BlackSky Reports Third Quarter 2024 Results
Company Receives New Awards Valued up to
YTD Revenue Growth of 22%; Company Reaffirms Full Year 2024 Guidance
First Gen-3 Satellite Completing Final Pre-Ship Testing
Third Quarter Financial Highlights:
-
Revenue of
$22.5 million , up 6% from the prior year quarter - Imagery & software analytical services revenue grew 13% over the prior year quarter
- Imagery & software analytical services cost of sales(1), as a percent of revenue, improved to 21% from 23% in the prior year quarter
“We delivered a strong quarter of multi-year contract bookings valued up to
Recent Highlights
-
Won a multi-year contract valued up to
$290 million with theNational Geospatial-Intelligence Agency to monitor global economic activity and military capability -
Awarded a multi-year contract with NASA valued up to
$476 million to deliver time-diverse, rapid-revisit satellite imagery to support Earth and applied science research -
Signed a
six-million-dollar contract expansion with an existing international defense sector customer to extend access to BlackSky’s Gen-2 satellite imagery services - Expanded product offering to provide non-Earth imaging services and captured multiple seven-figure contracts in support of growing space domain awareness missions worldwide
-
Awarded a
U.S. Navy research contract to explore applications for advanced optical intersatellite link terminals to provide real-time access to imagery during time-sensitive military operations worldwide -
Successfully raised over
$45 million which is expected to fully fund the Company’s baseline Gen-3 constellation - First Gen-3 satellite in final testing phase and expected to ship to launch site in the next few weeks with a launch window anticipated to open three to four weeks after shipment
-
BlackSky wins 2024 Novaspace, formerly Euroconsult, Leading Earth Observation Business Award at World Space Business Week inParis , an event that recognizes companies shaping the future of the global space sector
(1) |
Cost of sales is defined as imagery and software analytical services costs and professional and engineering services cost, less depreciation and amortization expense. |
Financial Results
Revenues
Total revenue for the third quarter of 2024 was
Cost of Sales(1)
Total cost of sales as a percentage of revenue improved to 29% for the third quarter of 2024, compared to 32% in the third quarter of 2023. Imagery and software analytical service costs as a percentage of revenue improved to 21% in the third quarter of 2024, compared to 23% in the third quarter of 2023, primarily driven by greater volumes of revenue that inherently have a low fixed-cost structure as a percentage of revenue.
Operating Expenses
Operating expenses for the third quarter of 2024 were
(1) |
Cost of sales is defined as imagery and software analytical services costs and professional and engineering services cost, less depreciation and amortization expense. |
||
(2) |
Non-GAAP financial measure. See “Non-GAAP Financial Measures” below and reconciliation table at the end of this press release. |
Net Loss/Income
Net loss for the third quarter of 2024 was
Adjusted EBITDA(2)
Adjusted EBITDA for the third quarter of 2024 was
Balance Sheet & Capital Expenditures
As of
2024 Outlook
Investment Community Conference Call
About
With
Non-GAAP Financial Measures
Adjusted EBITDA is defined as net income or loss attributable to
Adjusted EBITDA and cash operating expenses are non-GAAP financial performance measures. These measures should not be considered in isolation or as an alternative to measures determined in accordance with GAAP. Please refer to the schedule herein and our filings with the
Forward-Looking Statements
Certain statements and other information included in this press release constitute forward-looking statements under applicable securities laws. Words such as "may", "will", "could", "should", "would", "plan", "potential", "intend", "anticipate", "believe", "estimate", "future", "opportunity", "will likely result", or "expect" and other words, terms, and phrases of similar meaning are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. All statements, other than statements of historical fact, contained in this press release, including statements as to future performance, our guidance outlook for the year and expected capital expenditures, our ability to sustain revenue growth, expectations regarding the receipt of cash from customers over the next 12 months, expectations regarding global demand for our products and services, our anticipated liquidity and cash flows, our anticipated Gen-3 satellite launch timing, and our expectations related to future profitability on an adjusted basis, are forward-looking statements.
Forward-looking statements are subject to various risks and uncertainties, which could cause actual results to differ materially from the anticipated results or expectations expressed in this press release. As a result, although
The forward-looking statements contained in this press release are expressly qualified in their entirety by the foregoing cautionary statements. All such forward-looking statements are based upon data available as of the date of this press release and speak only as of such date.
|
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME |
|||||||||||||||
(unaudited) |
|||||||||||||||
(in thousands, except per share amounts) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue |
|
|
|
|
|
|
|
||||||||
Imagery & software analytical services |
$ |
17,276 |
|
|
$ |
15,264 |
|
|
$ |
52,578 |
|
|
$ |
46,352 |
|
Professional & engineering services |
|
5,273 |
|
|
|
5,996 |
|
|
|
19,145 |
|
|
|
12,632 |
|
Total revenue |
|
22,549 |
|
|
|
21,260 |
|
|
|
71,723 |
|
|
|
58,984 |
|
Costs and expenses |
|
|
|
|
|
|
|
||||||||
Imagery & software analytical service costs, excluding depreciation and amortization |
|
3,682 |
|
|
|
3,479 |
|
|
|
10,559 |
|
|
|
10,634 |
|
Professional & engineering service costs, excluding depreciation and amortization |
|
2,968 |
|
|
|
3,288 |
|
|
|
10,006 |
|
|
|
11,137 |
|
Selling, general and administrative |
|
17,961 |
|
|
|
17,572 |
|
|
|
54,991 |
|
|
|
55,289 |
|
Research and development |
|
43 |
|
|
|
133 |
|
|
|
785 |
|
|
|
525 |
|
Depreciation and amortization |
|
11,125 |
|
|
|
11,304 |
|
|
|
33,586 |
|
|
|
32,735 |
|
Total costs and expenses |
|
35,779 |
|
|
|
35,776 |
|
|
|
109,927 |
|
|
|
110,320 |
|
Operating loss |
|
(13,230 |
) |
|
|
(14,516 |
) |
|
|
(38,204 |
) |
|
|
(51,336 |
) |
Gain on derivatives |
|
3,574 |
|
|
|
17,012 |
|
|
|
8,593 |
|
|
|
7,445 |
|
Income on equity method investment |
|
— |
|
|
|
328 |
|
|
|
— |
|
|
|
913 |
|
Interest income |
|
257 |
|
|
|
519 |
|
|
|
987 |
|
|
|
1,602 |
|
Interest expense |
|
(3,142 |
) |
|
|
(2,532 |
) |
|
|
(8,805 |
) |
|
|
(6,627 |
) |
Other (expense) income, net |
|
(22 |
) |
|
|
2 |
|
|
|
(19 |
) |
|
|
(1,808 |
) |
(Loss) income before income taxes |
|
(12,563 |
) |
|
|
813 |
|
|
|
(37,448 |
) |
|
|
(49,811 |
) |
Income tax expense |
|
(28 |
) |
|
|
(138 |
) |
|
|
(350 |
) |
|
|
(260 |
) |
Net (loss) income |
|
(12,591 |
) |
|
|
675 |
|
|
|
(37,798 |
) |
|
|
(50,071 |
) |
Other comprehensive income |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total comprehensive (loss) income |
$ |
(12,591 |
) |
|
$ |
675 |
|
|
$ |
(37,798 |
) |
|
$ |
(50,071 |
) |
|
|
|
|
|
|
|
|
||||||||
Basic and diluted (loss) income per share of common stock: |
|
|
|
|
|
|
|
||||||||
Net (loss) income per share of common stock |
$ |
(0.66 |
) |
|
$ |
0.04 |
|
|
$ |
(2.05 |
) |
|
$ |
(3.00 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding - basic |
|
19,120 |
|
|
|
17,360 |
|
|
|
18,394 |
|
|
|
133,465 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding - diluted |
|
19,120 |
|
|
|
17,883 |
|
|
|
18,394 |
|
|
|
133,465 |
|
|
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(unaudited) |
|||||||
(in thousands, except par value) |
|||||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
56,159 |
|
|
$ |
32,815 |
|
Restricted cash |
|
1,147 |
|
|
|
619 |
|
Short-term investments |
|
7,090 |
|
|
|
19,697 |
|
Accounts receivable, net of allowance of |
|
10,284 |
|
|
|
7,071 |
|
Prepaid expenses and other current assets |
|
5,086 |
|
|
|
3,916 |
|
Contract assets |
|
26,736 |
|
|
|
15,213 |
|
Total current assets |
|
106,502 |
|
|
|
79,331 |
|
Property and equipment - net |
|
46,945 |
|
|
|
67,116 |
|
Operating lease right of use assets - net |
|
2,559 |
|
|
|
1,630 |
|
|
|
9,393 |
|
|
|
9,393 |
|
Intangible assets - net |
|
936 |
|
|
|
1,357 |
|
Satellite procurement work in process |
|
76,504 |
|
|
|
55,976 |
|
Other assets |
|
2,616 |
|
|
|
9,263 |
|
Total assets |
$ |
245,455 |
|
|
$ |
224,066 |
|
Liabilities and stockholders’ equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and accrued liabilities |
$ |
12,683 |
|
|
$ |
11,573 |
|
Amounts payable to equity method investees |
|
— |
|
|
|
10,843 |
|
Contract liabilities - current |
|
4,224 |
|
|
|
3,670 |
|
Debt - current portion |
|
324 |
|
|
|
— |
|
Other current liabilities |
|
1,523 |
|
|
|
1,405 |
|
Total current liabilities |
|
18,754 |
|
|
|
27,491 |
|
Operating lease liabilities |
|
7,043 |
|
|
|
3,041 |
|
Derivative liabilities |
|
6,556 |
|
|
|
15,149 |
|
Long-term debt - net of current portion |
|
98,427 |
|
|
|
83,502 |
|
Other liabilities |
|
4,408 |
|
|
|
1,724 |
|
Total liabilities |
|
135,188 |
|
|
|
130,907 |
|
Stockholders’ equity: |
|
|
|
||||
Class A common stock, |
|
3 |
|
|
|
2 |
|
Additional paid-in capital |
|
747,032 |
|
|
|
692,127 |
|
Accumulated deficit |
|
(636,768 |
) |
|
|
(598,970 |
) |
Total stockholders’ equity |
|
110,267 |
|
|
|
93,159 |
|
Total liabilities and stockholders’ equity |
$ |
245,455 |
|
|
$ |
224,066 |
|
|
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(unaudited) |
|||||||
(in thousands) |
|||||||
|
Nine Months Ended |
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(37,798 |
) |
|
$ |
(50,071 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization expense |
|
33,586 |
|
|
|
32,735 |
|
Operating lease right of use assets amortization |
|
529 |
|
|
|
753 |
|
Bad debt expense |
|
100 |
|
|
|
39 |
|
Stock-based compensation expense |
|
8,244 |
|
|
|
7,725 |
|
Amortization of debt issuance costs and non-cash interest expense |
|
6,727 |
|
|
|
249 |
|
Gain on derivatives |
|
(8,593 |
) |
|
|
(7,445 |
) |
Non-cash interest income |
|
(630 |
) |
|
|
(551 |
) |
Loss on impairment of assets |
|
71 |
|
|
|
— |
|
Loss on disposal of assets |
|
44 |
|
|
|
127 |
|
Income on equity method investment |
|
— |
|
|
|
(913 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(3,313 |
) |
|
|
359 |
|
Contract assets - current and long-term |
|
(5,133 |
) |
|
|
(5,271 |
) |
Prepaid expenses and other current assets |
|
(1,148 |
) |
|
|
(13 |
) |
Other assets |
|
2,525 |
|
|
|
1,144 |
|
Accounts payable and accrued liabilities |
|
(967 |
) |
|
|
834 |
|
Other current liabilities |
|
194 |
|
|
|
(640 |
) |
Contract liabilities - current and long-term |
|
1,005 |
|
|
|
(175 |
) |
Other liabilities |
|
(10 |
) |
|
|
5,316 |
|
Net cash used in operating activities |
|
(4,567 |
) |
|
|
(15,798 |
) |
Cash flows from investing activities: |
|
|
|
||||
Purchase of property and equipment |
|
(12,289 |
) |
|
|
(12,296 |
) |
Satellite procurement work in process |
|
(28,410 |
) |
|
|
(23,603 |
) |
Purchases of short-term investments |
|
(13,488 |
) |
|
|
(29,167 |
) |
Proceeds from maturities of short-term investments |
|
26,725 |
|
|
|
50,110 |
|
Proceeds from sale of property and equipment |
|
— |
|
|
|
22 |
|
Net cash used in investing activities |
|
(27,462 |
) |
|
|
(14,934 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from equity issuances, net of equity issuance costs |
|
47,343 |
|
|
|
30,868 |
|
Proceeds from issuance of debt |
|
20,000 |
|
|
|
— |
|
Proceeds from options exercised and ESPP shares purchased |
|
157 |
|
|
|
9 |
|
Debt payments |
|
(10,000 |
) |
|
|
— |
|
Payments for debt issuance costs |
|
(632 |
) |
|
|
— |
|
Withholding tax payments on vesting of restricted stock units |
|
(967 |
) |
|
|
(972 |
) |
Payments of transaction costs for debt modification |
|
— |
|
|
|
(1,311 |
) |
Payments of transaction costs related to derivative liabilities |
|
— |
|
|
|
(905 |
) |
Net cash provided by financing activities |
|
55,901 |
|
|
|
27,689 |
|
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
23,872 |
|
|
|
(3,043 |
) |
Cash, cash equivalents, and restricted cash – beginning of year |
|
33,434 |
|
|
|
37,016 |
|
Cash, cash equivalents, and restricted cash – end of period |
$ |
57,306 |
|
|
$ |
33,973 |
|
|
|||||||||||||||
RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED EBITDA |
|||||||||||||||
(unaudited) |
|||||||||||||||
(in thousands) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net (loss) income |
$ |
(12,591 |
) |
|
$ |
675 |
|
|
$ |
(37,798 |
) |
|
$ |
(50,071 |
) |
Interest income |
|
(257 |
) |
|
|
(519 |
) |
|
|
(987 |
) |
|
|
(1,602 |
) |
Interest expense |
|
3,142 |
|
|
|
2,532 |
|
|
|
8,805 |
|
|
|
6,627 |
|
Income tax expense |
|
28 |
|
|
|
138 |
|
|
|
350 |
|
|
|
260 |
|
Depreciation and amortization |
|
11,125 |
|
|
|
11,304 |
|
|
|
33,586 |
|
|
|
32,735 |
|
Stock-based compensation expense |
|
2,519 |
|
|
|
2,402 |
|
|
|
8,244 |
|
|
|
7,725 |
|
Gain on derivatives |
|
(3,574 |
) |
|
|
(17,012 |
) |
|
|
(8,593 |
) |
|
|
(7,445 |
) |
Non-recurring transaction costs |
|
228 |
|
|
|
— |
|
|
|
228 |
|
|
|
— |
|
Severance |
|
78 |
|
|
|
363 |
|
|
|
219 |
|
|
|
562 |
|
Litigation, settlements, and related costs |
|
(28 |
) |
|
|
— |
|
|
|
137 |
|
|
|
— |
|
Impairment losses |
|
71 |
|
|
|
— |
|
|
|
71 |
|
|
|
— |
|
Income on equity method investment |
|
— |
|
|
|
(328 |
) |
|
|
— |
|
|
|
(913 |
) |
Transaction costs associated with debt and equity financings |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,738 |
|
Investment loss on short-term investments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
55 |
|
Adjusted EBITDA |
$ |
741 |
|
|
$ |
(445 |
) |
|
$ |
4,262 |
|
|
$ |
(10,329 |
) |
|
|||||||||||||||
RECONCILIATION OF OPERATING EXPENSES TO CASH OPERATING EXPENSES |
|||||||||||||||
(unaudited) |
|||||||||||||||
(in thousands) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Operating expenses |
$ |
29,129 |
|
|
$ |
29,009 |
|
|
$ |
89,362 |
|
|
$ |
88,549 |
|
Stock-based compensation for selling, general and
|
|
(2,377 |
) |
|
|
(2,265 |
) |
|
|
(7,747 |
) |
|
|
(7,149 |
) |
Depreciation and amortization |
|
(11,125 |
) |
|
|
(11,304 |
) |
|
|
(33,586 |
) |
|
|
(32,735 |
) |
Cash operating expenses |
$ |
15,627 |
|
|
$ |
15,440 |
|
|
$ |
48,029 |
|
|
$ |
48,665 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107467319/en/
Investor Contact
VP, Investor Relations
abonilla@blacksky.com
571-591-2864
Media Contact
Senior Director,
pcabellon@blacksky.com
571-591-2865
Source: