this, the company has been shortlisted on an airport tender, and orders can be expected in the coming months.

Share performance of DroneShield

In the last five trading sessions, the share price of DroneShield has gained 2.17% on the ASX, and the year-to-date gain is over 30%. In the last six months, the shares generated a return of over 38%, and in one year, the return is around 23%.

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