DroneShield Limited

ASX:DRO

DroneShield Limited

ASX:DRO
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$0.720 (-0.7%)
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#21
Rank
30
Held by
70
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Reports (8) My Report Forum Investors
Forum Topics DRO DRO Meeting notes

Pinned straw:
Strawman
Added one year ago

We'll have the recording with Oleg up soon, but just wanted to add a few small notes while they are fresh.

  • He strongly hinted that revenue would be around the circa $70m this year (just based off things that have already been announced) -- compared to about $17m last year. Also, that the business would be "easily" profitable.
  • Manufacturing capacity at present could support $100m in sales, and up to $300m in sales within the next 6 months
  • They've already announced a $200m sales pipeline, but said that they are working on several large opportunities. I'd guess these would be akin to the $33m deal with the US announced in July.
  • Gross margins for hardware are not disclosed, but well north of 40%
  • They genuinely seem to be one of the key market leaders in this fast growing space, and well ingratiated with key customers.
  • Expect staff numbers to ramp up considerable in the coming years to support top line growth, of which they are targeting $300-500m in 5 years (already announced). Half of that will be SaaS and R&D revenue.
NewbieHK
Added one year ago

@Strawman did you ask him why he keeps selling shares? I plan to listen to the recording over the weekend, however as others have raised the continued share selling is mystifying if the growth story is to be believed!

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Strawman
Added one year ago

Hi @NewbieHK -- I sure did.

In essence, he said 2 reasons:

  1. Tax. When options convert that's treated as a tax event, and he needed to sell some shares to help pay the obligation
  2. It's been a long hard road, and he has been on below market rates salary wise for a while, and basically wanted to enjoy some of the spoils (although he didn't put it exactly like that).

Check out the recording to see what you think. Personally, I don't begrudge him taking some cash off the table -- he still has a sizeable holding and stands to do very well from here if the company continues to execute. If I'm being honest, i think i'd be tempted to do the same.. although perhaps not to the same degree.

On the other hand, if we see continued sell downs I'd be much less sanguine!

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NewbieHK
Added one year ago

Thanks @Strawman for the response. I look forward to listening to the recording.

10
NewbieHK
Added one year ago

i just finished the recording and came away thinking if all my holdings showed that progression as a company (see table below) I would be very happy. Good concise and informative interview. What an exciting company that ticks many boxes. If it hits those projected revenue targets within 5years with the suggested profit margins Oleg alluded to then the present MC of ~190m might be a bargain entry price.

Status: looking to take a position

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