Pinned straw:
As expected, the first half results are pretty strong for Droneshield. This slide highlight the key numbers well:
Small point: It's interesting that for a business that is now firmly commercialised and growing, well funded and at the breakeven inflection point, the results preso puts a lot of emphasis on the technology use case and Total Addressable Market. More what you tend to see when there aren't any good financial numbers to do the talking for you! Hard to miss the emphasis on AI too -- they're not blind to what the market is excited about at present.
Anyway, as Oleg said to us recently (see here) the second half is positioned to deliver further growth and the 5 year target of $300-500m in revenue. During our meeting he seemed to suggest around $70m in revenue for the full year (they report on a calendar basis). So that puts shares on a 2.6x sales multiple.
Maybe not that high if they can sustain their growth and hit aspirational targets. I'll try a rough-cut valuation in a moment.
ASX presentation here.
Are DRO's products being used in the Ukraine war? As you point out @Strawman they spend a lot of time talking up the market potential, and how the Ukraine war is changing the way militaries view drones but they make no mention of their product actually out in the field being used in a combat. That seems like the best way to show the product's potential...
Clearly the product is selling, but I'm curious as to why it's not being used in that war. Is there some sort of testing that needs to be done?
