Two popular ASX growth shares are being heavily sold off on Wednesday after releasing their latest results.
DroneShield Ltd (ASX: DRO) is down around 10% to $1.75, while WiseTech Global Ltd (ASX: WTC) has fallen around 6% to $42.88.
For me, both declines are creating an opportunity to look beyond today's market reaction and focus on what these businesses could become.
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DroneShield shares
DroneShield remains a higher-risk investment, but I think the growth opportunity is becoming harder to ignore.
The counter-drone specialist generated record first-half revenue of $125.8 million, representing growth of 74% over the prior corresponding period. More importantly for me, recurring revenue increased 229% to $11.5 million.
Recurring revenue is still a relatively small part of the business, so I would not make too much of it yet. But it shows DroneShield is beginning to build revenue that can continue after the initial hardware sale.
I also like what the company is doing to prepare for much greater demand.
DroneShield completed its new Sydney production facility during the half and established operations in Europe, where more than half of first-half revenue was generated. It finished June with $180 million of cash and term deposits, giving it significant resources to keep investing in production, software, and new products.
The next generation of AI-enabled hardware and software is very interesting to me. Counter-drone technology needs to keep evolving as the threats themselves change, and DroneShield is investing heavily to stay near the front of that development.
At $1.75, I think the sell-off offers an attractive entry point for investors comfortable with considerable risk.
WiseTech shares
WiseTech is a much more established business, but I think today's result shows there is still plenty for long-term investors to look forward to.
CargoWise sits at the centre of the company's opportunity. It provides software that helps global logistics companies manage the movement of goods across borders, including freight forwarding, customs, warehousing, and other complex processes.
One development that caught my attention is that more than 95% of CargoWise customers have now moved onto WiseTech's new Value Packs commercial model. This is designed to move the company further towards charging for the value and transactions flowing through CargoWise rather than traditional seat-based pricing.
I think that could become increasingly valuable as WiseTech adds more automation and AI to the platform.
The e2open acquisition also gives the company a much larger presence across global trade and supply chains. WiseTech has already achieved substantial cost savings from integrating the business, while free cash flow increased 43% to US$410.7 million in FY26.
The outlook gives me another reason to remain positive.
Management expects underlying EBITDA to grow by 12% to 21% in FY27, with the underlying EBITDA margin rising to between 49% and 51%.
That suggests WiseTech could continue getting more profitable as it integrates e2open, rolls out new products, and uses AI to improve both its software and internal operations.
At around $42.88, I would be happy to use today's weakness to build a long-term position.
Foolish takeaway
In both cases, I can see businesses investing heavily today to pursue opportunities that could be substantially larger several years from now.
DroneShield carries considerably more risk and would warrant a smaller position in my portfolio. WiseTech has a more established business and stronger cash generation.
But after Wednesday's falls, I think both shares are worth buying with a long-term view.
