The DroneShield Ltd (ASX: DRO) share price has risen more than 4% after winning a new US government contract.
Droneshield says it provides artificial intelligence-based platforms for protection against advanced threats such as drones and autonomous systems. It offers customers counter-drone, or counter-UAS, and electronic warfare solutions and off-the-shelf products designed for terrestrial, maritime or airborne platforms. Its customers include military, intelligence community, government, law enforcement, critical infrastructure and airports.
US government contract
DroneShield announced to the ASX it has received a repeat order of $13.5 million from a US government customer for a number of its dismounted Counter-UxS systems. The company expects to deliver this in full this quarter, with the cash receipt expected as well.
The company said its ability to rapidly deliver high-performance, lifesaving technology at this scale sets it apart from the counter-UAS, empowering its clients with cutting-edge solutions precisely when they need it.
Management commentary
The DroneShield US CEO Matt McCrann said:
Our team appreciates the opportunity to support this urgent requirement and continue to build strong relationships with our federal partners.
Providing solutions that deliver a decisive advantage to our end users is what we strive for – the speed and scale at which we can now deliver, speaks volumes of our team members and their commitment to our customer and their mission.
Winning streak continues for DroneShield shares
The DroneShield share price has gone up 400% in the past year and it has risen over 260% in 2024 to date.
It has won a number of contracts in recent times and this is translating into strong financial growth. In the company’s FY24 first-half result, revenue increased 110% year on year to $24.1 million, while software as a service (SaaS) revenue jumped 93% to $1.3 million.
At the time of the HY24 result, it said the SaaS growth is underpinned by customers requiring the company’s latest AI software due to the “evolving threat”. Additional SaaS-based solutions are planned for launch within the next year.
DroneShield also reported in HY24 that there was a two times increase in its pipeline since 31 March 2024 to $1.1 billion. That includes a “significant ramp-up” in Asia, as multiple governments “commence programs against Chinese drones”, while there has been a “steady rise” in C-UxS demand across US and Europe.
It will be fascinating to see how the company performs in the next few years with this kind of momentum.
