BlackSky Reports Second Quarter 2024 Results
Q2 Total Revenue Increases 29% Over Prior Year Period
Company Wins
First 35cm Very High Resolution Gen-3 Satellite Planned for Launch in Q4
Second Quarter Financial Highlights:
-
Revenue of
$24.9 million , up 29% from the prior year quarter - Imagery & software analytical services revenue grew 14% over the prior year quarter
- Imagery & software analytical services cost of sales(1), as a percent of revenue, improved to 20% from 23% in the prior year quarter
“BlackSky delivered another strong quarter driven by a 29% year-over-year increase in second quarter revenue and substantial operating leverage which led to improved margin performance,” said Brian E. O’Toole,
Recent Highlights
-
The National Reconnaissance Office extended its subscription to our Gen-2 high-frequency imagery services under the Electro-Optical Commercial Layer (EOCL) contract -
Won a
$7 million contract renewal with an international government customer to provide dynamic space-based imagery and analytics monitoring services -
Continued to win task orders under the multi-year contract with the
U.S. Air Force Research Laboratory to develop and demonstrate AI-enabled space-based moving target detection, tracking and identification - Awarded multiple six-figure subscription contracts in support of various international government agencies
- In the final phases of assembly, integration, and testing on our Gen-3 satellites and have begun mission planning preparation for launch and commissioning operations
-
Finalizing launch window for first Gen-3 satellite with
Rocket Lab
(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 second quarter of 2024 was
Cost of Sales(1)
Total cost of sales as a percentage of revenue improved to 28% for the second quarter of 2024, compared to 44% in the second quarter of 2023. Imagery and software analytical service costs as a percentage of revenue improved to 20% in the second quarter of 2024, compared to 23% in the second 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 second quarter of 2024 were
by reductions in general corporate costs, which more than offset investments in our go-to-market initiatives.
(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
Net loss for the second quarter of 2024 was
Adjusted EBITDA(2)
Adjusted EBITDA for the second quarter of 2024 was
Balance Sheet & Capital Expenditures
As of
2024 Outlook
The Company maintains its outlook for full year 2024 revenue of between
Investment Community Conference Call
(2) Non-GAAP financial measure. See “Non-GAAP Financial Measures” below and reconciliation table at the end of this press release. |
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 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 |
||||||||||||||||
(unaudited) |
||||||||||||||||
(in thousands, except per share amounts) |
||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Revenue |
|
|
|
|
|
|
|
|||||||||
Imagery & software analytical services |
$ |
17,469 |
|
|
$ |
15,328 |
|
|
$ |
35,302 |
|
|
$ |
31,088 |
|
|
Professional & engineering services |
|
7,469 |
|
|
|
3,999 |
|
|
|
13,872 |
|
|
|
6,636 |
|
|
Total revenue |
|
24,938 |
|
|
|
19,327 |
|
|
|
49,174 |
|
|
|
37,724 |
|
|
Costs and expenses |
|
|
|
|
|
|
|
|||||||||
Imagery & software analytical service costs, excluding depreciation and amortization |
|
3,432 |
|
|
|
3,456 |
|
|
|
6,877 |
|
|
|
7,155 |
|
|
Professional & engineering service costs, excluding depreciation and amortization |
|
3,450 |
|
|
|
5,070 |
|
|
|
7,038 |
|
|
|
7,849 |
|
|
Selling, general and administrative |
|
18,214 |
|
|
|
18,768 |
|
|
|
37,030 |
|
|
|
37,717 |
|
|
Research and development |
|
286 |
|
|
|
176 |
|
|
|
742 |
|
|
|
392 |
|
|
Depreciation and amortization |
|
11,277 |
|
|
|
11,776 |
|
|
|
22,461 |
|
|
|
21,431 |
|
|
Total costs and expenses |
|
36,659 |
|
|
|
39,246 |
|
|
|
74,148 |
|
|
|
74,544 |
|
|
Operating loss |
|
(11,721 |
) |
|
|
(19,919 |
) |
|
|
(24,974 |
) |
|
|
(36,820 |
) |
|
Gain (loss) on derivatives |
|
5,273 |
|
|
|
(11,098 |
) |
|
|
5,019 |
|
|
|
(9,567 |
) |
|
Income on equity method investment |
|
— |
|
|
|
56 |
|
|
|
— |
|
|
|
585 |
|
|
Interest income |
|
330 |
|
|
|
648 |
|
|
|
730 |
|
|
|
1,083 |
|
|
Interest expense |
|
(3,029 |
) |
|
|
(2,242 |
) |
|
|
(5,663 |
) |
|
|
(4,095 |
) |
|
Other income (expense), net |
|
2 |
|
|
|
(867 |
) |
|
|
3 |
|
|
|
(1,810 |
) |
|
Loss before income taxes |
|
(9,145 |
) |
|
|
(33,422 |
) |
|
|
(24,885 |
) |
|
|
(50,624 |
) |
|
Income tax expense |
|
(252 |
) |
|
|
(9 |
) |
|
|
(322 |
) |
|
|
(122 |
) |
|
Net loss |
|
(9,397 |
) |
|
|
(33,431 |
) |
|
|
(25,207 |
) |
|
|
(50,746 |
) |
|
Other comprehensive income |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Total comprehensive loss |
$ |
(9,397 |
) |
|
$ |
(33,431 |
) |
|
$ |
(25,207 |
) |
|
$ |
(50,746 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Basic and diluted loss per share of common stock: |
|
|
|
|
|
|
|
|||||||||
Net loss per share of common stock |
$ |
(0.06 |
) |
|
$ |
(0.24 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.39 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Weighted average common shares outstanding - basic and diluted |
|
145,186 |
|
|
|
137,208 |
|
|
|
144,214 |
|
|
|
130,712 |
|
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(unaudited) |
||||||||
(in thousands, except par value) |
||||||||
|
|
|
|
|||||
Assets |
|
|
|
|||||
Current assets: |
|
|
|
|||||
Cash and cash equivalents |
$ |
25,552 |
|
|
$ |
32,815 |
|
|
Restricted cash |
|
1,097 |
|
|
|
619 |
|
|
Short-term investments |
|
15,680 |
|
|
|
19,697 |
|
|
Accounts receivable, net of allowance of |
|
8,218 |
|
|
|
7,071 |
|
|
Prepaid expenses and other current assets |
|
3,736 |
|
|
|
3,916 |
|
|
Contract assets |
|
28,166 |
|
|
|
15,213 |
|
|
Total current assets |
|
82,449 |
|
|
|
79,331 |
|
|
Property and equipment - net |
|
52,479 |
|
|
|
67,116 |
|
|
Operating lease right of use assets - net |
|
4,220 |
|
|
|
1,630 |
|
|
|
|
9,393 |
|
|
|
9,393 |
|
|
Intangible assets - net |
|
1,076 |
|
|
|
1,357 |
|
|
Satellite procurement work in process |
|
71,716 |
|
|
|
55,976 |
|
|
Other assets |
|
2,963 |
|
|
|
9,263 |
|
|
Total assets |
$ |
224,296 |
|
|
$ |
224,066 |
|
|
Liabilities and stockholders’ equity |
|
|
|
|||||
Current liabilities: |
|
|
|
|||||
Accounts payable and accrued liabilities |
$ |
11,480 |
|
|
$ |
11,573 |
|
|
Amounts payable to equity method investees |
|
2,378 |
|
|
|
10,843 |
|
|
Contract liabilities - current |
|
4,580 |
|
|
|
3,670 |
|
|
Debt - current portion |
|
309 |
|
|
|
— |
|
|
Other current liabilities |
|
933 |
|
|
|
1,405 |
|
|
Total current liabilities |
|
19,680 |
|
|
|
27,491 |
|
|
Operating lease liabilities |
|
6,868 |
|
|
|
3,041 |
|
|
Derivative liabilities |
|
10,130 |
|
|
|
15,149 |
|
|
Long-term debt - net of current portion |
|
108,273 |
|
|
|
83,502 |
|
|
Other liabilities |
|
2,814 |
|
|
|
1,724 |
|
|
Total liabilities |
|
147,765 |
|
|
|
130,907 |
|
|
Stockholders’ equity: |
|
|
|
|||||
Class A common stock, |
|
15 |
|
|
|
14 |
|
|
Additional paid-in capital |
|
700,693 |
|
|
|
692,115 |
|
|
Accumulated deficit |
|
(624,177 |
) |
|
|
(598,970 |
) |
|
Total stockholders’ equity |
|
76,531 |
|
|
|
93,159 |
|
|
Total liabilities and stockholders’ equity |
$ |
224,296 |
|
|
$ |
224,066 |
|
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(unaudited) |
||||||||
(in thousands) |
||||||||
|
Six Months Ended |
|||||||
|
2024 |
|
2023 |
|||||
Cash flows from operating activities: |
|
|
|
|||||
Net loss |
$ |
(25,207 |
) |
|
$ |
(50,746 |
) |
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|||||
Depreciation and amortization expense |
|
22,461 |
|
|
|
21,431 |
|
|
Operating lease right of use assets amortization |
|
374 |
|
|
|
613 |
|
|
Bad debt expense |
|
108 |
|
|
|
15 |
|
|
Stock-based compensation expense |
|
5,725 |
|
|
|
5,323 |
|
|
Amortization of debt issuance costs and non-cash interest expense |
|
4,382 |
|
|
|
189 |
|
|
(Gain) loss on derivatives |
|
(5,019 |
) |
|
|
9,567 |
|
|
Non-cash interest income |
|
(495 |
) |
|
|
(337 |
) |
|
Income on equity method investment |
|
— |
|
|
|
(585 |
) |
|
Loss (gain) on disposal of assets |
|
46 |
|
|
|
(22 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
|||||
Accounts receivable |
|
(1,256 |
) |
|
|
(4,278 |
) |
|
Contract assets - current and long-term |
|
(6,693 |
) |
|
|
(4,101 |
) |
|
Prepaid expenses and other current assets |
|
(94 |
) |
|
|
1,142 |
|
|
Other assets |
|
403 |
|
|
|
1,117 |
|
|
Accounts payable and accrued liabilities |
|
(1,961 |
) |
|
|
1,015 |
|
|
Other current liabilities |
|
(309 |
) |
|
|
(1,097 |
) |
|
Contract liabilities - current and long-term |
|
1,958 |
|
|
|
(3,491 |
) |
|
Other liabilities |
|
(25 |
) |
|
|
8,620 |
|
|
Net cash used in operating activities |
|
(5,602 |
) |
|
|
(15,625 |
) |
|
Cash flows from investing activities: |
|
|
|
|||||
Purchase of property and equipment |
|
(6,576 |
) |
|
|
(8,446 |
) |
|
Satellite procurement work in process |
|
(20,984 |
) |
|
|
(19,925 |
) |
|
Purchases of short-term investments |
|
(13,488 |
) |
|
|
(19,416 |
) |
|
Proceeds from maturities of short-term investments |
|
18,000 |
|
|
|
41,110 |
|
|
Proceeds from sale of property and equipment |
|
— |
|
|
|
22 |
|
|
Net cash used in investing activities |
|
(23,048 |
) |
|
|
(6,655 |
) |
|
Cash flows from financing activities: |
|
|
|
|||||
Proceeds from issuance of debt |
|
20,000 |
|
|
|
— |
|
|
Proceeds from equity issuances, net of equity issuance costs |
|
2,947 |
|
|
|
30,074 |
|
|
Proceeds from options exercised and ESPP shares purchased |
|
157 |
|
|
|
5 |
|
|
Payments for debt issuance costs |
|
(632 |
) |
|
|
— |
|
|
Withholding tax payments on vesting of restricted stock units |
|
(524 |
) |
|
|
(414 |
) |
|
Payments for deferred offering costs |
|
(83 |
) |
|
|
— |
|
|
Payments of transaction costs for debt modification |
|
— |
|
|
|
(561 |
) |
|
Payments of transaction costs related to derivative liabilities |
|
— |
|
|
|
(905 |
) |
|
Net cash provided by financing activities |
|
21,865 |
|
|
|
28,199 |
|
|
Net (decrease) increase in cash, cash equivalents, and restricted cash |
|
(6,785 |
) |
|
|
5,919 |
|
|
Cash, cash equivalents, and restricted cash – beginning of year |
|
33,434 |
|
|
|
37,016 |
|
|
Cash, cash equivalents, and restricted cash – end of period |
$ |
26,649 |
|
|
$ |
42,935 |
|
|
||||||||||||||||
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA |
||||||||||||||||
(unaudited) |
||||||||||||||||
(in thousands) |
||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Net loss |
$ |
(9,397 |
) |
|
$ |
(33,431 |
) |
|
$ |
(25,207 |
) |
|
$ |
(50,746 |
) |
|
Interest income |
|
(330 |
) |
|
|
(648 |
) |
|
|
(730 |
) |
|
|
(1,083 |
) |
|
Interest expense |
|
3,029 |
|
|
|
2,242 |
|
|
|
5,663 |
|
|
|
4,095 |
|
|
Income tax expense |
|
252 |
|
|
|
9 |
|
|
|
322 |
|
|
|
122 |
|
|
Depreciation and amortization |
|
11,277 |
|
|
|
11,776 |
|
|
|
22,461 |
|
|
|
21,431 |
|
|
Stock-based compensation expense |
|
2,362 |
|
|
|
2,311 |
|
|
|
5,725 |
|
|
|
5,323 |
|
|
(Gain) loss on derivatives |
|
(5,273 |
) |
|
|
11,098 |
|
|
|
(5,019 |
) |
|
|
9,567 |
|
|
Litigation, settlements, and related costs |
|
165 |
|
|
|
— |
|
|
|
165 |
|
|
|
— |
|
|
Severance |
|
60 |
|
|
|
111 |
|
|
|
141 |
|
|
|
199 |
|
|
Income on equity method investment |
|
— |
|
|
|
(56 |
) |
|
|
— |
|
|
|
(585 |
) |
|
Transaction costs associated with debt and equity financings |
|
— |
|
|
|
833 |
|
|
|
— |
|
|
|
1,738 |
|
|
Investment loss on short-term investments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
55 |
|
|
Adjusted EBITDA |
$ |
2,145 |
|
|
$ |
(5,755 |
) |
|
$ |
3,521 |
|
|
$ |
(9,884 |
) |
|
||||||||||||||||
RECONCILIATION OF OPERATING EXPENSES TO CASH OPERATING EXPENSES |
||||||||||||||||
(unaudited) |
||||||||||||||||
(in thousands) |
||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Operating expenses |
$ |
29,777 |
|
|
$ |
30,720 |
|
|
$ |
60,233 |
|
|
$ |
59,540 |
|
|
Stock-based compensation for selling, general and administrative costs |
|
(2,222 |
) |
|
|
(2,147 |
) |
|
|
(5,370 |
) |
|
|
(4,884 |
) |
|
Depreciation and amortization |
|
(11,277 |
) |
|
|
(11,776 |
) |
|
|
(22,461 |
) |
|
|
(21,431 |
) |
|
Cash operating expenses |
$ |
16,278 |
|
|
$ |
16,797 |
|
|
$ |
32,402 |
|
|
$ |
33,225 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808801313/en/
Investor Contact
VP, Investor Relations
abonilla@blacksky.com
571-591-2864
Media Contact
Director,
pcabellon@blacksky.com
571-591-2865
Source: