BKSY - Earnings call transcript Q2 2024 | BlackSky Technology Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to BlackSky Technology's Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note this conference call is being recorded. I would now like to turn the call over to Aly Bonilla, BlackSky's Vice President of Investor Relations. Please go ahead, Aly.

Aly Bonilla

Good morning, and thank you for joining us. Today, I'm joined by our Chief Executive Officer, Brian O'Toole; and our Chief Financial Officer, Henry Dubois. will strategic highlights update Brian and the call, a give on today's provide on some quarter On the business. review XXXX. then and will the quarter second Henry financial outlook for company's results

the today's Following remarks, can access of conference through p.m. will our call the August press be XX:XX your available approximately Time we open replay this from prepared be release. Eastern questions. A line will XX. replay in for found today to Information

the call call, you Additionally, section the Investor a a in this with be www.blacksky.com. In Relations today's website earnings may our with will quarterly follow along webcast we our at website, that on to Investor Relations of available remarks. of prepared use posted earnings conjunction presentation have

made may discussion statements XX-K. obligation the that future you update to review full and other required no objectives to market call our materially, are stock. XXXX, may and our applicable be of subject Before to our we begin, in as risks Form risks expected let as stated results and by these and are and forward-looking results price current recent statements are expectations me financial that statements today's SEC the law. We future uncertainties, forward-looking may regarding pertain those during remind assumes guidance including for plans, differ including and these or certain a you release, our to Form uncertainties performance, filings statements Actual our for today on BlackSky statements. press conference our based as encourage XX-K of affect except that of

Brian Relations and EBITDA, included turn to are presentation, call the measures from will Investor over measures, of can of cost and we adjusted our and imagery today's measures non-GAAP accompanying A their most call comparable refer O'Toole. to this software expenses. which website. At point, operating today's services be GAAP adjusted viewed financial during financial in analytical Brian? downloaded to these cash reconciliation certain including addition, non-GAAP I'll In sales

Brian O’Toole

Thank everyone. for today's Thanks, call. you on us joining Aly, morning, and good

with Slide and continued growth, to that to adjusted report leverage our business delivered EBITDA quarter, begin revenue Let's pleased the operations. another X. strong as of strong positive I'm operating we demonstrate BlackSky

QX by government the ongoing intelligence in solutions primarily our seeing new around existing was differentiated performance for Our the we're driven from world. demand and customers space-based

of quarter's highlights. Let the some me share key

workflows. strong high-frequency, customers services First, revenue analytics as growth XX%. QX for grow data continues we year-over-year in low-latency of incorporate Demand our imagery to their daily BlackSky delivered into and

and awards quarter awarded extensions million new Second, capabilities. demonstrating BlackSky's the we were supporting in agencies, and strong in demand $XX U.S. international customer government for

very we next-generation adjusted was integration delivered and This test. driven our quarter revenue positive our growth by adjusted Gen-X high final operating of satellites are of EBITDA. And another resolution EBITDA, positive in the fourth, and third of leverage. quarter strong consecutive stages our Third, assembly,

Our late actively preparing planned excited about will our commissioning that QX. first operations is a ramping executing in intelligence. space-based demand in minutes. These how a our demonstrate highlights at well satellite progress and resolution I talk and team XX-centimeter remains Gen-X global for we're launch for and and production satellite our plan our on constellation track in for growing the business LeoStella more launch are meeting on few

responsible to while cost services, through continue remain and leverage we We strong analytics deliver imagery high-margin our operating management. on focused

toward has would right the operational us some on profitable strong ability share path like long-term now the highlights quarter. to quarterly Our performance deliver from growth. I to

X. Slide Turning to

the the its imagery high-frequency to and the under won Gen-X our several we contracts NRO demonstrating report U.S. pleased analytics subscription follow-on ongoing extended agencies, across trusted quarter, various imagery that a extension the new subscription services This and U.S. the contract. across demand services BlackSky EOCL capacity forward our During to as the NRO future for partner support unlocking services mission government. I'm national online. as Electro-Optical Commercial EOCL, Gen-X look needs. commercial or to security Layer, continued We as our represents space leverages in comes confidence to

GDMP. second a our continues U.S. government the order acquired government moving-target contracts several new advanced quarter, capabilities new data through task to Marketplace, this detect, This identify new multiple the contract, with services. of commercial Research Force Laboratory. development also the moving using Global with advanced AI options we customers won During track Under targets and and detection won order leveraging Data is and AI-enabled the sources. We've or Air

agencies services. intelligence providers this been This services, new through who government access service and analytics of rapid, For customers has those of process. BlackSky get services online in through contract who users and new can successful enables are various space-based a commercial quickly may The data a the in channel streamlined not acquisition our GDMP GDMP whereby users. the with of won needs. for analytics we've of end range and to quick a government request delivery in that many the hands imagery of end marketplace to to contracts power marketplace reaching government through is AI-enabled U.S. mission a intelligence unclassified new are connect advanced high-frequency turnaround real-time support providing the know, looking quickly puts more broad

contracts in to as of a marketplace similar this its is over our winning sales and still that's we early forward strategy. using stages, a land-and-expand look of part growing time new number Although GDMP tool

well space-based expand invest and Spectra many support sources geopolitical and access need of meet X. real-time intelligence all-weather, governments offering requirements. Slide a second high-frequency the customer BlackSky third-party looking as BlackSky $X access million Turning international growth one and services the government economic analytics partner continues their we day-and-night This this as national a capabilities our and of ever-changing satellites customers. of comprehensive imaging an This with security task economic to to initiatives. In renewal contract environment. mission and to markets quarter, in international across will with a provide The continue easy-to-use due announced More long-term multiple single platform constellation high-frequency, more their to to data to to customer international in daily imaging through for platform. services provides our are to

During our the progress support multiple great also quarter, customer agencies. our in base as deliver government international land-and-expand expanding X-figure subscription We're continue contracts execute making various of awarded on strategy. were we and international we to

now progress key in year business. Building of the In international fact, with the quarter markets around sustainable a we pleased many XX% well the I'm revenues long-term customers when accounts our toward growth. a revenue to over diverse and positioned online. representing from Gen-X believe high-visibility that customer quarter, time international world element plan our XX-centimeter revenues of profitable from than constellation more doubled prior customers make expand are is second base with subscription comes our these we to continue in over

was use the the narcotics. counter-drug take illegal Turning respond on-demand to entering the decided a how power or they intelligence illegal international space-based interests. America. About defense of that to impact their platform suspicious key a to down economic to the that Spectra services of software Slide our Spectra X their our highlights monitoring may in detected case, aircraft played important a In to After believed like our our capabilities weeks enables organization accessible this to a assessing X. customer through case share rapidly intercept events situation, security I'd transport now carrying and dynamic users an operation end aircraft Latin aerospace, customer ago, drugs. in country's role which ultimately this

down. a constellation actionable timely Spectra high-frequency platform obtain mission. This to their just able successfully part during of of deliver intelligence used to of Because the receive and imagery service, task accurate team one automated how to our where was the and location and BlackSky's imagery real-time of timely and experience space-based BlackSky As is of hands users of specific access shot this we self-service capture intelligence operations around can the in high-resolution example our AI-enabled platform. area power and agencies mission, to to for the plane mission-critical their is real-time the their government and were services, the needs active world of rapidly intelligence. intelligence our meet through subscription-based changing putting the respond Spectra imagery user space-based fully analytics Through directly

We're in the Gen-X the track of Moving and units production satellites on test. our X. the pleased that final are phases on to and report Slide of first is to integration assembly,

dress begun planning and rehearsals launch for first Gen-X are Our mission our already late in team the of has QX. satellite

will AI platform, and that add very with hourly constellation will resolution satellites a speed, will Gen-X Gen-X transformative customers existing of level provide our Our deliver intelligence with monitoring Spectra our AI-enabled first-to-act our a imagery for When to next performance constellation. dynamic insights space-based our advantage. high combined XX-centimeter

combined contracted the with will timely customers imaging are using multiyear able demand on next remains traditional mapping constellation and for not significant phase over growth. from the subscription-based backlog automated by international constellations. The is of we've this The resolution, been that to U.S. our contracts. capability few AI to enable Our unlock through Gen-X major improved years past and track new insights achievable secure analytics, high-frequency evidenced

contracted deployment a existing of through from land-and-expand Gen-X expansion next the contracts. phase through backlog growth of satellites start to delivery of XXXX, this expect we cadence we As services start of our in unlocking and the

Turning to Slide X.

LeoStella agile from has or over satellites expected our to of line. joint LeoStella, highly of to incorporated and Gen-X perform meeting the state-of-the-art and manufacturing As producing by manufacturing produced a Gen-X venture. on-orbit This reminder, is heritage been small exceptional an our our up built the deployment track has our small and satellite past of into exceeding constellation satellite and life evidenced was well rapid objectives. as production Gen-X being our support satellites, years. The production. reliable satellite design and of by This are capability high-performing all record Gen-X level continues performance the performance mission constellation several ground

generation years responsive solutions highlighted less Gen-X turn of the the and further ramping growth, constellation of and speed the of another our a a satellites, support by accelerate QX operations go their and software that space-based fully satellites disruptive market integration by positive and was initiatives. In now automated the through quarterly track Henry? AI-enabled quarter, continued revenue over economics, to and operations. I'll EBITDA to next it completion chain up are to that a bookings, Henry customers addition launch than to space at Gen-X real-time first to satellites we're has adjusted to results. sustained our to enhances deployment is speed from our strong through remain demonstrates leverage we vertical supply us agility objectives. The meet to beginning the bring summary, Gen-X X combining rate enabling financial this been architecture new of In and to that in production strong these on production intelligence constellation of operating platform. enables LeoStella BlackSky pleased competitive our how LeoStella with changing industry that satellites production fact our of advantage

Henry Dubois

year Thank business quarter million, XX, increase everyone. year grew $XX.X period. the analytics many with services. Professional across imagery contracts was increase prior results. Beginning project's the percentage made or of year-over-year won quarter. quarter-over-quarter XXXX, driven the have a The may from prior $X.X million, year-over-year in million, increase you, of an by grew execution we of we've with estimated step-up with Keep driven the these revenue of quarter. million for our last revenue to increase which of revenues mind, $XX.X primarily second depending morning, the $X second million Services in over an in largely and $X.X second was Brian, in of quarter and recognized $X.X of pleased was XX%, to BlackSky's are incremental international and year. primarily XX% and The prior year I'm or aspects major Slide quarter execution orders on revenue compared the the customer revenue our XX%, financial million, to for contracts, by completion. multiple & Imagery XXXX variability cost over milestone-based, the of types good total Engineering

leverage of Slide and in continue business, operating demonstrate on our as cost to shown imagery XX. Turning analytics we strong sales, to

driven and imagery to high-margin X% of and demonstrate nearly year compared the revenues period, for sales half the incremental million we revenues profitable million, which savings stock-based increasing cost by and last was XXXX, our The cost of a our the $X.X compensation, analytics sales, decrease year-over-year decreasing the line, respective excluding amortization prior continue directly year. $XXX,XXX XXXX to software expenses, analytics in imagery operations. With the same is For satellite of of first primarily half and XX% bottom depreciation cost over growth. was and period for the to $X key to driver flow how long-term first

as move measures Slide depreciation and expenses, to having underlying cash obscuring performance. and about financial we noncash these the expenses compensation to our XX enable which without manage talk Let's amortization stock-based us better non-GAAP expenses, items and believe operating excludes

For expenses go-to-market ongoing the compared costs, reductions quarter. a second were initiatives. driven by which year-over-year quarter This of to XXXX, our improvement than making $XXX,XXX prior million, in we've more primarily cash our improvement offset corporate investments general in $XX.X year operating been was

Over last year-over-year reductions model. we've in an focus operating costs which the responsibly demonstrates efficient in expenses, X cash and our success quarters, laser reported our business running on further managing

Turning to Slide XX.

improvement we margin driven imagery revenues is expanded positive customer we performance delivered quarter cost of on increased This from Not to business, and and consecutive to was prior was prior cash operating year-over-year year of new the XXXX analytics adjusted in Our in that core especially we're continue a the third was in million. a adjusted of EBITDA expenses. $X.X period. over and an the million but quarter quarterly contracts, improved $X.X efficiencies for EBITDA our second our by basis year, and realize this that The EBITDA. our only adjusted strong primarily increase pleased performance, compared savings

to $XX.X in included which and quarter our quarter cash we sheet, investments, million received second the balance of a we restricted with on cash, XXXX ended the commercial Moving of from line. bank short-term $XX million

a the payments place have customer interim $XX for few contract had next which of adjusted the in expected to on contracts and we and in the end months our the vendor we future. million upcoming As major expect for Gen-X the sufficient we of are June, billed. Together we foreseeable as with to we have over to continue financing improvements launches we receive milestones XX met be expect EBITDA in liquidity over believe assets, delivering,

on anticipating a our to year. Slide move of pleased strong shown We're operating second XXXX half our XX. Now let's on half outlook, as first with and are results the

we're EBITDA pleased we progress result, to to $XX between guidance financial second that, Brian? of closing in year a $XX million million of capital and full quarter business. With million we've the $XXX are between the aspects and made million expenditures XXXX $X of maintaining remarks. turn our back million. In adjusted Brian over our with revenue million, our As between $XX of to and I'll performance summary, some it many now across for $XXX

Brian O’Toole

the we're closing, strong space-based into differentiated In see second BlackSky's quarter we the Henry. with year. momentum of you, and are second growing carrying Thank intelligence demand the to performance the pleased half for solutions. We're continuing

constellation call, for begin we'll our and organizations our important are track year. This Our to and we combined of customer and most the using high-frequency to next with ready and very automated We the our grow introduce of your demanding, the questions. of deliver the the transformative concludes to capabilities are built resolution Gen-X growth on remarks strong monitoring power with as this analytics. base imagery customers take later remains some to in world solutions a unlock getting high continue Gen-X our phase AI now

Operator

Your first Burns, the Instructions] of line [Operator Greg from Co. with comes Sidoti question &

Gregory Burns

hoping bit just was more bit color that the It this a was software get on down saw to imagery little growth and a quarter. you sequentially. little I

would why of So about, versus get think take-or-pay the remainder to cadence year? understanding balance I more of the variable And growth then, that the consumption-based? of we sequentially? wanted it a maybe much should how revenue maybe the of of Like, how is over just better like, decline

Brian O’Toole

for your Greg, Thanks, question.

timing of of you look second a cycles by revenues budget in in if typically half been step-up historically, That's driven renewals. you've year. the analytics seen the primarily and the I back and think imagery

of seeing projects why this flatter over and we performance that start strong And tend of customers, year-over-year in so another the more note some growth grow will you're still the that's couple smaller pilot but quarters. I is with the first to to add continue time. of as they out aspect key

right we've So driving historically that's year-over-year bottom driving continuing the line. see, grow to to we're that our how and EBITDA you and as high-margin performance performed, can that's the line, business and what's

Gregory Burns

the and part incremental? contracts kind and thought through And GDMP NRO that, then that with the of that. with for always I the for Is agencies government this extension were you is of incremental? your government procure an Or to that How mentioned, that umbrella work? vehicle that? separate that of a does

Brian O’Toole

separate which set contract and be is other for of analytics note It for One services. to incremental. can broad EOCL thing imagery. The and services, is include marketplace the a is

a it's providing to new for delivery set this us. capability customers. streamline a to that new We're So a flexible is of of excited and sales fast platform marketplace whole channel

mentioned of marketplace. this remarks, is this I type my days as early in in So the of

that in excited we're where potential can So the go.

Gregory Burns

And the right. it be for And is us frame that's the what's launched All launch and going time? to it you is to can multiple and between satellites tested Gen-Xs, cadence be operational? to about satellite getting Or starting satellite just about the thinking when time one then revenue? one we're at launch going launched? the cadence the Like, to remind maybe generate there

Brian O’Toole

days. The satellite up satellites commissioning time first this, about a for XX is the new few will launches. separate on Typically, like go

through we launches cadence into from then we'll there. steady As move a of get that,

the operation. reminder, Gen-X first As in under the our reduced time we and look launch, those constellation, into satellites XX after at satellites performance deploying bring per up doing multiple if commissioning we to couple and hours operational, to you we a our down there got were

commissioning with Gen-Xs. cadence we're So of anticipating the type same performance and

Operator

the question with next line of Deutsche comes from Bank. Yu, Edison Your

Xin Yu

the any capabilities sense on have think any $XXX-plus of third of wanted is at of Do least as I up how to just the is I backlog Gen-X? follow last million, all, the of quarter. to the of much tied you backlog gen. First sort on

Brian O’Toole

for a renewed significant Edison, deals XX-year subscription is Yes, and as have another thanks backlog that amount contract, heavily EOCL capability. just as tied question. well. we is which $X a continue Gen-X. reminder, Also, close Gen-X year our is your Gen-X actually to billion, of a of services on contract, EOCL But to also, backloaded under our

about will growth Gen-X. a we're what unlock, but nice and also So continuing we're excited our trajectory Gen-X on through

Xin Yu

could Understood. NGA Luno on A you awarded? to the updates when Any think get

Brian O’Toole

carefully We're Edison. that, watching

contract, feel the as EIM. know, we're our performance for that we you course, predecessor well Of given positioned under

have anticipate I So we're awards. we waiting, of those don't can the anxiously when but government from specific a timeline

will later year. this some time it expect be We

Xin Yu

Got it. the in just the like on year? something Or remind we you in just us should assets. one know And cash financials. for how mind rest the of you capital? to $XX on flow I perhaps working trajectory million anything Can mentioned model kind the of contract keep

Henry Dubois

our Sure, Edison. is that And That's got those tied mean, Happy current milestones in to. receivables. our assets, million achieve contracted Gen-X assets. or unbilled $XX as program. to I we we've

over does We be it expect liquidity XX to well. significant provide the to collecting that some as months. And next us

Xin Yu

Anything Dynamics? working else of? on note capital take the to

Henry Dubois

pretty cash, we've gives us assets mean, else a liquidity. I a the bit and is bit contract of steady got fair fair state. Everything of

So we feel pretty good at the moment.

Operator

Your comes Michaelis, of next Lake Street. line question the Max from with

Max Michaelis

at look the we [indiscernible] quarters full way year. guidance through year the the When of

guidance, if to, was we're you is sticking wondering difference what's color that if this the I waiting mean, that. on? give few deal? end could we're that is this $XXX large $XXX end a So chunky driving I still really here? some with low I on high between one deals Or the more the million and million believe,

Brian O’Toole

the for Max. Thanks question,

have on. robust renewals back expansions As maintaining that's guidance. existing tied full stated Obviously, have we're of we're pipeline year to contracts. year stronger halves a opportunities working in the our We of remarks, we pretty and of typically had we

we we at basis, those how and really a look arrive so on And and opportunities weighted the range the midpoint. at that's

Max Michaelis

online? there more Is new business coming

Brian O’Toole

being could -- there's worked. actively Yes, and business new blend of you a that renewals are

Max Michaelis

with, Okay. new we I $XX customers in mean, versus awards or in between out quarter, signed at look mix like, the And new new if then help I million extensions? that guess can me the you contracts

Brian O’Toole

a primary ones long-term renewal my X-figure but As services. new the existing EOCL from we of to into number a in also of international were I our level remarks, one X subscription tied renewal mentioned customers our had and enter customers,

a blend. So it was

Operator

the Your next from comes with Wainright. H.C. Scott line question of Buck,

Scott Buck

gross curious margin. the I'm Services Professional & on Engineering

the Or You've uptick quarters. a few seen create internally you nice to working assignments efficiency last some the Is guys on? of you're mix additional there? done in just there that currently have of something representative

Henry Dubois

that Scott, couple we're That's a a this of doing large our is Henry. function the work with customers. of

As I activity. in script, step-up a the had of mentioned some we in our

us have higher So of kind of we programs produce. these margins allow various to aspects as

kind sort So those a it's stay revenue of of kind of expect And this in to mix. we category. margins

there variability Engineering Although, Services could know, variability Professional on -- that as on you milestones. be some based &

Scott Buck

color then Henry. helpful, becomes meaningful expectations more can it I'm 'XX. curious a sounds And any versus for like That's CapEx if in Gen-X 'XX. us activity Sure. on give bit launch early you 'XX

Henry Dubois

Scott, do CapEx that not yet. to we're later. We'll guiding 'XX

Scott Buck

our then seems you guys. are about to we lastly, not that election potential for like could horses be positive. just less fair, That's any outcome or now doing handicapping positive have guys or And or any more I whether want ask the it

Brian O’Toole

just to it both increase space internationally investments U.S. going a of say, the and seeing generally, area being forward. we're there's and as investment, I strategic outcome, strong space; I'll support government, well, in in of independent election the kind of defense think

commercial So commercial Force that a quarter, we the Congress strong out Last pursue. we're see continue excited in strategy industry. coming support Space with the for to to reported we

visibility, I seeing the strong outcome, support think so good going And independent forward. of we're and

Operator

question And with line from Storms, of Stonegate. your next comes Dave the

David Storms

one help like you is retaining if AI understand current could just environment acquiring what us first the for and is talent. My

Brian O’Toole

question. good a That's

capabilities years AI AI been pretty performance developing have winning and Spectra recruiting to primarily been now in platform had we've AI good We technology have talent. and due in there, actually for retaining contracts our significant our AI and know, you talent. As our

meaningful constellation, with a that fact platform how can proprietary and the combine high-frequency the intelligence, into you that we're doing monitoring, when it's exciting primarily think translate actionable with in driven I and space by you work. Spectra that's with what

And around so what doing secure to fortunate we've support more an have, been the talent a aspect and safer we're of what in retaining mission attractive capabilities our very world the do. we we is also with and

real had not have we there. So challenges any

David Storms

significant that Understood. investments. CapEx guidance is then up And year Gen-X the we this understand to due

completion will investments, be for do it believe of CapEx you Following normalized that increased to the that return CapEx those due should anticipate than level? rate higher satellites? more the Gen-X the will Or a to maintenance we historical

Henry Dubois

Dave, for look this is year that launches question. that to million Thanks Henry. I CapEx, a cash mean, $XX preparing CapEx our when we guiding $XX are at of as are to to million get this going. take we we

could million you get which discussed using and little into million to times a $XX or per when on when that X-year satellite probably do how satellite state the XX $XX rate of of divide a satellites be XX-satellite million in have the then We the AI for constellation, that CapEx state constellation our by life, so $XX replenishment our steady bit a a steady range a looking neighborhood about in math for and the we capability. about at you're

in So that without do one. you that on math can giving you're probably -- the guidance,

Operator

line Your comes Company. Benchmark Sullivan, The Josh question of the next from with

Joshua Sullivan

interested Does as pricing work. do market price customer Or the or how GDMP, Just the BlackSky? the mechanics how does work? of hear you, the value? to set

Brian O’Toole

certain can and provide through platform requests to companies Josh, thanks for can proposals out Basically, customers for bids submit for commercial capability. put It's pretty which that the a question. capabilities it's opportunity. a exciting

through a get quickly So allows model streamlined but vehicle. type it's services also competitive, that customers it's this analytics data and acquisition to of

government but streamlined. So also competitive, it it's platform a really is the nice because it's for

and government for win-win a it's So commercial. the

Joshua Sullivan

of could a market it what Or you what's be your total think how be? channel time? the of potentially value And the do of large sense sales could over

Brian O’Toole

the days. to it's can't continue that, that that some and growing to this of the government the in starting also what type out been seeing acquired budget of with for is It's say I model early budget. services but types with we've strong interest can an partnership marketplace. refine a I be will through the initial --

days, number but these we've about early where fact it the a it's of is and where and it's to able going secure that So contracts. excited we're of types been

Operator

Your the Jeff question with Group. of Van Capital from next comes Rhee, Craig-Hallum line

Daniel Hibshman

Jeff. This on is Daniel for Hibshman

imagery mentioned in terms what the you give presentation us I sizable sorts coming are pipeline, better a few, little opportunities. the assume But Just seeing terms of what maybe down. a $XXX multiyear color you're million EOCL, come $XX ally sales else Asian anything that's in if what just we focused. of be in whether can million of just Indonesia contract. could line, of should opportunities quote, call biggest are referencing things in you the of on kinds The down that the terms where the pipeline detections? of what sorts out of or and kinds object Just the and

Brian O’Toole

question. Daniel, for the thanks

international, EOCL, have. reiterate, are larger types of other Indonesia, contracts to just those all think those we I

in as unlock contracted are far those will backlog, as So over and our time. -- those revenues

XX-centimeter the we platform. with high the imagery technology, then, capability frequency, in strong monitoring our through our other high announced year for we're as monitoring be for demand subscription. contract the continued in this delivered high-frequency are earlier assured resolution in The combined into access can with we a We're Gen-X bring evidenced will course, And seeing our bring by things time, AI with for high-frequency in AI single market service transformative seeing interest the of first capability, integrated when customers a an that Indonesia. service that, very

the in we're capabilities. demand are Gen-X strong and things seeing those abroad bring for both we that will market, U.S. those of continue And demand, all So to -- as the into we grow. expect

Daniel Hibshman

task of on to going they're don't globally I are do orders their they're amounts volumes, how contracted what of terms of broader, to going sort highly and this connected revenue macro in call have annually? what's you flex question, of with then but pretty on depending And one kind customers just correlated know Or if terms in conflict, flexible or want typically where set generally buying? is your they a

Brian O’Toole

question. good a It's

have that case. dealing to is access plan there meet and by requirements organizations the the what responsive providing to that lot they to and just in mission a and out mechanisms capacity day-to-day misnomer their by be the the when flexible is crisis whatever task to now they're that's operations. that revenue their not with they're to and they the events, think ahead for We're driven future. We where I day-to-day forecasting dealing with industry support of in in years them

offer But want because subscription we ensure capacity that them want going for typically that those be you that and they So through multiyear flexibility. as with to contracts know, we provide access, years. there it's assured capabilities to long-term, they

Daniel Hibshman

And one sense. me, then for one last Henry. Makes for just

maybe at being you sort that and to where year, Just I would collect understand current coming adding I asset to balance, other new year of now? would renewals over the that of balance be one expecting that way from the a assume balance. that contract looking signings but see also

being Just significantly where there any it's do that be lower? balance helpful. would you at, roughly color envision significantly higher, Just

Henry Dubois

point we start tied way that would lot a on work a some that Gen-X and as to to complete milestones program their of take talked our getting we've we are our into Sure. that What completing being Gen-X the towards at prior work of need projects would look is I the I one about -- to -- and up that tied work the satellites these streams. complete international

coming number that be down. back So over should time,

way good historically where that. be at you a to it look look at If been would we've

stay providing million, numbers don't at not we're yet. $XX guidance think on it year's And will but so that next up -- I I think

Operator

Space. [Operator question your Instructions] of the line Chris And Quilty, with from comes Quilty next

Christopher Quilty

like long-term I a funding ] allows separate to have to and [ to customers GDMP I to mean, we through that do sort path? then a on And but want program, a wanted of question the eventually can a is small SBR-type customers Just this on of as contract the like, contracts, it's in your...? cap if vehicle? engage contract size that there what's days out Is And graduation going go know of that for those they're find is, a program contracts second a and early larger program. think there should follow-up it?

Brian O’Toole

good question, Chris. a It's

time. and delivered type right, now, like, starting and government seeing they end small, quickly this we're can is out we're this working with a the think they has now, it. But that acquisition that think is of capture it of typically that days, kind the drive drive a services users a customers I with how are early but weeks early they're seeing new potential attach options also efficient I think of and incremental over And kind really that a what X-figure be They advantage potential the the revenue range streamlined through within, to to general through thing efficient take can of them quickly; of -- extend marketplace is it really whole to process. is base days. you're service, incremental of I Right start really get them can because still months.

Christopher Quilty

in question September one going frame. A time first on up Gen-X. Obviously, the

to you've satellite a year, half got upon based the of fair like [indiscernible]. a first assumption? program, after you're to in know dozen the stage do on some not sounded you assume that And Just fair for launches CapEx single-satellite production? satellites a may I dozen before providing it but date Is guidance next is it to the

Brian O’Toole

the said, we'll launch first think, launches. couple I I as single as

in of a assume is I us a mentioned can production in long-lead and that of the been And to cadence investing ramping line launches that remarks, we next satellites. that my You enable up year. components have for Gen-X will get as into number

secured we a just reminder, vendor X On as Lab launches the first single-launch deal. a through element Rocket of the finance with this, have

to on We've later a That puts running. delivery position get units us to the overall, of get satellites in and production of and this the the year. supply line So regular to chain a up got in track up and deployment we're those first XXXX.

Christopher Quilty

how a more incremental are including the the perspective that you certain such think structured do should new the in there the satellites as to more Are there to get and way And you a from sign that revenue Or volume contracts we contribution step-ups? you're contract? like, going have you step-up of launch be to, from customers, tapering before imagery EOCL, with in about Gen-X is in capability? a that

Brian O’Toole

a I Chris. bit of think both, you'll little see

there'll in steady way revenues. the I it, be about think we ramp a think

see have But as not that You're contracts -- look growth some to we going you should in bring capacity step-ups. at when line will and cases, steady some online. see in you that year-over-year, it

Christopher Quilty

And contract Henry, contracts we with Should terms sort of [indiscernible]. large some in of in think what got should we You've advances? be modeling step-up [indiscernible]?

Henry Dubois

Well, unique. each contract tends be to

some CapEx them programs. help which have with of Some the early prepayments,

contract think build to pipeline, and couple them our we where variability due the timing. just assets But large prize it. we of could bit contracts. the of work a be, those as that's bit guidance way we overall, some we Some got a year-end in up off We've and on a through little the tail little

Christopher Quilty

there's thing specific and those X kick I with even maybe in a contracts phase obviously, XX that behind [indiscernible] [indiscernible]. start the mentioned, When months in, [indiscernible]? think development does I a And to

Henry Dubois

identified are don't our who We've internationally. Well, we individual customers. discuss customers never

online. our our ramp will get international Gen-X as customers capabilities So various up we

Christopher Quilty

-- are Gen-X on So [indiscernible]? those entirely? both are both is it to Or contracts of assume fair based

Henry Dubois

product work is across There all our lines.

Christopher Quilty

ramp Final were on costs? due is the primarily headcount as of you past that Is X operating [indiscernible]? up within any cost the is a year? just seamless Or question are those cost Gen-X, that that within is Or the reductions Part the business? is done that savings new which incremental operational to within there more capability, And savings. satellites

Brian O’Toole

Brian. Chris, it's

to I think, hire. first continuing off, we're

and improving office reductions structural major savings we seeing other any operations, you're our in do company. haven't just things. had headcount are to the business So The back

But highly like that we are managing our as what are growth focused you're aligning growth. some So savings, reinvesting actually and with is well OpEx -- our to and marketing we sales of support our those that. our we're we're and into I expenses things actually seeing extremely revenue we're achieve think on

Operator

At this call no time, Earnings Call. for Thank questions. BlackSky's Second Quarter further XXXX joining today. you Conference are there the concludes This

BlackSky Technology (BKSY) 8 Aug 242024 Q2 Earnings call transcript