DroneShield Ltd (ASX: DRO) shares are racing higher on Monday morning.
At the time of writing, the counter-drone technology company's shares are up 6% to $4.88.
Why are DroneShield shares racing higher?
This morning, DroneShield announced that it has strengthened its technology leadership team.
According to the release, the company has promoted Angus Harris to the role of chief technology officer (CTO). It advised that this reflects the company's continued growth and organisational maturity as it scales to meet accelerating global demand across defence and government markets.
DroneShield highlights that Harris brings a wealth of technical and leadership experience from his time at Thales and the Australian Department of Defence.
DroneShield also advised that another Angus has moved upwards. Angus Bean, who is a foundational member of the company's technology leadership team, will move into the position of chief product officer (CPO).
In this role, Bean will concentrate on advancing the company's global product vision and long-term technology roadmap. This will ensure that innovation, engineering capability, and customer outcomes remain tightly aligned.
DroneShield's chief Executive, Oleg Vornik, spoke positively about the appointments and believes they position the company for growth in the future. He said:
Angus Harris has already been performing in a senior technology leadership capacity as VP of Software Engineering, demonstrating technical capability, operational discipline, and collaboration across the business. His appointment as CTO adds to the senior talent bench talent and positions the Company to deliver the next generation of counterdrone solutions, especially as the Company is seeking for SaaS to grow substantially as a proportion of its revenues.
Quarterly update
As well as announcing the appointments, DroneShield has released its quarterly update this morning.
The company reported a stunning 1,091% increase in revenue to $92.9 million for the third quarter of FY 2025. This is a record quarter of revenue for the growing company and more than double its previous record.
In addition, cash receipts came in at a record of $77.4 million (up 751% year on year) and SaaS revenue lifted 400% to $3.5 million. The latter is expected to continue increasing in the coming quarters. Particularly given that all new products will carry one or multiple SaaS subscriptions.
Management notes that its committed revenue for 2025 is now $193.1 million. This is a notable increase on the $57 million of revenue it recorded for the whole of 2024.
Operating cashflow was positive at $20.1 million for the quarter, which is a 204% improvement on the prior corresponding period. Management advised that it is "targeting to be consistently operating cashflow positive and profitable moving forward."
Despite a recent pullback, DroneShield shares are up over 500% since the start of the year.
