What Happened
Defence Tech Firm Seeks Steadier Recurring Revenue
DroneShield has launched Mission Ready Services, a new package that combines software updates, technical support, online training, and access to a customer portal into a single annual contract. This move aims to smooth out the company’s revenue, which has been affected by irregular procurement cycles and lumpy hardware deliveries. The success of this strategy will depend on the conversion rate of existing customers and the call-off of a $500M contract, which has not yet been activated. According to Unknown Source, DroneShield’s efforts to increase recurring revenue may have a significant impact on its earnings quality and operating margins.