Droneshield share price leaps 9% on record-breaking quarter

Droneshield shares are surging amid record cash receipts and a strong revenue outlook.

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The Droneshield Ltd (ASX: DRO) share price is off to the races today.

Shares in the drone defence tech company closed on Friday trading for 26.5 cents. At the time of writing on Monday, shares are changing hands for 29 cents apiece, up 9.4%.

For some context, the All Ordinaries Index (ASX: XAO) is down 0.8% at this same time.

This follows the release of Droneshield's quarterly update for the three months ending 30 September.

Read on for the highlights.

A silhouette shot of a man holding a control in his hands and watching as a drone hovers overhead with sunrays coming from the sky.

Image source: Getty Images

Droneshield share price leaps on surging revenue

Investors are bidding up the Droneshield share price today after the company reported an all-time high $10.2 million in customer cash receipts and grants for the three-month period. Grants accounted for $2.5 million of that figure.

This comes on the heels of the record $8.2 million in cash receipts the company reported for the June quarter. It all adds up to a very strong year so far.

In fact, Droneshield said the $48.2 million in year-to-date cash receipts and grants it had achieved, already represented three times the amount it earned in the entire 2022 fiscal year. That figure includes $17.3 million in cash receipts the company received in the first week of October.

As you'd expect, revenue is surging. The $43.3 million in year-to-date revenue reaped as of 20 October is 2.5 times more than the revenue earned in the entire 2022 fiscal year.

Looking at what may impact the Droneshield share price in the months ahead, the company reported a $51 million contracted order backlog. More than $400 million is in its sales pipeline.

Citing the recent Hamas terror attacks on Israel, the company highlighted the increasing role of drones in both offensive and defensive operations. It said this had seen defence and countermeasure technologies, like its own, "become priorities for requirements and future spending by nearly every government and military aligned with the West".

Droneshield expects the United States to continue to be the largest market for its products.

Commenting on the strong quarterly results sending the Droneshield share price soaring today, Droneshield CEO Oleg Vornik said:

With knockout results for 2023 to date, the team's focused on continuing to rapidly scale operations in a cost-effective manner, while adding to the 2024 order book and pipeline. We intend to enter the new year with momentum.

The company is moving to a new combined facility in Sydney 2.5 times the size of its existing facility. That move is expected to be completed by December.

Droneshield had a cash balance of $37 million at the end of the quarter, with $50 million in cash as at 20 October.

How has the ASX drone defence stock been tracking?

The Droneshield share price has been a strong performer in 2023, up 26% since the opening bell on 3 January.

Shares are up 45% over the past 12 months.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. The Motley Fool Australia has recommended DroneShield. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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