The stock of one of the growing companies to invest in, reported significant growth, with revenue from sales growing from less than $1m in 2018 to $57.5m in 2024 The Company invests for growth, with a significant attention on cost management
DroneShield Limited (ASX: DRO)
DroneShield Limited in its Quarterly Activities Report, delivered a strong operational and financial performance for the quarter ending 31 December 2024, positioning itself as a global leader in counter-drone (C-UxS) technology. Despite some delays in project execution, the company saw notable revenue growth, a substantial backlog of contracts, and increasing demand for its counter-drone solutions across military, government, and commercial sectors.
DroneShield recorded total revenues of $57.5 million for FY24, reflecting a 6.3% year-over-year increase from $54.1 million in 2023. While the headline growth was moderate due to the absence of large one-off contracts, the company’s core “flow business” saw significant expansion, indicating a strong and recurring demand for its products. Notably, DroneShield has $36 million in committed revenue for 2025 as of January, with a $33.4 million contracted backlog expected to be realized in 1H25.
The company’s Software-as-a-Service (SaaS) revenue doubled to $2.8 million, as more customers sought quarterly AI-powered software updates for their DroneShield hardware. This recurring revenue stream is expected to grow further with the launch of DroneSentry-C2 Enterprise Edition and a revamped DroneShield Access Portal in 2025.
A significant milestone for DroneShield was its increased cash reserves, which surged to $220.6 million by the end of December 2024, a remarkable increase of $162.7 million from the previous year.
As a result of these initiatives, DroneShield has built an inventory valued at over $200 million, ensuring rapid product deployment in high-demand regions. Additionally, the company expanded its Sydney headquarters to support higher manufacturing capacity and additional personnel, increasing the facility’s production capability to up to $500 million per year.
DroneShield’s sales pipeline now exceeds $1.2 billion, with significant opportunities in North America, Europe, Asia, and Latin America, making it one of the best growth stocks to buy now.
Key developments include:
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Growing U.S. market share, with the U.S. Department of Defense and law enforcement agencies representing approximately 70% of total revenues.
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Continued adoption of DroneShield’s technology in NATO member countries, reinforced by a $8.2 million contract awarded in December 2024.
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Entry into the Latin American market, marked by a $9.7 million contract in January 2025 and the appointment of Carlos Gutierrez (ex-SpaceX) to lead regional sales efforts.
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Increasing demand in the Asia-Pacific region, particularly from countries bordering China, where governments are prioritizing C-UxS technology due to rising drone threats.
With 263 employees (197 of whom are engineers), DroneShield is at the forefront of AI-powered drone detection and mitigation technologies. The company is set to release two new hardware products in Q1 2025, including upgraded versions of the DroneGun Mk4 and RfPatrol Mk2, in response to evolving security threats.
Looking ahead, DroneShield expects:
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Continued revenue growth in 2025, supported by larger military and defense contracts.
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Expansion of SaaS-based offerings, increasing recurring revenue streams.
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Further international expansion, particularly in Europe and South America.
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Advancements in AI-powered software, allowing its C-UxS solutions to adapt to the rapidly evolving drone warfare landscape.
DroneShield is well-positioned for sustained growth in 2025 and beyond, driven by strong financials, increasing global demand, and continuous product innovation. With a robust sales pipeline, growing market footprint, and a highly scalable business model, the company is set to remain a key player in counter-drone security solutions worldwide.
Source: Company’s Report
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