BlackSky Technology (US:BKSY)2025-05-08 20:23Revenue 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].