Ann: July 2024 Investor Presentation, page-57

Ok so I've just found the answer to my own question: Their sales cycle is "6-18 months from lead to sale, but can be much shorter for repeat orders".

Yes, you are reading that correctly. As of 15th July, they have 28 million dollars worth of deals that have closed across 17 projects.

So why isn't the 28 million in the currently quarterly? Two theories:

1:The quarter date is April > May > June. Perhaps those deals closed in July, so we will see them appear in the next quarter result (which is already indicating a significantly higher revenue growth in Q3 than Q1 and Q2 combined).

2: The deals closed in June, but they are waiting for the funds to clear. Example, If a deal closed on the 28th June, It would then get counted in next quarterly result as that's when they start receiving the revenue from it.

That graph really does paint a very nice story for Droneshield. You can almost forecast this years FY revenue as well as potentially Q1 next year. I'll give you another example.

The opportunities that are sitting in stage 5 of their sales cycle "Formal final quote with view to purchase", lets assume (and I will be very conservative here) that the opportunities at that stage have a 30% conversion rate (realistically its much higher at this stage). Note Droneshield gives a 50% conversion rate

This assumes, that out of the 192 million sitting in the pipeline in Stage 5, if you apply a 30% conversion rate you end up with 57.6 million dollars in sales from just the deals sitting in stage 5 alone. There's way more pipeline to convert in the other stages, particularly focusing on stages 6 and 7.

They have 91 million in stage 6 and 33 million in stage 7.

The percentage in the graph shared above is the conversation rate Droneshiled applies to each of their stages.

Stage 5 - 50%
Stage 6 - 70%
Stage 7 - 85%

I think that conversion rate is pretty fair tbh (maybe on the slight conservative side as I would expect it to be more like: (60, 80, 90%).

You guys can do the math and realise how much revenue is coming in this FY. From what I can see, H2 should be an absolute whopper (given the number of deals sitting past stage 5).

ALL IMO DYOR