DroneShield Posts 6.3% Revenue Growth, Eyes $1.2B Pipeline for 2025
DroneShield Limited reports a 6.3% increase in 2024 revenue to $57.5 million, underpinned by a doubling of SaaS sales and a robust $1.2 billion sales pipeline heading into 2025.
- 2024 revenue grew 6.3% to $57.5 million despite slower project completions
- SaaS revenue doubled to $2.8 million, reflecting growing software demand
- $33.4 million contracted backlog expected to convert in first half of 2025
- Strong $1.2 billion sales pipeline with multiple large deals in progress
- Cash reserves surged to $220.6 million after a $235 million capital raise
Steady Revenue Growth Amid Project Delays
DroneShield Limited (ASX:DRO) has reported preliminary 2024 revenues of $57.5 million, marking a 6.3% increase over 2023’s $54.1 million. While this growth is modest, it belies a more dynamic underlying business. The company notes that several pipeline projects took longer than anticipated to complete, tempering headline growth. Notably, 2023’s revenue included a single $33 million deal, whereas 2024’s revenue was generated entirely through smaller contracts, with the largest deal capped at $13.5 million.
SaaS Revenue Doubles, Signaling Shift to Recurring Income
One of the standout highlights is the doubling of SaaS revenue to $2.8 million in 2024, up from $1.4 million in 2023. This surge reflects strong customer demand for DroneShield’s AI-driven software updates, which enhance the effectiveness of its hardware products against evolving drone threats. The company plans to launch additional SaaS solutions, including the DroneSentry-C2 Enterprise Edition, and will overhaul its DroneShield Access Portal to further boost subscription uptake.
Robust Backlog and Pipeline Position 2025 for Growth
DroneShield enters 2025 with a contracted backlog of $33.4 million, all expected to convert to cash receipts in the first half of the year. This backlog includes delivered goods awaiting payment, products in manufacturing, export permit delays, and R&D projects. Beyond this, the company boasts a substantial $1.2 billion sales pipeline spanning 2025 and 2026, featuring 34 opportunities each exceeding $5 million. This pipeline is bolstered by participation in Australia’s LAND156 program and expanding demand across the US, Europe, Asia, and Latin America.
Strong Cash Position Fuels Expansion and R&D
DroneShield’s cash balance soared to $220.6 million at year-end, up from $57.9 million a year prior, following a $235 million capital raise in 2024. This war chest supports scaling the team to 330 staff by mid-2025, expanding manufacturing capacity at its Sydney HQ, and investing in next-generation hardware and software development. The company maintains a clean balance sheet with no debt and a monthly cash burn of approximately $4.5–5 million before revenue and inventory costs.
Strategic Outlook Amid Geopolitical and Market Dynamics
DroneShield’s outlook is buoyed by geopolitical tensions driving increased defense budgets globally, including anticipated US border security investments under the new administration. The company’s technology roadmap targets a significant leap in product sophistication with new hardware slated for 2026, while 2025 revenues will be supported by existing products and software updates. The ongoing conflict in Ukraine and rising drone threats worldwide underscore the critical need for advanced counter-drone solutions, positioning DroneShield as a key player in a consolidating and rapidly evolving market.
Bottom Line?
With a fortified balance sheet and a $1.2 billion pipeline, DroneShield is poised for a pivotal growth phase in 2025 and beyond.
Questions in the middle?
- How will the transition to SaaS and subscription models impact DroneShield’s long-term revenue stability?
- What are the risks and timelines associated with converting the $1.2 billion sales pipeline into firm contracts?
- How will geopolitical shifts, particularly US defense policies, influence DroneShield’s market penetration and product demand?
