BlackSky Technology (US:BKSY)2023-05-09 16:00Revenue Performance - Total revenue for the three months ended March 31, 2023, was $18,397 thousand, an increase of 32.4% compared to $13,896 thousand for the same period in 2022[156] - Imagery and software analytical revenue rose to $15,760 thousand, representing 85.7% of total revenue, a significant increase of 113.8% from $7,370 thousand in the prior year[156] - Professional and engineering services revenue decreased to $2,637 thousand, accounting for 14.3% of total revenue, down 59.6% from $6,526 thousand in the same period last year[156] - The company expects continued revenue growth from existing U.S. and international defense and intelligence customers[152] - The company expects continued revenue growth in imagery and software analytical services for the year ending December 31, 2023, driven by stronger customer demand[174] Cost and Expense Management - Total costs for the three months ended March 31, 2023, were $6,478 thousand, a decrease of 40.9% from $10,955 thousand in the prior year[159] - Stock-based compensation expense decreased by 70.6% to $2,737 thousand from $9,319 thousand in the same period in 2022[161] - Depreciation and amortization expenses increased by 30.6% to $9,655 thousand compared to $7,391 thousand in the prior year[163] - Selling, general, and administrative expenses decreased by $3.59 million, or 15.9%, compared to the same period in 2022[180] - Research and development expenses increased significantly due to contracting third-party vendors for strategic projects[162] - Research and development expenses rose to $216,000, a 47.9% increase from $146,000 in the same period last year[187] Profitability and Loss - Operating loss improved to $(16.90) million, a 37.7% reduction from $(27.14) million in the same period last year[180] - Net loss for the three months ended March 31, 2023, was $(17.32) million, a 13.4% improvement from $(19.99) million in the prior year[180] - The net loss for the three months ended March 31, 2023, was $17.3 million, an improvement from a net loss of $20.0 million in the same period of 2022, representing a decrease of approximately 8.5%[225] - Adjusted EBITDA for the same period was a loss of $4.1 million, compared to a loss of $9.5 million in the prior year, indicating a significant improvement of approximately 56.7%[225] Cash and Liquidity - Cash and cash equivalents totaled $57.0 million as of March 31, 2023, up from $34.2 million at the end of 2022[169] - Current assets as of March 31, 2023, were approximately $91.4 million, providing sufficient liquidity for short-term requirements[200] - Cash used in operating activities for the three months ended March 31, 2023, was approximately $16.6 million, primarily due to increased working capital needs[202] - The company expects cash and cash equivalents, along with cash generated from operating activities, to be sufficient to meet working capital and capital expenditure needs for the foreseeable future[226] - Net cash used in operating activities was $16.6 million for the three months ended March 31, 2023, compared to $12.7 million in the same period of 2022, reflecting an increase in cash outflows of approximately 30.9%[231] Investment and Financing Activities - The net cash provided by investing activities was $10.5 million, primarily due to the redemption and maturity of $38.1 million in short-term investments, partially offset by purchases of $11.8 million[233] - Financing activities resulted in net cash provided of $28.9 million, a significant increase compared to a net cash used of $3.6 million in the same period of the previous year, representing a change of approximately 900%[231] - The company plans to invest in capital expenditures for satellite procurement and the development of the Spectra AI platform to enhance product capabilities[199] Stock and Dividend Policy - The company has largely transitioned to granting RSUs to employees, with the grant date fair value equal to the trading price of Class A common stock on the date of grant[212] - The company does not currently plan to pay dividends on its Class A common stock, resulting in an assumed dividend yield of zero for stock option valuations[212] Satellite Procurement and Services - Significant cash outflows for satellite procurement and launch-related services increased in the first quarter of 2023 compared to the same period in 2022, primarily due to the launch of two additional Gen-2 satellites[233]