Spire Global, Inc. (NYSE:SPIR) Q2 2023 Earnings Conference Call August 9, 2023 5:00 PM ET Company Participants Ben Hackman - Head, IR Peter Platzer - CEO Tom Krywe - CFO Conference Call Participants Austin Moeller - Canaccord Genuity Erik Rasmussen - Stifel Ric Prentiss - Raymond James Jeff Meuler - Baird Operator Greetings, and welcome to Spire Global's Second Quarter 2023 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal present ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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 June 30, 2023 OR ☐ 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: 001-39493 SPIRE GLOBAL, INC. (Exact Name of Registrant as Specified in its Charter) (State or other jurisdiction of incorp ...

Spire Global, Inc. (NYSE:SPIR) Q1 2023 Results Conference Call May 10, 2023 5:00 PM ET Company Participants Ben Hackman - Head, IR Peter Platzer - CEO Tom Krywe - CFO Conference Call Participants Austin Moeller - Canaccord Genuity Erik Rasmussen - Stifel Ric Prentiss - Raymond James Jeff Meuler - Baird Andre Madrid - Bank of America Peter Platzer - CEO Operator Greetings. Welcome to the Spire Global First Quarter 2023 Call. At this time, all participants are in a listen-only mode. A question-and-answer sess ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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 March 31, 2023 OR ☐ 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: 001-39493 SPIRE GLOBAL, INC. (Exact Name of Registrant as Specified in its Charter) (State or other jurisdiction of incor ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ 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 001-39493 SPIRE GLOBAL, INC. (Exact name of Registrant as specified in its Charter) Delaware 85-1276957 (State or other jurisdiction of ( ...

Spire Global 2 This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or our future performance. In some cases, you can identify forwardlooking statements because they contain words such as "will," "expect," "plan," "going to," "intend," "target," "project," "believe," "estimate," "potential," or "continue," or the negative of the ...

Spire Global, Inc. (NYSE:SPIR) Q4 2022 Earnings Conference Call March 8, 2023 5:00 PM ET Company Participants Ben Hackman – Head-Investor Relations Peter Platzer – Chief Executive Officer Tom Krywe – Chief Financial Officer Conference Call Participants Erik Rasmussen – Stifel Austin Moeller – Canaccord Ric Prentiss – Raymond James Steven Pawlak – Baird Will Jackson – Credit Suisse Stefanos Crist – CJS Securities Elizabeth Grenfell – Bank of America Operator Good afternoon and welcome to the Spire Global Fou ...

Spire Global, Inc. (NYSE:SPIR) Q3 2022 Earnings Conference Call November 9, 2022 5:00 PM ET Company Participants Ben Hackman - Head, IR Peter Platzer - CEO, President and Director Tom Krywe - CFO Conference Call Participants Ric Prentiss - Raymond James Stefanos Crist - CJS Securities Scott Deuschle - Credit Suisse Elizabeth Grenfell - Bank of America Operator Greetings and welcome to the Spire Global Third Quarter 2022 Call. At this time, all participants are in a listen-only mode. A question-and-answer se ...

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed consolidated financial statements, management's analysis, market risk disclosures, and internal control assessments [Unaudited Condensed Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The unaudited financial statements for September 30, 2022, show increased revenue, continued net losses, decreased assets, and increased liabilities, with operations funded by financing activities [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheets show a decrease in cash and total assets, while total liabilities, particularly long-term debt, increased from December 2021 to September 2022 | Account | Sep 30, 2022 (in thousands) | Dec 31, 2021 (in thousands) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $59,443 | $109,256 | | Total current assets | $109,456 | $131,574 | | Goodwill | $49,537 | $53,627 | | Total assets | $266,615 | $290,194 | | **Liabilities & Stockholders' Equity** | | | | Total current liabilities | $32,796 | $24,920 | | Long-term debt | $97,070 | $51,124 | | Warrant liability | $4,046 | $11,482 | | Total liabilities | $144,275 | $99,987 | | Total stockholders' equity | $122,340 | $190,207 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The statements of operations indicate significant revenue growth and gross profit improvement, alongside continued operating and net losses for both the three and nine months ended September 30, 2022 | Metric (in thousands) | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $20,418 | $9,561 | $57,883 | $28,390 | | Gross Profit | $10,220 | $4,223 | $28,266 | $15,997 | | Loss from operations | $(16,356) | $(17,372) | $(52,783) | $(43,792) | | Net loss | $(21,811) | $(56,108) | $(71,868) | $(102,668) | | Basic and diluted net loss per share | $(0.16) | $(0.83) | $(0.51) | $(2.75) | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The cash flow statements show continued negative cash flow from operating and investing activities, offset by significant cash provided by financing activities, resulting in a net decrease in cash for the nine months ended September 30, 2022 | Cash Flow Activity (in thousands) | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | $(42,708) | $(40,008) | | Net cash used in investing activities | $(38,342) | $(9,449) | | Net cash provided by financing activities | $25,369 | $291,367 | | Net (decrease) increase in cash | $(49,855) | $242,981 | | Cash at end of period | $59,790 | $258,967 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes provide details on the company's business, its history of operating losses and negative cash flows, remaining performance obligations, and a new $120 million term loan facility - The company is a global provider of space-based data and analytics with four main solutions: Maritime, Aviation, Weather, and Space Services, operating a proprietary constellation of nanosatellites[29](index=29&type=chunk) - The company has a history of operating losses and negative cash flows, with a net loss of **$71.9 million** and cash used in operations of **$42.7 million** for the nine months ended September 30, 2022, though management believes current cash and borrowings are sufficient for at least one year[38](index=38&type=chunk) Remaining Performance Obligations | Metric | Amount (as of Sep 30, 2022) | | :--- | :--- | | Remaining Performance Obligations | $148,166 thousand | | Expected recognition (next 12 months) | 37% | | Expected recognition (thereafter) | 63% | - In June 2022, the company entered into a new financing agreement with Blue Torch for a term loan facility of up to **$120 million**, maturing in June 2026, with proceeds used to repay the existing **$70 million** facility with FP Credit Partners[68](index=68&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion highlights a significant increase in Q3 2022 revenue and ARR driven by acquisition and organic growth, alongside continued net losses and increased operating expenses, supported by a new $120 million term loan facility [Key Business Metrics](index=34&type=section&id=Key%20Business%20Metrics) Key business metrics show substantial growth in Annual Recurring Revenue (ARR) and ARR customers, alongside a strong organic ARR Net Retention Rate, indicating successful customer expansion Annual Recurring Revenue and Customers | Metric | As of Sep 30, 2022 | As of Sep 30, 2021 | % Change | | :--- | :--- | :--- | :--- | | Annual Recurring Revenue (ARR) | $98.1 million | $45.2 million | 117% | | ARR Customers | 690 | 206 | 235% | | ARR Solution Customers | 717 | 225 | 219% | - The organic ARR Net Retention Rate was **135%** for the three months ended September 30, 2022, up from **111%** for the same period in 2021, indicating success in the "land and expand" strategy with existing customers[154](index=154&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Results of operations detail a significant increase in revenue and gross profit, with an improved gross margin, alongside rising operating expenses and a substantial loss on debt extinguishment Consolidated Statements of Operations Summary | Metric (in thousands) | Q3 2022 | Q3 2021 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $20,418 | $9,561 | 114% | | Cost of Revenue | $10,198 | $5,338 | 91% | | Gross Profit | $10,220 | $4,223 | 142% | | Gross Margin | 50% | 44% | +6% | | R&D Expense | $8,879 | $7,804 | 14% | | Sales & Marketing Expense | $7,794 | $5,574 | 40% | | General & Administrative Expense | $9,903 | $8,217 | 21% | - The Q3 2022 revenue increase of **$10.9 million** was driven by **$4.7 million** from the exactEarth acquisition and the remainder from organic growth in new and existing customers[169](index=169&type=chunk) - The acquisition of exactEarth negatively impacted gross margin by approximately **12%** in Q3 2022, with about two-thirds of this impact driven by purchase accounting adjustments like reduced deferred revenue and increased amortization[177](index=177&type=chunk) - The company recognized a **$22.5 million** loss on extinguishment of debt during the nine months ended September 30, 2022, related to the payoff of the FP Term Loan facility[82](index=82&type=chunk)[206](index=206&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by cash, marketable securities, and a new $120 million term loan facility, which management believes is sufficient for the next 12 months, despite continued negative operating and investing cash flows - As of September 30, 2022, the company held **$59.4 million** in cash and cash equivalents and **$22.4 million** in marketable securities, which management believes is sufficient to meet working capital needs for at least the next 12 months[219](index=219&type=chunk)[222](index=222&type=chunk) - In June 2022, the company entered into a new **$120 million** term loan facility with Blue Torch, maturing in 2026, with a portion of the proceeds used to repay the previous **$70 million** facility with FP Credit Partners[223](index=223&type=chunk) Cash Flow Activities | Cash Flow Activity (in thousands) | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | $(42,708) | $(40,008) | | Net cash used in investing activities | $(38,342) | $(9,449) | | Net cash provided by financing activities | $25,369 | $291,367 | [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency fluctuations, unhedged exposure to floating interest rates on its credit facility, and potential impacts from inflation on expenditures - A hypothetical **10%** change in the U.S. dollar exchange rate would have impacted the pre-tax loss for the nine months ended September 30, 2022, by approximately **$2.9 million**[273](index=273&type=chunk) - The company is exposed to interest rate risk through its Blue Torch Credit Facility, which has a floating rate based on SOFR, where a hypothetical **100 basis point (1%)** increase in the interest rate would impact annual results of operations by approximately **$1.2 million**[275](index=275&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective due to identified material weaknesses in the control environment, risk assessment, segregation of duties, complex transactions, and IT general controls, with remediation efforts underway - The Principal Executive Officer and Principal Financial Officer concluded that disclosure controls and procedures were **not effective** as of September 30, 2022[279](index=279&type=chunk) - Material weaknesses were identified in several areas, including an ineffective **Control Environment** lacking sufficient accounting professionals, an inadequate **Risk Assessment** process, insufficient **Segregation of Duties**, ineffective controls over **Complex Transactions** (warrants, business combinations, contingent earnout liability), and deficiencies in **IT General Controls** (user access, program change management, program development testing)[280](index=280&type=chunk)[282](index=282&type=chunk) - The company is undertaking remediation efforts, including hiring a chief accounting officer and other personnel, engaging third parties to assist with risk assessment and segregation of duties analysis, and implementing improved controls over complex transactions and IT systems[284](index=284&type=chunk)[285](index=285&type=chunk)[286](index=286&type=chunk) [PART II. OTHER INFORMATION](index=54&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, significant risk factors, and other required disclosures, including details on equity sales, defaults, mine safety, and exhibits [Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to have a material adverse effect on its business or financial condition - As of the filing date, the company is not a party to any legal proceedings that would have a material adverse effect on its business[293](index=293&type=chunk) [Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including a history of losses, operational complexities, reliance on key customers and third parties, intense competition, regulatory challenges, cybersecurity threats, and identified material weaknesses in internal controls - Key risks highlighted by the company include a history of net losses and uncertainty of future profitability, significant operational risks related to complex satellite technology and potential failures, reliance on a limited number of government customers, intense competition and rapid technological changes, dependence on third parties for data and components, cybersecurity and data privacy risks, complex regulatory requirements, identified material weaknesses in internal control over financial reporting, and substantial indebtedness under its credit facility[296](index=296&type=chunk)[299](index=299&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=88&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities during the period - None[512](index=512&type=chunk) [Defaults Upon Senior Securities](index=88&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Not applicable - Not applicable[513](index=513&type=chunk) [Mine Safety Disclosures](index=88&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable - Not applicable[514](index=514&type=chunk) [Other Information](index=88&type=section&id=Item%205.%20Other%20Information) There is no other information to report - None[515](index=515&type=chunk) [Exhibits](index=89&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including the company's Certificate of Incorporation, Bylaws, an Equity Distribution Agreement, and certifications from the Principal Executive Officer and Principal Financial Officer

Financial Data and Key Metrics Changes - Q2 revenue increased 113% year-over-year to $19.4 million, exceeding guidance of $19.2 million [44] - Annual Recurring Revenue (ARR) at quarter end was $85.3 million, up 133% year-over-year [44] - Operating margin improved to negative 52% from negative 124% a year ago [47] - Total adjusted EBITDA for Q2 was negative $7.3 million, which was $1.6 million better than guidance [49] Business Line Data and Key Metrics Changes - The company added 65 net new ARR solution customers in Q2, bringing the total to 692, a 243% increase year-over-year [45] - The weather market continues to be a significant long-term opportunity with an estimated near-term market size of $22 billion [28] - Space services accounted for roughly 25% of the business, with significant contracts expected to grow revenue substantially [26] Market Data and Key Metrics Changes - The macro environment has led to several million dollars of negative foreign exchange impact on 2022 revenue [13] - The company operates in approximately 60 countries, with efforts to secure more U.S. dollar contracts to mitigate FX risks [63] Company Strategy and Development Direction - The company is focused on four growth pillars: investing in sales, marketing, product expansion, and strategic acquisitions [40] - The company aims to be free cash flow positive in 19 to 25 months, emphasizing operational efficiencies and profitability [58] - Investments in technology and partnerships are expected to enhance capabilities in weather forecasting and data analytics [30][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's prospects despite a deteriorating macro environment, citing strong customer retention and interest in data solutions [9][10] - The company anticipates continued growth in ARR and revenue, with guidance reflecting ongoing investments and macroeconomic challenges [55][56] - Management highlighted the importance of regulatory support from the FCC to enhance U.S. competitiveness in the space sector [78] Other Important Information - The company secured a $120 million credit facility to strengthen its balance sheet and support growth initiatives [8][50] - The company plans to open a new office in Melbourne to enhance access to the APAC market [39] Q&A Session Summary Question: Guidance and outlook for the year - Management maintained ARR guidance despite lowering revenue expectations, attributing the change primarily to FX impacts [62] Question: FX exposure and hedging strategies - The company is focusing on securing more U.S. dollar contracts to mitigate FX risks, with no specific hedging strategies currently in place [63] Question: ARR guidance and sales pipeline - ARR guidance reflects adjustments for FX impacts, with confidence in the sales pipeline for the remainder of the year [66] Question: Path to positive cash flow - The company is focused on revenue growth, cost control, and investments in growth pillars to achieve positive cash flow [67] Question: Consolidation in the space industry - Management discussed the rationale behind industry consolidation, emphasizing cost and revenue synergies [74] Question: FCC's role in the space sector - The FCC is seen as crucial for enhancing U.S. competitiveness in the space industry through supportive regulations [78] Question: Seasonal factors affecting ARR growth - Management noted that the end of the calendar year typically sees a surge in opportunities, contributing to expected growth [87] Question: Customer consumption trends - Customers are increasingly looking for integrated data solutions, with Spire positioned as a primary data source due to its unique offerings [105]