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BlackSky Technology (BKSY) - 2025 Q1 - Quarterly Report
2025-05-08 20:23
Revenue Performance - Total revenue for the three months ended March 31, 2025, was $29,544,000, representing a 21.9% increase from $24,236,000 in the same period of 2024[130]. - Imagery and software analytical services revenue decreased by 5.6% to $16,829,000, down from $17,833,000, primarily due to the expiration of delivery orders from an existing customer[132]. - Professional and engineering services revenue increased by 98.6% to $12,715,000, up from $6,403,000, driven by a new contract for the delivery of one Earth observation satellite[133]. - Revenue for the three months ended March 31, 2025, increased by 79.2% to $12.6 million compared to $7.0 million in the same period in 2024[135]. Operating Performance - Operating loss for the three months ended March 31, 2025, was $11,979,000, a 9.6% improvement from a loss of $13,253,000 in the same period of 2024[130]. - The company reported a net loss of $12.8 million for the three months ended March 31, 2025, an improvement from a net loss of $15.8 million in the same period in 2024[153]. - Adjusted EBITDA for the three months ended March 31, 2025, was $(617,000), compared to $1.4 million in the same period in 2024[153]. Expenses - Research and development expenses decreased by 46.3% to $245,000 from $456,000, reflecting a strategic focus on cost management[129]. - Selling, general, and administrative expenses rose by 14.0% to $21.4 million for the three months ended March 31, 2025, driven by increased salaries and professional fees related to business acquisitions[138][139]. - Professional and engineering service costs surged by 144.8% to $8.8 million for the three months ended March 31, 2025, primarily due to one-time work in process costs under a satellite procurement contract[135][137]. - Depreciation and amortization expenses decreased by 35.3% to $7.2 million for the three months ended March 31, 2025, primarily due to fully depreciated satellites launched in 2021[142][143]. Cash and Liquidity - Cash and cash equivalents totaled $20.7 million as of March 31, 2025, up from $13.1 million as of December 31, 2024[154]. - Current assets as of March 31, 2025, were $121.3 million, while current liabilities were $32.0 million, indicating sufficient cash and working capital for short-term liquidity[166]. - Net cash provided by operating activities for the three months ended March 31, 2025, was $27.2 million, a significant increase compared to a cash outflow of $3.8 million in the same period of 2024[171]. - The company raised $5.4 million through an at-the-market offering during the three months ended March 31, 2025, as part of a program allowing for up to $75.0 million in new equity sales[156]. - As of March 31, 2025, the company had a revolving credit facility of $20.0 million with Stifel Bank, of which $10.0 million was borrowed[158]. Investments and Capital Expenditures - The company incurred $24.1 million in investing activities during the three months ended March 31, 2025, primarily due to increased purchases of short-term investments[172]. - The company expects to continue incurring capital expenditures for Gen-3 satellites and the BlackSky Spectra software platform to enhance product capabilities[165]. Financial Compliance and Obligations - The company is required to maintain a minimum cash balance of $10.0 million and an adjusted EBITDA of not less than $5.0 million for the trailing four quarters ending September 30, 2025[161]. - As of March 31, 2025, the company was in compliance with all financial and non-financial covenants related to its debt instruments[163]. Strategic Initiatives - The acquisition of LeoStella LLC in November 2024 allows for improved control over the Gen-3 satellite supply chain and production operations, enhancing vertical integration[122]. - The company expects continued revenue growth year over year due to increased sales orders from new and existing customers[124]. Technology and Product Development - BlackSky's constellation can image certain locations on average in under 90 minutes, providing high-revisit monitoring capabilities[114]. - BlackSky Spectra software platform processes millions of observations daily, leveraging advanced AI and machine learning techniques for analytics[118]. Stock and Valuation - The company has no plans to pay dividends on its Class A common stock, assuming no dividend yield for stock option valuation[188]. - Expected volatility for Class A common stock is estimated based on historical share price volatility of comparable companies due to insufficient history[189]. - The risk-free interest rate is based on yields from actively traded, non-inflation indexed U.S. Treasury notes[190]. - The expected term for options granted since 2021 considers vesting terms and demographics of holders, while prior options are based on estimated duration to a liquidation event[191]. Accounting and Fair Value - Business combinations are accounted for using the acquisition method, recording acquired assets and assumed liabilities at fair value[194]. - Significant estimates in business combinations include enterprise value determination, fair values of intangible assets, and amortization periods[195]. - Measurement period adjustments for fair value of acquired assets and liabilities can occur within one year from the acquisition date[197].
BlackSky Technology (BKSY) - 2025 Q1 - Earnings Call Transcript
2025-05-08 13:32
Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $29.5 million, an increase of $5.3 million or 22% year-over-year, driven by higher professional and engineering services revenue [21][22] - Adjusted EBITDA for Q1 was a loss of $600,000 compared to a positive adjusted EBITDA of $1.4 million in the prior year quarter, primarily due to higher SG&A expenses [24] - Cash, restricted cash, and short-term investments at the end of Q1 2025 totaled $77 million, reflecting a 51% increase from the prior year quarter [26] Business Line Data and Key Metrics Changes - The company secured over $130 million in new contracts and renewals in the quarter, contributing to a 50% year-over-year growth in backlog to $366 million [9][12] - The backlog primarily consists of high-margin imagery and analytics services from the current Gen2 and future Gen3 satellite constellations [14] Market Data and Key Metrics Changes - The company is experiencing strong demand for space-based intelligence solutions, with significant interest from defense and intelligence agencies worldwide [9][33] - The company is expanding its customer base and entering new markets, particularly in India and other emerging markets for commercial space [9][10] Company Strategy and Development Direction - The company is focused on deploying additional Gen3 satellites, with plans to have eight Gen3 satellites operational by early 2026 [18][56] - The software-first strategy leverages over ten years of investment in the Spectra platform, providing a competitive advantage in the market [20] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the full-year outlook for 2025, maintaining revenue guidance between $125 million and $142 million despite geopolitical uncertainties [27][21] - The company is well-positioned to capitalize on the growing demand for space-based insights, particularly as governments accelerate their investments in sovereign capabilities [20][48] Other Important Information - The Gen3 satellite has completed testing and is delivering exceptional imagery, achieving up to NIRS-six quality, which is a commercial first for a satellite of this size [15][19] - The company is set to commence a regular cadence of additional Gen3 launches, with the second satellite on track for launch in Q2 [18] Q&A Session Summary Question: Impact of geopolitics on international customer discussions - Management noted continued strong demand worldwide, with a growing pipeline despite geopolitical dynamics [33] Question: AI's role in customer engagement - Customers are increasingly recognizing the need for AI to manage the volume of information and speed up insights [36] Question: Timeline for recognizing backlog - Management indicated that a reasonable amount of revenue from imagery and analytics will be recognized in the near term, with significant backlog extending beyond 2026 [41][42] Question: Proportion of new vs. existing customers in backlog - A large portion of the $130 million increase in backlog came from existing customers, with about 20 new customers included [46] Question: Sovereign capabilities and government interest - There is growing interest from governments in accelerating their space capabilities, with opportunities emerging worldwide [48] Question: Onboard computing and interlinks - Onboard computing is seen as an additional tool, with ongoing investments in optical crosslinks to improve latency [49] Question: Future satellite launches and operational capabilities - The company is on track to maintain a regular cadence of satellite launches, with plans for 12 satellites in operation by the end of 2026 [56] Question: Early access program for Gen3 imagery - Customers will receive early access to Gen3 imagery primarily for evaluation purposes, with full commercial operations expected in Q4 [84] Question: Geographic distribution of new customers - New customers are being acquired globally, with notable growth in Europe, the Middle East, and Asia [86]
BlackSky Technology (BKSY) - 2025 Q1 - Earnings Call Transcript
2025-05-08 13:32
Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $29.5 million, an increase of $5.3 million or 22% year-over-year, driven by higher professional and engineering services revenue [23] - Adjusted EBITDA for Q1 was a loss of $600,000 compared to a positive adjusted EBITDA of $1.4 million in the prior year quarter, primarily due to higher SG&A expenses [25] - Cash, restricted cash, and short-term investments at the end of Q1 2025 totaled $77 million, reflecting a 51% increase from the prior year quarter [27] Business Line Data and Key Metrics Changes - The company secured over $130 million in new contracts and renewals in the quarter, primarily from multiyear agreements [9][11] - Backlog grew 50% year-over-year to $366 million, indicating strong demand for space-based intelligence solutions [10][12] - Adjusted imagery and analytics cost of sales for Q1 was $3.8 million, up from $3.4 million in the prior year quarter, due to investments in operational efficiencies [24] Market Data and Key Metrics Changes - The company is expanding its customer base and entering new markets, particularly in defense and intelligence sectors [9] - There is a growing interest from governments worldwide to secure long-term contracts for imaging capacity [9] - The company is seeing strong demand for its commercial imagery and analytics services, with significant interest from international customers [34] Company Strategy and Development Direction - The company is focused on deploying its Gen three satellite constellation, with plans to have eight satellites operational by early 2026 [19][58] - A software-first strategy leveraging over ten years of investment in the Spectra platform is a key enabler for developing innovative space-based intelligence solutions [21] - The company aims to redefine the future of space-based intelligence by combining high-resolution imagery with AI-driven analytics [20] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about maintaining the full-year outlook for 2025 despite geopolitical and economic uncertainties [22] - The company is well-positioned to capitalize on the growing demand for space-based insights, particularly as governments accelerate their investments in sovereign capabilities [21][34] - Management highlighted the importance of AI in transforming satellite imagery into actionable insights, which is becoming critical for customers [38] Other Important Information - The Gen three satellite has completed testing and is delivering exceptional imagery, achieving up to NIRS-six quality [15] - The company plans to begin providing early access to Gen three imagery and analytics services to major customers in the summer, with general availability expected by Q4 [19][88] Q&A Session Summary Question: Impact of geopolitics on international customer discussions - Management noted continued strong demand worldwide and that national security remains a priority for governments, positioning the company well to address these needs [34] Question: AI's role in customer engagement - The company is seeing increased interest from customers in integrating AI to manage the volume of information generated by high-resolution imaging [38] Question: Backlog recognition timeline and relation to Gen three capacity - Management indicated that a reasonable amount of revenue from the backlog is expected to be recognized in the near term, particularly from imagery and analytics [42] Question: Proportion of backlog from new versus existing customers - A significant portion of the backlog increase was attributed to a large international deal with an existing customer, along with contributions from about 20 new customers [47] Question: Sovereign capabilities and government interest - There is growing interest from governments in accelerating their space capabilities, with opportunities emerging globally [49] Question: Future satellite launches and operational capabilities - The company is on track to maintain a regular cadence of satellite launches, with plans to have 12 satellites operational by the end of 2026 [58] Question: Early access program for Gen three imagery - Customers will receive early access to Gen three imagery primarily for evaluation purposes, with full commercial operations expected in Q4 [87]
BlackSky Technology (BKSY) - 2025 Q1 - Earnings Call Transcript
2025-05-08 13:30
Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $29.5 million, an increase of $5.3 million or 22% year-over-year, driven by higher professional and engineering services revenue [21][22] - Adjusted EBITDA for Q1 was a loss of $600,000 compared to a positive adjusted EBITDA of $1.4 million in the prior year quarter, primarily due to higher SG&A expenses [24] - The company ended Q1 2025 with $77 million in cash, restricted cash, and short-term investments, reflecting a 51% increase from the prior year quarter [26] Business Line Data and Key Metrics Changes - The company was awarded over $130 million in new contracts and renewal agreements in the quarter, primarily from multiyear contracts [7][10] - Backlog grew 50% year-over-year to $366 million, indicating strong demand for space-based intelligence solutions [9][11] Market Data and Key Metrics Changes - The company is expanding its customer base and entering new markets, with strong demand for space-based intelligence solutions [7][20] - There is growing interest from governments worldwide in accelerating their own sovereign capabilities, particularly in regions like India and Indonesia [49][50] Company Strategy and Development Direction - The company is focused on deploying additional Gen 3 satellites, with plans to have eight Gen 3 satellites operational by early 2026 [18][58] - The strategy includes leveraging advanced software and AI capabilities to enhance space-based intelligence solutions, providing a competitive advantage in the market [20][21] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about maintaining the full-year outlook for 2025, despite geopolitical and economic uncertainties [20][27] - The company is well-positioned to meet the growing demand for space-based insights, particularly as governments seek to expand their capabilities [20][21] Other Important Information - The Gen 3 satellite has completed testing and is delivering exceptional imagery, exceeding initial expectations [14][18] - The company is implementing an early access program for Gen 3 imagery, allowing select customers to evaluate the capabilities before full commercial availability [86] Q&A Session Summary Question: Impact of geopolitical uncertainty on international customer discussions - Management noted continued strong demand worldwide, with governments accelerating investments in sovereign capabilities despite geopolitical dynamics [32][34] Question: Role of AI in customer engagement - AI is becoming critical for customers to manage the volume of information and speed up insights, indicating a market shift in the last year [36][38] Question: Timeline for recognizing backlog - Management expects to see revenue from backlog in the near term, particularly from imagery and analytics lines [43][44] Question: Proportion of backlog from new versus existing customers - A significant portion of the $130 million backlog increase came from existing customers, with about 20 new customers contributing as well [48] Question: Importance of edge computing and interlinks - Onboard computing is a tool for enhancing performance, with ongoing investments in optical crosslinks to improve latency [51] Question: Image quality expectations for Gen 3 - The Gen 3 system is performing beyond expectations, achieving near six quality levels [56] Question: Future satellite launches - The company is on track to maintain a regular cadence of satellite launches, aiming for 12 satellites in operation by the end of 2026 [58] Question: Early access program for Gen 3 imagery - Customers will receive imagery at lower volumes for evaluation, with full commercial operations expected in Q4 [86][87] Question: Geographic distribution of new customers - New customers are being added globally, with significant interest from Europe, the Middle East, and Asia [88]
BlackSky Technology Inc. (BKSY) Reports Q1 Loss, Tops Revenue Estimates
ZACKS· 2025-05-08 13:25
Group 1: Earnings Performance - BlackSky Technology Inc. reported a quarterly loss of $0.42 per share, better than the Zacks Consensus Estimate of a loss of $0.47, and an improvement from a loss of $0.88 per share a year ago, representing an earnings surprise of 10.64% [1] - The company posted revenues of $29.54 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 7.27%, compared to year-ago revenues of $24.24 million [2] - Over the last four quarters, BlackSky Technology has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Group 2: Stock Performance and Outlook - BlackSky Technology shares have declined approximately 19% since the beginning of the year, while the S&P 500 has decreased by 4.3% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.39 on revenues of $30.85 million, and for the current fiscal year, it is -$1.43 on revenues of $133.35 million [7] - The estimate revisions trend for BlackSky Technology is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The Technology Services industry, to which BlackSky Technology belongs, is currently in the top 27% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]
BlackSky Technology (BKSY) - 2025 Q1 - Earnings Call Presentation
2025-05-08 12:02
May 8, 2025 BLACKSKY Q1 2025 EARNINGS WEBCAST © BlackSky 2025. All rights reserved. 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," "may," "should," "will," "would," "will be," "will continue," "will likely result," and s ...
BlackSky Technology (BKSY) - 2025 Q1 - Quarterly Results
2025-05-08 11:01
BLACKSKY REPORTS FIRST QUARTER 2025 RESULTS Q1 Total Revenue Increases 22% Over Prior Year Period Backlog Grows 40% to $366 Million Driven By Over $130 Million in Q1 Contract Wins Second Very-High Resolution Gen-3 Satellite Readying for Launch in Q2 HERNDON, VA – May 8, 2025 – BlackSky Technology Inc. ("BlackSky" or the "Company") (NYSE: BKSY) announced results for the first quarter ended March 31, 2025. "We're excited that we won over $130 million in contract bookings and with the successful launch of Gen- ...
BlackSky Technology to Post Q1 Earnings: What's in the Offing?
ZACKS· 2025-05-06 15:00
BlackSky Technology Inc. (BKSY) will report its first-quarter 2025 results on May 8, before the bell.BKSY’s earnings surprise history has not been impressive. Its earnings lagged the Zacks Consensus Estimate in three of the trailing four quarters and beat once, with an average negative surprise of 12.9%.Factors to Note Ahead of BKSY’s Q1 ResultsFor the upcoming report, the Zacks Consensus Estimate for revenues is pegged at $27.5 million, implying a 13.6% year-over-year increase. This anticipated growth is l ...
The Smartest Space Stocks to Buy With $100 Right Now
The Motley Fool· 2025-04-30 08:03
Core Viewpoint - The recent sell-off in space stocks has created investment opportunities as many companies have become cheaper to invest in, despite the overall challenges in the space industry [1][3]. Investment Opportunities - The article highlights three of the cheapest space stocks that may offer upside potential: BlackSky, Redwire, and Spire Global [5]. BlackSky - BlackSky has a market capitalization of less than $270 million and a price-to-sales (P/S) ratio of 2.6, making it one of the cheapest space stocks [6]. - The company is currently unprofitable and is not expected to earn its first profit before 2027, with an annual negative free cash flow of approximately $56 million and only $52 million in cash reserves [7]. - BlackSky may need to raise additional capital through debt or stock sales, or potentially sell itself to a larger company [8]. Redwire - Redwire has a market capitalization of $863 million and a P/S ratio of 2.8, with three times the annual revenue of BlackSky [9]. - The company is also unprofitable, with cash reserves of less than $34 million, but it burned less than $24 million last year [10]. - Analysts suggest that Redwire could become free cash flow-positive as early as this year and achieve GAAP profitability by 2026, which would be a significant milestone for the company [11][12]. Spire Global - Spire Global has a market capitalization of $345 million and a P/S ratio of 3.1, which may change significantly in the near future [14]. - The company is negotiating to sell its maritime data business to Kpler, which could yield a cash windfall of $241 million, allowing it to pay off debts and fund operations for the next three years [15]. - Successfully closing this deal could serve as a near-term catalyst for Spire's stock price, potentially leading to significant gains [16].
Prediction: 2 Stocks That Will Be Worth More Than BigBear.ai 2 Years From Now
The Motley Fool· 2025-03-25 09:10
BlackSky and Jumia could have more upside potential than the struggling AI underdog.BigBear.ai (BBAI 20.20%), a developer of artificial intelligence (AI) modules for edge networks, has seen its stock decline nearly 70% since it went public by merging with a special purpose acquisition company (SPAC) on Dec. 8, 2021. Like many other SPAC-backed start-ups, BigBear.ai set some ambitious growth targets but missed them by a mile.Prior to going public, BigBear.ai claimed it could grow its annual revenue from $182 ...