- DroneShield (ASX:DRO) posts record cash receipts and grants for the December 2023 quarter of $48 million
- The figures are five times larger than DRO’s previous $10 million record in the September 2023 quarter
- The entire year of 2023 saw record cash receipts and grants of $73.5 million
- Revenues for 2023 also hit a record high of $55.1 million, triple the amount from the previous year
- DRO shares are up 10.8 per cent, trading at 41 cents at 1:15 pm AEDT
Defence stock DroneShield (ASX:DRO) has posted record cash receipts and grants for the December 2023 quarter of $48 million.
The record figures are five times larger than DRO’s previous $10 million record in the September 2023 quarter.
The entire year of 2023 saw record cash receipts and grants of $73.5 million, a five-time increase compared to the entire year of 2022. Revenues for 2023 also hit a record high of $55.1 million, triple the amount from the previous year.
Notably, 80 per cent of these revenues came from repeat customers.
The geographical contributions were significant, with 68 per cent from the US and 23 per cent from Australia.
Additionally, Droneshield achieved a historic milestone with a profit before tax of $4 million, a significant turnaround from the $2.9 million loss before tax in 2022.
“We are ready to deliver a strong 2024, after a record 2023, we are seeing continuing peak demand from our customer base globally, our competitive positioning and customer reputation are exceptional, and we are ready operationally to meet this demand,” DRO CEO Oleg Vornik said.
Cash balance and 2024 outlook
As of December 31 2023, Droneshield had a cash balance of $57.9 million as well as a $30 million contracted order backlog with more than $400 million in its sales pipeline.
Last year, Droneshield developed seven new drones, with some destined to enter the market this year. The company is also set to complete its move to a larger facility in Sydney by the end of January.
The move will offer three times the space of the current facility to meet the growing demand for defence weaponry, with Droneshield aiming for an annual production capacity of $300-400 million in products within the coming months.
The United States is expected to continue to be the largest market for DroneShield, with a growing customer base across numerous government agencies, including both military and non-military federal agencies.
DRO shares were up 10.8 per cent, trading at 41 cents at 1:15 pm AEDT.