DroneShield plummets as quarterly revenue plunges
Make us a preferred source
Make us a preferred source on Google
More news: DroneShield extended last week's selloff, despite posting record high first-half revenue.
Shares in the anti-drone defence tech company dived 17.9% to $1.61 by 10:50am AEST.
While the company's first-half revenue were 110% up from the prior corresponding period, quarter-on-quarter its revenue fell 54.9% to $7.4 million.
DroneShield has now shed 31.2% over the last week, having gained 360% in the past 12 months.
DroneShield posts record 1H revenue
The news: DroneShield has posted record high first-half revenue, aided by a deteriorating geopolitical environment, after the anti-drone defence tech company experienced a major selloff last week.
The numbers: Sydney-based DroneShield reported first-half revenue of $24.1 million, up 110% on the prior corresponding period.
Customer cash receipts grew 40% to $21.4 million, which also represented a record for the company. The primary difference between revenue and cash receipts was driven by US customers paying 30 days after delivery.
DroneShield has doubled its pipeline since 31 March to $1.1 billion at 15 July, boosted by a "significant ramp up" in the Asia region. Multiple governments have commenced "substantial" Counter Unmanned Aerial Systems (C-UAS) programs against the threat of small Chinese drones conducting surveillance of sensitive areas, harassment and potential attacks, the company said.
Meanwhile, DroneShield's first-half SaaS revenue grew 93% to $1.3 million year on year, underpinned by customers requiring the company's latest AI software engines, in response to a "rapidly evolving drone threat".
The context: DroneShield said the second half of the year, and especially the December quarter, have traditionally been stronger performance periods for the company.
October and November often correspond to the start of a new budget cycle for many US Government customers, with end of the year underspend catch up and commencement of new year monies being deployed.
Last week, the ASX put DroneShield into a trading pause following a 28% intraday slide, after months of consistent market gains. When queried on potential reasons for the sudden price drop, DroneShield pointed to a Capital Brief article detailing investors' scrutiny of its overvaluation as it approached a $2 billion market cap.
The company's share price last closed at $1.96 and over the last 12 months has rocketed 476.47%.
What they said: DroneShield said: "... as the geopolitical environment deteriorates globally, small drones continue to be used by bad actors, both State and non-State alike".
"... While today military makes the substantial bulk of the DroneShield customer base, over time the civilian segments are expected to go through rapid acquisition cycles, likely triggered by incidents in their respective areas."
The source: ASX announcement
