DroneShield (DRO) H2 2024 earnings summary

Executive summary

• Achieved record revenue of $57.5 million (AUD 57.5 million) in 2024, driven by global expansion, smaller consistent contracts, and a diversified customer base, with 91% of revenue from offshore markets.

• Raised $235 million in 2024, ending the year with $221 million in cash and term deposits, supporting R&D, global expansion, and manufacturing scale-up.

• Maintains a robust $1.2 billion global sales pipeline, diversified across the US, Europe, Australia, Asia-Pacific, and LATAM, with 75% tied to military and related sectors.

• Workforce expanded from 90 to 275 staff (over 200 engineers), with plans to reach 330 by mid-2025 to support R&D and business growth.

• Entered the S&P/ASX 300 Index and signed the first NATO procurement framework agreement for C-UAS, expanding influence in key global markets.

Financial highlights

• Revenue for 2024 reached $57.5 million, up 6.4% year-over-year, with 2025 off to a strong start ($18 million recognized, $34–$52 million in backlog or committed POs).

• SaaS revenue doubled to $2.8 million, reflecting a shift toward higher-margin, recurring software income.

• Cash balance stood at $215.2–$250 million as of February 2025, supporting product development and business scaling.

• Net loss after tax of $1–$1.3 million in 2024, compared to a net profit of $9.3 million in FY2023, reflecting investment in scaling operations.

• Share price rose 96% from $0.37 to $0.725 between December 2023 and February 2025.

Outlook and guidance

• FY2025 has started strongly, with $51.6–$52 million in revenue already recognized or under committed purchase orders as of February 2025.

• Active sales pipeline of $1.2 billion for FY2025 and FY2026, though not all opportunities are guaranteed to convert.

• Expansion to 330 staff by mid-2025, with a focus on AI technology development and global sales.

• Targeting recurring revenues (SaaS and long-term R&D contracts) to reach up to 50% of total revenue over the next five years.

• No formal profit guidance issued due to industry nascency and contract timing variability.