BKSY - Earnings call transcript Q3 2024 | BlackSky Technology Inc.

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Operator

Good morning, ladies and gentlemen. Welcome to BlackSky Technology's Third 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. our Officer, Officer, Henry by our O'Toole; joined Financial Chief Dubois. I'm Chief Brian Executive and Today, On today's the call, the quarter Brian will provide give strategic some a update on business. and highlights on company's Henry will for quarter results and XXXX. third then outlook financial the review

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

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

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

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

Brian O’Toole

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

Demand Slide aspects progress I'm business delivered base bookings, as our has BlackSky been and that to and quarter space-based achieve many our growth. great across we year-over-year for our continue Let's pleased never expanding to as X. growth. intelligence customer long-term position of higher made another revenue begin with BlackSky's report strong delivered is solutions deliver strengthening we further which near-record profitable to

share Let me recent some highlights. of our

$XXX valued follow-on customers around intelligence space-based This to in and was we million. as demand our quarters the from grow one continues solutions strongest to X up new First, the won BlackSky of at for bookings contracts past years world. government for

constellation, our Gen-X Second, which over fully growth strengthens in $XX balance we raised fund capital baseline sheet. to further our million

we excited weeks. Third, is that launch and high-resolution expected satellite few to first next final our testing site to Gen-X in are the very pre-ship is ship the completing

our driven of revenue business Next, finally, quarter and compared delivered adjusted imagery we in leverage delivered and to by year. XX% analytics the EBITDA, our operating model. positive year-to-date fourth our of consecutive revenue as last growth inherent strong high-margin And we

era have BlackSky Euroconsult, global this in to on adjusted intelligence. I World the received we're additional EBITDA our from revenues along we Space XXXX to of by to are future and and also This honored revenue close mention deliver This how Novaspace, Earth as have with a to quarter, would recent recognizes awards to we happy most we year honor. the the award in innovators distinguished track the Award highlights continues and operational highlights, new space to the full known share quarter. now exemplify at Business forward-thinking contract the major this As contracts Week award, Paris. won and some that year's our Observation formerly space-based shaping companies fourth new ramp work sector, against remain goals. I'd like from is Leading like of Business to leading

X. to Turning Slide

We U.S. high-frequency defense advanced for see and from BlackSky's to growth intelligence continue looking strong analytics. and agencies imagery

A award the follow-on XXXX awarded commercial procure the analysis in program, and contract, is and economic Luno military satellite in commitment EIM Luno the services as orders. Luno through pleased the AI supported $XXX program, government's back which NGA to the be demonstrates will the our the expanding we the we to with Through and of software capability long-term larger enable area services. This of already they area Agency, XXXX. as advanced task change acquiring announce program. largest such advanced to our areas our Indicator of sources. By to and Economic multi-int and combining vehicles analytics by to to and multiyear and will and contracts won data first sensors as delivery partnership of from the platform, enabling massive assist which mission-critical our pleased under new orders new Spectra valued in well contract. We powered and events. aircraft, utilizing capabilities, capability on contract NGA services part broad this award is begin real-time multiple program and A the delivery Gen-X detection process forward IDIQ a a in Monitoring, ramp the search first successfully During and we won Luno environmental subscription-based National look AI-driven multiple is The government's insights We're is will and the long-term monitoring scale, up order ships, constellation NGA, as million and quarter, Luno changes and NGA high-frequency that has techniques critical were technology images contract activity to and this space-based which one a analytics Throughout contract emerging at third-party up and intelligence our monitoring future Gen-X we of received from analytics award containers Geospatial-Intelligence to global automatically we deliver receive interest number analytics detect and identify is have leveraging over large A broad was current search monitoring BlackSky the This interest. with constellation. proprietary our using to to of have objects shipping or innovative or

Slide X. Moving to

understanding million. to imaging providing of Another data, support in was research agency's will acquisition commercial award high-revisit their program. valuable data major develop applied multiyear around actionable smallsat monitoring contract provide valued $XXX government benefit with critical can repository data the will into NASA-backed NASA this in researchers Earth insight another real-time observations changes BlackSky BlackSky's agencies place contract, is on taking scientific worldwide and satellite provides IDIQ the science. the support NASA's NASA able win BlackSky imagery to to to capabilities. new most This use time-diverse, their advanced at example Under earth. with up important data significantly dynamic contract research be quarter in and broaden our Integrating where from

day a defense customers. mission-critical long-time pleased win continuing to X. $XX solutions BlackSky's contracts million report we are $X agreement, expansion support every Turning our signed space-based this new million existing of annual and with increased nearly also sector expansion We're international intelligence one intelligence I'm contract defense with to and subscription total validates upon and to customers. to that relied to contract the increases how customer's operations. With value Slide

GDMP. quickly We the or months the within incremental awards These that revenue. win rapid space-based short-term Global through for into Data intelligence translate Marketplace, continue various solutions services occurring to awards to for our delivery of are weeks

As receive of for a services data government various a needs. streamlines broad contract range is online commercial the and acquisition end the analytics quickly new U.S. looking support reminder, users marketplace and to GDMP in a of that mission process

long-term seeing can are and and through broader sales channel increasing this a missions to a GDMP set We of users. viable distribution believe end the opportunities become

we contracts or Gen-X integrating intersatellite looking customers multiple into link addition, optical government were OISL explore In terminals for awarded satellites. with our applications to U.S.

data communication and are satellite transmission of that those networks. not For communication relays laser-based OISL who enable know, may through faster

world. program are process layers. delivery layer with our real-time imagery and lines constellation operational, our both delivery ISR Once This deliver transport by of incorporating space Development agile with type time evolving further and to to customers Agency's Space compatible validates can approach enhancing forward improve we that into currently today. the The providing government We mission missions incremental the Gen-X objective tactical our OISL OISL aligned Gen-X is and around expect to we of network to We commercial of access military reducing support low the services space terminals capabilities XXx, transport design. in look latency we to imagery needs. space and delivering the with enhancements operations to analytics rapidly our customers' be time-sensitive our with already as our to are

Slide Moving vital and either non-Earth that which X. contracts SDA. imaging the non-Earth identifying, revenue-generating traveling or due capability the delivering their capture provide services offering domain in excited passing time awarded operational is customers. government to imaging X-figure or response Earth. In when to new the automated announce agility product on to opportunities services domain objects environments. us for growing and side awareness additional across recently we satellites, commercial of ocean missions to meet we for the enable launched service at of of tracking new to were possible to are understanding Space to We're space offers with space satellites This space. demand awareness are made a and the offering, objects dark characterizing our images over this our in

delivering of give Through is will One customers contract, company on-orbit these subscription data government, HEO space imaging and to to enable and their Australian intelligence an actionable task receive solutions space-based defense HEO, commercial interest. to about contracts BlackSky at non-Earth services high-resolution customers. imaging to services of objects scale non-Earth with new a dedicated

government safety as space Another as critical between services that and predict facilitating address situational to avoid contract awareness, or won might needs is non-Earth coordination data space real-time provides operations. operators maintaining objects avoid SSA imaging affect SSA. space collisions to space in critical U.S. for or debris the we and well helping traffic

customer's As space awareness spacecraft into assets. part of Gen-X of this contract, BlackSky domain integrate collection satellite will the of imagery on-orbit

high-margin and potential Our imagery our non-Earth to imaging further the monetize expand and capacity services. a revenue for analytics is our services way constellation new

subscription-based are important support We offering mission. new we data services expect seeing expand over time for will increasing demand this to this as

serve We new SDA missions to of to our expand to innovative broad array offering and base. this and customer excited are market bring a worldwide

have we excited to will ship ready we report X. this launch. our dedicated testing Zealand, site final launch satellite first through Slide a Once Rocket the preparation high-resolution in launch unit is that our first phase to in services complete, agreement. Lab's New in for where Turning Gen-X is go testing rocket We're to very final to

As very first ship capability imaging expect we our first-of-its-kind narrow will insights. the as through performance XX-centimeter our we from to which strong the shipment. Expanding evidenced working down in by of and new monitoring There have on will launch defense solutions provide weeks this AI-enabled Gen-X X X the real-time that advanced for forward high-frequency and customers satellite the of high-resolution world. We will leading a intelligence backlog to be open Gen-X we finalizing demand around after is the XXXX. look already contracted date, satellites with intelligence space-based quarter with secured with weeks combines new introducing our powered platform customers constellation window, the we significant

are We our delivering growth. to about new solutions to transformative mission-critical for customers this and years phase our come, constellation insights unlocking deliver next that of while will the excited

X. Slide to Moving

Gen-X regular our into plan a also have our While we year. orbit on integration and phases we a taken production we've in end, of of next the we to of to begin operations, on these objectives, regular beginning from operations, focused performance and production demonstrate supply and of Gen-X a XXXX. To production that production launch of Once scalable stages stake been component the we lead getting on-orbit supply optimize which partner up Gen-X securing with of production line deployments satellites to Gen-X cadence Gen-X the steps support acquisition further assembly in running support next of long includes is cadence first satellite chain Gen-X our chain remain satellites LeoStella. in that various extend To focused first and starting units. our to deliveries active satellite, our the the number

revenue growth value for excited to to the Gen-X innovation customers be fuel and to our in go number growth, the and the wins, the we pleased We performance strong unparalleled expertise LeoStella with large combine on able financial and our launch. I'll of leverage ready to made results. now quarterly contract continued are the Gen-X quarter, to progress teams drive Henry Henry? BlackSky for the the deliver on we're getting operating turn to over platform, of significant both business. In highlighted our rapid summary, it by through operating

Henry Dubois

was we QX and these into see morning, or how projects fees an new expansion million, with the our delays year-to-date increase driven services. our Thank those and of aspects associated execution million, Beginning ramped Year-to-date, The ramp-up was we're good services engineering services you, made to contract $XX.X or and of prior an in higher over as $X.X increase imagery incremental analytics million, period. BlackSky's related new or this and and across but customer over increase not increase well year to timing by expect the prior new contracts. services for increase results. Year-to-date everyone. an some the $XX.X with and of revenues the XXXX I'm wins year orders up million, QX XX, $X.X and professional year-over-year XX% XX% government impact Brian, year well as many million, period. business professional and shift XX% Slide began was $XX.X driven of XXXX was revenue late revenue the our in full We customer year-to-date. of by we've for revenue was did engineering year-over-year revenues period. primarily as progressing imagery imagery year with over that $XX.X customer customer, of the pleased prior from year existing million The an analytic primarily as

milestone-based. basis variability to Looking professional engineering attributed at the that quarter-over-quarter is contracts, on of a largely often which types and service minimizes revenue these year-to-date are

of Turning sales. to cost

on leverage imagery incremental basis, the to low-cost demonstrate again million. Keeping continue in the XX. stock-based efficiently. analytics analytics high-margin that model This Slide cost-effective of flat ability as to to $XX.X our period a year-over-year gives remained sales, validates revenue We of pass last strong sales at flat compared shown imagery On amortization and analytics while a and and year cost scale financial increasing depreciation year-to-date our same and excluding operating cost compensation, business, as imagery expenses the of line. XX% operating our how revenues BlackSky to performance significant once bottom and result and business is directly structure grow our

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

business. in year into our was million were year-to-date $XX to than in investments expenses a prior made reductions improvement million, For cash $XX.X reduction small the operating compared offset ongoing operating in the more expenses driven by cash costs, period. general which XXXX, The corporate primarily

prior in where disciplined further management discussed areas we a can our we calls, As cost drive consistently and look approach maintain efficiencies for on continue business. to

We're to fourth adjusted increased imagery as by making in engineering XX. improvement of we Slide margin and another expenses. prior driven and delivered operating basis, revenues, of year-over-year EBITDA reductions our consecutive million a an results. our primarily On professional was in well business EBITDA $XX.X of $X.X period. pleased as million of in positive strong quarter service the year performance compared $XX.X positive adjusted The in cash our both core that service gross report Turning improved and QX, year-to-date analytics quarter EBITDA adjusted our was million loss to to

raise our growth equity in constellation This $XX an sheet, our our to balance fully we funds million believe we in that proceeds. strengthens on gross pleased further Gen-X capital We're sheet. additional generating capital late September, plan. business successfully Moving completed and baseline balance

balance remains of repayment investments. raised $XX.X it As $XX the in choose for included of debt This line, the less result June we short-term with in of these bank to we a we on the million cash end available approximately the ending from cash, services. this during quarter, ended which proceeds million of quarter and commercial we as XXXX and third restricted a contract million net invoice transaction, XXXX should had to draw $XX.X end assets, contracted down million the we milestones were certain of us met as of $XX.X at of September, the to on again. Also, $XX.X quarter able million

the customer contracts. contracted contribute position on to These in next over a to expect months to actions, liquidity our a us current expect the and continue will major bill few we reach payments XX with as assets breakeven. milestones meet we path free million on receive continue EBITDA We interim adjusted to flow delivering to on cash improvements combined puts the and $XX.X strong

on on also success outlook the operating to and winning expanding to work new pleased these a year-to-date sizable move up continuing contracts. XX. new to with let's recent as Now revenues starting contract We're agreements Slide with quarter. XXXX shown new we've of from closing existing on our in while contracts fourth ramp We're awards the results customers had number and

with to of many it and to Brian? our closing over some we turn across summary, remarks. pleased back the between begin million, progress In $XX make XXXX I'll and $X million maintaining surrounding of full to our we of is we some adjusted recognize into to degree $XXX can million, $XXX million there timing guidance of Taking However, year revenue. to $XX revenue and million for these of are uncertainty million. of expenditures contracts EBITDA this aspects consideration, Brian that, $XX capital now the when continue between we're between business. With

Brian O’Toole

bookings we're demand solutions demonstrated as intelligence delivered seeing this Henry. the quarter. space-based contract we're with for In growing pleased the near-record multiyear by our we you, closing, Thank

of are meet our to satellites for excited and this innovative demand strong as launch for XXXX a readying begin solutions are Gen-X that the deliver we will the cadence we begin to that We regular in capability. launches

have business With the quarter, our capital this strengthened on position we plan. our to raise execute

our year in the your strong to now to looking guidance that are year for take with the full We concludes and call, we'll the remarks finish forward ahead in line our XXXX. This a questions. and opportunities lie

Operator

with your comes Jaeson line [Operator Schmidt Street. And of first Instructions] from the question Lake

Jaeson Schmidt

want your QX of QX. on comments of pushed and revenue Just some on being touch into to the out

actually could was you quantify pushed. much revenue if curious Just how

Brian O’Toole

As Henry quarter. that -- working We're ramping the won. that had remarks, his into we mentioned from in recently also his on call we pushed revenues some in revenues contracts

know, you the as So of some tied these we have business lumpiness in do some milestone-driven to contracts.

so And is fourth quarter our this guidance. strong line a expecting we're deliver and business. the And remain in natural for that with

Jaeson Schmidt

Okay. No, in you that's nice great And really to some noted QX. then hear. bookings activity

much so curious to relatedly, And you're in I if what this how Gen-X on was activity Just far from of related just could QX? seeing capacity? bookings here comment guess, you

Brian O’Toole

Yes.

I was related have capabilities our to analytics by growth we into think what's and driven in QX and of by what award demonstrated driven some on today contract. think was really software positioned that I there was The Gen-X. EIM, delivered about early Gen-X. we which well any exciting specifically AI nice primarily of us new don't moving in what that Luno revenue we was to it the capitalize It have phases drove

software have only not about Gen-X, really lot and These talked driven AI. as are Gen-X secured contracts contracts past. we've we the for So in really of by a but

Operator

comes line Wainwright. question of next the your Scott with Buck from And H.C.

Scott Buck

over quarter? of those I'm does payments $XX expected just million expect curious, next milestone XX a or what that coming a distributed? the of Or look million or significant in single First, we Are cadence the evenly like? under amount lumpy $XX months, should the of

Brian O’Toole

to I'll contracts, think over tied different. which but throw milestone-based Maybe Henry, Yes. they're to I are all it all

as So those you're But But not planned a to next see months. we XX going for are recognition. smooth said, the Henry?

Henry Dubois

over this lumpy. somewhat They Scott, next sure. Yes, are in we expect those do the XX no, Henry. months. is Yes, coming

this You can QX of reduction ]. of net we year [ year, see had about between this $X.X of and QX million a

able we'll some there. do I always there, hit bit we'll those that. So putting a being able to have we the little new a just collect to kind and bookings milestones majority continue then without into be of of bit vast to we'll mean, little are earlier, but

Scott Buck

XXXX, with the I I the active directly tied OpEx guess, costs any that. Great. Gen-Xs any Henry, that in and are And change OpEx? Gen-X being managing not then in to or launches up appreciate second, XXXX coming that more are in

Henry Dubois

No.

mean, year I we're As EBITDA guidance our looking of adjusted and terms line, in for revenue, CapEx. at both we're our business maintaining this

kind well of covered us pretty So here. keeps that

with network ground and go Gen-Xs, infrastructure. our using using same we're we working 'XX the that it's As having. into It's same the

changes. there shouldn't be So significant any

Scott Buck

or or geopolitical of guys great. And just if willing not Any That's then Perfect. been there's in any curious sales broader macro, to one, people you hesitation state just last some the change are seeing a the or but really urgency move macro, cycle. faster world?

Brian O’Toole

I think, Scott, a things. couple we're of seeing

building. I seeing you're the we're are The backlog reflected seeing that both still and and And U.S. themselves winning growing typical think internationally. and government pretty that the we're cycles contracts in for contracts, the in remaining definitely we're the demand.

we're the news a demand. there, good on have on capitalize handle So on and pretty performing those contracts good capturing to cycles, we the

Operator

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

Joshua Sullivan

out moving the on Gen-X side, regular lumpiness past up cadence you leverage is we the to frame look picks look there. talked like about 'XX the when quarter's and with that what get way 'XX might kind as and of just the maybe question as of some this revenues in this you other any to launch at on the lumpiness? We operating there But of just up, about on in that moving leverage following Just that operating right. and results, or think

Brian O’Toole

we and operating the fixed in kind as to -- -- ground platform leverage demonstrating we Well, we said, think are operating that fixed Henry generally of strong the do our I in due have software.

for which ramp prior to way similarly under nicely we expect securing should in contract. performed see particularly things begin is think you the us like what, Josh, Luno, can we're a I to contracts

to unlocking secured As year, capability. Gen-X begin going we're from already the online backlog that capability we bring revenues to the around we've next start

so always want imagery will professional of Henry, and you analytics to some that that add to do we related we do But these will grow. be to begin lumpiness projects that? revenues there'll some So continue of engineering to the to that. But smooth some and do expect

Henry Dubois

additional a in expect quarter. transmissions. wouldn't Sure. I ground a we imagery there as costs our That's basically there to any of run call as take ground mean, operating the our associated we prepared Josh, talked the increase what the costs and the $X it Yes, our first will incremental for to associated I million it on I earlier business. $XX.X analytics, our said imagery in But about be call, be talked to we X you costs look with over little of a increases million when remarks, station, neighborhood component the our analytics, so script $X.X and in did operating at with the in network. costs this of significant million year months, key data and

Joshua Sullivan

Gen-X design lift Got on that's how of is And the there being And BlackSky the on added then here, OISL into much the that it. that's into anything integrated proprietary being technology? front a design addition? then is just that

Brian O’Toole

types type terminals of we're the provisioning for at networks -- looking design that our already to and Gen-X What made this integrate in Well, is we in capability. and to now we're different doing we've with. very going considerations specific implementation of related design,

high-frequency, proprietary today. intelligence a already on delivering focus our from really low-latency solutions, is which doing aspect, think I we're

this enabling and So the AI is that component pretty also and software critical the to -- of a happen.

when the this what achieve total our in is of latency really system that aspect information low able side, actionable the the and of and pretty the insights is in customers. it's of to delivering be So important will exciting on the implemented happen but speed in sense this hardware we'll to

Operator

And Van with your from question of Rhee Craig-Hallum. the next line comes Jeff

Jeff Van Rhee

missed for here. I of initial the I comments. operator Apologies, in an queue was most the waiting

to How understand as the curious, sequential got I'm that to redundant. Trying QX. much from steep might we of to So come the to guide, services? you relates are Henry, going here very to sequentially obviously, QX. of some QX be ramp these expecting? ramp is here a QX jump professional What it

Henry Dubois

were don't But we've you sitting product out, when got the already lines, we about Well, a about the $XX we've see revenue at take got revenue in at or we when million Q are, comes streams year. by where consistent We where have mentioned time that backlog, Brian contracts with in that of we would to have we're be guide individual on, last to anticipation already a as you'll moment. that look this completing number completed. about do -- these relate of working we're work projects earlier,

Some would be of professional those services.

those imagery would be analytics and projects. of Some

Jeff Van Rhee

Okay.

you had you QX, and So sequential you're quarters, did When X the to Trying looking end. year, for that it had year, here. jump last about how this looking quarters, QX. the many jump flat flat it look in expected sequential is contracts to drivers $X.X year low you've of you're million X at jump year? And big drive QX a at last to sequential understand a big in This for QX. drive

Brian O’Toole

Yes.

of couple drivers. Jeff, think, a there's I

is renew. QX number a quarter think of our long-term I where existing customers natural a

those So to some to natural continue to have fourth get a we then renewals lumpiness quarter expansions. the and larger step-up we related close it. deals, in And other which

as relates timing a it natural combination there But it's of QX step-up both. to So the in is of contracts. some

Jeff Van Rhee

what implying if as anything here a following understand at to starting guiding look following implicit could as the there sustainable you're baseline QX? in not you're QX in the for point quarter, Trying of fiscal. QX what for is I a that Is QX for

Brian O’Toole

projects analytics planned our services. we imagery in and and engineering reflect will QX the in think which I have business, continued what to growth related with professional a combined additional

Jeff Van Rhee

ACV-based Okay. And an in multiyear? then any ability bookings overall and part opposed yes, a overall provide you're to sense as more more at our I contracts the us, me, value, what little values guess, you on look to bookings as of gives of clarity the the lastly, annual that us for are

Brian O’Toole

can assume is a you point, that. that nice is order-based backlog to contract. strong Yes. related subscription have. ACV We're example that I and is we visibility but The the Luno what EOCL task this good it's we contracts providing of not are building at into think a

So that grew very subscription -- but we nicely revenues. into

saw a You renewal, which major is $XX million customer, fifth announcement of international I the annual renewal about on think, our driving commitments from our them. with

building there's So ACV a are guiding to lumpiness strong but some business hesitant to we're related to that, it. that about we still

Operator

[Operator the with question next Storms from comes David Instructions] of And your Stonegate. line

David Storms

the of is to Gen-X around as My thinking first about we is remaining decommissioning there after What's that your kind any life starts be just Gen-X should starts one Yes. Gen-X going satellites? up? go Gen-X of up. And costs

Brian O’Toole

Yes.

first So is operating is well. -- our Gen-X off, extremely constellation

satellites have XX growth. are up driving revenue We that our now there right

continue constellation that then well expect begin dovetail satellites And we'll to perform 'XX into 'XX. to that Gen-X into constellation. throughout We and to

there that. age related to costs satellites Gen-X those As out, decommissioning no are material incremental

David Storms

the Understood. helpful. non-Earth then And to new just That's I one imaging very around ask more wanted offerings.

With there of margins technology contracts that these is or anything or new the nature? differences offerings, the any needed notable or between

Brian O’Toole

satellites also to customers command Bringing through deliver process and already to to and X our and type of we actually our AI expand high-margin capabilities and way. exciting think support capacity that the that about is offering is analytics that importantly, of of testament our But a software market agility and in we and the capability that it mission. used have a that timely on to how orbit leverages to to I what's and things: able No, capacity data monetize able reliable imagery is services. that that type actually as

high-margin off of this orbit. on of imagery incremental think capacity the already type have revenues service of analytics we new So as and

Operator

line of Caleb comes from Space. Henry next with And question the Quilty your

Caleb Henry

A of questions. couple

But of presentation the in Gen-X. I have at point. a baseline satellites? the of most answered constellation Has mention constellation think mine terms how for this finalized there's been many in BlackSky of exactly be baseline what will that

Brian O’Toole

good Caleb, Well, morning.

That's to we on today Our is what baseline orbit constellation Gen-X. with have XX XX satellites.

baseline satellites. is maintain for plan to this of the So here levels those

Gen-X to monitoring is driver So of our satellites we'll of from space. hourly number begin primary dovetail The that maintaining constellation. capability that reliable into

baseline. our is So that

contracts with constellation expanding and demand. We will that commensurate look time at over

Caleb Henry

they're a the mention LeoStella. that partner, was you that with joint the wondering mean if increasing And does the also And bit Okay. partner does change I or presentation could BlackSky that more relationship LeoStella? how then that if venture clarify a of a reshape stake? stake makes in is already so, because

Brian O’Toole

our Yes. driving for primarily we We by a ownership Yes, of Gen-X. noted, driven the through scaling demand And acquire and There's LeoStella you company. had lot delivery in objectives efficiencies of that's around a did stake of XX% as their stake the capability. partner, in that our Thales.

high-margin jointly continuing to partnership Gen-X remains our capability, combined Thales. you countries we of types which really Gen-X space Our bringing the just worldwide with on We're And to with with along capability like offerings contracts their partner that as the pursue strong. services closed we're bringing data to with market. the are Thales of continuing capabilities recall, some from Indonesia,

really step scaling just just our and in So this capabilities. further is a optimizing Gen-X

Caleb Henry

is forward? going LeoStella the you costs? try Does question. sales going for other continue third-party on Okay. on mean solely are that some just could that that potentially use focused that the and of And going offset to to gen to be then Or BlackSky constellation follow-up one that

Brian O’Toole

Well, right now, the primary customer LeoStella. for BlackSky is

satellite through essentially contracts. our existing So that funding been business we've production

So is the mentioned, optimizing Gen-X the I production right on now, is to those focus -- and scaling of as operations.

type of better economics. operating believe better us of move we -- current the because that will this think give leverage may result And unit we this and in Gen-X situation so

offerings. really, Gen-X step again, it's a So strengthening our in

Caleb Henry

Luno One And that X providers, how and on just quick talk imagery wondering could between I is if then analytics you split A. contract And about bit if is Okay. questions. a was to in new there able you both? something that's opportunity you this in NEI, the SSA that BlackSky is see market, then is split expect continue a participate grow? to and to

Brian O’Toole

Yes.

them I great companies to piece others proprietary position pure-play on the analytics that we relative AI on the demonstrated program. positive we fact Luno a our in think a to There's I software I position a a capability. to orders. companies believe space so operators we Luno the did won mix have vendor We and are providers of us that are this first under the for prime have we and for EIM serve capabilities are is for -- to provide with their capability but there's ability published to believe to the on task What's predecessor have the -- contract like deliver able data as also and a satellite there be AI happen also companies before, that XX. that program was other them contract, A, a that give

And We this that buying commercial pretty it's a government of in think positioned well amount toward on space the this program. pretty So services. budget has to committing step we're exciting also really made for analytics capitalize significant us. exciting

of get as demand to So that an analytics contract amount in that's are was to capabilities and already have win, for service that capacity I NEI into software we have a we're our monitoring we year. And me think, and new this excited the yes, significant orbit the we launched leveraging then let this question. and outlined we deliver and solution, on next ramping call, type your capability. of to going AI important seeing that Yes, begin

announced, already capability, couple won and X-figure this we demand of seeing As increasing. that for contracts a we're we've

market So we and offering further ramp demand expect for continue the address also from that in to the to that. platform revenues to the evolve

again, So pretty and drive have way and in to what imagery revenues. exciting already invested development. orbit high-margin analytics monetize And we on another

Operator

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

BlackSky Technology (BKSY) 7 Nov 242024 Q3 Earnings call transcript