Company Overview - BlackSky Technology Inc. (BKSY) shares increased by 11.9% in the last trading session, closing at $14.22, supported by high trading volume compared to normal sessions [1] - The stock has gained 18.2% over the past four weeks, driven by positive sentiment regarding the company's satellite constellation expansion, which enhances imaging capabilities and government contract potential [1] Financial Expectations - The company is projected to report a quarterly loss of $0.40 per share, reflecting a year-over-year change of +16.7% [2] - Expected revenues for the upcoming report are $27.92 million, representing an 11.9% increase from the same quarter last year [2] Earnings Estimates and Stock Performance - The consensus EPS estimate for BlackSky Technology has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] - Monitoring BKSY is advised to determine if the recent stock price increase can lead to further strength in the future [3] Industry Context - BlackSky Technology is part of the Zacks Technology Services industry, which includes other companies like Duolingo, Inc. (DUOL) [4] - Duolingo's stock closed 1.5% lower at $471.57, with a -7.6% return over the past month, contrasting with BlackSky's recent performance [4]

Group 1 - BlackSky Technology Inc. (NYSE: BKSY) is highlighted for the first time in 2025, indicating a renewed focus on the company [1] - The previous analysis of BlackSky occurred in October 2024, suggesting ongoing interest and monitoring of the company's performance [1] Group 2 - The Busted IPO Forum, led by Bret Jensen, specializes in small-cap stocks that have been public for 18 months to 6 years and are trading significantly below their offering price [1]

Core Insights - BlackSky Technology, Inc. (NYSE: BKSY) reported revenue of $29.5 million, adjusted EBITDA of ($0.6) million, and EPS of ($0.42), which were above consensus estimates for revenue but below for EBITDA and EPS [1] - The Imagery and Software Analytical Services segment generated $16.8 million in revenue, a decrease from $17.8 million in 1Q24, attributed to timing variability in customer project deliveries [1] - The Professional and Engineering Services segment saw revenue increase to $12.7 million from $6.4 million in 1Q24, driven by progress under a commercial Earth observation contract with India [1] - Consolidated gross margins fell to 57.4%, down from 77.4% in 4Q24, due to the sale of a previously capitalized satellite asset [1] Additional Information - Guidance for Gen-3 commercial availability is expected in 4Q25 [6] - The backlog increased by 40% from the last quarter to $366.1 million [6]

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].

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]

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]

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]

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]

Financial Performance - Q1 2025 revenue reached $29.5 million, a 22% year-over-year increase[36] - Q1 adjusted imagery and analytics cost of sales was $3.8 million, a slight increase of $0.4 million from the prior year quarter[39] - Q1 adjusted EBITDA loss was $0.6 million, down $2.0 million from the prior year quarter, but would have been $2.0 million excluding LeoStella overhead expenses[41] - Cash balance in Q1 2025 was $77.0 million, up 115% over the prior year quarter[44] Backlog and Contracts - Backlog increased to $366 million in Q1, up nearly 50% compared to the prior year quarter[17] - Over $130 million in new contracts and renewal agreements were awarded in Q1[15] Gen-3 Satellite Program - The first Gen-3 satellite is fully commissioned and exceeding performance expectations[15] - The second Gen-3 satellite is being shipped and is on track for a Q2 launch[15] - The company expects to have 8 Gen-3 satellites on orbit by early 2026[27]

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- ...