Legal Disclaimers Certain statements in this presentation may contain forward-looking statements within the meaning of the federal securities laws with respect to BlackSky. Words such as "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions are often intended to identify forward-looking statements, although not all forward-looking statements c ...

Revenue Performance - Total revenue for the three months ended March 31, 2023, was $18,397 thousand, an increase of 32.4% compared to $13,896 thousand for the same period in 2022[156] - Imagery and software analytical revenue rose to $15,760 thousand, representing 85.7% of total revenue, a significant increase of 113.8% from $7,370 thousand in the prior year[156] - Professional and engineering services revenue decreased to $2,637 thousand, accounting for 14.3% of total revenue, down 59.6% from $6,526 thousand in the same period last year[156] - The company expects continued revenue growth from existing U.S. and international defense and intelligence customers[152] - The company expects continued revenue growth in imagery and software analytical services for the year ending December 31, 2023, driven by stronger customer demand[174] Cost and Expense Management - Total costs for the three months ended March 31, 2023, were $6,478 thousand, a decrease of 40.9% from $10,955 thousand in the prior year[159] - Stock-based compensation expense decreased by 70.6% to $2,737 thousand from $9,319 thousand in the same period in 2022[161] - Depreciation and amortization expenses increased by 30.6% to $9,655 thousand compared to $7,391 thousand in the prior year[163] - Selling, general, and administrative expenses decreased by $3.59 million, or 15.9%, compared to the same period in 2022[180] - Research and development expenses increased significantly due to contracting third-party vendors for strategic projects[162] - Research and development expenses rose to $216,000, a 47.9% increase from $146,000 in the same period last year[187] Profitability and Loss - Operating loss improved to $(16.90) million, a 37.7% reduction from $(27.14) million in the same period last year[180] - Net loss for the three months ended March 31, 2023, was $(17.32) million, a 13.4% improvement from $(19.99) million in the prior year[180] - The net loss for the three months ended March 31, 2023, was $17.3 million, an improvement from a net loss of $20.0 million in the same period of 2022, representing a decrease of approximately 8.5%[225] - Adjusted EBITDA for the same period was a loss of $4.1 million, compared to a loss of $9.5 million in the prior year, indicating a significant improvement of approximately 56.7%[225] Cash and Liquidity - Cash and cash equivalents totaled $57.0 million as of March 31, 2023, up from $34.2 million at the end of 2022[169] - Current assets as of March 31, 2023, were approximately $91.4 million, providing sufficient liquidity for short-term requirements[200] - Cash used in operating activities for the three months ended March 31, 2023, was approximately $16.6 million, primarily due to increased working capital needs[202] - The company expects cash and cash equivalents, along with cash generated from operating activities, to be sufficient to meet working capital and capital expenditure needs for the foreseeable future[226] - Net cash used in operating activities was $16.6 million for the three months ended March 31, 2023, compared to $12.7 million in the same period of 2022, reflecting an increase in cash outflows of approximately 30.9%[231] Investment and Financing Activities - The net cash provided by investing activities was $10.5 million, primarily due to the redemption and maturity of $38.1 million in short-term investments, partially offset by purchases of $11.8 million[233] - Financing activities resulted in net cash provided of $28.9 million, a significant increase compared to a net cash used of $3.6 million in the same period of the previous year, representing a change of approximately 900%[231] - The company plans to invest in capital expenditures for satellite procurement and the development of the Spectra AI platform to enhance product capabilities[199] Stock and Dividend Policy - The company has largely transitioned to granting RSUs to employees, with the grant date fair value equal to the trading price of Class A common stock on the date of grant[212] - The company does not currently plan to pay dividends on its Class A common stock, resulting in an assumed dividend yield of zero for stock option valuations[212] Satellite Procurement and Services - Significant cash outflows for satellite procurement and launch-related services increased in the first quarter of 2023 compared to the same period in 2022, primarily due to the launch of two additional Gen-2 satellites[233]

Company Operations - BlackSky operates a high-performance low earth orbit satellite constellation with 14 satellites, capable of imaging critical locations every 60 to 90 minutes[244]. - BlackSky's customer base is primarily focused on U.S. and international defense and intelligence markets, with opportunities to expand into various commercial sectors[246]. - The company’s Spectra AI platform processes millions of observations daily, providing automated insights and analytics to customers[244]. - BlackSky's operating strategy includes enhancing satellite capabilities and expanding third-party data sources processed by the Spectra AI platform[244]. - BlackSky's next generation satellites (Gen-3), expected to launch in 2024, will enhance imaging resolution and include short wave infrared technology for improved performance in low-light conditions[244]. Financial Performance - Total revenue for the year ended December 31, 2022, was $65,350,000, representing a 91.7% increase from $34,085,000 in 2021[257]. - Imagery & software analytical services revenue increased to $47,415,000, a 208.6% rise from $15,365,000 in 2021[257]. - Operating loss improved to $(86,549,000) from $(120,143,000), a 28.0% reduction[257]. - Net loss for the year was $(74,172,000), a 69.8% improvement from $(245,643,000) in 2021[257]. - Other income (expense), net improved significantly to $2,081,000 from $(147,656,000) in 2021, marking a 101.4% change[257]. - Free cash flow for 2022 was $(88,518) thousand, an improvement from $(117,781) thousand in 2021[292]. - Adjusted EBITDA for 2022 was $(29,480) thousand, compared to $(44,438) thousand in 2021, indicating a reduction in losses[289]. Revenue Sources - The company expects revenue growth in imagery and software analytical services for the year ending December 31, 2023, driven by increased sales orders and customer demand[250]. - Professional and engineering services revenue is expected to contribute meaningfully, supporting government customers under fixed price contracts[250]. - Professional and engineering services revenue slightly decreased to $17,935,000, a 4.2% decline from $18,720,000[265]. - The company secured a subscription contract in May 2022 valued at $85.8 million over five years, with potential future value exceeding $1.0 billion[295]. Costs and Expenses - Selling, general, and administrative expenses decreased to $79,672,000, down 8.1% from $86,655,000 in 2021[270]. - Research and development expenses surged to $739,000, a 559.8% increase from $112,000 in 2021[273]. - Total costs for the year were $35,827,000, a 3.1% increase from $34,748,000 in 2021[266]. - Depreciation of satellites increased to $33,053 thousand in 2022 from $12,493 thousand in 2021, a change of 164.6%[274]. - Total depreciation and amortization rose to $35,661 thousand in 2022, up from $14,306 thousand in 2021, reflecting a 149.3% increase[274]. Cash and Liquidity - As of December 31, 2022, the company had cash and cash equivalents totaling $34.2 million, down from $165.6 million in 2021, and short-term investments of $38.0 million, compared to $0 in 2021[297]. - The company reported a net cash used in operating activities of approximately $44.5 million for the year ended December 31, 2022, an improvement from $53.9 million in 2021, primarily due to increased imagery and analytics revenue[306]. - The total accumulated deficit as of December 31, 2022, was $545.1 million, indicating ongoing financial challenges since inception[297]. - The company anticipates that its cash and cash equivalents, along with cash generated from operating activities, will be sufficient to meet working capital and capital expenditure needs for the foreseeable future[298]. - As of December 31, 2022, the company had current assets of approximately $88.5 million and current liabilities of approximately $26.9 million, indicating sufficient working capital for short-term liquidity requirements[302]. Financing and Capital Expenditures - The company completed a private placement on March 8, 2023, raising approximately $29.5 million by issuing 16,403,677 shares at a price of $1.79 each[298]. - The company expects to continue incurring capital expenditures for satellite development and the Spectra AI platform to enhance product capabilities[301]. - The company has a debt facility with an outstanding principal amount of $77.1 million, maturing in October 2024, along with operational commitments totaling $9.8 million[311]. - The company may seek additional equity or debt financing to fund capital expenditures and strategic initiatives, but there is no guarantee of raising funds on acceptable terms[300]. Equity and Stock Valuation - Legacy BlackSky issued equity-based awards under the 2021 Equity Incentive Plan, 2014 stock incentive plan, and 2011 stock incentive plan, including stock options, RSAs, and RSUs[319]. - The fair value of Class A common stock is determined using the Black-Scholes option-pricing model, with significant assumptions including expected volatility and risk-free interest rates[321]. - The expected term for options granted in 2021 and 2022 was estimated based on vesting terms and demographics of holders, due to the lack of historical option exercises[321]. - The company has largely transitioned to granting RSAs and RSUs, with grant date fair value equal to the trading price of Class A common stock[321]. - The company will continue to adjust the liability for changes in fair value of financial instruments until they are exercised or redeemed[322]. Impairment and Valuation - As of October 1, 2022, the fair value of the BlackSky reporting unit exceeded its carrying value by more than 34%, indicating no goodwill impairment risk[325]. - The fair value of long-lived assets is evaluated for impairment based on undiscounted cash flows compared to net book values[326]. - The company has classified Private Placement Warrants and Sponsor Shares as long-term liabilities, recorded at fair value using Black-Scholes and Monte Carlo simulation models[322]. - The expected volatility for stock options is based on historical share price volatility of comparable companies due to insufficient company-specific data[321].

Financial Data and Key Metrics Changes - Full year revenue reached over $65 million, a 92% increase over 2021 [20][48] - Adjusted EBITDA loss improved to $29.5 million in 2022 from a loss of $44.4 million in the prior year [61] - Imagery and analytics revenue grew to $16.2 million in Q4 2022, a 196% increase year-over-year [58] Business Line Data and Key Metrics Changes - Imagery and analytics revenue represented a significant portion of total revenue, with a 209% increase over 2021 [60] - Professional and engineering services revenue remained stable at $3.3 million in Q4 2022 [32] - Incremental contribution margin from imagery and analytics services was 92% in 2022, indicating high-margin business performance [46][80] Market Data and Key Metrics Changes - International government contracts contributed approximately 17.5% of overall revenue in 2022, expected to increase with new contracts [8] - The U.S. Space Force's budget for 2023 was raised to over $26 billion, a 35% increase from 2022, indicating growing government spending on space capabilities [55] Company Strategy and Development Direction - The company aims to achieve profitable growth in 2023, focusing on high-margin imagery and analytics services [22][68] - A new multiyear contract valued at over $150 million was secured with a major international defense customer, enhancing revenue visibility [23][45] - The company is expanding its sales force to capitalize on growing global demand for real-time intelligence solutions [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong global demand for products and services, with 65% of forecasted 2023 revenue already in backlog [63][96] - The company is well-positioned to benefit from a shift in the ISR market towards space-based technology [30] - Management highlighted the importance of achieving positive adjusted EBITDA by Q4 2023 as a key milestone [85][83] Other Important Information - The company ended 2022 with $75 million in cash, restricted cash, and short-term investments [62] - A private placement raised approximately $29.5 million to strengthen the balance sheet [82] Q&A Session All Questions and Answers Question: How is the timeline for deployment of the Gen-3 satellites evolving? - The Gen-3 satellites will begin deployment in 2024, aligned with market demand and existing capacity [91] Question: What long-term capabilities attracted the customer to the $150 million contract? - The differentiated capability in high-frequency monitoring and integrated AI analytics was key to winning the contract [92] Question: How is the sales force expansion being managed in relation to profitability? - The company is focused on controlling costs while expanding the sales force to drive revenue growth [93] Question: What is the confidence interval for the remaining 35% of revenue not in backlog? - There is strong visibility and confidence in achieving the forecasted revenue, with a robust pipeline of follow-on contracts [96] Question: What does the development phase of the $150 million contract entail? - The development phase will commence in Q2 and involve integrating capabilities with the customer over a couple of years [97] Question: How does the competitive landscape look currently? - The market remains supply constrained, with few trusted providers like BlackSky delivering reliable performance [120][121]

Legal Disclaimers USE OF PROJECTIONS AND DATA BlackSky owns or has rights to various trademarks, service marks and trade names that it uses in connection with the operation of its businesses. This presentation may also contain trademarks, service marks, trade names and copyrights of third parties, which are the property of their respective owners. The use or display of third parties' trademarks, service marks, trade names or products in this presentation is not intended to, and does not imply, a relationshi ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ FORM 10-Q ___________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-39113 ____________________________ ...

Blacksky Technology, Inc. (NYSE:BKSY) Q3 2022 Earnings Conference Call November 8, 2022 8:30 AM ET Company Participants Aly Bonilla - VP, IR Brian O’Toole - CEO, President & Director Henry Dubois - CFO Conference Call Participants Joshua Sullivan - The Benchmark Company Scott Deuschle - Crédit Suisse Edison Yu - Deutsche Bank Austin Moeller - Canaccord Genuity Caleb Henry - Quilty Analytics Colin Canfield - Barclays Operator Good morning, ladies and gentlemen, and welcome to BlackSky Technology's Third Qua ...

| --- | --- | --- | |-------|-------|-------------------------------------------------------------------| | | | | | | | © BlackSky 2022. All rights reserved. Confidential & Proprietary. | Legal Disclaimer FORWARD-LOOKING STATEMENTS Certain statements in this presentation may contain forward-looking statements within the meaning of the federal securities laws with respect to BlackSky. Words such as "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan, ...

Satellite Operations and Technology - As of June 30, 2022, the company operates a constellation of 14 satellites capable of imaging critical locations every hour, optimizing for high revisit rates [117]. - The next generation satellites (Gen-3), expected to be operational in 2023, will enhance imaging resolution and include advanced sensing technology for various conditions [119]. - The company placed seven satellites into orbit in 2021, contributing to increased customer demand for imagery and analytical services [135]. Revenue Growth and Financial Performance - The company expects revenue growth in imagery and software analytical services for the year ending December 31, 2022, driven by increased satellite capacity and stronger customer demand [124]. - Imagery and software analytical services revenue increased by 160.8% to $13,350 million for the three months ended June 30, 2022, compared to $5,118 million in the same period of 2021 [134]. - Total revenue for the three months ended June 30, 2022, was $15,102 million, a 105.1% increase from $7,365 million in the same period of 2021 [134]. - Engineering and systems integration revenue decreased by 22.0% to $1,752 million for the three months ended June 30, 2022, compared to $2,247 million in the same period of 2021 [134]. Operating Expenses and Costs - Total costs increased by 52.7% to $9,786 million for the three months ended June 30, 2022, compared to $6,408 million in the same period of 2021 [138]. - The company recognizes stock-based compensation expenses based on employee roles, impacting both imagery and software analytical service costs and engineering costs [126][127]. - The company’s operating expenses include selling, general, and administrative expenses, as well as research and development costs aimed at maintaining competitive positioning [128][130]. - Engineering and systems integration costs increased by 98.3% to $4,436 million for the three months ended June 30, 2022, compared to $2,237 million in the same period of 2021 [138]. - Research and development expenses increased significantly by 800.0% to $106 million for the three months ended June 30, 2022, compared to $28 million in the same period of 2021 [138]. Losses and Financial Challenges - Operating loss improved by 27.2% to $(21,706) million for the three months ended June 30, 2022, compared to $(29,814) million in the same period of 2021 [138]. - Net loss decreased by 26.2% to $(26,278) million for the three months ended June 30, 2022, compared to $(35,585) million in the same period of 2021 [138]. - The company had an accumulated deficit of $517.2 million as of June 30, 2022, highlighting ongoing financial challenges [164]. Cash Flow and Liquidity - Free cash flow for the six months ended June 30, 2022, was $(53,286) thousand, a decrease from $(32,524) thousand in the same period of 2021 [163]. - Net cash used in operating activities for the six months ended June 30, 2022, was $(27,789) thousand, compared to $(21,112) thousand in 2021, reflecting increased operational losses [171]. - As of June 30, 2022, cash and cash equivalents totaled $64.8 million, down from $165.6 million at the end of 2021, indicating a significant reduction in liquidity [164]. Customer Base and Market Opportunities - The customer base is primarily focused on U.S. and international defense and intelligence markets, with significant opportunities for expansion in various commercial sectors [119]. - The company offers flexible pricing options for its services, including usage-based pricing, subscriptions, and transactional licenses, allowing customers to manage collection priorities [119]. Future Outlook and Investments - The company plans to continue investing in sales, marketing, and product development to increase market share and enhance product capabilities [166]. - Future capital requirements will depend on growth rates and investments in technology infrastructure and new solutions [165]. - The company does not have a line of credit or immediate access to funds, which may impact its ability to raise additional capital if needed [165]. Revenue Recognition and Accounting Practices - Revenue is primarily generated from the sale of imagery, data, software, and analytics, including professional services and engineering from long-term construction contracts [176]. - Imagery revenue is recognized at the point when the customer receives access or ratably over the subscription period, while software analytical services revenue is recognized over time or at the point of access [180]. - Engineering and systems integration revenue is recognized over time using a cost-to-cost measure of progress, reflecting the transfer of control to the customer [180]. - Significant judgment is required in determining performance obligations, which can affect the amount of revenue and profit or loss recorded in each period [178]. - The fair value of equity-based compensation is estimated using the Black-Scholes option-pricing model, which requires significant assumptions such as expected volatility and risk-free interest rates [184].

BlackSky Technology Inc. (NYSE:BKSY) Q2 2022 Earnings Conference Call August 10, 2022 8:30 AM ET Company Participants Aly Bonilla - Vice President, Investor Relations Brian O’Toole - Chief Executive Officer Henry Dubois - Chief Financial Officer Conference Call Participants Jason Schmidt - Lake Street Capital Colin Canfield - Barclays Josh Sullivan - Benchmark Scott Deuschle - Credit Suisse Chris Quilty - Quilty Analytics Operator Good morning, ladies and gentlemen, and welcome to BlackSky Technologies Seco ...