BKSY - Earnings call transcript Q3 2021 | BlackSky Technology Inc.

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Operator

Greetings. Welcome to the BlackSky Technology Third Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]. is conference this note being recorded. Please now CFO Johan will turn the host, your to over Broekhuysen. conference I

You may begin.

Johan Broekhuysen

Good morning, XXXX. for Brian be live earnings comments BlackSky will on Q&A Officer, at Officer, A which Relations Earnings include we after everyone. Johan the from Investor and open Brian Call. to to this I'd comments then our Fiscal like O’Toole, to also Broekhuysen, call followed Third is section. the replay is today's Information Chief call website. Chief and that will replay by Quarter listed our available the our Today's by of available will the press in welcome call session. access blacksky.com Executive you in Financial first-ever up wrap release,

changes statements many occur software, of successful future technological obligation undertakes our launch, that highly and after the markets. systems, portions all I XXXX. forward-looking Before guarantees the to customer business, making will this statements successfully we outlook analytical start that to financial performance contracts, for like to and to today's that and to -- our our pace and subject ability future uncertainties; government ground and remind subject these be in uncertainties, call. commissioning, are keep no production, in in date, -- and today's not related technologies, depends to regarding events These would guidance on which we statements fiscal the known BlackSky begin, compete reflect guidance. and including satellites competitive in are call part our and/or call operation ability forward-looking our industry revise regarding assumptions, any statements our and everyone of unknown performance. our impact advances with of Anticipated expectations of grow the to BlackSky COVID-XX and which capture, and risks, our are

recent to SEC that complete and discussion price or most stock. results these other from our review factors a our may that filings these results statements a future have difference of should our You of actual risks the market and material cause affect for could forward-looking

measure will In comparable EBITDA, adjusted refer and information. of GAAP A certain including certain call, CEO, O’Toole. by financial measures, we will website. GAAP press included Relations we release, non-GAAP viewed can non-GAAP Brian today's addition, downloaded to that, And call earnings in today's A which turning reconciliations loss, reconciliation Net EBITDA - be begin and adjusted our measures from with most the during our to to the additional is over to of Investor

Brian O’Toole

to growth sales force constellation business major new grossing marked plan. cash of million milestones. the today - a continuing Thank Achievements progress pleased of business, with providing you AI as for we join fund pipeline, of Quarter that sales of expansion global And enabled I'm time The and the as Earnings platform. positive first-to expansion during in several leading customers our thank include era fiscal the a Most our all for our traction, BlackSky intelligence. $XXX our of Osprey, first strong public you, to continue and our Third and an to completed Company. year execution global SaaS across the XXXX, for on taking Quarter advantage, our and mission its Johan. importantly, us we're Third know aspects Call quarter real-time and report combination our our

products the of with imaging new areas Tolonen BlackSky in revisit both and Jim high General enabled and contracts Chief AI of also board in their several strong government growth of in Financial demand an our expansion is respective commercial extensions with the directors our have a and the which our driven imagery remains existing defense include multiyear Starting build-out awarded contract was We ranks analytics. bolstered business. management place Counsel. intelligence executive Demand increase expertise. by Officer, and that Revenue our to with increased the for Chief the end-users Demand Chief from the completed BlackSky to executive appointment imagery. all Gordon BlackSky and day-to-day strategic into team 's operations we the aggressive with the Including and hires, integrated second of under drive experienced a several third grow U.S. addition, Officer, to Sue plans. for as help with of seasoned our operational of experience. contract In now commercial revisit BlackSky the public Development both team government government. high-caliber in Officer, sectors from veterans the from deliveries Imagery now high is continued the of to this quarter. XXX% has NRO, our

to award enabled economic a announced This Geospatial move that September, analytics the $XX into platforms. million with procure Palantir, Palantir's for is and our commercial AI solution accelerate end-users, of contract, with significant a is BlackSky This we integration has NGA's customers it entered of services. We to to monitoring. contract, commercial also and a Intelligence agreement Agency. In the X-year strategic reflects through IDIQ National the

electro also with RFP BlackSky subscription As through Palantir for this of from -optical part of final the release the commercial of early December. proposals contract the by NRO the due agreement. were partnership layer encouraged a in now invested We in

facing XXXX. the of of the to a players DNI milestone, a As aging legacy opportunity new XX Government is is a the constellations. see market we The provides it we satellite contract timing a contract by spring large from regional to several Internationally, The several expected We significant and this is during visibility as over are awards market market which commercial RFP the of constrained U.S. the objective accounts. government. is of to and, that next major years. in suppliers believe quarter, good open imagery added here the continue new constraint supply the support reminder, into procurement purchase supply release largest this customers with the this to U.S. multiple

to Turning business. commercial our

industries range through customer customers our partners. driven our which affordably in of analytics platform. on-demand to We access through opportunities log across get in Today, and in, our data under are experience, disruptive channel and experiencing users being and growing our analytics and is are data by can enabling constellation, interest a major opportunities task minutes. These XX AI-derived

for commercial high to strong satellite new in the revisit objective happy product multi-million-dollar agreement and commercial contract as of services, a and quarter, to business, sole-source NASA the support of with Today, mining, commercial and we a markets their of X-year to our making added award observation to financial are Globe. brings capabilities companies in new customers, During Amy opportunities existing last transportation earth advance and of enterprise bringing IHS, analytics. week and Digital several our Commercial growth I'm announced imagery we Amy Minnick, who seasoned blanket major construction. Officer, in the progress LexisNexis, executive. To our track solutions announce Chief 's provide products with research such spearhead is industry predictive NASA at a record commercial market

pipeline on sales Moving sales global the our and expansion to of capacity.

for government as and In Chief executive address market, these growth J.R. the our force. opportunities. global expanded is Officer. security with a being business, sector Revenue as continues significant driven our remote and we and in developing broad J.R. our brought sensing national brings Riordan on seasoned sales expertise solutions. we as well government range of AI, by opportunities, significantly from advanced To sales pipeline to a Our analytics strong the demand expand commercial

decades We experience Andy team. Andy of and spearhead also added Stevenson, is in to efforts. new market, this of VP expand working international to brings International our Sales, our our international sales

we quarter, resellers. expanded the to also XX reseller During network our

of we continue progress satellite to of Turning to our on the revisit constellation. make expansion the high constellation, status our

have track will us is as with the launch satellites satellites year. these for We more launch exciting double on-orbit The satellites of to many enable by as with capability. what's our revisit remain And imaging current next capacity customers that X hourly successful Lab. X launch provide and on end the of we ready Rocket week

coming on Gen remain have track significant X we program addition, the satellite progress expand to made over years. In on our constellation our and

the experiencing thus, execution these schedule in and new strong due revenue engineering of from contracts, to to we impacted of ramp Moving on some revenue of delay contracts, the COVID-XX. our of impacts the execution, chain are our have operational outlook, supply despite and from of start programs. delays projects, These a some integration these the chain supply and recognition

our first of a revenue a from revisit awards and forecast are As to million. the million $XX partner advanced of advantage. NRO, and are $XX the said, demonstrate realizing a that know emerging that choice, recent With result, we $XX customers NASA imagery, range NGA are and that from to analytics, our value the revising as of XXXX to we high

revenues. are the multiyear winning out-year in is contracts, which achievements extending We solid long-term our BlackSky We third was and for details multiple about provide on success. third With financial believe on quarter of a growth we into our In set this front that Johan? our investment in our I'll opportunities of our summary, trajectory more results. quarter the strengthening and executing to we're And to excited over on turn quarter Johan focused that, and us. visibility plan. remain it

Johan Broekhuysen

other opportunity on that I back that actionable traditional a giving to revisit I commercial go into BlackSky Brian. final believe how financial the the at I for SPAC transaction. operations. on BlackSky, confident would will I'm excited type in CFO will also I off an satellite comments its imaging platform terrestrial we'll by brief thoughts. driven from and assess for be to disruptor. and incredible am and you to service rate to high to and saying innovator an into in AI some by space-based through quarter's this real-time you, imaging start be and Then like government industry and opportunity start would results it information turn Thank over 's BlackSky. I about update constellation, has that the like then Brian sensors blends the a intelligence transform

your open will take we some up to Thereafter, the of call questions.

capsulated will this remarks to today's would of and blacksky.com reconciliation would to deadline numbers. I limited reporting I November meet Relations my will stress the press about that the measures is talk a I Starting be in will XXth SEC Unfortunately, available Investor financial with we and aggregate do BlackSky than at website the be As with in Osprey the section GAAP briefer the like typically our quarter-end. to GAAP morning, so release the We numbers, of merger. at online file the Monday, disclosures a a and SEC's show of XXQ. database. non-GAAP to reminder, financial which expect

$XXX approximately transaction repayments, million. After the our cash recapitalize this ended the XXXX, believe million bank our sheet, sales allows fund was of September on and closing expand plan. invest and due related gross SPAC proceeds of and to balance to X, BlackSky to was $XXX its quarter business execute that the in other were to debt and AI us CapEx that acquired costs, our With needed, the forces satellite transaction operations, able We constellation, platform continue in with account. we

to on results. Moving our quarterly

for is third which million, the from September For XXXX quarter $X.X third XXXX, months quarter the XXXX. X of growth XXXX, over the up and ended QX X% XX% of revenue was

For $XX.X a loss the third year million loss to operating was quarter the of prior compared of $XX.X XXXX, million. in

due attributable Third to per And to the non-cash diluted costs is net the Of loss of to $XX.X attributable non-cash million merger. or was is BlackSky comp loss, $X.XX quarter $X.XX share. there longstanding transaction-related legacy with stock associated management. $X.XX a $X.XX primarily XXXX,

an The of third XXXX EBITDA million. quarter adjusted loss $XX.X had

to of we revenue. non-cash or year $XX.X the non-cash months the stock quarter third of quarter, third EBITDA year. Moving Year-to-date comp. had were the higher with in $XX.X for XXXX. million same in this Osprey prior XX% was of the the adjusted losses $XXX the net Through $X.XX same Year-to-date of than This loss $XX operating million this attributable X loss is September months costs compared quarter $XX.X the a to ended were the losses million Year-to-date per-share year, the onto X is third transaction. period ago. attributable loss third per diluted of million $X.XX quarter to million. of loss associated is share. a $X.XX

will XXXX. as now guidance we turn And for undiminished market the for guidance to this Thank to disappointed revenue to of the to downward continues timing the any the nor While real the provide the over adjustment next that QX, intend do At beyond for to we're XXXX opportunities point, everybody. growth, expand. closing XXXX and months experienced these in it you, we we the I are Brian issues additional Despite results not demonstrate impact of remarks. some outlook. believe continue about back XX

Brian O’Toole

and To for customers. AI-powered analytics. This Johan. and customers major -enabled we with our to world reflected you, Thank high seeing the deliver government demand strong imagery summarize, our is AI [Indiscernible] progress our wins analytics are in demand to these competitive around

are proud critical insights be world every We their customers important operations. some the on of the support that our rely mission to supporting most day to in

strengthened are with the And NGA We multiyear is moving organization provide expect by excited through quarter revenue second long-term of that of such [Indiscernible] that visibility award our government an we forward, NASA. we U.S. award contracts XXXX. have which will the the and several as

ongoing to constellation our With -enabled the expansion enhancements platform. AI our and SaaS of

months. capability new X the We are over next analytics bring into on significant the market track to

disrupt billion-dollar about are are well-positioned to where opportunity the We've steps prospects for to data and as growth and and continued In course into growth. $XX market growing taken excited and on expansion space we we important XXXX. for a are for execution closing, head set and analytics. meet we We our a Company

we us achieve transaction behind plan. to our SPAC growth Our and are is successful funded

-enabled global are We next our of new customer to AI and schedule. we as growing leading opportunities constellation our insights. team, expanding and a our real-time remains the the have forward ahead of enter are of base, looking We're we growth And expansion strengthened lie that ahead era intelligence. our phase delivery

take to questions. of happy your be now will We some

Operator

conducting [Operator One session. Instruction]. a at And [Indiscernible] we while time, question-and-answer be this pool moment please, we will you. questions. Thank

Sullivan with your with Our Benchmark first Josh question. comes Please The from question Company. proceed

Josh Sullivan

good Hey, morning.

Johan Broekhuysen

Good morning, Josh.

Josh Sullivan

Just just new little delays there? maybe detail issues? dig some into COVID we a contracts. that the customer we some get that Could can startup of with labor and budgetary Is Is the more driven?

Brian O’Toole

components we're is impacts impact stretch then the revenues. chain impact are seeing contracts. the near-term to fixed-price the supply on of contracts. and really large what supply as chain those It's of existing These to And delivery out

the that's So primary there, driver Josh.

Josh Sullivan

the you just to the it. that delta earlier $X.X And are? it guys some had in looks can the on and $X.X on year, give just then like detail think opportunities us was Got pipeline, it billion, I billion there where new expanded you

Brian O’Toole

in and pipeline Yeah. DNI of combined the That's we're International. sector, by Government, the pipeline across being with largest The demand in Josh, business: that's high all and coming U.S. growth aspects is U.S. Commercial. seeing market X International, the AI-enabled the our growth driven growing in the the for analytics. from imagery both revisit

Josh Sullivan

commercial quoting others market commercial then some between the of And the little mentioned that than there? are within uptake, you which faster point a opportunities this just industries at

Brian O’Toole

Yes.

opportunities Those across -- multiple seeing the I strongest think, customers. from different strong construction interest Fortune we're the are from seeing enterprises, financial mining, number Josh, companies of and and transportation. X,XXX consistent that's that services, and we're a

Josh Sullivan

get in I'll Okay. [Indiscernible] Thank queue. back the you.

Brian O’Toole

you, Thank Josh.

Operator

line question. the question And Company, from with proceed comes The your please Josh reminder, again, [Operator's a And Instructions]. just from with next Benchmark the as Sullivan

Josh Sullivan

a you expansion. little force could bit about the talk Yes. sales Maybe

I internal think mentioned versus sales. or growth resellers think how about your growing seeing should you've forward? direct with the you're most Where that XX we traction

Brian O’Toole

are Josh, across global all of our expanding Yes. our capacity we business. aspects sales

team. through We're So, our well U.S. our quarter. also we our inside That's network. of capacity, force reps of global as building and as through sales a team, commercial more expansion international that the second we've than the our sales government reseller doubled out expanding our combination expanding then added, both since sales,

across to expand business. highly focused entire sales we're continuing network the that So, on

Josh Sullivan

many that the your the take more year. we 'XX, should said satellites by by constellation? where think then you're that of And end the end to will launch then X you going Where constellation And as about of as I believe being?

Brian O’Toole

Yes.

Lab. So, quarter ready as got -- now, to Rocket more this with then, up launches X next have well. right satellites in for launch we with satellites X we've X each, week And lined launches X

double by end will that of year. So, the current the our capacity

us to satellites going XX planned of have early And to So, will XX-satellite give satellites us next steady-state XX a bring then constellation. next we year. year into it more a will which in

Josh Sullivan

this on just give that opportunities the then Are follow-on NASA large one that award that over just how Can detail X we should there last years? think coming congratulations. on morning, And one the some award might you us any from about? be

Brian O’Toole

of on things other for commercial in Yes, what's Josh. millions It's X-year climate they've scale to their been a an at increasing X the -- year interest change it's contract. ability NASA exciting from imagery dollars a and basis It imagery us year. per and provides is the analytics related research. buy of to multiple of annual And

an expect from see to number customers. of more we exciting and of that's opportunity a commercial So that different

Josh Sullivan

for you Thank that.

Brian O’Toole

Josh. you, Thank

Operator

reached back Broekhuysen we end the the remarks. And for turn have the will call session. I now over And to closing of Johan question-and-answer

Johan Broekhuysen

Thanks very that beyond the joined much, Operator. I'll the call. last thank I Brian. remarks give don't to have word any you everybody

Brian O’Toole

Thanks, And the want us forward future. you talking taking you. the we time. and thank this in appreciate to I everybody Johan. And you joining morning for to just Thank look to

Johan Broekhuysen

much. very Thanks

Operator

you And today's you time. disconnect lines and concludes may this for your at your conference this participation. Thank

BlackSky Technology (BKSY) 12 Nov 212021 Q3 Earnings call transcript