Planet Labs sees 11% Q3 revenue rise, projects growth for FY2024

SAN FRANCISCO – Planet Labs PBC has reported an 11% increase in third-quarter revenue, reaching $55.4 million with a Non-GAAP Gross Margin of 52%. The satellite imagery company, known for its Earth observation technology, has maintained strong financial health with $315 million in cash reserves and no debt. This fiscal strength has supported significant developments such as the launch of Pelican Tech Demo and other satellites, as well as the introduction of their Global Forest Carbon product.

The company’s third-quarter performance was bolstered by sectors such as Civil Government and Defense & Intelligence, with leadership from Co-Founder Will Marshall playing a key role. CFO & COO Ashley Johnson highlighted the importance of cost management in achieving profitability, despite a slight decrease in gross margins compared to the previous year (47%, down from 50%; Non-GAAP down from 54% to 52%).

Customer base growth was also significant, with an End of Period (EoP) count reaching 976 customers and a remarkable 94% recurring Annual Contract Value (ACV). Strategic partnerships have contributed to this success, including contracts with BASF Digital Farming GmbH and IGAC in Colombia. The addition of new clients such as the USDA Foreign Agricultural Service also marked the company’s expanding influence.

Looking ahead to the fourth quarter, Planet Labs anticipates revenue to be between $56 million and $59 million. However, they expect an Adjusted EBITDA loss ranging from $12 million to $9 million. Despite this short-term outlook, the company forecasts approximately a 15% annual revenue growth for the fiscal year 2024, projecting revenues between $218 million and $221 million.

The third quarter closed with a net loss of $38 million, equating to a net loss per share of $0.13. This takes into account net cash used in operating activities totaling $43.9 million over the past nine months. Nonetheless, the company’s total assets stood at a robust $713.5 million against liabilities worth $179.9 million, underscoring its solid financial foundation as it moves forward with its strategic initiatives.

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