- Earnings call transcript Q3 2023

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Operator

Good afternoon. Thank you for attending the Planet Labs PBC Third Quarter of Fiscal 2023 Earnings Call. [Operator Instructions] I would now like to pass the conference over to your host, Mr. Chris Genualdi, Vice President of Investor Relations. Thank you.

proceed. may You

Chris Genualdi

to earnings welcome quarter fiscal of Hello Planet's XXXX call. year and third

subject begin like and future Before that call, outlook, statements today's we we'd management's on estimates Such as filings, not inclusion make representation at by financial in Any are plans, be forward-looking current statements future achieved. of are our be forward-looking regarded based we estimates, detailed a to forward-looking related various The www.sec.gov. uncertainties or or should which to and will expectations information that expectations events plans, as outlook. forward-looking projections. found may risks everyone and to remind such statements Planet can assumptions, be SEC our

materially statements such such or the indicated on events. differ the Our events statement from to those and occurrence date made of undertake update to actual circumstances forward-looking results forward-looking responsibility statements or which is no reflect by performance the we reflect or after to unanticipated may

results, During and about key for enhance understanding information and financial by overall management use performance used decision-making metrics operating these useful transparency measures with believe the measures these financial measures. past to and financial operational financial and also future We decision-making. will that operational of for allow and to prospects the greater respect financial a in its period-to-period call, comparisons. non-GAAP means provide evaluate We non-GAAP as discuss we

competitors are of other industry. the indicators our our and more call, afternoon. by key on this key measures, information in Further, reconciliation our in in this number detail used These performance and press release. provide often used more For earlier press provided see performance a indicators by management we non-GAAP issued discussed in financial please the release tables throughout

Relations now Over you, to At to our call like turn time, reference I'd over to intended which on have we Will. posted Planet's I'd the like CEO, our this jump-in, accompany to prepared Co-Founder. to everyone remarks. and slides Will website, Marshall, encourage Investor are we Before to the Chairperson

Will Marshall

We're Thanks, sales our third of our results outlook hello us. remainder join provide and XXXX, I'm a recent a progress environment some talk with also everyone. the demand Chris, could on quarter our and through strategic initiatives. the glad and pleased of highlight you wins share the to of fiscal today on for for you year. perspective I'll the number

So year-over-year year-ago. let's the XXX XX%, a margins in dive industries. Non-GAAP We data quarter increase. in. XX% business significant diverse of model. gross revenue, customers unique to In year-over-year planet's ended Yes, the think million expanded another We this $XX.X subscription a range of with one-to-many XX% from we growth. QX, potential demonstrates generated representing spanning up margin,

the macro results another the and it So in to delivered solid environment, of the up, the sum a of nature is quarter critical an uncertain Planet execution solutions. testament across company of mission to which we face strong

Now highlights. I'll you some through take

are focused week, to is I'd Accenture. agreement three we exciting Day accelerate here announced partnerships we're to As There and at our of we today, that on first discuss a last growth ecosystem increasingly building customers new October, that our discussed in with Investor which collaborative of first the like users. of partnerships and strategic

and impact global assessments to across disruption sectors. to and working many We drive supply-chain on partnership focus. an are combining data of across think strategy with are to deliver of We're technology thrilled industry will array our offerings Planet's our Accenture organizations traceable the just industry chains. greater These initial benefits be database of our collaborate data to initiatives awareness areas high-frequency including and risk expertise of to climate with and Accenture's satellite and value sustainability mitigate our

Egypt. Nations XXXX supplying Conference out for satellite Climate United the mapping Kenya also the we Projects on Microsoft's good expanded we also that the quarter, and will global as of damage COPXX, known work During prior and African which the lab Climate Ukraine scale, global wind projects of work AI is Adaptation for announced first the be its At Change the datas of our developed Microsoft. we with including of watch This an Cairo, renewables expansion world's and Nations. tool builds solar creation assessment United important into building Nairobi, installations utility for

and powerful Microsoft most to a world's Our tool the helping challenges. partnership satellite and data with of the for AI combination how demonstrates address complex of some is critical

just partnership we announced with Services, today. Amazon I'd Web to our Finally, which highlight like

sales a into We train embedding acquire announce consolidator new in forces AWS build, from with and partnership Geospatial large small we're we cloud tools organization the Planet global, given through particularly on model data sciences agreement product to ready in roadmap you It's go-to-market excited Shifting a the we're scan have data us value satellite With proposition. and machine-learning as data measuring collaboration build-on. of and joining with Sciences, daily have include enabling Observatory, and constantly mind, acquire changing ecosystems. our Since as for the potential the in Sciences we enhance with structure California AWS to select example in particular. and the transition within and tree Earlier dynamically a exciting to individual this potential powered help to climate efficiency. reach platforms. This variable that ideal Planet first This sustainability Planet's enable climate view by significant and data pure consistent supports company to towards around gears the and our the year, to and developments world. know, that data we plays Salo products areas of access we AWS. daily accelerate our and specializing, closing a California. conditions. signed can an We teams much for level to see inventories with of is of Salo SageMaker, interested XXXX, with that where element deliver customers subject maps to deploy is we carbon Planet very comes strategy excited a as market general is offsetting and M&A, loads to forest to measure helps accelerate the natural our previous an in. data customer planetary and power data geospatial in signed go-to-market Planet measurement are earth developers answers market can great Board key for collaboration This The Salo that with the and at base directly the This amplifies machine-learning engineers Sciences platform. acquisition early-stage storage which The our neatly Planet including team vegetative one and Today, VanderSat. our global Forest deal step work the carbon I'm partnered directly their, California carbon this carbon acquisition what forest policies to extend variable partnered sciences Salo across very insights, together. of tool, first at planetary from accomplish accountability products is carbon and that's more. next in

more We We expect look-forward next at to time. that close to sharing early year.

solutions defense, the customer to with start wins, civil with domestic government is Turning and robust. government the for both our Demand sector. international customers and let's

with an expansion renewal to we're over months customer. worth we them. international closed We've more of worked customer to million and third three the this Defense next $XX than contract support Ministry over years and the proud the for quarter, with During XX continue

our civil BKG. Geodesy the known month, the a Agency expanded also last for during On and German side, government we contract Federal with cartography

in public the the in providing take be the access other and Program, partnership is As many Brazilian recent an have this has model solutions. some come to this from I'd federal shared largest sensing project, like able silver innovative We moment and partner, German change imagery this planet's to of other agencies gain XXX federal MAIS develops over IT is Through to cases. supplies countries. are help out SCCON, geo countrywide promote satellite pioneering of that repeated the to use project and remote that our that company previously, see access Brazilian data Brazil and highlights to for share daily to Brazil. potential to a safety planet a which as institutions

in these used our leverages solution, and government buildings list across already fines, US$X.X project the With and amazing equivalent products the activities frozen data at region, roads the country. developed to Then in as of yielded the helping The over of data the joint base billion potential daily Planet's implementation of scale Police and into XXXX. software Brazilian to and new the to the project bring and by our assets maps a value an specialized huge staff since has address the help including customers. have Federal the end-customer. The Brazilian Planet's SCCON collect our example to of and right deliver PlanetScope of alerting feeds capabilities to information seas benefits to goods significant feeds analytics monthly

Additionally, partners our We're mobilized public in the Brazil. project able initiative with in to over agents operations. over proud XXX throughout support X,XXX to were this be

and vegetative XXX,XXX is launched data we leveraging will condition enhance This solve a stage, onboarding. top remote quarter payout for commercial it's of the imagery standard ZEP-RE, process index and can hope and company. locations determine to cultivates measured an time the around XXX In this used will signed efficiently, access of their expanding funnel calculation Drought investment a and with most to is overtime Difference similar with our these with of have an XXX,XXX program, imagery on-the-ground application a with Swiss can emissions census, Planet Horn customized have across soil that they with commercialized. provided in to to data Re. more market, to we for the for and quarter, drought. specifically variables from at deal NGO program our Africa. satellite our from of acquisition, rates display by is is We're onsite It's ZEP-RE base services, Kenya. farmers kilometers. enables combined later Planet running a an countries, claims. store Index, based and data of metrics can use quickly helping Turning measure enable a digital customer this to NGOs which scaled education also side providing series provider the customer in provide risk to the for Index of and those a in to it and seeking of important aim drought generate we per we globe, this notably energy ZEP-RE last to to generate platform data prioritize premium seed we expand as XX nonprofit sector, XXX,XXX plans program Planet the program with to and issues. reinsurance to services seen Fortune faster product the cover Global year, Nairobi, to we providing and Swiss types the Working independent critical high-resolution be insurance successful their that than with the is it applications Planet get of global the support for In organizations. research also sales insurance during which benefits NDVI less recently to partnership square provide Normalized other quantify to up packaging VanderSat gas to Services amounts, emission, to being Vegetative quantify, Planet be or moisture of in contributor a the is to seeing unique new the valuable global facilities, a we insurance over greenhouse markets. In ZEP-RE data and in example rectify organizations of supporting another leveraging agent protection Planet's developments, measure foster that be how deal area a pricing maps deliver our planetary Energy very signed health drought our as are Re but

rates increase signing our win opportunities some and Let the product the perspectives as pipeline, are to to economic continues on focusing strong execution despite today. in reps pace me team market we're seeing expansion The those fit. our our be and new the market remains all the business strongest sales healthy which and to average continue with reps are at make that Demand backdrop. deal size

to continues you've both the of the be As international government market, and heard, segment robust. especially domestic

opportunities will where commercial are side outcomes require the current focus navigate these continued some the seeing proven commercial dynamic of economic leading economic scrutiny of spend. our on more customers to become On as market, the market environment, provide cautious increased we data This they can customers. for

the and the to transition. that, greater and We security to element see Ashley, digital I'm signed our key remain a burgeoning transition secular adoption be now partnerships. some in need as for which, and was exciting particularly driving leaders variable for sales excellent see to have Q&A. also for plan alike top of capabilities believe strategic countries It's Sciences. solutions, upon proud with to global In proud agreement those technology team summary, Planet tailwinds win to team's sustainability sales for users. the after the systematically we'll another and transformation acquisition priorities of for to sustainability of and Salo our carbon, excited we just the global their over turn the market. QX Fortunately, new solutions the and the patient truly helping With I've quarter I'll companies time execute touched about I'm the customers such deals the execution. and leveraging I'm continue

Ashley Fieglein Johnson

and Will today. everyone you, Thank thanks for joining

which revenue As focused XX% this proud monitoring. to environmental revenue the Will of teams customer, $X.X our mentioned, proud calling for of renewal an on who execution our came and year-over-year October results associated a the support strong customers. worth global option for growth. climate to this We're the partnership $XX.X in form continue the out delivering million, fiscal especially European represents onetime I'm quarter are million and of 'XX with upside quarter of XXst by that ending in of third came at It's our

XXX and is broader customers, the Our represent end-of-period to indicator an of our count year-over-year which grew customer XX% growth of adoption platform.

dollar accounts. last for We're every Our Net in four quarter-over-quarter the at contract pleased end-of-period large seen annual in value three rate quarter of as QX, over during QX to the We've end last teams momentum of This on government due net grown the with expansions renewals XXX%. continued by quarter-over-quarter sales This primarily win dollar our customer our in product opportunity count our success. a showed renewal a with the Asia, rate average end government represent has are which with additions retention expand new signed down of quarters, years. remain customers We agriculture. customer driving our year-over-year higher-value which time. with and grow higher prioritizing large XXX% year-over-year with improvement the the and to was and driven quarter. retention international through in in customer of was significant shortly is investments backs focused our accounts logo timing slightly after and was retention

expected, than Turning will subscription non-GAAP of approach of expansion the and loss prior we one-to-many margin 'XX, by we the efficiency of business driven for to growth fiscal expenses XX% management fundamentals the better gross the coming the for had incur margin, we industry-leading in quarter, upside, effective EBITDA expanded of XX% to some to compared quarter cost to data in be gross gross and model. margins revenue, which aerospace The million timing $XX.X our the by year. driven continues expect our third the in our quarters. was of the Adjusted revenue agile

to demand We our strength of market Planet's have meet teams organization, as growing our across our to quality and pace advantages in that the leadership the mission, Planet We for and of commitment market disciplined invest talent. and solutions. to believe our been global competitive our in for the in technology we hiring our continue

without to cash, short-term to growth to capital continue with $XXX provides balance needing we which capital. accelerating additional quarter investments, initiatives cash sufficient invest million sheet, with and us raise behind believe the equivalents our to Turning in the ended we

Sequential debt have of QX, and in expenditures we the contract subsequent At quarter primarily was million end. revenue, these impacted growth were which that We the or Asia We than RPO the of the apply two to also to which million, after mentioned outstanding. of timing including capitalized their were government continue quarters. next of renewed large X% approximately software $XXX XX% Capital development end the up catch months our previously approximately for no customer will remaining had in $X to XX% approximately quarter to anticipate multiyear apply performance the due next years. the or anticipated, procurements. expenses lower by obligations XX RPOs shortly is

I've As fluctuate quarter-to-quarter up RPOs contracts explained before, come for will as renewal. multiyear

include contract, federal Additionally, exclude termination please the as with keep EOCL that mind value other is as associated common contracts in that in our RPOs our convenience reported for clause, contracts. which the a well

million, approximately between quarter, million the to expect midpoint. US$XX which at in revenue US$XX to of the year-over-year ahead represents fourth Looking and we growth XX% come

non-GAAP in 'XX. QX gross margin expect up of fiscal to for XX% XX%, We QX from XX%

EBITDA be fourth Our $XX million $XX loss expected million. negative negative and between to is adjusted for the quarter

represents capital expenditures million approximately of $X of to We revenue. expect X% $X which million, XX% to

expect year XX% fiscal we midpoint representing growth. on line significant The growth January the which a be acceleration and For of approximately to XXXX, year-over-year ending revenue revenue reflects this XXst, XX% be million would million, between year-over-year US$XXX top XX%, a US$XXX to now basis. guidance of

We percentage of and to expect between year-over-year. our XX%, gross improvement non-GAAP XX% approximately be XX points margin an

is to $XX negative million. loss Our between and $XX adjusted be million negative EBITDA expected

around I'd the like incredible I'm our make our peers was longer in ground they to approximately for more measured million revenue. We say just of would an $XX roughly building to it lead-time schedule be The Planet which and to such To company. million, of contributions quarter. our expect components. X% proud close, globe procurement to the great attributable guidance be another procurement is adjustments fleets $XX future lower for our to CapEx CapEx stations X% of to and

focus across in and well comments. our our in unique opportunity the We our remain and the of positioned us. We believe confident the continue collaboration questions. We concludes we're macroeconomic to market global ahead plan Operator, our due sets that's a take challenging are demand for teams. against to can data and now environment executing capture to that

Operator

from question line The Instructions] Michael Northland. of [Operator the first Latimore with is

proceed. may You

Will Marshall

you. hear can't We

Operator

Latimore, your is line Apologies, Mr. now open.

Michael Latimore

Hi. Excellent. touch quarter really Right. to have topics Very, from customers. would several last on Thanks. I Yes. one you just I the results. guess, of very where strong wanted

do their reevaluate how they the or they annual was on color any the there quarter? out hold some used expand of Can annual or renew up commitments - commitment? that's think they played early kind provide I you early with - pattern did that last and coming in

Ashley Fieglein Johnson

are Yes. there that I'd with on we early levels, size renewals that or their engaged their higher contracts, overall and for their say, to expected on that continue have as some consumption us contract. we've had others customers based the manage annual have to expansions either to they

So end, we obviously in in our above the range. at high we came came guidance

so And strong great. consumption patterns, is to continue we definitely which see

Michael Latimore

the of influential Accenture you kind partners maybe on this bit how expansion Sounds can between like here at sort and versus partners, your traditional that bookings on new tech a our use segment they of are of good. maybe little little and a then And bit software size, on to more influential and there elaborate bookings point? leads how

Will Marshall

question. Yes, it's great

in saw, business really we've Accenture partners. strategic that commercial opportunity. it's It's see my sign they So it's a data the of and mostly led and both the opportunity, is in. direct perspective, big for a in have and are small partners leaning it entities, always from are demonstrating very that quite seeing we lean they And AWS, the they their geospatial always big markets, is I those partners And that mind but It's bit, large obviously great approach. way. Microsoft a have that by them that we you to great markets think go-to-market used - strong to three sales via value don't see

use that so well our capabilities that's and solutions that's adding and of And do. really and enables organizations number what these we a that our handle have cases they're solution market don't solutions the directly partners as on great. So data top of where

stronger in market. done partners but So before we're stronger into a leaning rich leaning definitely into we and partners. the We've it as

Michael Latimore

Thanks good. a lot. Very

Ashley Fieglein Johnson

Thank you.

Operator

Thank with is from Bank. you, question the Latimore. next Yu Mr. of The Edison Deutsche line

You may proceed.

Edison Yu

of this we thanks think your quarter. the Hi, about the the area congratulations in the on foresee heard peer this think on some acquisition had announced. to kind falls and insights? I question that I men kind I contacts starting - think or you of under of to scouting If are Do moving variables piece. kind planetary you about doing up more a

Will Marshall

great It's question.

We are excited this acquisition. by very

Let strategy critical need think broadly little Variables of me is in in just really bit speak transition offsetting carbon to sustainability the Planetary sustainability measures. a firstly, Variables desperately the And good species. carbon particular that scientific and I Planetary our business, because a it's a on as

satellite work essential into preparation great forest good data So move. that's has but for worked with just cover observatory for carbon. that And course make to other translating techniques we've really California exciting. ground Salo forest This user forest them forest not the and our through forest pieces. is to of and of for management some years sort that

that got with we've a good relationship So team.

good it's this pointing as the they embarking upon, of as strategy, everything. into and work. the And you're fit started does fit really a cultural last and of that Planetary VanderSat, into time out, with really we're in it year acquisition of that neatly earnest piece Board So Variables fit

I'm insights and think Variables the and this the are the we right horizontal indicators And beyond continuing really now are focus might of they that. the building the stack, I that But - today. where component be up up is that's is Planetary important piece need than it. come that So us to critical bigger

Edison Yu

you that kind mentioned you actually if something. or Thanks. sense upside, that onetime us follow-up would was a Could part looked sense rates questions through. give the early after a just that and happened would a And flow it of, kind a actually also know fell like, on of strong mentioned there very kind of of you I maybe think several I just what the quarter? was financials, it that in any bringing of what obviously the the Understood. slipped you then Why have said, guess, very, I repeat? quarter there? And of deal think I renewal

Ashley Fieglein Johnson

Yes.

So of based terms a options treatment, four-year one-time year couple in the was that relates three. that that and accounting recognition remarks, in revenue and year the revenue deal two required the the to I that my that it of referenced full just renewal the analyzing understanding size. a had revenue are And contract contract as on on over versus term we recognition the after where

I'm worked $X.X So one-time not are in was on we about revenue. recognition an quarter with where basis, auditors million it accountant a in in to by impact background, the that, team to net but resulted the revenue it an analysis do a on the

significant. obviously So that is

So I come have the high above the high to would that, sure range. obviously, Even in without or out. end end at that wanted of call our to make we just

but we renewal in that that of impact comes the to I part know, - where the So was quarter you and opposite delayed as with had - was out and that remarks - late that's in on. what the miss also in that's revenue renewal respect that the when referencing

net been higher in rate and RPOs have would been come quarter. would that in retention had have So time, on obviously, been higher. the higher revenues would have dollar

internally. we're focused that so very something on-time it's underscores on that And of the and importance renewals

Edison Yu

Thanks Awesome. the color. for

Operator

Thank is of line Company. Josh you, The question Benchmark Sullivan next from with Mr. the The Yu.

You may proceed.

Josh Sullivan

quarter evening. Nice here. Good

Will Marshall

Thank you.

Ashley Fieglein Johnson

Thank you.

Josh Sullivan

be kind see renewables do to more on or Do newer those this comments the given think just retention, extend of dollar some of level you'll you think sustain scrutiny net often? you spend. customers you the of able might as more far As

Ashley Fieglein Johnson

Yes.

to that made be it both aim XXX%. really renewals our into and Board, that. the I been success with as that visibility the operates for that be to proposition sustainable. is of rate and expansion. well dollar making with and us on we in our as customer north kind best-in-class given broader working of think we net teams in And customers And think having that the now, the impact across to value both we're levels that we the usability the drive we've Right the have team retention ability track good the business have and the of investments products are a product that should drive investments

In note headwinds macroeconomic of to the could not the basically we're cautionary terms the I say, immune environment. about

drive And so to our understand obviously relationships to to value. But are and the for there the scope is whether with we quarter are working remain with other customers our results strong relationships to themselves. the them continue speaking in ways

Will Marshall

Yes, just time I same could our time tightening. a of little the just more bit the budget is, same of commercial add seeing But why that, commercial at at but some yes, we're side in a highlighted that's bunch also new sign-ups. we

and a here. it's side secular is And really mixed back bit even I to digital sustainability there. driving if we're little story excitement So grow are But continuing more, commercial transformation step overall, a transformation on the year-on-year. there still the tailwinds of

so that significant with in small in by one. a matter what. small opportunity, long-term, you if see the commercial can potential they're three do these example strategic only And wouldn't the bullish they us another this of again a leaning on I remain And leaning no was example, a partners

So the as of from I them that's opportunity a well. recognition think

the bullish on So this we remain in long-run.

Josh Sullivan

timing we Great. And procurement comment then quarter, of on of those the think back-end? just in the how the layering of cadence should the

Ashley Fieglein Johnson

You're spend the asking side? about on

Josh Sullivan

procurements the Yes, in was you just comment believe of some a quarter. I timing on made there

Just back? should expect curious we how those coming

Ashley Fieglein Johnson

Yes.

will I we I anticipate next quarters. that couple As catch-up over said, of the

at Analyst Day, we've about the those this we closely to are are be items bit the our are which a lead-time which - long risks. understand We with see teams working where talked there could

risks We will agile and when prefer comfortable that we which quite are any those the it. want very in procurement to future to actually we operate it as where relates be so to procurement. feeling And mitigate problematic we're not need

actually us in next can that on will integration we our be couple quarters. catch lower spend gives a that of with vertical and So we in lot But the flexibility anticipate the of front. our up judicious quarter spend the do

Josh Sullivan

for Thank you it. time. Got the

Ashley Fieglein Johnson

you. Thank

Operator

Craig-Hallum. with the question Van Mr. Sullivan. is from next you, Thank line The Rhee of Jeff

You may proceed.

Jeff Van Rhee

for taking Thanks Great. questions. my

the here. Ashley, to pretty Will, the looking of sure what satisfied margins. you're I'm lot love Great you're at job. team, a with job great gross

On the on pipeline. standing growth pipeline, I'd of I --qualitatively Can what's terms pipeline out quantitatively the you questions you have of just some overall just sense love the quantitatively talk, can quick the two really year-over-year? in pipeline build? And if in

Will Marshall

Well, really many side, fact, on deals, seen quite about the I'm and big pipeline government overall. be our commercial so feeling to never Both the honest. I've good in

which $X that is counted deals than we think many. greater I in pipeline, seen our quite amazing. never million over XX pretty I've

big these deals, course, of so time. take they some So, are can

not may an overnight so feeling is have it the it. strong, incredibly but overall, So about good we're demand

Jeff Van Rhee

How are going figure deal to eight be? is

Will Marshall

We have lot - they're them a happening.

we do would Ashley - you what answer So, how that?

Ashley Fieglein Johnson

Yes, procurement to which the that, for see would variability deals that news and very these often are helpful at answer that, But fantastic how I is the procurements the And to that as them fact pipeline the also long-term. see tend outset signed have quarter-to-quarter quite on we in really the the - these would they see multi-year them with know as our challenge cause to up good they is the that business. eight-figure are Obviously, for us, we closing relationships we is are cycles longer the be bookings. say can them. I and

Jeff Van Rhee

sense. Makes Yes.

With had the partner meaningful heavy you've guess a names can partner Do to way, mean, other you partner I partners there. Microsoft, you Accenture, you a led influences. are share? - partner mean right influence and deals? I obviously And I partner then front, are question weight measuring already numbers influence one lot already of you quantitative have the any From just it? AWS, measure going I on mean, how

Ashley Fieglein Johnson

our large both. a Yes. we're in quite or mile lot that are fewer are of And interface we solution cases bringing and partners or use a customer last geography of of what partner a them to deals fact the number building partner-led. of influenced, case But call customer specific in that partner the our kind that are particularly

a have robust do partner we So ecosystem.

partnerships, strategic making partners really a larger As we fewer them. think about in with view We're those these as opportunity. that we're early days this bets

what's signals But these to thinking in and these on report exciting strategic Anything add see, there, of as due sustainability Will? you this alone the of high you want we're we'll to relationships which the very time. names be of tailwinds digitization progress as not these So to big a opportunity level that over seeing economy. very at able

Will Marshall

it's think No, great. I

Jeff Van Rhee

Yes. Good. Thanks Great. taking the again. for questions. Congrats

Will Marshall

That's -

Ashley Fieglein Johnson

you. Thank

Will Marshall

Thank you.

Operator

question Van you, Thank The next Rhee. Capital. [Operator with Mesniaeff Instructions] of line Mr. WestPark the is from Greg

You may proceed.

Greg Mesniaeff

your bit just this sales know on win sales wins significantly significant And had down? ramp expect over thank and year-over-year what that expense guidance was marketing sales you're see your it quarter. are a Do and in up, as people focusing but and pretty guidance know the you. your the up you force I at give continuing how on $XX you you Do marketing slowing see Can you to accelerating? for and of going do force. marketing, you've I was number on in million sales more Question give pretty didn't intensive Thanks. wins Yes, any ramp fact incremental see given little color forward? those you How and us that deals? sales your on a levels. you non-GAAP sales partnerships.

Ashley Fieglein Johnson

so. didn't there our raising infrastructure. the wanting the the ground Sure. organization, significantly investing question. even a been of geographies number where a as aligned for to vertically on capital we've on out, we street, you public because sales do feet point enough more were weren't have before sales we because about went large that we reason Thanks our in We the in talked AEs to have And yes, was for just

been comes support a we've adding with a that make that you on lot need front, So infrastructure to successful. and that

sign to to we've customer ops ramping when And them The sure and making also engineers. and success, now customers, as as that scalable value that from sales in are SDRs been scale getting the teams everything sales goal make investing sales we our to on our these in multiple possible. there the early So process is we're infrastructure. ways

lighter automation building continued customers into product easier teams. make the the them of for it that is customer success the through on-ramp touch to to to and we're it for One make

can So a cover customer they broader base.

is The other programs. through way partnership

well rep be sales with involved on process. in now, our again Planet touch onboarding we et still - right our more not, become a lighter of the So advanced in the Ultimately process. say, the have majority would involvement if wrap can the most I as the sales partners customer products vast cetera,

year, So focusing last the we've making be years. sure get on over we rapidly been scaling coming we'll obviously over the operational scale

Greg Mesniaeff

at sales And some we Great. marketing the the scale in it rate point? little and the of saying could a sounds from growth expect what taper-off to given you're in business that,

Ashley Fieglein Johnson

needed target drive first to which We continue And as up. and operating we see to percentage our we'll taper sales as margins. our of revenue, percentage targets, Yes. of it revenue, drop. we to a Obviously, that we said as a to start see down long-term then ramp marketing provided scale, would

Greg Mesniaeff

you Thank that. for

Ashley Fieglein Johnson

Great.

Operator

you, & Mr. of the Harry next The Needham question Mesniaeff. Company. is Wilmerding line Thank with from

You may proceed.

Harry Wilmerding

Hi. Thanks the for time. taking

changes And of quick although sequentially customer light, next growth converting XQ first customer seasonally we Whether quarter? about the like out the question on it year? add on the how in prospective Just the to there. as half thinking also year, looks is any in a enter customers are typically you our call

Will Marshall

was first it the say? did growth So customer you - on

Ashley Fieglein Johnson

count. Customer

Will Marshall

Yes. by dominated primarily accounts. Well, smaller that's mean, I

being very and And accounts focused mainly and that. are strategic about so and the the large disciplined on - focused reps they're

the and added. that is. not research there that's So a education closely some some small deals few tracking with off not was that - where dominant revenue because fell on We're

say thing in is is - main we're I which focused good would growth So revenue that on. the terms, the still

Ashley Fieglein Johnson

Yes.

we're where obviously, reps opportunities those opportunity we've some expand. nice as added really we underscore, customer and see wins said, as sales really focusing land the is to that an to Just large where and Will

pointed out see which as go projects year. research, the and cause out go Will smaller called to will last in with you up basis - you seasonality education that may that and numbers can some On some account down, be there

concern of deals that quality and So smaller focused scores the less the across a on count, board numbers the it's improving. numerical Board really on what really NPS size, is we're seeing on deal the numerical the - of we're bringing on

Will Marshall

Yes.

Harry Wilmerding

Thank Great. you.

Operator

next question Instructions] [Operator Ken you. Research. from Edison is Investment Thank line the Mestemacher with of The

You may proceed.

Ken Mestemacher

you taking my questions. Thank for

the Accenture Microsoft. and announcements three AWS on on congratulations and First,

how opportunity the of be on based company? revenue impact with on and we the year it my be medium colleagues should the that should some questions, financial how So think look? that, would might something And to tied than next timing we about more in your rather earlier thinking or in responses or long-term

Will Marshall

would I a seeing these - in meaningful they it as just huge nascent again how sign the the you But will expertise, scale our that they're in of year. the I but mentioned have definitely where that we're we'll leaning things of industry that relevant. partnerships, it I our is it's do lot and a and say know customers think have don't way. is just they in scale They big mean, see the fact see. of that are this next like different a opportunity in lot of year, but of change in data stack a revenue. lean after I a

amount knowledge with the them dataset to or market got makes the all sense. customers' incredibly got exciting a that. their that of huge They've together of compute industry to And going do challenges. help scale so the solve can We've

way the Does I that's it. think about sense? that make So

Ken Mestemacher

looking seeing second, news. touched great at how issues. and of the quarter. other these And is are earlier And you. margins on But would microeconomic inflation Thank we people say impact and gross mitigating Definitely. That's Planet Definitely. struggling. keep you increase increases You wage this inflation?

are to XX% in to you especially XX% next quarter? of expecting all So that to it increase light mitigating how

Ashley Fieglein Johnson

Yes.

that So depreciation which on the line, majority I gross would either a of fixed say, number. amortization, to relates and the margin is expense

outside much of Many contract services United lower able in service to success Our the our that basis. customer can we of professional the we're and a And cost hosting locate that which teams. of I we inflation wouldn't impact customers immune employees. have then we're cost lesser a on costs that of our to a to which say geographies States long-term cognizant place. in degree the on and has

be think about - procurements Day, are how we would maybe and the and supply I spending plans. there hiring where in is, think and getting our we procurement. thoughtful about I might of a we're in inflation and some Analyst plans highlighted say with earlier could higher very what constraints, those So impact I of where the focused both at our chain front have

on our and guess the I net that answer going closely what's thoughtful making sure is So we're budgeting. we're watching and about spending

Ken Mestemacher

on follow-up Accenture, Microsoft. AWS, more one the had I Great.

Just for a for a marketing will will - at of those lot reach you into to mostly trying customers? look directed be Planet? feel it to or how get groups by be good You doing marketing, three looking

Will Marshall

itself of And forms in Definitely us. Yes. Planet leadership marketing these speak and this. seeing in helps we're and their lean is in stuff, part of about so high level companies that of

and again, really excited we by so expands So it I expand them reach think our will And we're our see help. reach. Yes, broadly that.

these and that well. their that to both that our insights see as our Variables have well. notes. into out the quarter would important incredibly reach a that they how of to recently And in number initiatives I the into and beyond awareness products sense various them this a Variables note powering our came as economists that got of expand Planetary Bloomberg magazines Planetary that things finance through sector and just are couple bringing leveraged We and

how cool So I see to you being those, to encourage and look just the a tip that's iceberg. have at that's quite it's of

tip piece, with some of - it's start the the that but Let's potential. of think marketing iceberg I the of

Ken Mestemacher

good It's some exciting them always Great. really that's have great do marketing to news. us, - for

congratulations... again So

Will Marshall

lot this you. free of we on page Thank the York add today, sort front Times get of New again advertising The that a anyway. are I just of to was we that going

Ken Mestemacher

congrats again, for you my Well the questions. taking quarter great. That's and on thank Absolutely.

Will Marshall

You're welcome.

Operator

Mr. The next is from Goldman with Sachs. of question Mestemacher. you, line Thank Poponak Noah the

proceed. may You

Noah Poponak

you can me? Hello, hear Hello?

Ashley Fieglein Johnson

can. We

Noah Poponak

is going? How it that. is How Yes. going? Sorry it about

coming through, speak It to to nice but wasn't you. that. Sorry about

for EBITDA EBITDA last profit range amount. quarter decent EBITDA for to out cost to have guidance lot up your sequentially quarter, EBITDA gross didn't sequentially sequentially grow up so be revenue down revenue the same and to your range, at quite and to the get the If Ashley, between to you range. operating be to guidance but And that into guidance be down. a next revenue had gross into a play EBITDA I margin the way be guidance go

happen will the So and quarter? the that fourth in actually what's dynamic there why

Ashley Fieglein Johnson

on of then procurements. lower timing some new was the of on side, there And there say So as the across I timing the mentioned Board I'd in spend was QX hires. R&D

So of saw some some QX. hiring that what anticipation and you catching of the to spend that in be is, QX and up is we'll in

the that's primary So driver.

Noah Poponak

around that on it quarter-to-quarter, a out it? onto of That Okay. basis sounds would be would smoother, pretty getting that much like be I and will planning but longer-term it spending bounce you're can that type think you laying

Ashley Fieglein Johnson

Yes.

some do On waiver our capitalized. system of R&D newer gets incurred, we being procurements expensed when side mode for that opposed in the space to fleets, as as

to the you we ground that spacecraft see, those if why of quarter. spend that make. some quarter So just in make that's than If large for moves we from procurements other stations, a purchases later can procurement come

it are capitalized R&D gross mode CapEx just be run through we in as those that expenses. And capitalizing DNA, dynamic through it's obviously would years. obviously fleets so smooth of R&D into yes, a in lumpier and mode, primarily future of margin So, it and these little bit because as move out while out then will

Noah Poponak

doing feeling about And to ability for two growth revenue here, Okay. about your How EBITDA? to organic total compared months then end. how are are of And to you're Sure a feeling you planning the this breakeven next next year. towards year's through march quarter year? you're almost company the lot you year fiscal

Will Marshall

bullish the Extremely discussed, and across and the intelligence. execution the sales both pleased the side Well, about company and really demand the side. the strong, slightly for I team's pipeline product is segment, tailwinds more with civil overall right we feel behind very just on segment. cautious now. very And government we Board commercial the mentioned marketing the reasons and example defense, and The on the earlier good

feels guidance similar that we like the set last for call well so provide next will And year earnings up on we're year. to next

Noah Poponak

Okay. right. Thanks much. very All

Ashley Fieglein Johnson

you. Thank

Operator

closing questions, session. Thank are Will I There Marshall to it concludes Q&A and our back turn for That no remarks. more you. will

Will Marshall

emphasize like points to just Thanks everyone. today. key call the Thanks I'd for to of just joining conclude. a couple

proud for tools leaders clients. demand acquisition technology for our solutions. and QX into I I'm really strong, Planet's deals think leaning Sciences. critical global results their those mission excited the see Salo great the touched strategic partnerships. of durability and So of solutions develop It's to upon our our underscoring very also I the to that were I'm sales new and by

in As while in to see exciting. carbon I maintaining And a mentioned, Variables, Planetary continue a to environment and our focus on finally, current we our the profitability. critical that's transition, so confident long-run, element we remain macroeconomic invest despite sustainability the opportunity, the and the

for everyone today. thanks calling in So,

Operator

you conference call. That participation. your the Please for Thank concludes of today's rest your day. enjoy

Planet Labs PBC (PL) 15 Dec 222023 Q3 Earnings call transcript