PL - Earnings call transcript Q2 2025

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Operator

Hello, everyone. Thank you for attending today's Planet Labs PBC Second Quarter of Fiscal 2025 Earnings Call. My name is Sierra, and I will be your moderator for today. [Operator Instructions] I would now like to pass the conference over to our host, Cleo Palmer-Poroner, Investor Relations at Planet Labs PBC. Please proceed.

Cleo Palmer-Poroner

everyone. hello, and operator, Thanks, This is Planet PBC. Relations Palmer-Poroner, Investor at Labs Cleo of Planet's earnings to second fiscal Welcome quarter XXXX call. our our I'm joined will and of who Ashley and discuss results today by provide Will a Marshall current outlook. Johnson, recap encourage release earnings press which available update the Relations Investor call, and on today's to our reference for website. We everyone are earnings please presentation

or Before statements related forward-looking we may we make begin, we'd future like our events to outlook. remind everyone that financial to

that plans, statements a leads future not pipeline, can risks Planet that based inclusion various which representation as expectations and and plans, should represents contracts. uncertainties information also as and forward-looking will at in yet projection. not forward-looking We reference found Any sales executed by which subject Such filings, may qualified are our on potential SEC assumptions to or management's estimates, regarded The have statements are be forward-looking www.sec.gov. detailed such be current of outlook, estimates, be expectations, achieved.

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

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

performance key release to more the and update industry. by detail in earlier and call to afternoon. Further, time, performance press key you, see other on are Co-Founder. financial in intended a our information the used issued in this in indicators Chairperson, accompany provided reconciliation the remarks. At our like our by These Will our CEO, earnings competitors more number often throughout this our call, of turn this to which used press indicators Will. provide Over management release please we tables measures, to now For over and prepared are Marshall, Planet's discussed and presentation, non-GAAP I'd

William Marshall

hi, Thanks, for Cleo, call and everyone. the today. Thanks joining

driven all were in fiscal quarter better record the quarter For than sector. Non-GAAP the achieving results year XX% $XX.X EBITDA we strength government in in persistently and XX%, the representing of EBITDA was margin revenue, call. QX march $X.X a marked EBITDA gross our sequential was as improvement loss second line fiscal million. of by was QX million year. quarter by generated XXXX, year-on-year adjusted on growth. profitability These with target in continued This this the earnings last adjusted adjusted we fifth or towards our provided guidance of our of for

launched first SuperDoves successfully new month. satellite XX with along also We Tanager our last

satellite launches, cover including number wins, product organizational All are and have the been commissioning. Today, and of a changes, contacted of undergoing updates. topics, recent I'll sales satellites

as our then color resources align in. Starting action so the and the will recent reducing improving well as sectors. opportunity Ashley with at to aimed areas costs. financials, efficiently actions business market changes. were geographies took seeing operating well most business These to our and go-to-market QX, need towards provide across the consider we're demand on are and and trends our more we as which accelerating efficiency. of In let's organizational improvement, as our improve growth simultaneously We which dive operational

product sectors to and focused help drive business industry-aligned strategy. groups creating We sales specific both are on

difficult but Planeteers, part in that parting cost XX% our with to was ways improve us resulted a of reduction a headcount allowed approximately very meaningfully of changes, these As structure. process we our undertook that

We expect profitability business. sustainable the of this growth and support new, operating the will long-term model efficient more

on these new with model. she go-to-market to additional as go-to-market her provide architect will changes oversees our Ashley shortly operating capacity details leaders President as this our teams and work in

U.S. of sales of Defense around our world to government customers Let's a of are for turn to customer which vertical our increasing indicative partners. unique seeing in from now highlights Planet, delivering revenue the solutions some few we XX% we and from datasets the to sector QX. a the than Planet's year-over-year. the Intelligence & quarter, with growing for both quarter wins are the with I'd in The industry and strong continues be like more interest the we're highlight saw international

time new During foreign heightened or monitoring of a infrastructure, and military Communications program, The Alliance to intelligence alliances our multinational to monitor NATO developing both we analysis security, Persistent we will with activities, and Space partner solutions and Planet's & area We're deal enhance closed the conflict of global Agency's look Information from Surveillance APSS, NATO. and to to proud broad evaluate new quarter, fill gaps. global perform using relationship. tracking with this forward detailed tasking reinforce in to

a deal, strategically view we While it introductory important. as is this

and SynMax Additionally, pilot data customer, from domain enhanced capabilities we for AI with closed partner defense maritime an our awareness. a high-resolution deal which for includes X-figure expansion tasking with an a of international PlanetScope

capitalize enhanced see to repeatable model recently solid calls, and with significant thus city scan SkySat activities. use speed The of Planet ability local demand has of moment Bahrain service and aligned that this value. Overall to great of trend XX% a is for Kingdom I'll growing smart a world. Last strong, month partner, we be could Aetosky, growth that led in Defense using time the Planet in customer revenue previous and our gather year-on-year sector that solutions This at We validation compliance. in building announced remains our QX. we a our in effectiveness from & increase land country. that AI more is civil support a CIVIS, is to highlight this other Road, are Planet's using cases of support government take to titling, Insights for across On the and repeated with Bolivia's continues the initiatives couple be planning and also of geospatial to the highly a far, management urban on part government Bahrain in new sector around announced nations over in using imagery seeing. Progress AI on we is efficiently market. to provider use the in we're permit platform will of use, the civil industry management to reported momentum further on Planet a operating believe AI intelligence case Intelligence discussed cities with data example daily our As the agency partner that emissions and INRA, land

and base also Colombia. We monitoring maps planning use for scenes AI Colombian across and introduced utilizes land and IGAC, which PlanetScope cartographic entity, the infrastructure

who Road the Ashley, in on event her On attended The show shortly. Colombia, will reflections

discussed we and broad time that to our with Finally, growth customers building allocations international in refining government which service and for our observation The resolution data our focusing experimentation expansion solutions sector also the of resource model, for in the out enables save tap way. tools platform we a building seeing are top partners, we headwinds experience green in government friction both data. Under the lower on solution platform global July. Overall, agriculture customers our and into on customers. We're opportunity calls, and customer to on market another generally valuable to an data, and operating the our our partners and believe for these penetrate macroeconomic and adoption of high market, resources agency Insights new platform customers efforts cost partners globally. the where is seen while provides a we the prior area driving see but and solutions commercial our SkySat sector. Shifting to small for potential management ability of lot in a we're us platform government we in to challenges civil broader scale, Earth further automated our the our X-figure with we've scalable we've the reducing closed at Leveraging specifically. solid which previously announced can sector, our shoots

share BASF, wins leader we structure contract from our the some long-term. To over who better have markets commercial Planet platform. we boundary solution agricultural quarter, in field position commercial with serve which to of the large expanded in the driver will long addressable sector digital and the xarvio customer expect upside Planet's to particular, a support the this believe added time We can be

prior this the like in seeing discussed our towards better transition. BASF aligned we shift business with at As applications new digital leading agriculture forefront we're incentives, and customers models are call,

contract, with beet expansion a and the brings Planet to in partner sugar agriculture northern partner, management advanced harvest States, We to with product monitoring will decisions. This Sugar SatAgro precision United also other yield Sugar for and crop Under company. renewal announced recently updates via progression, a prediction, us Crystal to data this Planet enable insights QX. Crystal including provide American SatAgro, led use American

scan, you successfully this fleet XX as very first We're I'm SpaceX Tanager few first PlanetScope light. On August I'm As that to into kind we and satellites X have satellite for months been satellite. commissioning towards many a saw, XX. hyperspectral made that period of mature work all weeks a that long we've our on of the we progress the vehicle first Tanager of daily report our launch XX proud launched pleased onboard SuperDoves SuperDoves, supports its contacted.

largest nights fleet into missions the I to in first days, The our Planet's worked production going X for are these the and light rapidly thank history record a to first that the data. imaging differentiated constellation core and earth weekends in this and team and make mode. happen. global want This reached launch basis remains they

the are the Pelican-X in preparing we to Finally, coming ship satellite months.

imaging to of With AI generation including communication to When plans value of increasing GPU generation resolution, the which technology, reminder, our insights. fleet, Pelican Jetson next compute customer has spectral actionable quality, incorporates potential and its high significantly predecessor this has to Planet delivery design Pelican-X shortening the us enable edge continuity GPU, our with As by resolution a allowing time over the XXx, satellite. run NVIDIA's SkySat, to the decrease onboard next enhancements program the value paired time by capacity. in image The module. latest bands, and program enables

Planet's expected approaches. In we also rolled class XX-centimeter will improve deliver temperature the powerful tool a launch updates temperature be crop daily We to with optimize expect monitoring, with software practices. agricultural part Pelican-X of XX-centimeter up our crop tools look rates. can a to Pelican-X on education we growth recently program surface use resolution will variable and resolution sharing products, imagery crop date can already to progress planetary specific satellite to as as offer the Together class infer surface areas. Pelican resolution. these to customers in customer how and to land out regional predict Finally, to models use forward ultimately on Land growth that specific

Our our steadily to remain executing profitability. the support sector our that climate trends changes while value we're Planet platform ease customers we the security a EBITDA help focus strong, that reduce for and industry better Planet believe we strategy increased to continuing providing on our global we're needed sustainability tools and opportunity operating of heightened market and government significant capture model customer improve towards The commercial aligned requirements, better sector, to time fueled the we're risks. In summary, the seeing needs, to adjusted making progress use. In in new continues on strategy can implementing across and growth. by strategic position

like leadership by your for Ashley. over impressed all I'll and our the Over I'd team of around enthusiasm. now commitment continually it and thank turn our of to say you. members to Finally, to the Planeteers pursuit in Planet world to innovation you I'm mission.

Ashley Whitfield Johnson

number from at Road a the off Thanks, The events past of customer launches, our new technology by of and, events, around especially On sharing has I'd to course, of realigning Will. like my explore busy quarter The globe. been business. Planet reflections start customer our some with

collected our the tools. We with partners and infrastructure to broad enforcement better of assets to solutions. DC, the from and in the Solutions energizing Brazil partner, the on of software area August, as stage as to which approximately with highlighted been billions Bogota, stop our It's and data MAIS was accelerant since an that to insights pressing critical management unlock heard our at program, customers data of deforestation. and and the and from figures we can from Amazonia. a support using our partners help they've program some monitoring, Planet not dollars with about growth. platform of for Planet are how the we value million understand for they're hear and solve for the other with in enabler SCCON, for them ambitions we to on XX% offering time SCCON from us to seek greater to funds been can services time solutions truly to work to event, inspiring solve and deliver Federal that place, countries to customers so showcased our a their neighboring shared to spend first suite our the also combined hosted summer, not joined their Planet's magic, Police that problems but and the quarter. the the latest where our capabilities impactful to Federal their events to paired challenges. governmental Washington America. At has U.S. wide $XX.X financials Brazilian which we Insights and illegal about talked from follow. as solutions fiscal similar Over Planet's most came data substitution that understand to do for land this using platform roadmap law the XXXX uses Police They spoke announced of Berlin, and platform as build, Bogota Brazilian This AI year-over-year XXXX. They all they with range fines, partners ideal frozen and for customers. In second practical to partners for from partners secure speed programs path the Revenue goods, our in but countries in our represents directly customers countries a a in took to to representatives talks We program and the record joining and for I ROI a them. I'll all customers Latin world's for value forest partners cases personally topics of customers It management to all now quarter a turn series what protection on partner's ranging new over for seized use from

specific serve. in focus, we direct groups leads with to global singular sectors product to in As book that civil that sectors shape help new end, by and for defense and by mentioned, mentioned industry believe we've we the second both Will, sustainable and we've macroeconomic will enable Will government agility, assigned all and with leads sales help quarter model commercial operating These revenue led drive and the strategy while see market. year-over-year and team product government, will was of a commercial continued the the go-to-market growth business strategy. growing go-to-market greater for the To our agriculture we better growth customers, headwinds business alignment priorities across sector. Under customers, intelligence, aligned and our that

of a EMEA this customers more enable XX% over better the efficient us during geographic revenue a new will needs with expect serve the second to model. From grew our quarter, structure perspective, We year-over-year.

while over sector. in defense offset grew year-over-year, America revenue year-over-year. was in solid North Latin year-over-year reflecting Pacific by commercial up over team drove modestly in Asia growth intelligence in on the growth of XX% basis, headwinds a XX% and America Revenue our

multiyear QX, teams verticals focus change was customer our our end the XX% our customer our in our in sales our of to of count end of As business, reflects period of of or ACV the of Annual book our period more customers. customers Contract increased team of platform of partners. Recurring XX% count The purchase to ACV of was or and X,XXX focus marketplace larger consists sequential smaller, end of product and the or end on business of customers Value our ACV of enable of core direct over period end through transactional book period contracts. annual

a weighted ACB with continues to dollar of at was retention rate length Our XX%, years net average approximately backs and rate on QX dollar was end contract XXX%. X win the be retention basis. Net an

some headwinds for commercial well rate in that sector. retention dollar for quarter pursuing certain the opportunities we partners net the with with experienced Our we're as large reflects continued delays bookings as

reminder, of retention net reflects months this our year, a the dollar rate As at contract in X point renewals.

retention Our year each course rate XXX% toward at year fiscal our net starts builds a dollar the final through the full year then of result.

expected, was we've XX%, Turning which was benefits in originally from Non-GAAP another to partner new largely sequential margin. adjusted loss to gross EBITDA. EBITDA was we than deals by marking guidance our made due our as QX, of structure. and quarter efficiencies was million the investments cloud in part the to prior as go-to-market mix had for cost. Adjusted increased gross The in $X.X optimize better leveraging aligned solutions margin infrastructure of expected the than industry improvement upside margins for to second well better quarter gross driven

As noted, more reductions in operations. effective and our efficient becoming our service more we teams Will in QX of in to made global

result, to As rate million expense we expect a of run an annual estimated achieve operating savings. $XX

expenditures, incurred reaching fiscal we for Additionally, align approximately year, the by reductions this our $XX.X of including EBITDA of development one the this the were fourth to restructuring track million and remain profitability to during quarter. quarter million charges to quarter. The time achieve we capitalized on nonrecurring the adjusted with commitment software important related milestone. Capital $XX.X

similar we and expect additional in year, CapEx in anticipated QX. the a remain and Pelican to the level QX at Tanager programs With investment for this

our behind invest Obligations we outstanding. At XX% flow cash or and $XXX million to initiatives approximately a Remaining which QX, to to capital, months the $XXX cash of break-even achieve next Performance of investments, capital with and and provides and without Turning to no accelerating X which continue we RPOs to additional applied end short-term next cash, the the equivalents, our still quarter believe approximately have core with growth million balance raise approximately sheet, ended XX% sufficient we were to of the XX debt needing years. the us

includes XX for and federal contracts which of next XX% to $XXX years. million which the and customer which next apply the approximately occasionally XX% approximately termination was X common to U.S. convenience is the backlog, contracts in clause, Our our in with other found months contracts

renewal. is up As fluctuate quarter-to-quarter as multiyear revenue contracts a reminder RPOs backlog customer for contracts against and and can recognized come

the between and XX% me Let for million million to XX% growth our expecting turn $XX represents XXXX. $XX which of be guidance now revenue to We're fiscal quarter third year-over-year. to of approximately

for We expect XX%. margin gross non-GAAP be QX and XX% to between

impact reminder, quarterly fluctuate gross on inclusion our a business expense As prior on solutions the related calls, satellites based discussed million from SkySat contracts, that mix can reflects expect we've $X.X which our of customers. Gross higher the margin we be and depreciation in margin of X particularly with government the approximately also partner guidance completed our the will of during of quarter. to

the our EBITDA $X quarter million expect be for loss adjusted We to and million. negative negative third $X between

for to well as PlanetScope million in our of our approximately generation for our planning million the fleets are QX, next capital $XX as $XX in expenditures reflecting investments continued constellation. maintenance We ongoing CapEx

remainder continue to we year, to government of demand the strong signals Looking from sector. the the see

of and incredibly and Planeteers close and QX expansion. I'd in significant see included with our wins, which saying and size to healthy, civil of of of opportunities remains timing X area of performance for of both value we're X-figure and a globally. our to were broad customers, room where and the although abroad, proof I'm the pipeline we hard representative customer Our predict proud opportunities, it sectors government wins. We like of and multiple that the domestically solutions, government both intelligence the pursuing international pleased points large and large and remains of and by high NATO cadence range our commitment demand opportunities defense

strengthen XXXX, customers in support As and us award and believe Stevie larger honored even consistency, predictability, categories a fundamental led concludes once our today service. We greater commitment team talked of multiple both our to priorities business comments. efficiency are government now while And for further driving technical strategy again partner the we commitment to sectors. Operator, testament we the prestigious the our customer to We time, about to and which the data a teams to growth we sales consider changes that and will in see commercial enable scalably. as award opportunity market we customers, also platform our our our a over winner take to tap into believe us our across for key accelerating that to will enable that questions. our can was our

Operator

& Our from with first Ryan today comes [Operator Koontz question Company. Needham Instructions]

Ryan Koontz

you in takes the the I well numbers, as to regards going terms housekeeping -- quarters. last segments? as first of sequentially different some unpack down see North the what's some down of Can Appreciate puts couple in With on on America kind across and RPO of quarter that. there actually of

Ashley Whitfield Johnson

Yes.

to cannot that simplest just have we time. the whom larger There's entities, you think -- a X remind government to answer opportunities I many just renewal. of year a is is number with sign particularly more at baked-in of than a

in that lumpiness of new so think generally driving backlog I of can business. that's create timing and is what quarter. this some And RPOs And terms

rates U.S. rate. what's In is growth In growth of the terms by North impacting the performance America that specifically, geographic the commercial

Ryan Koontz

there, gross it were reflected in quarter that as of that down nice recall strong really in past some and terms terms the some packaging drivers of in Can you as well. margin that mirror in gross unpack bit as the from I little of lot us solar products improvement a in margin the now? well Is weighing a of of write-offs rearview storm. quarters the to the that some partner the of for see guide the in there? And nice what

Ashley Whitfield Johnson

mirror. they've QX, benefited, the driving referenced. which and of cloud into actually QX of margins of into our been continued It's teams gross engineering infrastructure. software there's The from our rearview bit that a one, tail the performance efficiencies I in the a getting into That that and

is driver business. mix Another of

see mix quarter that. the the we referenced of new as sold goods a can of result on that depending of cost includes business So fluctuate partners, as in you

So given. that gross And again, data business the to margins of as continue one-to-many drivers another had is we bringing we to then new expand. customers one that previously model, core our versus deals guidance allows the on with our in sell

those So the it's a factors in combination of that all quarter. upside drove the

Operator

comes Northland. Latimore with Michael from question next Our

Mike Latimore

guess guided Yes, in of gross sort just in kind with I to margin, good you've baseline level that of for XX% that sticking that I it going third Is the least be think the to quarter that think, to about range, a new XX% here. should be at forward?

Ashley Whitfield Johnson

which how I that targeting we the sign mean, business it. that's we only that's deal depending is we on for larger partners. certainly and of bringing as pressure could we give were we're But sign, I and a a very Again, caution scalable prime more that the includes we're model. to mix would to on business move yes, obviously, forward, platform, other the see included we if were

times other where weighing might see us down. out costs partner it helps balance we that So

here. improve that's So certainly ambition sustain and is our to from

Mike Latimore

And be in great. then, an you've quarter? that on you give on? working Just the many you have third just would in been can you quarter? that Do an update the pilots the any second How have did update on

William Marshall

Yes. that I'm to a bit. speak happy to Yes. little

scan, of on PlanetScope know, already. our we've pilots been done for daily you as year So AI we've top this a couple these with and doing

overnight, good we're foundations the have that. making operational build into to doesn't importantly, to later expect progress on happen which definitely most vehicles, And We then those more but year. building this we're

Mike Latimore

or there, just on stabilize do feel like guess on last year? quarter that third ag I The And the sector. fourth basis headwinds a sequential does you this

Ashley Whitfield Johnson

mean, from I partners positivity we customers. our and are certainly hearing ag more

benefit can so. and as we've get good from were customers market really about referenced So a certainly of a solutions. And I'm a this got products number optimistic whom on some lot of that space, Planet's that call, of that in

William Marshall

the Yes, benefit as yields, like and I sense is incentive there share And way alignment towards as costs, can tools that's all therefore improve BASF optimism the I that model think can And we're that's that business and fundamentally moving that mentioned, we this to from these sort where to the decrease BASF, that our And farmers turnaround. and like xarvio. overall data of beginning of the look, important. Ashley sector increase profitability. And the leverage customers we and see begin a in have do, I right remains.

long-term we market much So believe still. in very the that in

Operator

comes from Liwag Kristine Stanley. question next with Morgan Our

Kristine Liwag

on a follow be the worth contract wanted to program to said overall the color size structure Just you that what's contract. bit NATO that that $X you Can I around provide could the a and you? like, apps program won, NATO the little addressable NATO had billion X opportunity? think combined up the more of like over years,

William Marshall

operating across proposition great it's this think it years. opportunity question, very at picture the and it support, We're Yes, being as X value to The benefit what threats sort I significant about firstly, up partnership. gain right. share data size, over data think from that, that's they the end governments beginning to to that they a between program Planet it. this about very between But information mean, will $X operating your about of unclassified so an we're understanding. To for yes, areas NATO excited so it's point common It's of committed and our and excited billion and alliance we're very I that have really wide introductory exciting ramp. and can course, we have can from our shareable, broad of allies. assessment of also With NATO means common that interest countries can of different a

Kristine Liwag

when are then a bit curtain peel what's what second guess, your contributions back -- the latest have you little on expecting the from of sort And we early the we Tanager? And launching about launched, satellite? first I I this first satellite thinking one? now do mean, you

William Marshall

build now the mentioned mean, of satellite. first And to I the firstly, part is early that to see and starting Yes, an its mean, incredibly have Great. and as to really fantastic that commissioning. work. I commission It's worked satellite I there teams progress hard

mapper, have is that that we're that X already about there, been we've opportunities, ag about revenue as and people use X operational the NRO, very and on, up. which and And vertical dozen customers hyperspectral others for that and expand companies can mining program, that oil gas a in data, opens is our But case that the mentioned have of think we entities. I also, We've a excited at markets fund to data, large with form -- buys other carbon the exciting. we before help have so companies and that get Office the working the early work that looking the an that the we use where developing And got we Reconnaissance we such we the multiple we doing nascent that this As market, that foray we're believe it, we've is into of use It when producing the start imagery our small contracting those cases National can vehicle operational building but environmental methane is data, number one that also exciting of it's first product and markets. a start opportunity. cases operators, data.

Kristine Liwag

I like wheelhouse years of to to [ last question that, the And X something spend seems in. over $XXX in mean, labeling AI NGA million like space if imagery. improve I your exactly could I squeeze the that guess the for next announced ]. plans

contract? think on winner about you do So be the would How for opportunity takes do talk see really sizable carrying you this perspective how sort all this of a about multiple pursuit? Or and can you timing for type you any of helpful? position this your vendors? is And

William Marshall

of We language are not track the able of models is we or that. we away more method towards data. of closely technology and different, is from of Generally, mass be labeling, do Yes, These foundation right? particular X on opportunity more X with automatic. where large Obviously, labeling what shot to scale the kind learning, models sort labeling have is shot data, moving to is focused do. that That NGA. work don't which don't more which you very we absolutely

large areas for for fits into profound better foundation be able models other look think threats like I to So the set on, which to these do combine we to is opportunities. new over so contributing where and more things our with be place data us

Operator

with Walsh next question Trevor from Our JMP. comes

Trevor Walsh

go-to-market Ashley level areas. that Understand at at leadership primary had of you've new or question got top kind of, kind mentioned. at the just the the of Will, around vertical you changes, each

those deeper, diving of plan those, folks. of before kind those of or of of and day kind kind what leaders in be sort little kind units each just a kind of to that's kind curious business will focusing what of in XX being of how Just new is the on run exactly for XX, XX, were maybe maybe different, addition

Ashley Whitfield Johnson

year the really Again, Yes, thanks around that work aggressively actually question. our just it's deeper taking a we started more customers. and more aligning towards of last bit and the for moving

about we ago, customer verticals. year talked to were fact we our the that these teams a So aligning sales

of kind alignment and and focused really balance needs said, was broader AE's done very we those how of resources at on on to that should the that is kind teams of So the product and of was What well really, commercial going meet customers we've behind as we're customers directly. our of organization of investment be are serve broadest that how our our the alignment our thinking line. demands these array about looking and as the

the the really nature that's So organizational changes. model of

own and of the to in on the their all and In that initiatives terms book people leadership, leaders accelerating the so lead product of sales partnering these business. strong to right, are focus these existed of in were really the already growth company

opportunities accounts, of existing means and is our development And them, product sales renewals and most can so targeting both expand execution be that we robust pipeline strategies too. our the the really about to that where thinking the

those that's we lot drive able to the had frankly a and quite of organizational versus into coming that, honestly, upside achieve we of changes. were with efficiencies And nature So on efficiencies quarter. expected the the what

William Marshall

that got focus I as If only the with that quickly the vertical product, have quite lead the think of their really think we've other and question? and I as of quickly ] growing I Ashley book going sales and for will, better singular growth business just seen. [ can teams going add efficiency Any was it really they operational I said, to both and to saying, got across

Trevor Walsh

Yes.

one last from me. one Just

of I'm about know larger those. talked you've the talked guidance around, timing So XQ actually, the you've and the and especially just just I beyond, just getting pipeline contracts previously challenges around government -- for the about it the this those that like and like you looks between of to contracts deal it in you other some of then actually, looks quarter, fruition. NATO But some X-figure well. the coming as actually mentioned, are

little what's just So operational? kind gumming those contracts lack And -- now top-line. the completed guidance, full year on up A give it is of far that's on kind is little just remain of to rec outlook kind was the of I of front of getting the it is the a as kind the as kind as of you kind curious think the challenges broader visibility of of the guide. the about of that around bit where works kind bit rev a kind

Ryan Koontz

consistent kind then year, of at of I we what of the specifically in referenced. of that of even beginning with spoke what the it's the lot terms different opportunities balance a number Yes, about you terms those drive the different can having and actually of outcomes to in ways get

So revenue the through on of partners flows margin. mix the the also recognition, rest P&L. the impact obviously therefore that but gross And of and

the guidance. just better quarter, year had we how number going we sense in to is it a as that obviously in give through to revenue full wins and until we noted, business So to challenging driving of the year be what deals But mix But to it the quarter. are where really of makes great what getting close you position the know we progressing together a a coming these we need are are in them. for exactly do and

We continue QX. for strong to really have pipeline

leaders new very through and with the But this to bit the ability reaccelerate So of predictability we a a we've with call business the it kind at year P&L. remain the quarter these a confidence number being full point, especially taking growth. way all to able got at optimistic, time until more

Operator

comes Jason Our Gursky with Citi. from next question

Jason Gursky

be What you, did response And more bit gave helpful. about I the you this government, a a in a does know those how your could earlier, larger did pilots go? What more when the become did but you learn? pilots that some you think talk some Hey, you little customers Will, and comments were detail learn? opportunity might question customers U.S. there? might doing happen? for to I that D&I the How for

William Marshall

Yes. this. color Happy to speak a little bit bit more. on Obviously, little I gave of a

Firstly, and year the this broadly pilots we expect more to earlier come. successful, were

new at what I gave help They these actually, intelligence journalist broad that's with investigative we top why thing. you're Jason, getting intelligence at slides them. exactly but also Bhutan and I are disputed area with intelligence doing. The came find Times the signal, is for unknowns value one new think New our what we is China programs AI New analogous. take -- an to big an on the specific exposed using world about defense that where As DOD to know and York the potential on sometimes very And as peripheral -- Times can't looking scan in find the York pilots example a talk right? with way article what a threat community. right? and and unknown India, to put establish, our have often to that aware, and the settlements, threats. working cases that's villages about, found actually to journalists time is mentioned, think they're That's out use new and of in new these other investigative But demand customers, that's and strong and didn't with budgets did vision are we're countries, the between somewhat China what territory China China that is has So And we a

Jason Gursky

to bring just helpful level revenue order to on then, bit better value. flow insight a little achieve get cash quarter, company it'd contract understanding. don't meaningful year multiple in And get multiple is if you this I'm I some to you maybe needs So a trying to mind, think kind to of this be break-even. to actually, think providing process what the

William Marshall

mean, can to is quarter Yes, multiple That's ramp. timeframe see would it say sort expect effort. the a we I of I

Ashely on the...

Ashley Whitfield Johnson

color Yes, I prior break-even said in on consistent my quarters. mean, I've will with flow what cash be

that priority top-line, the order first a obviously, balance is we're sure we're of that always making position a healthy structure regardless So maintaining of a cross sheet. maintaining in such

to now, managing expanding as investing we burn right profitability first we're mode an bringing and the not to of then cash to to putting profitability outside opposed and capital. in we situation by of raise moving ensure think being EBITDA as preserving So EBITDA mode a kind in we're CapEx maintenance objective either to by more down and cash CapEx need then CapEx, CapEx about that offset ourselves where a of in

a the drive question, operation sheet combination to it's revenue balance CapEx investments acceleration, that efficiencies, our up So existing focusing pacing got that on of continuing and we've today. Any Jason? with on follow cash we're so our

Jason Gursky

I sorry. the and set. so all No, limiting had X there, you thanked it for you were thought

Operator

comes from Rhee Van Jeff question next Craig-Hallum. with Our today

Unknown Analyst

that. Jeff. Daniel is this RIF on to I Hey, to for wanted ask model how and the on

last this a year, with [ flat bigger million OpEx pretty ]. XX% coming RIF year the XX% or the the Overall, because So obviously just of RIF stayed other expenses in. $XX

we that, what taking net on will how sort about be expense out? to thoughts of any should basis, how on much just offsetting Just modeling other or a coming think in be

Ashley Whitfield Johnson

question, good really Daniel. Yes,

the most be seeing clean. as is completion. QX the salary savings most R&D that we're outlined, that offset I will the of be payroll by obviously in and when that So and and should less in -- of majority is see program to as This of partially we'll Tanager contra coming pretty QX expenses

of you and decrease But key then some audit that as timing in some those timing can that funded will can fees. marketing recognition expense. timing And substantially. particular impact certain and on also there's commission offset R&D and sales of G&A, seasonality the other bookings in expenses, renewals know, of pretty new depending So impact the

factor, to mind, is keep partner other just revenue. The of in the mix

and we R&D, in upside marketing across realized cause and other largely COGS I were G&A us quarter bit was for and the quarter that changes. that as And the well. quarter-to-quarter, drove relative business savings But some where to partner mentioned, revenue flexes expenses as a the as in saw with sales closed that and recognized. less that in little can So

Unknown Analyst

stick then to on you them talk XX%. margins, in to see about the maybe great just partner And theme, gross as at coming partners,

the I around think expectation was XX%.

the between of was if driver on several that, revenue million that's in. what expected of came it would that take partners that delta dollars and partner revenue I Just, what be sort from the a

didn't come that if saw you of that some that? quarter So the this in, filled what just that strength was

Ashley Whitfield Johnson

expense the we on and prime we're sign in partner depends as whether just deal. and recognizing whether as data revenue so the pure taking and Again, a delivering gross coming or it prime not just therefore, we're

direct of with the just we have relationships a that some it's business expanding. core Sometimes

varied. again, for in change then close our of the nature we pipeline also that and quite partners. on how And our business end the mix makes what sense customer is deal can of So the mid for business depending

a hard little predict. So bit it's why that's to

outcomes can. And so eye try to as to guidance those we're make with sure an we're we range of so providing that doing what

Unknown Analyst

for this on in that of is a commercially of anticipations 'XX on of more still made undergoing Just sounds what's and Any R&D. Will, that terms from becoming or some our viable, it 'XX Pelican, mature? significant that timetable program sort stages sort any a the last program thoughts for peg just early this should one of thing? we how to then on for me, like And -- Pelican-X, question you, being to just changes thoughts pretty

William Marshall

months improved an for satellite, which do question. to down, most satellite, are faster get then an then shipping improve of the future start the and it but also them, producing these think hope from data on all is value. to capacity convert agility, per yes, on real going SkySat beyond be pad the we enable that, being improvements would of customer work, one carry that the data all, be make improved R&D that to so. this a we of to have of satellite able in that is, better the then we're time operational customers, Pelicans couple then -- mean, to that can deployment to here rapid all we I launch -- Great mentioned, of but I've but excited look, the to a us Pelican-X, we resolution first And which

Operator

with from Poponak comes Goldman question Sachs. Our next Noah

Anthony Valentini

Noah. few I'm the you the with any ago? program NGA Valentini on years Anthony that monitoring curious work do a awarded got indicator economic You for was if guys on

William Marshall

direction NGA applying whole are Luno the with analytics a and the of data. there's various go the next of that top work using opportunities of the with suite we is area one. in on that is previous EIM vehicle are is best there, took into the But So that will And over way, AI both satellite with new ones subcontractor. fit of on the There's now a and some lot from I for applying there, think the opportunities our we're top. Luno that for direct And differentiation. especially the some by for EIM. place which PlanetScope is

Anthony Valentini

for your the going opens if capabilities up EIM, that's that I'm be customer bid more makes if there, that and program competitive. Yes, that Luno, for guys curious guess replacing if Tanager I the and you to capabilities

William Marshall

we more X opens Well, XXX% a the let's we I in to capabilities. XXX stepping mean, back you day the think I certainly is fleet, or learning see if we going with that longer-term, medium on there's think when focused visual then launched ways and I out spectral is imagery. spectral bus more band it fact, add the different first first machine it's days say learning in multispectral, call in on the Hyperspectral bit, SuperDove going and moved the -- imagery. up it's reason also what's of machine when or and as longer-term spectral But classical, dataset. that bands satellites, RGB that it the field fleet, bands, plus called is on even can't than would pulling more actually, I But say a hyperspectral the you first that early it, few as Luno imagery bands. ground,

Operator

comes Our with from Caleb Quilty question next Space. Henry

Caleb Henry

about One growth just internationally.

seeing Pacific, contractual America. growth that, mentioned look why and talk you pilots does that reasons seeing is like are think commitments? faster Latin for mainly I about kind you're Asia that longer North Can in you America the or outside earlier any you that of And kind going of growth?

William Marshall

protecting on. that new going of number number Bahrain INRA been doing prepared We work, Bolivia, And defense Colombia. use lot cases few a my government in from Wales boundaries in doing Civil world and got got the the of a we've is the can we've doing There's different large There's mentioned government from and urban of which mentioned cases Kazakhstan, the of then IGAC international more. some new some intelligence around and urban defense remarks. things also around some mean, We governments -- work housing I line many doing civil mention us, New establishing other a disaster monitoring, government wildlife. they're world. South as mean, quite government has and and I work in repeatable and -- really of had I the We're along in some work response. in with new a more that often emerging use they're is well. civil pushing expansion. the with I deals intelligence pioneering

also the really huge So government opportunity space there is and the pulling us. in civil

Ashley Whitfield Johnson

capital from, lot a I mentioned, more add on of strong fit Latin be regions in North Colombia, might Africa, If could these places incredibly I in natural down my as in product we frankly, is in Yes. the to experience account for terms on that quite of to market just are, to be just much -- initiatives in America, South America in et focused America, cetera. than here wanting sustainability able like

with solutions have. Some you The enforce-- areas, are area supported and identify governments broad the cover a penalties, these changes wanting by programs to see that are direct put of and management anomalies, incentives identify both solutions. that to sustainability to implement place broad the our be we that enforce able in these European implementing, initiatives fit need

think drivers seeing markets. success is that in So international the do of one I we're our that of the

Caleb Henry

trialing X it from before clarification down at I like a kind of a world if going there on that because connection looking the looks of was think it's Planet between influx like longer-term the Is I wondering the to on those that players is of programs. new little just service no? maybe are or around one backlog and that's bit. the

Ashley Whitfield Johnson

contracts Not really. larger under multiyear covers backlog just down. a combination some renewals, look are When I burning at the timing of way their it's that of

factor things a mix So not truly up for of renewal into is that. It yet. that

backlog it's relatively at look you basis on next flat If a quarter-to-quarter. XX-month

it's anything certainly So indicative worth worth or competitive out. of -- calling not otherwise that's

Caleb Henry

Pelican. can I usually I it's or one the settled to -- not size if always an want more say for limit. a then do that's Has in Planet And on the was Pelican but XX it SEC fleet? on realized I just filing satellites, upper that XX

So is different a that or the on have number? you is settled target that,

William Marshall

you That's the XX up satellites. the that exactly mean, having demand. I ability what understand -- thing The is filings to throttle to to this great of did right. we in-house

is thing more replenishment third that. the to of and enabled to I First and coverage life. expanding fleet be the it's foremost, is earlier. all the that And adding thing capabilities its SkySat new these the to getting as frequency end comes that beyond And by second listed satellites would

technology the about can of in it that, our there, So in that's if space. iterate other we I how is exciting aspect throw think it. And constantly so we just

this through a compute mentioned, capability the That fleet. we're next that tech launched, to ability shows AI so, Pelican-X the latest XX for sensors demo SuperDoves take And mission, medium looking that that just the space. NVIDIA next res that as a at processor of flying us on the edge put mission, and enables generation we I will continue even the into we it included and that's

iterating to and data. better constantly better we're So get

Operator

you the questions. will Thank Q&A all session. That for conclude your

CEO, pass will I conference for Marshall, remarks. So over closing to the Will

William Marshall

with we're strong I the could progress summarize, really with during with exciting saw government quarter. the Well, growth just firstly, we in up, to close just QX. customers, pleased customers If some the new

we to operating business the expect restructured growth. we better aligned towards Secondly, industry our which support model,

about the of Thirdly, marched including excited solid spacecraft course, our strong partner deals, in QX. And finally, of EBITDA expansion strong profitability and of marking goal fair we're our progress the Planet SuperDoves financials, XX hyperspectral We the near-term our and ecosystem. in launch, the our platform in we into market. margin, towards adjusted in first the for large see the foray EBITDA delivered bit medium-term gross Tanager the as our via we growth commercial government Insights potential a sector and with via

progress So we're against and catalysts. overall, these the by plan making we're against excited our executing growth

tuning for in. all thanks So

Operator

That you conference will conclude Thank your participation. today's call. all for

your You line. now disconnect may

Planet Labs PBC (PL) 5 Sep 242025 Q2 Earnings call transcript