Planet Labs stock remains far from fulfilling its pre-IPO promises of 2021. Another day, another poor performance from Planet Labs (PL -21.98%). Last night, the space stock that operates the world's largest constellation of Earth observation satellites announced financial results for its fiscal second quarter of 2025 -- and the news wasn't great. Planet Labs said it lost $0.06 per share in the quarter, on sales of $61.1 million. And granted, these results were basically in line with what analysts had predic ...

Planet Labs PBC PL reported worse-than-expected second-quarter sales results on Thursday. Planet Labs reported quarterly losses of six cents per share, which met the analyst consensus estimate. Quarterly revenue of $61.09 million missed the analyst consensus estimate by 1.17% and represents a 13.64% increase over the same period last year. "During the second quarter, we saw continued strength with government customers, especially in the Defense & Intelligence sector where revenue grew over 30% year-over-yea ...

Financial Data and Key Metrics - Revenue for Q2 FY2025 reached a record $61.1 million, representing 14% YoY growth, driven by strong performance in the government sector [7] - Non-GAAP gross margin for the quarter was 58%, and adjusted EBITDA loss was $4.4 million, both in-line or better than previous guidance [7] - The company achieved its fifth sequential quarter of improvement in adjusted EBITDA, moving closer to its target of adjusted EBITDA profitability by Q4 FY2025 [8] - EMEA revenue grew over 20% YoY, Asia-Pacific grew over 40% YoY, and Latin America grew over 30% YoY, while North America saw modest growth [27] - The company ended Q2 with $249 million in cash, cash equivalents, and short-term investments, with no debt outstanding [31] Business Line Performance - Defense & Intelligence sector revenue grew over 30% YoY, with key wins including a deal with NATO and a seven-figure deal with an international defense customer [11][12][13] - Civil Government sector revenue grew over 20% YoY, with notable use cases in Bahrain, Bolivia, and Colombia [14][15] - The Commercial sector faced macroeconomic and agriculture-specific headwinds, but the company is focusing on its Insights Platform to drive long-term growth [16][17] Market Performance - The company saw strong growth in international markets, particularly in Latin America and Asia-Pacific, driven by demand for sustainability initiatives and civil government use cases [27][82][84] - North America experienced modest growth, with solid performance in Defense & Intelligence offset by challenges in the Commercial sector [27] Strategic Direction and Industry Competition - The company implemented organizational changes, including a 17% headcount reduction, to improve operational efficiency and align resources with market opportunities [9][10] - The new industry-aligned operating model is expected to support sustainable long-term growth and profitability [10][26] - The company launched its first Tanager satellite and 36 SuperDoves, marking progress in its hyperspectral and Earth imaging capabilities [8][18] - The Pelican-2 satellite, expected to ship soon, will offer improved resolution and edge compute capabilities, potentially reducing time-to-value for customers [19][20] Management Commentary on Operating Environment and Future Outlook - Management highlighted strong demand in the government sector, fueled by heightened security needs, sustainability requirements, and global climate risks [21] - The company remains optimistic about the long-term potential of the Commercial sector, particularly in agriculture, despite current headwinds [16][48] - Management expects to achieve adjusted EBITDA profitability by Q4 FY2025 and is focused on maintaining a healthy balance sheet [30][71] Other Important Information - The company's end-of-period customer count was 1,012, with 96% of ACV coming from recurring contracts and over 90% from annual or multi-year contracts [28] - Net dollar retention rate was 99% at the end of Q2, with winbacks bringing it to 100% [28] - The company incurred $10.5 million in one-time restructuring charges during the quarter [30] Q&A Session Summary Question: North America revenue decline and RPO fluctuations [38] - The decline in North America revenue was primarily due to headwinds in the Commercial sector, while RPO fluctuations were attributed to the timing of large government contract renewals [39] Question: Gross margin improvement drivers [40] - Gross margin improvement was driven by efficiencies in cloud infrastructure, mix of business, and the one-to-many model for data deals [40][41] Question: Gross margin baseline going forward [44] - Management expects gross margins to remain in the 59%-61% range, though fluctuations may occur depending on the mix of business and partner costs [44] Question: Update on pilots and AI integration [45][46] - The company has conducted several pilots with AI on PlanetScope data and expects more later in the year, with progress towards operationalizing these capabilities [46] Question: Agriculture sector outlook [47][48] - Management remains optimistic about the long-term potential of the agriculture sector, with customers like BASF leading the transition to new business models [48] Question: NATO contract details and opportunity size [51][52] - The NATO contract is an introductory deal with significant potential, as governments have committed up to $1 billion over five years for the APSS program [52] Question: Tanager satellite early contributions and future launches [53][54] - The Tanager satellite is in the commissioning phase, with potential use cases in carbon monitoring, oil and gas, agriculture, and mining [54] Question: NGA's AI labeling contract opportunity [55][56] - The company does not focus on data labeling but sees opportunities in combining foundation models with its datasets for threat detection [56] Question: Go-to-market changes and leadership focus [58][59] - The new go-to-market structure focuses on aligning sales and product teams to accelerate growth in key verticals, with leaders driving renewals and expansions [59][61] Question: Guidance and large government contract timing [62][63] - The company faces challenges in predicting the timing and size of large government contracts, which impacts full-year guidance [64][65] Question: US government pilots and cash flow breakeven [67][68][69] - The US government pilots focus on using AI for threat detection, with revenue potential expected to ramp over multiple quarters [68][70] - The company is focused on achieving EBITDA profitability and managing CapEx to reach cash flow breakeven without raising additional capital [71] Question: RIF impact on OpEx and partner revenue [73][74] - The RIF resulted in $35 million in annual savings, primarily in salary and payroll, with some offset from reduced contra R&D expenses and seasonality in other costs [73][74] Question: Pelican program timeline and commercial viability [76] - Pelican-2 is an R&D satellite with potential to become operational, with future deployments aimed at improving resolution, capacity, and time-to-value for customers [76] Question: International growth drivers and backlog trends [82][83][85] - International growth is driven by large defense and civil government deals, with strong product-market fit in regions focused on sustainability [82][84] - Backlog fluctuations are due to timing of renewals and multi-year contracts, not indicative of competitive pressures [85] Question: Pelican fleet size and technology iteration [86][87] - The Pelican fleet size is flexible, with up to 32 satellites planned, and the company continues to iterate on technology, including AI edge compute capabilities [86][87]

Planet Labs PBC (PL) came out with a quarterly loss of $0.06 per share in line with the Zacks Consensus Estimate. This compares to loss of $0.14 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post a loss of $0.08 per share when it actually produced a loss of $0.05, delivering a surprise of 37.50%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Planet Labs PBC, which belongs to the Z ...

Core Insights - The Tanager-1 satellite aims to enhance transparency regarding methane super-emitters by identifying leaks, enabling immediate societal action to mitigate emissions [1][2][3] - The initiative is a collaboration among various organizations, including Carbon Mapper, JPL, Planet Labs, and philanthropic supporters, to achieve significant emission reduction goals [1][2][8] Emission Monitoring and Impact - Tanager-1 will focus on detecting methane super-emitters, which are facilities emitting over 100 kilograms of methane per hour, across sectors like fossil fuels, waste, and agriculture [3][4] - Methane is significantly more potent than CO2 in terms of heat retention, contributing to approximately 30% of global temperature rise, making its mitigation crucial for climate change efforts [2][4] Technological Advancements - The satellite will provide high-resolution observations that empower various stakeholders, including industry and policymakers, to take effective actions against emissions [3][5] - The technology used in Tanager-1 is expected to enhance the ability to locate and address previously unknown super-emitting events, leading to substantial emission reductions [4][5] Data Accessibility and Public Engagement - Carbon Mapper's mission includes making methane and CO2 data publicly accessible, which will help raise awareness and prompt mitigation actions [6][8] - The organization aims to develop a full constellation of satellites to monitor and track up to 90% of super-emitting sources globally, providing daily data [4][8]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [1][2] - The news team operates from key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] - Proactive focuses on medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [2][3] Group 2 - The team delivers insights across various sectors including biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] - Proactive adopts technology to enhance workflows and improve content delivery, utilizing decades of expertise [3][4] - All content published by Proactive is edited and authored by humans, ensuring adherence to best practices in content production and search engine optimization [4]

Investigation Overview - Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of dMY Technology Group, Inc. IV ("dMY IV") following its merger with Planet Labs PBC ("Planet Labs") on December 8, 2021 [3][5] - The investigation focuses on whether dMY IV failed to provide relevant information to its shareholders prior to the merger [5] Investor Assistance - Investors who purchased dMY IV prior to December 3, 2021 are encouraged to assist the investigation by visiting the firm's website [3] - The firm has a history of recovering hundreds of millions of dollars for investors in securities fraud class actions [2] Legal Representation - Bronstein, Gewirtz & Grossman, LLC operates on a contingency fee basis, meaning they will only seek reimbursement for expenses and attorneys' fees if successful [4]

"Our partnership with Planet underscores our dedication to providing our clients with the most advanced and innovative data available," said Will Osnato, Director of Commodity Data Research & Analysis at Barchart. "Through this integration, we are able to equip agribusinesses with unparalleled insights that not only facilitate smarter decisions but also significantly improve operational efficiencies and ultimately enhance profitability." You can also learn more about Barchart's enhanced yield forecast model ...

Core Viewpoint - Planet Labs is undergoing significant layoffs, affecting 180 employees, which is 17% of its workforce, as part of a strategy to improve operational efficiency and align resources with market opportunities [6][8]. Group 1: Layoff Details - The company expects one-time charges related to the layoffs to be between $9.5 million and $10.5 million, anticipated to occur in the second quarter of fiscal 2025 [2]. - The layoffs are expected to be completed by January 31, 2025 [2]. Group 2: Stock Performance - As of Monday morning, Planet Labs' stock is down 3.2% and has decreased by 24.6% since the beginning of the year [4]. - Approximately 464,000 shares were traded on this day, compared to a daily average of about 1.5 million shares [4]. Group 3: Company Guidance - Planet Labs has stated that there will be no changes to its previously provided guidance from June 6, 2024, despite the layoffs [7].

I wrote about Planet Labs (NYSE:PL) previously (Dec 2023) with a buy rating as the business was the leader in the industry and I believed the growth runway was extremely long, supported by very strong secular tailwinds. While the share price has not reacted in the way I wanted, I continue to believe PL is a buy as PL continues to execute well both financially and operationally. Especially for growth, PL has shown that growth acceleration is possible in its 1Q25 results. Business on track both financially an ...