BlackSky Reports Fourth Quarter and Full Year 2023 Results
Record Q4 and Full Year Revenue, up 83% and 45% Over Prior Year Respectively
Quarterly Net Loss of
Fourth Quarter Financial Highlights:
-
Revenue of
$35.5 million , up 83% from the prior year quarter - Imagery & software analytical services revenue grew 18% over the prior year quarter
- Cost of sales, as a percent of revenue, related to imagery & software analytical services improved to 17% from 24% in the prior year quarter
Full Year Financial Highlights:
-
Revenue of
$94.5 million , up 45% from the prior year - Imagery & software analytical services revenue grew 38% over the prior year
- Cost of sales, as a percent of revenue, related to imagery & software analytical services improved to 21% from 31% in the prior year
“2023 was an exceptional year for
Recent Highlights
-
Won approximately
$50 million in multi-year contracts to accelerate sovereign space capabilities for theIndonesian Ministry of Defense , leveraging Gen-3 capabilities and an immediate subscription for imagery - Awarded a multi-million dollar expansion contract with the Intelligence Advanced Research Projects Activity (IARPA) to deliver AI-based broad area search capability
-
Signed a multi-million dollar contract in support of the
Department of Defense to provide dynamic monitoring services leveraging AI for identifying moving targets and pattern-of-life changes - Received nearly a million dollars in orders supporting the National Geospatial-Intelligence Agency’s (NGA) Economic Indicator Monitoring (EIM) program
- Renewed an agreement with an existing international government agency to continue providing BlackSky’s high resolution imagery and AI-driven analytics
- Secured a six-figure contract with a new international government to provide high-frequency imagery
-
Ended
December 31, 2023 with approximately$262 million in backlog -
Entered into a property lease for office space located in
Herndon, VA to further streamline operating expenses
Financial Results
Revenues
Total revenue for the fourth quarter of 2023 was
For the full year 2023, total revenue was
Cost of Sales(1)
Cost of sales as a percent of revenue improved to 34% for the fourth quarter of 2023, compared to 38% in the fourth quarter of 2022. Imagery and software analytical service costs as a percent of revenue improved to 17% in the fourth quarter of 2023, compared to 24% in the fourth quarter of 2022. The year-over-year improvement in imagery and software analytical service costs was primarily driven by greater volumes of revenue that inherently have a low fixed-cost structure as a percent of revenue.
For the full year 2023, cost of sales as a percent of revenue improved to 36%, compared to 55% in 2022. Imagery and software analytical services cost of sales, as a percent of revenue, improved to 21%, compared to 31% in the prior year.
Operating Expenses
Operating expenses for the fourth quarter of 2023 were
For the full year 2023, operating expenses were
Net Loss(2)
Net loss for the fourth quarter of 2023 was
For the full year 2023, net loss was
(1) Cost of sales is defined as imagery and software analytical services costs and professional and engineering services cost, less depreciation and amortization expense. |
(2) This represents our current estimate of net loss for the period ended |
Adjusted EBITDA(3)
Adjusted EBITDA for the fourth quarter of 2023 was
For the full year 2023, the Adjusted EBITDA loss was
Balance Sheet & Capital Expenditures
As of
2024 Outlook
Investment Community Conference Call
(3) Non-GAAP financial measure. See “Non-GAAP Financial Measures” below and reconciliation table at the end of this press release. |
About
With
Non-GAAP Financial Measures
Adjusted EBITDA is defined as net income or loss attributable to
Adjusted EBITDA is a non-GAAP financial performance measure. It should not be considered in isolation or as an alternative to measures determined in accordance with GAAP. Please refer to the schedule herein and our filings with the
Forward-Looking Statements
Certain statements and other information included in this press release constitute forward-looking statements under applicable securities laws. Words such as "may", "will", "could", "should", "would", "plan", "potential", "intend", "anticipate", "believe", "estimate", "future", "opportunity", "will likely result", or "expect" and other words, terms, and phrases of similar meaning are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. All statements, other than statements of historical fact contained in this press release, including statements as to future performance, our guidance outlook for the year and expected capital expenditures, our ability to sustain revenue growth, expectations regarding global demand for our products and services, and our expectations related to future profitability on an adjusted basis, are forward-looking statements.
Forward-looking statements are subject to various risks and uncertainties, which could cause actual results to differ materially from the anticipated results or expectations expressed in this press release. As a result, although
The forward-looking statements contained in this press release are expressly qualified in their entirety by the foregoing cautionary statements. All such forward-looking statements are based upon data available as of the date of this press release and speak only as of such date.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited) (in thousands, except per share amounts) |
|||||||||||||||
|
Three Months Ended |
|
Years Ended |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue |
|
|
|
|
|
|
|
||||||||
Imagery & software analytical services |
$ |
19,039 |
|
|
$ |
16,166 |
|
|
$ |
65,391 |
|
|
$ |
47,415 |
|
Professional & engineering services |
|
16,469 |
|
|
|
3,251 |
|
|
|
29,101 |
|
|
|
17,935 |
|
Total revenue |
|
35,508 |
|
|
|
19,417 |
|
|
|
94,492 |
|
|
|
65,350 |
|
Costs and expenses |
|
|
|
|
|
|
|
||||||||
Imagery & software analytical service costs, excluding depreciation and amortization |
|
3,159 |
|
|
|
3,925 |
|
|
|
13,793 |
|
|
|
14,462 |
|
Professional & engineering service costs, excluding depreciation and amortization |
|
8,851 |
|
|
|
3,374 |
|
|
|
19,988 |
|
|
|
21,365 |
|
Selling, general and administrative |
|
17,350 |
|
|
|
20,631 |
|
|
|
72,639 |
|
|
|
79,672 |
|
Research and development |
|
118 |
|
|
|
290 |
|
|
|
643 |
|
|
|
739 |
|
Depreciation and amortization |
|
10,696 |
|
|
|
9,495 |
|
|
|
43,431 |
|
|
|
35,661 |
|
Total costs and expenses |
|
40,174 |
|
|
|
37,715 |
|
|
|
150,494 |
|
|
|
151,899 |
|
Operating loss |
|
(4,666 |
) |
|
|
(18,298 |
) |
|
|
(56,002 |
) |
|
|
(86,549 |
) |
Gain on derivatives |
|
234 |
|
|
|
1,183 |
|
|
|
7,679 |
|
|
|
11,812 |
|
Income on equity method investments |
|
3,252 |
|
|
|
1,393 |
|
|
|
4,165 |
|
|
|
2,087 |
|
Interest income |
|
461 |
|
|
|
452 |
|
|
|
2,063 |
|
|
|
1,116 |
|
Interest expense |
|
(2,679 |
) |
|
|
(1,670 |
) |
|
|
(9,306 |
) |
|
|
(5,426 |
) |
Other income (expense), net |
|
1 |
|
|
|
2,135 |
|
|
|
(1,807 |
) |
|
|
2,081 |
|
Loss before income taxes |
|
(3,397 |
) |
|
|
(14,805 |
) |
|
|
(53,208 |
) |
|
|
(74,879 |
) |
Income tax expense |
|
(447 |
) |
|
|
— |
|
|
|
(707 |
) |
|
|
— |
|
Loss from continuing operations |
|
(3,844 |
) |
|
|
(14,805 |
) |
|
|
(53,915 |
) |
|
|
(74,879 |
) |
Discontinued operations: |
|
|
|
|
|
|
|
||||||||
Gain from discontinued operations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
707 |
|
Income tax (expense) benefit |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Gain from discontinued operations, net of income taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
707 |
|
Net loss |
|
(3,844 |
) |
|
|
(14,805 |
) |
|
|
(53,915 |
) |
|
|
(74,172 |
) |
Other comprehensive income |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total comprehensive loss |
$ |
(3,844 |
) |
|
$ |
(14,805 |
) |
|
$ |
(53,915 |
) |
|
$ |
(74,172 |
) |
|
|
|
|
|
|
|
|
||||||||
Basic and diluted loss per share of common stock: |
|
|
|
|
|
|
|
||||||||
Loss from continuing operations |
$ |
(0.03 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.40 |
) |
|
$ |
(0.64 |
) |
Gain from discontinued operations, net of income taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
Net loss per share of common stock |
$ |
(0.03 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.40 |
) |
|
$ |
(0.63 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding - basic and diluted |
|
141,343 |
|
|
|
119,064 |
|
|
|
135,451 |
|
|
|
117,821 |
|
CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands, except par value) |
|||||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
32,815 |
|
|
$ |
34,181 |
|
Restricted cash |
|
619 |
|
|
|
2,835 |
|
Short-term investments |
|
19,697 |
|
|
|
37,982 |
|
Accounts receivable, net of allowance of |
|
7,071 |
|
|
|
3,112 |
|
Prepaid expenses and other current assets |
|
4,194 |
|
|
|
4,713 |
|
Contract assets |
|
15,213 |
|
|
|
5,706 |
|
Total current assets |
|
79,609 |
|
|
|
88,529 |
|
Property and equipment - net |
|
67,116 |
|
|
|
71,584 |
|
Operating lease right of use assets - net |
|
1,630 |
|
|
|
3,586 |
|
|
|
9,393 |
|
|
|
9,393 |
|
Investment in equity method investees |
|
— |
|
|
|
5,285 |
|
Intangible assets - net |
|
1,357 |
|
|
|
1,918 |
|
Satellite procurement work in process |
|
55,976 |
|
|
|
50,954 |
|
Other assets |
|
9,263 |
|
|
|
2,841 |
|
Total assets |
$ |
224,344 |
|
|
$ |
234,090 |
|
Liabilities and stockholders’ equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and accrued liabilities |
$ |
11,573 |
|
|
$ |
14,368 |
|
Amounts payable to equity method investees |
|
10,843 |
|
|
|
3,728 |
|
Contract liabilities - current |
|
3,670 |
|
|
|
6,783 |
|
Other current liabilities |
|
1,739 |
|
|
|
2,048 |
|
Total current liabilities |
|
27,825 |
|
|
|
26,927 |
|
Operating lease liabilities |
|
3,041 |
|
|
|
3,132 |
|
Derivative liabilities |
|
15,149 |
|
|
|
5,113 |
|
Long-term debt |
|
83,502 |
|
|
|
76,219 |
|
Other liabilities |
|
1,724 |
|
|
|
825 |
|
Total liabilities |
|
131,241 |
|
|
|
112,216 |
|
Stockholders’ equity: |
|
|
|
||||
Class A common stock, |
|
14 |
|
|
|
12 |
|
Additional paid-in capital |
|
692,115 |
|
|
|
666,973 |
|
Accumulated deficit |
|
(599,026 |
) |
|
|
(545,111 |
) |
Total stockholders’ equity |
|
93,103 |
|
|
|
121,874 |
|
Total liabilities and stockholders’ equity |
$ |
224,344 |
|
|
$ |
234,090 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands) |
|||||||
|
Years Ended |
||||||
|
|
2023 |
|
|
|
2022 |
|
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(53,915 |
) |
|
$ |
(74,172 |
) |
Gain from discontinued operations, net of income taxes |
|
— |
|
|
|
707 |
|
Loss from continuing operations |
|
(53,915 |
) |
|
|
(74,879 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization expense |
|
43,431 |
|
|
|
35,661 |
|
Transfer of satellite procurement work in process to engineering service costs |
|
4,854 |
|
|
|
— |
|
Operating lease right of use assets amortization |
|
883 |
|
|
|
1,640 |
|
Bad debt expense (recovery) |
|
179 |
|
|
|
(22 |
) |
Stock-based compensation expense |
|
10,862 |
|
|
|
20,025 |
|
Income on equity method investment |
|
(4,165 |
) |
|
|
(2,087 |
) |
Loss on disposal of property and equipment |
|
127 |
|
|
|
— |
|
Loss on impairment of assets |
|
81 |
|
|
|
— |
|
Gain on derivatives |
|
(7,679 |
) |
|
|
(11,812 |
) |
Non-cash interest expense |
|
7,967 |
|
|
|
1,805 |
|
Non-cash interest income |
|
(796 |
) |
|
|
(656 |
) |
Other, net |
|
— |
|
|
|
106 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(4,137 |
) |
|
|
(461 |
) |
Contract assets - current and long-term |
|
(16,299 |
) |
|
|
(5,996 |
) |
Prepaid expenses and other current assets |
|
840 |
|
|
|
1,413 |
|
Other assets |
|
1,328 |
|
|
|
(12 |
) |
Accounts payable and accrued liabilities |
|
3,316 |
|
|
|
(73 |
) |
Other current liabilities |
|
(707 |
) |
|
|
(1,180 |
) |
Contract liabilities - current and long-term |
|
(3,053 |
) |
|
|
(4,942 |
) |
Other liabilities |
|
(538 |
) |
|
|
(2,984 |
) |
Net cash used in operating activities |
|
(17,421 |
) |
|
|
(44,454 |
) |
Cash flows from investing activities: |
|
|
|
||||
Purchase of property and equipment |
|
(15,274 |
) |
|
|
(11,679 |
) |
Satellite procurement work in process |
|
(28,441 |
) |
|
|
(32,385 |
) |
Purchases of short-term investments |
|
(40,078 |
) |
|
|
(50,343 |
) |
Proceeds from maturities of short-term investments |
|
59,110 |
|
|
|
13,000 |
|
Proceeds from sale of equity method investment |
|
9,450 |
|
|
|
— |
|
Proceeds from sale of property and equipment |
|
22 |
|
|
|
— |
|
Proceeds from equity method investment |
|
— |
|
|
|
804 |
|
Cash flows used in investing activities - continuing operations |
|
(15,211 |
) |
|
|
(80,603 |
) |
Cash flows used in investing activities - discontinued operations |
|
— |
|
|
|
(978 |
) |
Net cash used in investing activities |
|
(15,211 |
) |
|
|
(81,581 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from equity issuances, net of equity issuance costs |
|
32,733 |
|
|
|
— |
|
Proceeds from options exercised |
|
10 |
|
|
|
47 |
|
Withholding tax payments on vesting of restricted stock units |
|
(1,410 |
) |
|
|
(5,069 |
) |
Payments of transaction costs for debt modification |
|
(1,311 |
) |
|
|
— |
|
Payments of transaction costs related to derivative liabilities |
|
(905 |
) |
|
|
— |
|
Payments for deferred financing costs |
|
(67 |
) |
|
|
— |
|
Payments for deferred offering costs |
|
— |
|
|
|
(31 |
) |
Net cash provided by (used in) financing activities |
|
29,050 |
|
|
|
(5,053 |
) |
Net decrease in cash, cash equivalents, and restricted cash |
|
(3,582 |
) |
|
|
(131,088 |
) |
Cash, cash equivalents, and restricted cash – beginning of year |
|
37,016 |
|
|
|
168,104 |
|
Cash, cash equivalents, and restricted cash – end of year |
$ |
33,434 |
|
|
$ |
37,016 |
|
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (unaudited) (in thousands) |
|||||||||||||||
|
Three Months Ended |
|
Years Ended |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net loss |
$ |
(3,844 |
) |
|
$ |
(14,805 |
) |
|
$ |
(53,915 |
) |
|
$ |
(74,172 |
) |
Interest income |
|
(461 |
) |
|
|
(452 |
) |
|
|
(2,063 |
) |
|
|
(1,116 |
) |
Interest expense |
|
2,679 |
|
|
|
1,670 |
|
|
|
9,306 |
|
|
|
5,426 |
|
Income tax expense |
|
447 |
|
|
|
— |
|
|
|
707 |
|
|
|
— |
|
Depreciation and amortization |
|
10,696 |
|
|
|
9,495 |
|
|
|
43,431 |
|
|
|
35,661 |
|
Stock-based compensation expense |
|
3,137 |
|
|
|
3,636 |
|
|
|
10,862 |
|
|
|
20,025 |
|
Gain on derivatives |
|
(234 |
) |
|
|
(1,183 |
) |
|
|
(7,679 |
) |
|
|
(11,812 |
) |
Income on equity method investment |
|
(3,252 |
) |
|
|
(1,393 |
) |
|
|
(4,165 |
) |
|
|
(2,087 |
) |
Transaction costs associated with debt and equity financings |
|
— |
|
|
|
— |
|
|
|
1,738 |
|
|
|
— |
|
Severance |
|
28 |
|
|
|
435 |
|
|
|
590 |
|
|
|
1,196 |
|
Impairment losses |
|
81 |
|
|
|
— |
|
|
|
81 |
|
|
|
— |
|
Investment loss on short-term investments |
|
— |
|
|
|
— |
|
|
|
55 |
|
|
|
— |
|
Proceeds from earn-out payment |
|
— |
|
|
|
(2,000 |
) |
|
|
— |
|
|
|
(2,000 |
) |
Gain from discontinued operations, net of income taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(707 |
) |
Forgiveness of non-trade receivables |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
106 |
|
Adjusted EBITDA |
$ |
9,277 |
|
|
$ |
(4,597 |
) |
|
$ |
(1,052 |
) |
|
$ |
(29,480 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240228129284/en/
Investor Contact
VP, Investor Relations
abonilla@blacksky.com
571-591-2864
Media Contact
Director,
pcabellon@blacksky.com
571-591-2865
Source: