If you have heard of Ondas Networks (NASDAQ: ONDS) before, you’re probably wondering how a developer of proprietary, software-based wireless broadband technology is involved with drones.
Well, thanks to a recent acquisition, Ondas could soon be at the forefront of the commercial drone industry.
Why did Ondas’ share price jump on Tuesday?
Yesterday, the company’s subsidiary, American Robotics, held its annual Robotics Investors Day event, showcasing its newest technology and growth plans.
Ondas successfully completed its acquisition of American Robotics just last month but has been quick to put its stamp on the business’s plans, as well as its checkbook. One of the opening lines of yesterday’s presentation is a testament to this confidence:
“American Robotics is ideally positioned to drive growth in the drone market.”
And given some of the facts, it’s hard not to believe them:
- Its total addressable market (see chart below) is estimated at roughly $115 billion
- Annual recurring revenue growth guidance is $2.5 million in 2022, $40 million in 2024, and $200 million in 2026
- It’s the first drone operator to be approved by the Federal Aviation Administration (FAA)
This final point is very important for the company’s commercial success as it now has a first-mover advantage on drones that do not require a pilot to be on-site with eyes on the drone during operation. This dramatically reduces costs in terms of transport, pre-flight checks, and more.
All of this puts Ondas at the forefront of providing commercial and civil government applications, from firefighting to farming. Although this is still a risky company in its early days, and guidance is not revenue, it’s hard to ignore this massive market opportunity, and if you want to learn more, check out yesterday’s pitch here.
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Editor at MyWallSt
Jamie is the Content Editor here at MyWallSt. His favorite stock is Apple, which is also the first stock he ever bought. Jamie is not only a big fan of its products, but he believes that the tech giant has a whole lot more to give the world, and hasn't even scraped the surface of its potential.