The Droneshield Ltd (ASX: DRO) share price is under pressure on Monday. That's despite the drone defence company reporting record revenue and cash receipts in its full-year 2022 results.
After very strong share price gains over the past 12 months, investors may be looking to take some profits off the table. And market expectations for the company appear to have exceeded what it delivered, with profitability still just out of reach.
Shares in the ASX tech company closed Friday at 35 cents. Shares are currently changing hands for 33 cents apiece, down 5.7%.
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Droneshield share price slides despite record revenue
- Record 2022 revenue from continuing activities increased 59% from 2021 to $16.9 million
- After tax loss of $949,000, down 82% from the losses posted in 2021
- Entered 2023 with a record $200 million in sales pipeline
- Current cash balance of approximately $20.5 million with no debt or convertibles
What else happened during the year?
Other highlights that impacted the Droneshield share price included December's record $11 million. That was followed by another $11 million order from a different government customer in January 2023.
The company also said Russia's invasion of Ukraine is spurring demand for counter-drone equipment. Droneshield noted its successful sale of equipment to Ukraine at the start of the war.
Droneshield also forecasts that demand for anti-drone technology will remain elevated, even after the war in Ukraine ends. It said most of the world's government agencies and militaries have little to no existing counter-drone stocks, with many looking to build up an inventory.
What did management say?
Commenting on the results, and some upcoming tailwinds that could lift the Droneshield share price down the road, CEO Oleg Vornik said:
We are thrilled to report another record revenue year by a significant margin, and quickly improving bottom-line results.
2023 is expected to be a transformational year for the business, as has already been witnessed by two all-time record $11 million orders in December 2022 and January 2023, and a substantial pipeline of opportunities that we are in the process of converting.
Droneshield share price snapshot
As you can see in the chart below, the Droneshield share price has been an exceptional performer over the last 12 months. Despite today's retrace, the ASX tech share is up 42% in 2023 and up 92% over the full year.
