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DroneShield Releases Record 2023 Annual Results, Surging to Profitability

DroneShield Ltd (ASX:DRO) (“DroneShield” or the “Company”) is pleased to announce the release of record full year FY23 results.

The highlights include:

• FY23: record contracts and rapidly growing cash receipts

? FY23 $73.5 million cash receipts, up 5x vs. FY22

? FY23 $55.1 million revenue, up 3x vs. FY22 

? 80% of revenues are from repeat customers

? The revenue vs. cash receipt difference mostly due to advanced payments on product subscriptions (SaaS), warranties, as well as grants received

? Largest geographical segment revenue contributions are US at 68% and Australia at 23%
 

• FY23 is first profitable year, with $9.3 million profit after tax

• Shareprice up 64% over 2023 (vs 9% for ASX300)
 

• Cash balance of $57.9 million as of 31 Dec 2023, no debt or convertibles

? Committed supply chain payments of $30 million

• $30 million contracted backlog and pipeline of over $510 million*
 

• Substantially completed expansion of the team to enable build, delivery and support of materially larger orders

? Completed move to a larger Sydney facility (3x current floor space) in January, plus supply chain partners been rapidly expanding

? No material cost to DRO to move, due to light capex model (heavy machinery work all outsourced) and landlord fitout incentive payments

? Positions the company for $300-400 million annual production capacity

? 115 team members including over 90 engineers
 

• Favourable environment for DroneShield with rapidly rising counter-drone, defence and security spending globally

? The Ukraine conflict continues to highlight the use of drones on the battlefield, which will continue driving increasing C-UAS orders even after the eventual ceasefire

? Drones increasingly used across global conflicts, including Hamas terror attack on Israel

Full Year Results Presentation can be viewed here:

Annual Report can be viewed here:

There is no assurance that any of the Company’s sales opportunities will result in sales.

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