DroneShield (DRO) H2 2024 earnings summary

Executive summary

• Achieved record revenue of AUD 57.5 million ($57.5m) in 2024, up 6.4% year-over-year, driven by smaller, consistent contracts and SaaS growth, with strong momentum into 2025 and AUD 52 million ($52m) already committed for 2025 delivery.

• SaaS revenue doubled to $2.8m in 2024, reflecting a shift toward higher-margin, recurring software income.

• Maintains a robust global sales pipeline of AUD 1.2 billion ($1.2bn), diversified across the U.S., Asia-Pacific, Europe, Australia, and LATAM.

• Workforce expanded from 90 to 275 staff, with plans to reach 330 by mid-2025, including over 200 engineers, to support R&D and business growth.

• Positioned as a market leader in counter-drone (C-UxS) technology, with proprietary AI-driven solutions and global reach.

Financial highlights

• Revenue for 2024 reached AUD 57.5 million ($57.5m), up year-over-year, with 2025 off to a strong start (AUD 18 million recognized, AUD 34 million in backlog, $52m committed for 2025 delivery).

• 2024 profit after tax was $9.3m, a turnaround from prior years' losses, while another source reports a small net loss of AUD 1 million due to investment in staff and capability.

• Cash balance stands at AUD 250 million ($215.2m as of February 2025), supporting product development and business scaling.

• Raised $235m in 2024, supporting scale-up, R&D, and expansion of manufacturing capacity to $500m p.a.

• Operating expenses are approximately AUD 5–6 million per month, reflecting investment in talent and R&D.

Outlook and guidance

• Revenue visibility for 2025 is strong, with AUD 52 million ($52m) already recognized or in purchase orders early in the year.

• Pipeline of AUD 1.2 billion ($1.2bn) in defined opportunities for 2025–2026, with further upside from early-stage projects.

• Targeting recurring revenues (SaaS and long-term R&D contracts) to reach up to 50% of total revenue over the next five years.

• Expansion to 330 staff by mid-2025, with a focus on AI technology development and global sales.

• No formal profit guidance issued due to industry nascency and contract timing variability.