Planet Labs PBC(PL) - 2024 Q2 - Quarterly Report

Part I - Financial Information Financial Statements (unaudited) Presents unaudited condensed consolidated financial statements for Planet Labs PBC as of July 31, 2023, covering balance sheets, operations, and cash flows Condensed Consolidated Balance Sheets Total assets decreased to $720.4 million by July 31, 2023, primarily due to reduced cash and equivalents Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | July 31, 2023 | January 31, 2023 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $118,808 | $181,892 | | Short-term investments | $248,979 | $226,868 | | Total current assets | $427,861 | $475,655 | | Total assets | $720,417 | $752,723 | | Liabilities & Stockholders' Equity | | | | Total current liabilities | $116,259 | $122,257 | | Total liabilities | $180,849 | $176,619 | | Total stockholders' equity | $539,568 | $576,104 | | Total liabilities and stockholders' equity | $720,417 | $752,723 | Condensed Consolidated Statements of Operations Revenue grew 11% in Q2 to $53.8 million and 20% in H1 to $106.5 million, with net losses narrowing Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 FY24 (Three Months Ended Jul 31, 2023) | Q2 FY23 (Three Months Ended Jul 31, 2022) | H1 FY24 (Six Months Ended Jul 31, 2023) | H1 FY23 (Six Months Ended Jul 31, 2022) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $53,761 | $48,450 | $106,464 | $88,577 | | Gross Profit | $26,292 | $23,473 | $54,439 | $39,972 | | Loss from Operations | ($43,280) | ($42,640) | ($87,972) | ($90,354) | | Net Loss | ($37,975) | ($39,529) | ($72,419) | ($83,889) | | Net Loss Per Share | ($0.14) | ($0.15) | ($0.26) | ($0.32) | Condensed Consolidated Statements of Cash Flows Net cash used in operating activities improved to $21.0 million in H1, with overall cash decreasing by $63.6 million Cash Flow Summary (in thousands) | Activity | Six Months Ended July 31, 2023 | Six Months Ended July 31, 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | ($21,004) | ($28,804) | | Net cash used in investing activities | ($44,302) | ($203,186) | | Net cash provided by financing activities | $1,590 | $4,050 | | Net decrease in cash | ($63,561) | ($229,058) | | Cash at end of period | $124,515 | $267,756 | Notes to Condensed Consolidated Financial Statements Provides detailed disclosures supporting financial statements, covering accounting policies, balance sheet components, and subsequent events - As of July 31, 2023, the company had remaining performance obligations of $153.9 million, with approximately 74% expected to be recognized as revenue over the next 12 months[45] - One customer accounted for 23% of revenue for the three months and 22% for the six months ended July 31, 2023[40] - In April 2023, a change in estimated useful lives of satellites resulted in a $2.1 million increase in depreciation expense for the quarter[74] - Subsequent to quarter end, on August 4, 2023, the company acquired Sinergise's business for approximately $22.4 million in cash and 6.75 million shares of Class A common stock[119][120] - On August 1, 2023, the company announced a headcount reduction of approximately 10% of its workforce, expecting to incur $7 million to $8 million in pre-tax charges[122][123] Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses financial performance for Q2 and H1 FY2024, highlighting revenue growth, operational metrics, and liquidity Business and Overview Planet uses its Earth observation satellites to provide daily global imagery and analytics, serving over 900 customers - The company's mission is to image the entire world's landmass daily to make global change visible, accessible, and actionable[126] - Planet operates the largest Earth observation fleet of satellites in history, with over 2,400 images on average for every point on Earth's landmass[128][129] - As of July 31, 2023, the company served 944 customers, a 10% year-over-year increase[131] Key Operational and Business Metrics Key metrics include a 102% Net Dollar Retention Rate, 944 EoP Customer Count, and increased capital expenditures for satellites Key Metrics Comparison | Metric | As of/For Six Months Ended July 31, 2023 | As of/For Six Months Ended July 31, 2022 | | :--- | :--- | :--- | | Net Dollar Retention Rate | 102% | 125% | | EoP Customer Count | 944 | 855 | | % Recurring ACV | 92% | 93% | - Capital Expenditures as a Percentage of Revenue increased to 22% for the six months ended July 31, 2023, up from 9% in the prior-year period, primarily due to increased investment in building high and medium resolution satellites[152] Results of Operations Compares operating results for Q2 and H1 FY2024, showing revenue growth and improved gross profit with reduced operating loss Q2 2024 vs Q2 2023 Results (in thousands) | Line Item | Three Months Ended July 31, 2023 | Three Months Ended July 31, 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | $53,761 | $48,450 | 11% | | Gross Profit | $26,292 | $23,473 | 12% | | Loss from Operations | ($43,280) | ($42,640) | 2% | | Net Loss | ($37,975) | ($39,529) | (4)% | H1 2024 vs H1 2023 Results (in thousands) | Line Item | Six Months Ended July 31, 2023 | Six Months Ended July 31, 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | $106,464 | $88,577 | 20% | | Gross Profit | $54,439 | $39,972 | 36% | | Loss from Operations | ($87,972) | ($90,354) | (3)% | | Net Loss | ($72,419) | ($83,889) | (14)% | - Q2 revenue growth of 11% was driven by a $6.2 million increase from total customer growth, partially offset by a $0.9 million reduction from existing contracts[171] - H1 revenue growth of 20% was driven by a $9.3 million increase from customer growth and an $8.6 million net expansion of existing customer contracts[186] Non-GAAP Information Non-GAAP Gross Margin was 52% in Q2 and 54% in H1, while Adjusted EBITDA loss widened in both periods Reconciliation of Gross Profit to Non-GAAP Gross Profit (in thousands) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | Gross Profit (GAAP) | $26,292 | $23,473 | $54,439 | $39,972 | | Non-GAAP Gross Profit | $27,794 | $25,196 | $57,285 | $43,445 | | Non-GAAP Gross Margin | 52% | 52% | 54% | 49% | Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Loss (GAAP) | ($37,975) | ($39,529) | ($72,419) | ($83,889) | | Adjusted EBITDA | ($14,463) | ($10,471) | ($33,551) | ($26,738) | Liquidity and Capital Resources The company holds $118.8 million in cash and $249.0 million in short-term investments, with improved operating cash flow - The company holds $118.8 million in cash and cash equivalents and $249.0 million in highly liquid short-term investments as of July 31, 2023[206] - Net cash used in operating activities for the six months ended July 31, 2023 was $21.0 million, compared to $28.8 million in the prior year period[211][212] - Principal contractual obligations include leases, satellite launch services, and a minimum purchase commitment for hosting services from Google totaling $139.1 million through 2028[89][208] Quantitative and Qualitative Disclosures About Market Risk Market risk exposure, including foreign currency and interest rate, has not materially changed since January 31, 2023 - There have been no material changes in the company's exposure to market risk since January 31, 2023[220] Controls and Procedures Disclosure controls and procedures were effective as of July 31, 2023, with no material changes to internal controls - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of July 31, 2023[221] - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[222] Part II - Other Information Legal Proceedings The company is not currently a party to any material legal proceedings - The company is not currently a party to any material legal proceedings[225] Risk Factors No material changes to previously disclosed risk factors have occurred since the 2023 Form 10-K - No material changes to the risk factors disclosed in the 2023 Form 10-K have occurred[226] Unregistered Sales of Equity Securities and Use of Proceeds No unregistered sales of equity securities occurred, except for shares withheld for employee tax obligations on vested RSUs - No unregistered sales of equity securities were made, except for shares withheld for employee tax obligations on vested RSUs[227] Other Information No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the last fiscal quarter - No director or officer adopted or terminated a Rule 10b5-1 trading plan during the last fiscal quarter[230] Exhibits Lists exhibits filed with Form 10-Q, including CEO/CFO certifications and Inline XBRL documents - Exhibits filed include CEO/CFO certifications and XBRL data files[232]