I think you're confused.Pipeline is potential sales not...

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Riglife

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22/07/24

09:50

Post #: 74852305
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Originally posted by Sharesdude: ↑

Lol this is going to be a very interesting day. It could honestly finish slightly in the green or just a few % points in the red. I wouldn’t expect a colossal 20% drop, however the market can decide that.

Here’s my view on this. On one hand, yes there’s been a drop in revenue growth for the quarter. Clear as day.

However on the flip side, there’s been significant growth in pipeline, which aligns nicely to the seasonally strongest quarters of the year (Q3 & Q4). This growth in pipeline tells a story in itself.

We came into the quarter with around 500 million in pipeline and leave the quarter with 1.1 billion. That’s a massive increase and shows strong interest in the products. I wonder if the new pipeline is from NATO orders as it’s quite a substantial increase.

So where to from here?

If one was to apply a very conservative conversion rate of 10% on the new pipeline figure that delivers 110 million in revenue to convert for that pipeline. Also pipeline increases each month due to prospecting initiatives etc.

So we are now in a situation where people need to make a decision based on this comment below:

”The second half of the year, and especially the December quarter, have traditionally been stronger performance periods for DroneShield. October and November often correspond to the start of a new budget cycle for many US
Government customers, with end of year underspend catch up and commencement of new year monies being deployed”

I’ll be paying attention closely, however still holding as the story for this company imo has just begun. But it needs to convert the pipeline in Q3 & Q4.

I would like to see this FY grow 20-30% compared to last FY.

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I think you're confused.
Pipeline is potential sales not contracted sales.
Their contracted sales backlog is $28M, quite small as all their contract wins are small orders.
Might as well say pipeline is $100B as it is meaningless!

Last edited by Riglife: 22/07/24

DRO Price at posting: $1.96 Sentiment: Sell Disclosure: Not Held
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