Mobilicom Limited (NASDAQ:MOB): Shaping the Future of Drone Tech
Jan. 20, 2024
Mobilicom presents a compelling investment opportunity as a first mover in the $34 billion drone market, offering a unique end-to-end value proposition. It has established itself as a key player with proprietary solutions that enhance drone performance, offer comprehensive cybersecurity, and ensure faster time to market. The company's product suite, serving as the 'brain' inside drones, includes SkyHopper Datalinks, Ground Control Systems, Mobile Mesh Networking, the ICE Cybersecurity Suite, and CONTROLiT cloud management. These products work cohesively to control, guide, and protect drones from cyberattacks, offering significant competitive advantages in the rapidly growing small and mid-sized drone and robotics market.
Mobilicom’s intellectual property consists of trade secrets and 34 patent claims across two patent families issued in the U.S. and other countries, reinforcing its position as a leader in innovation. With over 50 customers across 18 countries, Mobilicom has achieved notable market penetration through "design wins". The company's 50 design wins to date provide a robust foundation for long-term revenue growth, with each win representing a large manufacturer that has integrated Mobilicom’s systems into their drone and robotic solutions. Most recently, the company secured a $900,000 production-scale order from a global Tier-1 Israel-based defense and drone manufacturer, and a design win with a Tier-1 U.S. manufacturer led to a commercial-scale purchase for drones sold to the U.S. Department of Defense, reflecting the company's potential for growth.
Financially, Mobilicom is in a strong position. With a gross margin of 62% in 2022 primarily based on hardware sales, the company expects its revenues to be increasingly driven by Software-as-a-Service (SaaS) sales and recurring cybersecurity revenues from 2024 onwards. As of June 30, 2023, Mobilicom had a cash balance of $10.6 million, a low burn rate, and no bank debt, indicating a solid financial footing for future expansion. In summary, Mobilicom offers an attractive investment proposition given its first-mover advantage in the drone market, unique end-to-end offerings, expanding customer base, robust financial position, and significant potential for growth. Learn more at: https://bit.ly/46iJVux
