BlackSky Technology (BKSY) 7 Mar 232022 Q4 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to BlackSky Technology's Fourth Quarter 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Please note, this conference call is being recorded.

I would now like to turn the call over to Aly Bonilla, BlackSky's Vice President of Investor Relations. Aly. ahead, go Please

thank joining and you morning, us. for Good

on for Chief Brian Henry fourth provide year the outlook O'Toole, I'm some On joined on our last company's Officer, business. our by highlights provide a will results Officer, financial an Today, year and and accomplishments strategic the Executive Chief full Henry call, and will Brian quarter quarter XXXX. review give and the and today's update over Dubois. the Financial then

our the Following we for line open prepared will remarks, your questions.

call of this XX. be replay replay XX:XX today's A approximately access p.m. to Time conference can March will through release. available in found press today from be the Easter Information

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

security results statements, and applicable required future review to update that let to Before affect pertain from obligation the most today's release may a for statements actual and and statements except laws. sales stock. differ may me cycles, including the recent risks that as conference BlackSky results such needs. XXXX, and reflected you as operational ability and be of of customer our we in guidance encourage our factors may statements, forward-looking remind our the due uncertainties no expectations these financial begin, estimate long press full to includes to SEC expense, market forward-looking that call that to liquidity demand, filings you under We discussion assumes for and price these or

today's comparable selling, adjusted included during today's Relations earnings adjusted and presentation, adjusted accompanying of website. imagery their and measures A EBITDA, analytical including non-GAAP refer which non-GAAP press addition, reconciliation viewed measures, GAAP can Investor sales services certain and to and call, general in administrative cost software and of financial In financial our expenses. to measures be will are most these release from downloaded we

I'll the Brian? O'Toole. Brian At call over turn this point, to

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

Slide in premier with BlackSky and of I'm our of intelligence. year I'm world. real-time XXXX foundational aspects with and partner that we of we've customers all a important begin some established was the preferred proud as Let's made of a particularly long-term are now the provider X. pleased that the progress a across business trusted global most

the customers and in is capability critical had providing before. never market, first-of-its-kind the is and these real-time platform that BlackSky's with intelligence new they

than high-frequency now our Our needs more imagery, strong to see analytics. ever, real-time world demand monitoring we continue intelligence advanced and for and

as we've me achieved we going some that well developments today XXXX let of to recent into we've that accomplishments in announced highlight the strong will momentum have XXXX. contribute Now some as the

and year, hourly how First, has events BlackSky by world. at the provides most assets location, strategic monitoring information AI is Last constellation changed real-time important satellite access of speeds, Spectra customer now to that the deliver the achieved intelligence. new and we in a unprecedented to actionable we Through frequencies and of geospatial reliable, the experience providing economic our used baseline economics. transformed delivery have through software, users on-demand space

Palantir such the directly and use users or devices, access changes see information every happening through We they and are the software ESRI. enabling insights as ground on as that to day, are applications gain or new in they mobile

from to multi-year government BlackSky's and the mission-critical these our our and our are U.S. reliability Second, through services, secure long-term future customers were operations. and and major validated services upon speed international of made their use have capacity agencies Due AI-enabled growing analytics. constellations commitments imagery are quality, analytics of high-frequency relied their current by now for and contracts and to

to the multi-year This in a international includes and we with $XXX valued monitoring million-plus as today million a is of booked new contracts subscription Ministry from backlog. our commitment real-time over for customers, we competitively detail was result, contract This customers up important for billion confidence $X.X in next these the these contract validation this key I'll that to in revenue in analytics needs. contract multiyear of recurring a services a announced that long-term meet Third, have products resulting vision, major provides Defense. $XXX their generation on established our win alignment space-based our and This strategy of minutes. win have long-term few a further more share tactical capabilities our long-term in bid and market, we operations. the of differentiation the contract

and forecasted wins our these quarterly us XX% XX% visibility revenue coming over over from increase new Fourth, contract over revenue annually, backlog. hit contracted full enabled XXXX. records, to of beyond, contracts with XXXX both with XXXX $XX and reaching a million, provide revenue also strong for revenues year These

to Fifth, a were our enabled believe a recurring predominantly imagery, leverage revenue us achieved incremental margin contribution which XX% to the SaaS-type business services, these a analytics demonstrate us through XXXX, and puts high-margin of which services, business. high-margin model we and from these operating a revenues our achieving we from on EBITDA software model. margins path In

global sales future in strategy governments is This force as growing on been capitalize for Further, to markets during not are of risks world providing other for paying as is our long-term has space-based defense their spend into the intelligence their subject and uncertainty, demand are intelligence times and turning solutions, pipeline. government, of economic are the us opportunities good traditionally Sixth, growing sector. the visibility BlackSky around to meet this positioned market needs. off a strong intelligent to and to real-time it and increasing expanded particularly now non-cyclical, and mission sales we

our balance that sheet. strengthen we announced we will through that private capital today, a Finally, secured additional placement

importantly and set profitable these next us achieve for to in achievements have stage XXXX. path our on a of All have growth of the put phase most growth

to X. on Moving Slide

customers believe XXXX mentioned strong the quarter is upper and continue. financial and which for governments Henry favorable company. We communicated, our U.S. trend previously core in I we a the full and products of more growth of will international earlier, on revenue Revenues increase analytical that year record business business. will demand is and software from $XX.X end demand this details guidance the our provide customer drove representing highest XXXX and significant revenue margin for over in We revenues. services and of the services, imagery later. in grew element our experienced with As serving results million, an saw I'm to line pleased XX% BlackSky's and new existing

Slide Turning to X.

services $XXX our selected of major Now, I provide would BlackSky from more with for detail delivery to a tactical space-based million-plus a to on today's award next-generation agreement. defense GEOINT and services provide contract high-frequency process monitoring multiyear like to services a that bidding next-generation The of providing AI-enabled competitive intelligence. customer. was real-time contract be under I'm international we'll announcement new multiyear the announce are pleased under

project million of ahead is scope extended includes expanded options over time. be an subscription kicks start phase This This off services of whereby development of $XXX at significant two-year valued or with initial may the multiyear the the over subscription service. contract and

We year the quarter. of up the this dollars initial contract as we expect phase ramp to recognize revenue the a few of second in million

embracing customers our the validates our monitoring to further market services. analytic contract securing and differentiated for our dynamic This vision offering access are advanced advanced, in and

with proud any We're whether to be most intelligence We service this of government tactical or a with support able to critical commercial. provide government to to be them will their customer, needs. sell major advantage international this and type partnered country's customer

give our customers insights about with successfully unique information and images each scaled our on the shown as are high-resolution operations delivering X. Moving on BlackSky's thousands changing world. to and AI-driven reliable to world. analytics products day our platform, around and Slide of now customers services We

Our is go-to-market and initiatives. accelerating on-demand now as dividends analytics is adoption AI-enabled testing, software-first to and access monitoring strategy our paying

in software-based factor approach capture in Monitoring Economic competitive combines was NGA. For that the ceiling of the and This win our in million to million months. $XX XXXX. alone excited a over customer in contract and XX provides of million analytics value contract bookings high-frequency the $XX increased example, imaging advantage key We're us than our drove the with from with less real-time $XX this Indicator

able on-demand integrate user in back less minutes the applications rapidly these with APIs, of to such right machine-to-machine as a and from enable satellites directly their that with of and our access provides easy Through analytics platforms receive task or having we XX to a this imagery ESRI. and software users BlackSky with are to as in This services. Think third-party interfaces platform Palantir immediate BlackSky's collection. an button

how is changing AI, experience. Spectra Our customer real-time software platform, are the we

Turning to Slide X.

dynamic achieved significant world. a this (ph) In We strategic our most passing or monitoring enables we to in [and imaging software, you analytics from in every hour, AI reliable task important and in a demand. events and constellation. we baseline your that have satellite and for our use] on economic constellation advancements assets over most and of perspective, the device through this of hourly constellation Put us on the Spectra locations, imagery mobile location call, also can made and the XXXX, now browser, any provide you

capability up to to to day high-resolution augmented dusk. most insights new a us Our unique our locations modern the delivering collect We dawn image to last customers. summer ability with at enables constellation this to imagery on XX from times night,

we also to third a platform driver able increased to services advantage the and important the and monitoring an customers. strategic to for are integrate we're XX/X further all-weather globally. our in SAR seeing demand enhance to monitoring offering We is parties Being continued key deliver from analytics

to approaching being two well The have deployed their more to for expected life. years, and satellites launch end that in than mission four the primarily replaced XXXX been that were their in Gen-X month, are beyond we two next operation the are Within satellites replace initial of satellites plan life.

have of on support majority years. XX we past next current customer of launched for orbit we was and meet our As existing months, requirements believe within to the couple growth today capacity constellation sufficient our the

improvement develop vertically-integrated technologies has enabled us to line incorporate provide capabilities. new to on-orbit in continuous satellite where satellites a production able our of Our are to approach time over we to our space

performance and track remain our that several Gen-X new production including to Gen-X will customers. shortwave We're infrared the satellites, improved excited to capabilities, of resolution continue We capabilities will new bring which include imaging. satellites the our about new our with

as begin in updates provide to and expect we'll launching XXXX We satellites more they become available. these

as well as X. backlog support a by mission-critical some U.S. upon around with to BlackSky operations. and and of long-term great Turning was has a big their From here. existing expanding contracts, both agreements the multiyear year a demanding for relied built and We've beyond us we These strong as more years. into provide and of $X.X that XXXX and intelligence perspective, expanded Slide XXXX ones up many wins the with to defense our customers agencies, revenue most shown important international and some winning customer will totaling in more win visibility world recognize future we our to key with billion, footprint

Moving on XX. Slide to

government during as significantly over environment, with increasing capitalize a positioned are expanding should exposure to markets BlackSky as international the focus the level opportunities This space function focus growth and their growing not and investments and events our commercial particularly of of total intelligence the a global has around and strong the sales Our their geopolitical result GDP same on does sector, which certain on increased the addressable of recent well downturn. coming non-cyclical and capabilities. provide market the defense many of as on is growth an with force, traditionally economic Further, world typically a spend years. of our segment, defense times in have us governments

NGA, with We supporting deliver and decision-making others, various government imagery to analytics advanced assist NRO, U.S. like a and have the capabilities. their with history mission-critical agencies, intelligence long and NASA

this Congress technology. increase few of levels, to $XX space large XXXX XX% the accelerate the a increase over a funding raised Space Just geared ago, over of commercial part to XXXX months use an help U.S. with Force billion, spending of for budget

systems surveillance to new the market moving ISR, airborne intelligence, emerging small missions. that on reconnaissance, and now satellite believe that technology shift are once whereby billions leverages We constellations of space-based is and undergoing a or support to dollars paradigm were spent

programs we this As stages, well in growing early programs few expect to believe capabilities will its as a in new the next positioned on years. these are of is BlackSky shift new established our unique capitalize is over we market the number that require

and ongoing at in worldwide, needed tracking Whether We unique activity allied geospatial sky real-time real-time positioned Never so to we're we're with need is on believe imagery mission-critical chain watchful a to related supply critical for high-frequency locations, than Moving analytics, in better taking remote events world. decisions. on is before around market events BlackSky key to insights military monitoring conflicts, intelligence eye has geopolitical on Slide now the intelligence ports capitalize the partners providing ever. XX. keeping assisting identifying been and the and monitoring a governments or helping growing BlackSky make more geospatial to our there. AI-driven well is With enterprises for dynamic globally place

demand business. excited the about momentum market, in we strong we're summary, we in the are and In seeing we our where are, have the

year to results go turn in now financial Henry? more Henry it over I'll and quarterly the full detail. to through

Thank good you, Brian, and everyone. morning,

a note were financial quarter continued. momentum fourth strong, as I'm analytics ending high and imagery pleased the year on our that our for results

discuss Slide let's fourth beginning our results, quarter XX. Now, with

in see the to customers. improvement imagery quarterly was from The another analytics, drove government demand and and primarily QX continue by U.S. year-over-year to and revenue XX% for existing $XX.X company. new increased our international record strong demand We in driven million, which for QX

and grew revenue to by driven XXX% new primarily a the increase over existing analytics and imagery delivered volumes greater million, period, prior-year of customers. Imagery $XX.X to

of quarter of and Professional of quarter $X.X depending from estimated services projects these the mind, revenue XXXX, fourth Keep in types can the million of consistent and quarter-to-quarter third with engineering the 'XX. on revenue project's in contributed vary percentage cost completion. from

over time. you'll likely variability some see So,

international existing when subscription will realized fact of advance to in the coming our begins. projects new professional be engineering of work contract the services but a are an As development end, the an few Ministry of Defense for their line and example, in customer in

a of we our like as costs the services. I'd category with the revenues out This out project and engineering top-line press is and analytics cost professional change and durations aligned geography the it service types, as income engineering statement with numbers. to on the only structures and the stated neither point imagery we bottom-line are more changes our in reclassified in combined nor release, services and

prior a for our included have ease recasting of of in appendix quarters presentation We of comparison. the

performance XX, Slide to EBITDA you to turning sequentially last Now that each improve see can our throughout adjusted quarter year. continued

and $XX.X leverage million, loss the are For improvement reported million $X.X prior and driven costs quarter loss an we an of sequentially primarily greater XXXX, high-margin the reported operating last over million primarily by in of in fourth analytics of loss by $X.X revenue QX adjusted management. The the our improvements EBITDA the prudent and period volumes better year. imagery enabled and strong expense fixed operating than

year-over-year business In demonstrates excluding effective This our leverage fact, only inherent our on expense, strong focus revenue our compensation costs, and up our X% XX%. in of were stock-based model SG&A management. operating growth cost on

with Slide some Now, details results, let starting financial provide full me XX. on our year

the of is another revenues prior in communicated line previously company. Following XX% over the $XX.X QX, end of up the guidance This XXXX strong the completes and year. we upper of revenue revenue with performance record year with we in million, for ended result

wins number new Our attributable experiencing can and growth our wallet expanding significant with XXXX to revenue growing in be existing share of customers. the of the we're customer

For XXXX. be demand which offering, grew XXXX XXXX, to and strong core XXX% continue represents revenue, imagery and anticipate will our we in service over analytics

costs. Moving to on

of strong more improve. percent of revenue and improvement non-GAAP a as But sales of a cost cost imagery we sales importantly, analytics saw total basis. on a Our continue our to in

deliveries. a increase $XX.X fixed cost due $XX.X primarily years. year, and structure limited prior and As stock-based cost to small of full marginal excluding million This $X.X in XXXX our is million depreciation expenses Slide XX, compared cost and compensation year-over-year was for of in to shown year amortization business both the revenue analytics of in million imagery sales the with incremental

and On the driver margins the high will profitability. long-term our translates year-over-year by incremental contribution achieve large cost and increase $XX analytics million. its of on small BlackSky contribution nature for validates into other is hand, sales of high-margin for increased revenue revenues prime year. a imagery XX% This This business and the in how in increase incremental scale of business high the margin significantly

products loss very high-margin and primarily we jumped margin bottom-line; drive to through investments management for a was a imagery came year-over-year This prudent services our operating of prior a our as which to XX% demand revenue drove and year in strong improvement Our EBITDA analytics, AI $XX.X large software in in full made as strong expand million was helping growth adjusted first, of driven with to the XXXX, XXXX primarily in with $XX.X third, million further technology. We're revenues forward the adjusted look XXXX year. we've XX% made mentioned, incremental million factors: from contribution and loss compared leverage prior the cost improvements XXXX. our by improvements $XX.X to over and represented was year; sales up I progress second, part our to and happy team, EBITDA very in three

QX fourth that XXXX. we XXXX were I CapEx due shifted satellites briefly less $X.X want to $XX.X spend to guided our cost to million to mention total the Gen-X that we what previously two million. into This the in than capital bringing for launch amount of expected expenditures for quarter were is

Gen-X satellite we spend addition, production other corporate certain as of on In less incurred and aspects our areas well. in

$XX sheet, balance our XXXX cash million ended cash, of short-term and at with restricted we Looking investments.

each we with release existing approximately warrants syndicate of See The an will investor details. a this $XX.X share purchase of million press announced and investors. private equivalent of and will last morning Turning towards price represents sheet general our over each our raising from specific additional financing is Slide needs institutional for a number XX, our XX% placement to investments $X.XX new and premium a receive the foreseeable and our our in space position be balance to and funds for corporate price. future. These proceeds These strike geared a purposes platforms. software which closing of cash strengthen price $X.XX, meet common liquidity

in In if or do take us addition, to ATM, opportunities at to facility market, filed the the when will so. decide advantage that allow markets an and we we December in of capital

as our XX. Slide move to shown outlook, Now, let's XXXX on on

and leverage. backlog, forecasted continue, addition customer to delivering for XX% in anticipate our additional our services having operating greater global demand currently to and products revenue strong revenues In of we fueling

As a year of year-over-year a $XX the to range. $XX be million represents result, million, XX% to we at between expect which our full growth revenue this midpoint

margins With contribution strong anticipate a high EBITDA our in cost QX we major accomplishment will model. company This revenue our incremental positive demonstrate the growth, and for achieving and continues to prudent be business of management, scalability of adjusted XXXX.

In XXXX with in for our and roughly capital between $XX million, million XXXX $XX addition, expenditures spend. we expect line be to

XXXX. summary, BlackSky's We're our fourth full and In increased financial imagery to we're pleased strong into momentum in seeing the year solutions and performance worldwide and look interest this both analytics with quarter forward XXXX. for continuing

turn that, back Brian it over remarks. some for now to With Brian? closing I'll

Henry. Thank you,

Now, to spend for year. of achieve objectives one most our EBITDA of adjusted this in on minutes few XXXX, I which would QX important like a positive is to

growth. a new growth that As viable sustainable for important believe that industry. company, success flow long-term is operations and profitable achieve space cash it's We a to positive cost this in any at strategy we don't recognize

following: and to include the path, put this on are objectives have us Slide certain that XX, such, business and achieve a on which focused plan As financial we shown

to and high-margin growth revenues with First, imagery from deliver strong a services. focus on continuing revenue analytics recurring our

and and leverage on and our operating Second, performance capitalizing the performance. margins platforms achieving by type improving space SaaS operating margin software of

prudent on management. focus a Third, cost

targeted in revenue planning further with expenses year marketing increase sales to are incremental growth. overhead marginal growth We and towards this only drive for a

market-driven for aligning And of other with capacity obtain cash the recurring need multiyear finally, subscription favorable timing management CapEx aggressive and pursuing terms flow on initiatives contracts. to by investments cash

put XXXX sustainable for on us profitable milestones have We long-term stage a path us for achieve business accomplishments these growth. believe in our to and the set

customers a premier work, In hard closing, thank has we of executing forward some BlackSky that across world. important trusted geospatial and of for real-time provider in to of another the and on successes year momentum intelligence a strong the the here. to in business their employees partner to I us our most as and XXXX. Building want have We've look strong gotten of all our XXXX, aspects dedication established tenacity

call now our your and concludes take we'll This the remarks for questions.

questions. session. will first line Our the question-and-answer [Operator come question Benchmark begin proceed now the Please Instructions] with of Company. your The has from Josh We Sullivan with

morning. good Hey,

Good morning, Josh.

As timeline been is how far deployment technology customer allocation as for or Gen-X Has evolved? driven? satellite, more the resource the it demand,

how for development? or mean, You deployment timeline the was

I did launch? say the mean, for Deployment. you XXXX

Yes.

-- As for Those them that I for with constellation orbit satellites we support mentioned, aligning demand. the years. have market to begin constellation capacity growth couple of our replacement current satellites, with sufficient and deploying on we'll next the as current our Gen-X replenishment

of in like -- those So Defense out the Ministry seeing -- -- in in interest recently but contract. we're through EOCL building and of a parallel, years we're our backlog in capability strong things that announced

$XXX million guess long-term product you I to? on that the of attractive. point, long-term capabilities the And win those outline Can was they just strategy morning, attracted were you that some talked about this Yes.

thing continue that roadmap led monitoring what to latency winning over to improve AI that the contract. is AI-enabled Yes, is analytics. our built and of the attracted and this ultimately customer we And market and time intelligence differentiated breadth the with the a high-frequency and deliver will the with capability we've us main integrated Josh, and in frequency the

then And it. last one one. Got just

the As an about far you talked have on controlling profitability. eye a sales force this point? costs force the expansion, having on you the scale Do sales as you bit at and feel

traction mid And us that a just multiplier. we start integrations -- realized to traction this this marketing -- of as really in force We're of on We're progress significant third-party start those platforms late in seeing and through the last we'll some software to ESRI seeing made such year. integrating expect give as with also some our Palantir achievements invest sales and APIs year. we Yes, year. last year, continuing sales to

Great. you time. the for Thank

Josh. Thanks,

Thank you.

Jaeson next your Schmidt the of come Please Lake line from question Street. with Our proceed questions. has with

for taking guys. questions. Hey, Thanks my

know this your in right the you have have mentioned but given or or engagements seen I get intact? relatively industry, with macro, to sort remain curious, the non-cyclicality you of timelines Just customers of prepared the pushed just remarks

The timelines we're seeing intact. remaining are

remarks, in as and on demand, in intelligence organizations the then, We're lot particularly our capabilities. significantly. the these in sooner, mentioned defense chain sector, supply around also I growing seeing commodities In particularly intelligence. the interest, is side, of commercial a particularly more very fact, we're committing space-based And dollars seeing some pretty significant and

not a seeing demand. in we're So, slowdown

Okay. should follow-up. think And this as a year? gross about then, just How we margin trending

Henry, want down? you to take

Sure. slide of you talked, every we the have the when costs On high look associated of for see, the shows margin, kind delivering incremental incremental Brian. we've kind margin. take a a margin, always yields with as gross period you that dollar at normalize gross very Thanks, as when we just gross revenues,

past against or a operating million take about had in for imagery and or revenue period of actual $XX the year so about costs in $XX look, so million of our this of you when somewhere analytics we So, the year. neighborhood

that generating gross that XX% of you're incremental margin. So, kind

incremental. around XX% imagery and the about gross had kind a as you XX% that of margin you're more or add dollars, in total But getting almost XX.X% for about You analytics. --

forecasting. as going So, grow in the us what's as that's to that we're towards the help quarter drive EBITDA we business, fourth positive

Thanks a guys. lot, helpful. That's Okay.

you. Thank

the Please has Suisse. questions. next your Credit from Our proceed Deuschle with with line Scott come of question

from that, think, said revenue XX% you Brian, morning. your I backlog. good contracted Hey, is of 'XX

line check Just getting you wanted in of the to and the XX% interval to sight on the have confidence other them?

strong Yes, I really worldwide. growing seeing we've got we're mentioned, as -- demand a and

strong revenue forecast. and It a million the contracted XXXX a $XX very got and got we've So, opportunities. the pipeline in we've includes follow-on strong in very visibility new

portion forecast of between contracts -- million the the existing $XX gap our also is Some the from and customers. follow-on of a good

forecast So, year. in we are our this very confident

great. million won. it, then, mentioned on a there's you Got phase contract this development And you $XXX

and what how development last the little moves talk will could If period? long entails bit it period you subscription a into just the before that

develop in with commence, years And there'll capabilities to over a Yes, activities it certain will the said, quarter. we of as customer. period second a be couple integrate of the and

that service a And a subscription of so, will in few starts years. be there that and continue, the will commencement then

building a for bespoke Are you basically constellation them?

No, this our is commercial with strategy. XXX% aligned

it's... So,

I Why model? app just SaaS [indiscernible]. does Like, that the years? take why use thought can't model they the two SaaS it the or

already increases is years. getting significantly customer AI our existing going intelligence our subscription we're Gen-X expanding our delivering constellation. the as capacity over coming capability level the platform AI the that the from be this Yes, under the we're And of analytics with contract with of combined to

So, this is our strategy space timing commercial the software. platform both that's investments a long-term our for customer this of aligned and and with in

toward? it's over there's plan, for, can I can other I One in guess, this Henry. on. which I'd of guidance be to rely of And curious three that other get been and guidance question but promise, not about general, for promise, that be align you can companies. just seems forward more company from just something for kind like companies, actual it's you think in do -- public as of of CFO, an an you've one and they those think Maybe operational year companies, great. of you shareholders guidance as Okay, just going a it heavily sense you some an the oftentimes now? hope for a be aspirational plan, it public It then, kind last approach a wanted year get your for now you how guess, kinds case,

I was to that we get I'm to at that, thanks. look of pull our be more obviously guidance little that good to the is that's as way but The call providing one together budget And that that approved aspiration, prior our with question. Board we mean, not the and the a Well, kind a get we look at of one work may stretch. end going bit prior -- year. it

What the will we confident the to we that things to very provide feel we hit. are that Street want

one of things we this through an provided update know, when of continue able to this year, were kind kind be went and look you As our And August, at then set of to update. we will how past performing always in -- of we provide guidance year, appropriate. numbers and as we we guidance are

best unfortunately, So, giving can but not we we are Obviously, at promises sure feel we're to do. to that information they're plans solid the this expecting is what we're against. in to something make life, no we make per se, get. look guarantees that But they're everyone as working we're that want that there we

you, Thank great. guys. Okay,

Thank you.

line proceed from Edison come with with question. has Bank. Deutsche your the Yu of question next Our Please

good for Hey, our and morning, thanks guys, questions. taking

needs cap on cash First we that ATM Or forward? how about still do there's balance you confident think thinking enough still raise, we I need the left placement there. is sheet? this on the bit you? Do mentioned a is to you know you that going private after about are for put the feel

this about opportunity we're out have bit both of sense, all based. tanks Henry. we long-term got the investors Thanks that the up proceeds to. $XX.X topping just is is because felt very kind from made The gross investors, the pleased We've have PIPE the ATM million some completed. and there. of We do the institutional U.S. We that for it Edison, we we at way look question. with a little raise

foresee capital positioned. near structure and We table future. is tapped always at we'll don't appropriately at that But look we're the it our looking at make have not and and what our sure we're point, in this cap that tapping

question level quite there's Higher going things the been few a industry. on Obviously, on. Understood.

private. You have Maxar going

lost Airbus on think few important launch. a I Vega the very satellites

Just incremental it updated which competitive is driving view curious tighter there. than on see the on pricing/demand? Is kind landscape some thoughts have latest how the You have of you would you now. thought,

supply remain so we're we'll I Edison, -- So, market a in and still a we constrained believe for while.

If a companies there's Airbus considered think are trusted about like you Maxar it, just was few reliable performance and delivering BlackSky are suppliers. The operational and unfortunate. that incident

the in deployed mind is satellites ones new online many one aging that the those to cases, coming is particularly in from -- the less that's new is The replacing. out. most are satellites they're capacity thing replacing have than And existing players that being of legacy keep capacity capacity

And meaningful prove enterprise market when just new that's types only contracts it sense, a a so, capacity to takes capture growing performance new in trusted large is as as long entrants, BlackSky takes providers putting meaningful and And of and at there's and of a demand. government to with into both these time one years the scalability, for customers.

So, well like we're growing feel supply we in constrained. positioned market that's a

unique capability, combined operating a in monitoring us performance, position. with Our hourly and really strong new puts and strong capacity reliable

follow-up one And Great. that. to

legacy guys more mentioned as Should sort you of players? was million, we of $XXX think others competitive about the On or the it a emerging the sort bid.

long-term that real-time because committing understanding in I strategy. how because because think we're a contracts, are -- outlined these to with backlog closing customers. and of we remarks of Customers and a it differentiated multiyear market building won market. monitoring the today, our way agreements That's And as in of that aligned significant our have for going where is that's we about to is analytics. the think capability high-frequency the in we differentiated with we

strategy. differentiation So, I would we've the and vision product in confidence really the and have established customers our long-term the it's say the

Thank you, guys.

Edison. Thanks,

you. Thank

from line your next proceed has come of the Austin Moeller with Genuity. Our with question Please Canaccord questions.

good of example? from like perspective with margin this GEOINT the for first contract just million just How compare a capabilities, EOCL, of Hi, $XXX this to is question Defense. on the contract, given the on My Brian. AI Ministry international morning, does incorporation

I Well, of there, Austin. a think couple things

contract First is imagery EOCL only. off, for

element The has margin business the of provide our of So deliver imagery outlined, provide high-margin top analytics additional off analytics and -- we -- imagery our of of additional analytics the plan. and as Henry performance. element is the our business that

we with software So, model leverage of constellation our operating platform. out our our that's combined get business power the the and of

both very cases, that. analytics seeing high-margin we're So, revenue, in improve

just then, through full this private constellation? placement And provide Okay. morning, deployment you the the of you announced with next-generation get to sufficient capital that does

Sure.

that me take question. Let

future. mean, balance quarter, well capital to We positive the As the any It be be the foreseeable running position that we does million we capital were we fourth be our in us just would sufficient out would EBITDA by be $XX.X gross discussing, in would would which proceeds of believe where -- sheet. I strengthen before for stretch. gives that

are good Gen-Xs -- believe get being our in that to we we're shape up. we So, good

more just then, one And I may. Okay. if

this shortwave helping did the instruments the win contract? infrared Just back constellation to what to degree a to role GEOINT future contract, the on in play

Austin, number we but of think, it I analytics. not in of a accuracy the frequency breadth was space, just the requirements meet, putting were that as such attributes, to Well, we're able what our of latency performance and and

meet drove win. set what that's our that and contributed a to bid and were broad of it's our So, requirements in we able

Okay, the color. fantastic. for Thanks

Thanks, Austin.

your of with Instructions] the Please question from line [Operator next has you. Boss Riley B. Securities. with proceed question. Thank Our come Griffin

you Thank morning. questions. taking my good Hi, for

about you percentage spoke constellation? having Is So, the give us utilization could a there capacity. for ample you current

we publish. within that of as months. constellation most last to the a our not we I That's XX mentioned, metric XX But deployed traditionally

we've So, capacity significant available. got

thing as collection note And times. so we upsell so is an also analytics I'll a capability. as and approach, software-first once other taken offer with The can we've our collect there's upside we many

a plans. we got to hit So, strong our capacity growth very we've need operating model and

it. Got

lead still economics expecting your purchasing advance. Okay. are spoken $XX past, long you million Thanks, satellite? think, items I $XX about about you've you And the well are that I in per the cost all-in before satellites which, Brian. same million in Gen-X talked between know to for

you that? I give want -- on an I So, just wonder if to could update

very satellites. got the assume we're can a that economics consistent what cost we've of handle you the on Yes, are achieved these that aligned we is and seeing, the and in first range gen with good

Got it. Great.

related of is CapEx any -- same could for Okay. that sort the that million that guide. the government R&D million to $XX lines be funded of And then, potentially agencies? to that Is year, any along by the $XX of

amount significant have already that's by R&D funded the we a government. of Well,

line both capturing that -- -- in successful that integration engineering And contracts we've and see You'll in in meaningful R&D. services been engineering offset our services the professional our that's where financials. very

analytics. satellites so, in both been And software in and amount a and good that's

establish important So, these customers. with relationships it some also us of close long-term enables to

years of many a ours for strategy that's been So and off. it's continuing to pay

for the an Brian. shares, about just I million something point me. just understand Is that, Thanks helpful. some X-Bow me at give any in you can strategic Really you the business that Can last future? one like investments? And for own XX.X then believe you rationale your for Great. help how asset great. think be Or you monetize sort of that aim that. that you would color to about

We market. Yes, that that is of the space years several strategy an an our investment ago. was we in always to access important believe aspect made

of sheet that that's and small in And balance right with early involved the now. company element a were so, we our days

Got it.

Okay. all Appreciate great a right. thanks Well, it for All and my questions. have guys, day.

Thank you.

you. Thank

question from your proceed of Analytics. with Our Caleb line Quilty has next questions. come the Please Henry with

of Hi, questions. guys. couple A

forecasts about XXXX. First and forecast those you XXXX think EOCL, revenues previously million $XX on for track? for of Are $XX million I still

Yes, -- started last a July. just I EOCL, we're -- on right, as think that just contract reminder, we

really performance So, all we it's been a meeting our just nine days ramped XX deliver we're start imagery about And requirements. day. And We're images months. delivering of of operating that to the contract thousands that within volume of we're up well. of and of

initial are awarded -- two to as we've $XX were that were we we contract, yes, So, -- for the we services up that awarded when reach million. years were publicly, said

year, this for assumption our correct. that's So

launches. Okay. a question And just then, on

last And spacecraft this said satellite starts launching launch. you Gen-X until upcoming have Gen-X in Gen-X year? it You there is other Is nothing launch? the that Or any an are XXXX?

our be will expect two Gen-Xs. we last Those

to we And we'll as And spares. provide Gen-Xs in as decided with we that, mentioned, going details. I haven't not them some some We're launch or begin more then, progress XXXX. have not. we'll -- We launching we're

Okay.

on guys margins in You year? Can margins. you nice this it in a imagery And assume comment kind had of trend expect margins is you to XX% like to bump QX XXXX? where reasonable

it down that nature really we've Caleb, got cost imagery very to much when all fixed we're this delivering fixed structure pretty analytics, and is automated the that fact Henry. are a we fact the And the the that given as of we've comes processes. -- been discussing on margins, have those

-- got revenue kind -- of million a when costs of compared be that very I that of incremental revenue as looking you we've to $XX at and was million small the to And $XX the you can referencing earlier, million of of look we relative take would costs from $XX cost. year, against see at So, GSE. I last of million perspective it $XX slide

sort high we incremental But high of for incremental that the that this of will once in Our kind continue -- kind I of mean, extremely XX%-s, XX%, full year cost. we're XX%-s, maybe XX%-ish get high. be at fixed revenue -- that could that past XX%-s,

that XX.X% together, in about overall you -- we and that XX% depreciation, and start XX%-plus. of into that when out had margins imagery get blending cetera. et I overall, imagery on XXXX, mean, for would able to stock comp So, be analytics kind analytics, when margins take I and believe you we

then, last just And question. Okay.

revenue. international think contributing overall I government was XX% to

some -- expect new boost in be to team, what forward? sales percentage do Given going of you've the that that you gotten of the awards in kind the

of what necessarily of when overall governments we by kind at guide don't a look regions. But about XX.X% contributed you're on our take our kind of We those did the you international right, in revenue. XXXX,

start guiding up. international that, type winning cetera, a these But imagine contracts, here. percentage that can to big we MOD specific as split will not go You et we're

guys. Thanks, great. Okay,

you. Thank

back there Vice it are this ahead, turn no Bonilla, Thank time, Go Investor President I'll Relations. questions. you. further BlackSky's Aly of Aly. to At over

this joining Thank you, everybody. for call want I to morning. thank the you

with will talking conferences We you in much. be shortly future the certain appearing upcoming. Thank you at and very

We conclude does This appreciate you. Thank today's your participation. teleconference.

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