The DroneShield Ltd (ASX: DRO) share price is zipping upwards today after the company released its financial results for the full year ended 31 December 2021.
In afternoon trade, shares in the drone detection technology company are fetching 18 cents per share. This represents an increase of 9.37% from the company's previous closing price.
DroneShield share price takes flight on rapid revenue growth
- Revenue up 91% to $10.6 million compared to the prior year
- Cash receipts reach $14.8 million, increasing 174% from FY20
- Earnings before interest, taxes, depreciation, and amortisation (EBITDA) improves marginally to a $5.9 million loss from a $6 million loss
- Net loss improves 9% to $5.31 million
- Total pipeline for 2022 reaches $290 million
- Repeat customer cash receipts of $9.9 million, increasing 350% from previous year
What happened during the year for DroneShield?
The DroneShield share price is soaring on the back of a momentous year of operations for the drone defence company in 2021. The year saw DroneShield cement yet another consecutive year of revenue growth, as contracts flowed in from new and repeat customers.
Powering forward with its software-as-a-service ambitions, the company broadened its market into AI-powered realms of electronic warfare. This saw DroneShield land a $3.8 million 2-year R&D contract with the Department of Defence. Investors were pleased with this announcement, sending the DroneShield share price higher on the news.
Furthermore, the company expanded upon its talent throughout the year, doubling the size of its team to 60 people. According to the annual report, the new additions included engineers, sales and field support, and production technicians.
DroneShield has continued to build its presence in the United States over the past year. For example, 2021 involved numerous invite-only events in the US where the company's products were tested and evaluated.
Management commentary
Highlighting the importance of DroneShield's US operations, independent non-executive chair Peter James stated:
The US Government and military market is expected to be the single largest opportunity for DroneShield, being the largest counterdrone customer in the world. During 2021, DroneShield continued to position itself for that market, with additional hires in its Virginia office, making multiple initial smaller sales, ensuring compatibility to standard US Government software interfaces, and conducting multi-agency product evaluations and deployments.
The US business is led by a seasoned ex-military veteran team, experienced in scaling US Government sales and the associated steps towards larger purchases.
Additionally, James provided insight into the company's forward movements. He said:
DroneShield has continued to grow its relationships with key defence primes in Australia and globally. This is expected to bring further cash receipts (in the form of outright sales and paid R&D contracts) in 2022.
DroneShield share price snapshot
DroneShield shareholders have been on a wild ride over the past year. For instance, the DroneShield share price has been as low as 14 cents and as high as 22 cents.
Despite the volatility, investors have little to show for the voyage so far, with shares up 2.9% in the 12-month timeframe. However, many ASX-listed companies have fared far worse than DroneShield during this time.
For context, Electro Optic Systems Holdings Ltd (ASX: EOS) is down 62% in the last year. Additionally, Austal Limited (ASX: ASB) has tumbled more than 20%.
