BlackSky Technology (BKSY) 28 Feb 242023 Q4 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to BlackSky Technologies Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions]. Please note that this conference call is being recorded. I would now like to turn the call over to Aly Bonilla, BlackSky's Vice President of Investor Relations. Please go ahead, Aly.

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

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

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

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

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

morning, Thank on today's with for exceptional of and and pleased that us Thanks, to XXXX call. BlackSky. you our everyone. for an was operating against growing results major report and I'm aspects XXXX. X, With space-based business year across Aly, executed good goals for Slide demand all solutions, intelligence for strong delivered strong our Beginning our we joining

the of some are highlights. Here

a We world for of the the The recently reflecting quarter-over-quarter the million, quarter revenues full year from over the including revenues First, prior new around XXXX, million, XXXX, in deliverables bookings, toward and had our QX. Indonesia.Second, of record and contracted over came $XXX was growth in driven growth achieved the from our $XX in by we exceptionally year contracts contract intelligence strong for strong the an XXXX. over for XX% of increase $XX customers and imagery over international of progress XX% demand space-based renewal we on awarded This agreements closed in fourth and bookings an growing solutions. customers, analytics over over $XX revenues government these future majority current million quarter. million delivered that

one QX, visibility Third, signed that million, from $XXX our EBITDA positive multiyear these base commitments.Fourth, over of strong in successfully objectives for delivered major has expanding to increased our providing with million achieving wins, over customer XXXX. key adjusted backlog $X contracted long-term anchor year-end of we we an revenue out-year

continued adopt strong current to by which business our monitoring meet of model. the our the operations, of day day-to-day customer of as revenue part that who for streamlining every on of for our world, operating our essential our for high the subscription imagery and our contracts. existing analytics were as tirelessly year. cost work our new the achievement customers execution critical disciplined as long-term services, by delivery increased commitments rely team of In base XX% dedication and commitments is analytics expand This focus decision-making.BlackSky's operating fact, EBITDA is customers for high-frequency and on becoming breakeven. dynamic our we customer combination and worked Demand pipeline high-margin and significant the full adjusted the their are anchored hard capabilities of management, remains multiyear nearly growth timely to of growing attributed by operations strong intelligence imagery customers and over of year, the This services strong through and strong leverage evidenced continued a hourly around these customers an capability growth sales and their through our last reliable capabilities

year achievements quarter. of this toward analytics with growing a our demonstrate unprecedented Gen-X us from intelligence. operational market first monitoring world. hourly demand to now are combination real-time ability forward business, and have as of to which our shareholder our major year.The technology offers and long-term the these track to support around path imperatives share development was us advanced are solutions We highlights on the this high-frequency to execution critical building in value.I another strategic step address and of operational focused of production for and growth advancements the very imagery strong and AI-enabled see, XXXX and national large understand, to would another commercial now is offers like launch economic of capabilities on the commitment act The growing The space customers seeing advantage, now and opportunity. growth satellites unique strong has security for in XXXX governments rapid with high-resolution well-positioned some space-based profitable to of advanced BlackSky's and

now increasing to is are intelligence driven where This geopolitical, investments X. products strong and more space-based in that demand are national their facing increased around BlackSky's security the accelerating remain especially Slide economic, than to demand governments services programs continuing by see to ever. Turning world, capabilities. global around We're for and very concerns and the markets governments acquire world

focus opportunity is $XXX to the with over this contracts is multiyear Our evidenced paying now and decision long-term large these off as customers.In anchor capture wins invest growing totaled of by million. on XXXX, market

during and the over a the in space-based out services global operations. a of the for analytics generation year, Earlier fact, diverse international we now year valued commitment In business XX% for building tactical won past contract as over this contribution revenue international successfully to This is long-term AI-enabled past XXXX monitoring of base. a from a next from customer Defense. year, million major $XXX in we our XX% are contract Ministry multiyear our subscription with at real-time grew

contract another is to the secure and our a forward were demonstrates imagery contracts million that contract renewal is and This monitoring analytics In are a expanded subscription underway QX more of in the contract on few working. the renewal analytics capabilities This expand minutes. using already to high-frequency awarded analytics of subscription-based defense value we I'll the XXXX, phase capabilities. this space multiyear our now contract last and are prior with validation in for that initial commitment plans to our of support assured $XX win new in current a the the analytics a international $XX major share of multiyear development services. customer. Gen-X multiyear long-term We online. year threefold high-frequency and customers to their services million phases subscription about details access Indonesian constellation.In another the we This long-term existing into in to contract as to monitoring build our and over our contract we've in contract signed imagery secured sovereign customers' year, agreement from fourth at under deliver of come space advanced look Also, and phase capabilities. customer and is the this entering Gen-X land strategy ground and currently quarter, and satellites Gen-X our government of number

expect services the long-term In providing in anchor our successfully proud operations, integrate advanced over base relationships future.Moving customers we their and intelligence customers. Slide time, these these XXXX, into solutions, them international with to As services are day-to-day and XX% will into X. to expand growing our now by we customer these grew be

an the world. around illustrates is success and space international national governments now that of element defense for be essential will Our economic development long-term and

act We secure an to through space speed matters. era insight can are their homelands a in advantage and economic that now advantage, provides interest. information where achieved strategic their advancements first Key today technology. to of commercial to rapid government be understand, the up-to-the-minute see, require protect The ability an and decision-makers

to our access to the their recently X intelligence, looking capabilities. no platform operational will AI real-time Through is of and they customers these and immediately with sovereign over with or analytics, other Indonesian intelligence invest software XX reconnaissance and delivering Indonesian holistic address announced and intelligence of approach provide efforts and their to advantage is utilizing Through example sovereign and receive real-time are approximately and model, to satellite satellite subscription-based supporting strategy, software expand in a government receive $XX easily of enables capabilities establish our to and capabilities The access the acquisition infrastructure for this Indonesian These our services This develop strategy to sovereign-based defense, use can rapidly also billions million our of immediate Ministry Gen-X platform. to take longer to will to software-first contracts guaranteed advanced looking nations barrier interest. our providing their over needs. while constellation capabilities customers AI-driven imagery and space new approach Defense action these we've to recently for surveillance, wait their entry security, first capabilities.An a our the accelerate and space time. dollars space-based to national government We Spectra won modernize adoption economic contracts, of high-frequency area whereby lowered years build capabilities. our using them build need through early

the actively the a capabilities less assured teaching part to with services, task over Indonesian providing who services, flight them constellation in the we resolution our high are provide access from commercial environment defense and develops XX-centimeter support to satellites, advanced than team be over MoD for fact, will how days personnel subscription-based our the next ground and are the our now addition contracts, the which delivery and XX provide integrated few actively In satellite customers' BlackSky our to Gen-X time. Indonesia in as AI-enabled expected its platform.In of and had signing capabilities, using contracts are very training be Indonesian's government will Gen-X station imagery, and of These years. operation into satellites, system

Slide Moving on to X.

are high-frequency of BlackSky's to defense need we monitoring, U.S. a government footprint touch imagery, the intelligence on of continue wins satellite for as expanded intelligence During by a XXXX, growth and U.S. number advanced We've for many detection, access to AI government's capabilities, locations few AI-driven the from me the the object our certain dynamic not these and and customers these with just a contracts agencies. existing have strong are within BlackSky's and our Many imagery government, these see expanding capabilities.Let and monitoring, advanced year. of over from highlights contracts winning for static during driven but new information adoption agreements derived looking AI capabilities. other of

achieve on expansion with commercial advanced to studies daily in base of integration service This operating NRO government's first strong execution the contract performance to capabilities. our the as strong continue of our Gen-X and platform. we're the for we led to we award subscription meet integration EOCL multiple the with contract requirements, continue company the First, our

under delivered to us positioned economic which orders the program be year. monitoring task which EIM monitoring is or compete LUNO this a is the BlackSky follow-on Second, multiyear we multiple expected against which of a of continue the with advanced has course Throughout million for contract, orders, later has receive range indicator $XXX awarded program, NGA. to AI-enabled program, this to well

AI demonstrates requirements.A support contract the users win Advanced deliver fourth, in in bringing in Department funding various world leverage know, was This search scan additional continue X. example broad new win able leveraging can and faster processing searching leverage see IARPA dynamic capabilities can help With early enable ground for next multi-frame activity, or will built capability, AI-based was economic approach critical capabilities, phase target activities BlackSky's search The mission I programs, this techniques, operational the contract AI of manually to we our insights customers, captured our total selected and broad as emerging satellites' to the objects placed advanced we latest performance to expanding million. resources. with SMART Intelligence This to over government imagery. development mission detail power on speed analytics, of leveraged contract changes, under search We've turn large example build AI-based customers more needs And increase of government discuss compared to queries is gain by automated burden a the the we advanced discern track frequently first-to-act had now won reducing satellite how AI U.S. fourth is a is our important the BlackSky to in research within platform need broad this our enables and area $XX other with been recent demonstrate into leading processing technology emerging the system the patterns. activities. minimize broad the traditionally additional moving are quarter program proprietary for awards our not BlackSky tactical essential. award analysts effort, intelligence and Projects areas advantage multiple to as that collection and government of area organization space-based helping for run on contracts support when quarter combined the their program the as scalability solutions areas which that for of to and Third, will AI that with in the we of while being this for large and the to area earth applications IARPA, them search Research interest. traditional program. users major of fully may mission.For advanced and activity to under capabilities surface, those fourth This geospatial to more we're data-intensive A awarded we award monitor scalable U.S. another and services Slide beyond SMART AI capabilities AI would who techniques is to U.S. intelligence the solutions. leveraging the brings to to where contracts to how tools area Defense Under

search analyze. group the For example, any of BlackSky's accomplished the a satellite few the taken insights another analyst broad cost analytics multiyear The at would Slide hours an a of and intelligence be example agencies.Moving can X. This analysis imagery to just process fraction analysis data have regional BlackSky's set and time. demonstrating from a is to area of in a and month platform, government imagery AI-driven diverse how greater are of driving to provider

on satellite our to continue progress make Gen-X We significant program.

currently line. the integration Our assembled production first are the in phase are Gen-X and satellites being on

year. on We are Gen-X remain track and now launching to production later ramping this satellites begin

get We as to will provide we more closer launches of dates. details on upcoming those the timing

our year secured secure a with we capacity of an This our launches. strong we last agreement next agreement support dedicated Gen-X we Gen-X Many As new evolution the Gen-X constellation plan, Lab to wins to need include into near-term demonstrating to capacity plan. Rocket and number a our deployment access experiencing of are reminder, begin constellation. contract support our the demand this for to capabilities, entered of to deployment

significant quarter. pleased year results we're turn and in the satellites market.In in and operating go to fourth and Henry to delivered in and progress the quarterly I'll the EBITDA revenues and now We by strong full about our it positive highlighted detail. the capabilities adjusted more financial bring backlog, that Henry? we year, full leverage, with summary, through over in both new to will performance financial QX operational strong record are these excited the XXXX,

the quarter good engineering growth Thank our business over and to the entire across continues. prior report with was customers. revenue year existing on Indonesian were new too, of you, to our $X to delivered grew revenues increase for We In Brian, met and pleased had year goal million than in of I, adjusted our and of have $XX.X XX. accomplishment year conditions of first our making we XX% the in more and increased volumes or greater in everyone. million note analytics primarily few successfully QX, Imagery the positive and our we XXXX a increase and an of an million and their am QX high to driven record results, morning, fourth happy by very QX over driven on imagery final financial company. a U.S. space-based international services in XXXX. to million, EBITDA momentum for with I'm Slide contract.Turning revenues Beginning Professional final period, constellation. quarterly the in compared terms quarter, reaching This our $X.X XX% recognized to by anticipated done revenue $XX government to ending prior companies $XX.X we're QX, when that $XX.X capabilities fourth due as the the an XX. quarter Slide of quarter. new the company's million million forecast space

the we prior year-over-year million For increase quarter EBITDA fourth our margin improvement revenue was quarter. growth, across an of of management. an of $XX.X million, primarily the XXXX, improvement disciplined This strong from business, by driven and $X.X year reported adjusted cost

streamlining on result revenue business. details QX SG&A our costs, financial from million revenue from million operating progress-based XX. excluding provide with and QX, let steady-state costs for were stock-based remainder starting came approximately our and on focus expense $X.X our the In Slide full came the growth down while our savings, some results, in specific operations expense, Of adjusted EBITDA of me $X.X operations.Now year XX% grow managing fact, we while our compensation XX%. This year-over-year demonstrates on effectively reported

with we XXXX of XX% record the in Following $XX.X for up ended revenue company. over and XXXX, strong achieving another performance the million, revenue year QX,

Our customers XXXX. demonstrates from significant world to we're from and seeing demand growing number as who growth taking unique can well revenue differentiated services the as ordering the delivered customers a to new around full our year The increased be solutions. in advantage attributed customers increase revenue existing of are of

to sales. cost of Turning

analytics operating on our in imagery We demonstrate strong continue shown to and Slide as leverage XX. business,

or The in depreciation, in expenses, the operations. analytics XXXX imagery year Excluding software $XX.X cost million primarily our stock-based of sales was decrease and $XXX,XXX and full for driven and to by XXXX. savings compensation, satellite cost was $XX.X amortization compared of million X%

As a adjusted products of in imagery amortization cost to our Slide able and a increase expenses. about was to direct of these revenue result line, savings, our have cash EBITDA move performance.Let's million which and and depreciation, and operating stock-based compensation contributing the to expenses, significantly analytics XX $XX of the impact bottom to excludes XXXX talk

in XXXX full streamline of our our XXXX, the our many our investments $XX.X go-to-market expenses the can growth costs operating for keeping approach with For disciplined across roughly million. cash prior to increase continuing make corporate objectives. areas we in year. operating generate savings example, total demonstrates professional the We $XX.X year line management, of This essentially fees, as business key so performance support to expenses, expenses, in rental were insurance strategic in initiatives our and expenses million, investments same while while to cash cost continuously our premiums,

Slide improving contributor cost adjusted Our XX. to our EBITDA another performance.Turning key management is driving responsible

compared significant This EBITDA business; $XX.X and by loss improvement adjusted million adjusted few entire million annual growth; we've cost progress strong XXXX year loss was year in performance very year-over-year flat key second, $X.X XXXX. $XX.X a first, our and disciplined with margin on building the revenue forward of primarily million full this XXXX. driven year-over-year. in expenses was to pleased a improving management factors: look Our to cash essentially third, strong We're held in EBITDA performance that last across the of made

books, in with of from was Capital for outstanding we Moving liquidity our and $XX.X With investments. as improvements $XX.X [indiscernible] million adjusted financing, we of offset on cash foreseeable general investment expenditures EBITDA to restricted the end for Slide our sufficient cash collection to believe receivables, adjusted by and cash primarily $X.X the have driven vendor of QX, expected, EBITDA AI XXXX to uses. future. and $XX full our cash, Spectra year helped primarily routine move in software of XX. the million QX XXXX associated The needs meet our Gen-X in the shown million, for on balance development.Now cash cash, program and XXXX sheet. and ended short-term which on of increase We performance were the outlook sale continued our let's million our as on with our strong satellite

space-based We expect contracts demand strong to to global continues attract with to of customers XXXX new customers solutions continue the momentum as intelligence expand. XXXX our for existing into while continue

margins year another and forecasting our and first, growth services; disciplined adjusted continued by: the existing of cost throughout year. growth imagery from business execution strong growing high-margin in management operations; across are continued new fourth, our and sustaining continued all revenue second, improving analytics of We from third, positive customers; EBITDA and driven aspects streamlining of operating and our

For year to XXXX, full $XXX are million forecasting $XXX between million. revenues we

year-over-year revenue in XXXX, we of of on such Indonesia.If the experienced we as to major growth what range. long-term backlog conscious to the XXXX to Indonesian normalize for of these midpoint guidance previously of contracts, ramp build we account a new out-year business conditions the government multiyear discussed, which our are and represent qualified contract, large services our terms on and growth the As trajectory. to as will of final sales to XXXX sustained were award expansion the on revenue our a revenue our the the significant of contracts, more and support of than opportunities awards to timing to uncertainty working we continue for particularly revenue, would guidance XXXX our remain XX% of related with new We expect number actively recognize

we guidance cost in and be These full range. revenue to impacts XXXX growth factors year potential continuing of of U.S. of reflected mindful defense million. to anticipate With EBITDA our management, between in million also disciplined are are budgets. $XX $X a adjusted We continuing resolution

capital XXXX primarily with to In satellites financial the our addition, year expenditures by software AI in driven $XX Gen-X in we both to summary, performance XXXX. In for $XX and million million, full expect pleased be quarter our we're full investments between capabilities. and

to goal have leverage this of illustrates on We remarks. carrying adjusted delivered a our forward as strong closing and over are positive EBITDA We some Brian? for of With performance our that, to new model. of it into reflects proud momentum back long-term the level XXXX. this look to operational business I'll now turn Brian

Thank customer quarter year forward an BlackSky. to to for leading look as agreements and XXXX and we increased to to XXXX you, Henry. pleased in continuing performance capabilities space-based EBITDA in and and in be continues in XXXX $X.XX was the continue major of of expected future achieving full recognizing our record We're In the our Demand foundation adjusted and is global for solid positive space-based intelligence. strong to year, We closing, over exceptional another strong year a contracted awards new billion and our revenues revenues. for we backlog, BlackSky's increase, the expand to year laying base to leadership grow a in QX. company with and won finish both milestone execution expansion beyond.

advantage first its to of security and growth profitable This platform first demonstrating track greater long-term real-time a high-growth drive with to than space development We the over kind profile, a is the attributes have We has delivering a rate imperatives both years. act delivering compound building are a defense XX% growth our in business. the and set here the support capability deliver economic revenue value key been of that around few shareholders, on at validated and for now building national abroad.We're a through of critical most and contracts on long-term AI world. our annual and intelligence record important agencies, past and

technology credentials solutions. and well intelligence to large global industry-leading space-based positioned a market have and serve for expanding Our us

financial profitable performance. demand. software track operating us and business an solutions platforms us launch performance in toward our space fully and in XXXX attractive enabling transitioning for significant differentiated providing attractive a sets a in space-based competitive of to And backlog that satellites our advanced to We leverage is leadership to take forward investments have capabilities serving next-generation us year. long-term vertically We EBITDA we'll finally, accomplishments questions. strong model and your integrated and in on on remarks operational path a year market the exceptional customer adjusted large for and margin Our is another addressing in long-term XXXX, contract AI delivering have deliver strong at are profile growth space our stage our long-term call, concludes look the another This and while advantage. for XXXX in set of now the intelligence. believe The

[Operator Instructions].

Street. Our from first question Lake with comes the line Schmidt of Jaeson

to contract. Indonesia want start just the I with

Was that contract related more it to the QX primarily the size timing? conditions overall really that drove noted to outperformance. was of of this the the related terms You Or contract? and the

quite year. illustrates the the And to shift as variable. a solutions But that see market hardware-first last tend we the and contracts the that be this nature these a as a say more Jaeson, know, accomplishment illustrate, to it this significant model. was it while. you of contract, for it in we're customers does toward of contract thanks Yes, large we've pretty contract, working for contract milestone seeing the tends timing, a -- will related timing approach quarter-over-quarter question. the that the really I on from and scope been the a is toward taking

in with been And signing? up makes sales are following change That sense. you on guess cycles? before you seeing And any Indonesia in I I that, late, guys the guess, discussions how have long relatedly, the

this say, with contracts No, And Jaeson, seeing we these take that large and world, forecast. types I seen around that's What opportunities amount we're consistent. that to we've a of and significant customer think other of time. our the across it's safe multiyear into factored timing

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

related do is need maybe up in unlocking backlog. them some when I Gen-X ask satellites up, Can unlock to how goes of down do of piece? the terms that you to all need that just of up, break you you wanted Gen-X? And much to

Yes.

imagery think, tied imagine, I our as contract, time, our refer from wins subscriptions our I'll Gen-X mentioned, to with year, backlog billion our and $X.XX the first, the as of international this constellation. And that these say majority contracts to this analytic subscription and evolve was for services Gen-X Gen-X market EOCL can into will back from constellation and you over Gen-X. transitioning you Edison, both we significantly that by long-term being driven I'll

so constellation. really of about to deployment good contracts we feel will tie the ramp And how our of the those

And I on briefly know And LUNO. Understood. that? Any a sense competitive you the ultimately how dynamics vendors piece there? then get of many mentioned

say this and way, share lion's than won went X, Edison. of that a capabilities. of think I less. it X the contract, AI handful just that predecessor I'll EIM, monitoring business companies, to our through The less advanced or BlackSky

of credentials of So we is are work we the drawing compete will we're contract for attention, extremely a come of size have the orders contract. well LUNO Obviously, bringing that but positioned a that to that us the that well technology positioned. and through lot $XXX go the million feel

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

little been As structure milestones might the potentially of model, the been more and which inbound Indonesian are unlock what's far contract it Or becoming intelligence inbound immediate? demand interest international within from a a Has signal? eventually maybe contract as the there other the agencies?

really that globally demand is we're strong. The signal seeing

it's accelerating. fact, In

essential market to in governments that seeing space-based world. capability we're all now think around a almost the having I generally the is

software, commercial seeing leverage, interesting how space-based capabilities, their to but I intelligence and can going this about commercial technologies AI space, Indonesian to and only aspirations also are think advance that analytics deal is not their you're imaging what's now governments accelerate these solutions.

an signal. is and this this market expanding so it And offerings how product for And extremely really represents growing opportunity. us, our positive we're to services address

efficient? reported XX% as the makes you that of rates program valuable? Is while a time the can in AI, Does between I how high And as amount assets over in playing then far do we market your much time. and of that just pretty think higher the usage make you more out balance of more those short that about your marketplace? it balance SMART of and think But for revisit need the the scan surface ever satellite AI

does. It

whole not into that it's months it's years. our an a satellite our is development see the by analyze, is and the of seeing happening you and of imagery doing monitoring, ground. hourly time of of that when program, lot and to customers. and sensors And SMART But are driving that imagery, high-frequency information actionable aspects and capabilities. what really data see offerings from but you're turn think to and on used look get growth host over at more It's our process, can to them which when able exciting the I weren't a adoption And hours the ability take that AI giving what to able the patterns you're coming insights minutes to before. we ability intelligence now now and adoption get be a satellite couple just over capabilities we're really that on to apply that, what's you they and driving

from line question of Greg Our comes Burns Sidoti. next the with

what your baking analytics and year, for projection? into guidance With that revenue you're that next of level growth imagery

talking. Henry is this Greg,

you rate. level. and Cs As or it's we the year, and We'd this growth expect it's said growth full past you engineering to I year chug targeting this remarks, the XX% we the in final contract. for what about my XXX in along we're year, to on the absent When as Indonesian look know, the expecting at XXX. professional Overall, overall from current normalize marketplace be at were between and Ts services prior a

and growth imagery of the in be would up analytics. showing that So most

is contract? with on EOCL packages? baked just think in the year? see the your funding extending? additional you year EOCL And playing Or them funded first year see portion X to the I for what's you contract, next end next terms in How coming couple out that view your them of months. What's Okay. do this an the of into do And guidance maybe

Yes.

in that usage And with extremely we integration in contract of just more that commercial June. for also contract. government's So performing past platform, driven saw through to years. does commercial complete first been we the company has X an which on the the we've It were interface. Last well the renew expansion that government year,

we're renewal great subscription customer, a shape quarter. that with the sometime So and anticipating of we're agreement second that in in

in renewal, an have a you increase Do Okay. beyond maybe the view under that like program? on other packages funding for

We're to there. our from as it from increase looking comes Gen-X expect at currently it then we in X capability. aspects, renewal getting of And what on, Gen-X they're

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

we've you from, quarters you? $XX point few if $XX little touch Congrats Just on about you ago doing finer Last What is forward? Are Can EBITDA, here. a of progress positive could now? the on it, $XX million million. to gets million a exactly guide of seeing $XX incremental, What expensive a a put CapEx. million call quarters, to you're the what several there? now you Maybe think, units? gone pulling from $XX more talk expansion on million I the the lot midpoint million, $XX are you

is This Jeff. at million that right, we're I as up, around years, Sure, roughly ramping Henry. on you're the $XX last what and been looking we've CapEx year. a that you're over mean X

closer and et to start we to our you payments, Gen-X up timing there, launch, up that cetera. getting getting time get as launch have and So them start final going then ramping into you're as satellites period,

up. we Gen-X satellites getting So when getting start about more our it's closer to

get you're mean I I close. Okay. getting

the several a there? timing guess, unit, forward little color more Just, of last per quantity, the expense maybe your within I increases you Gen-X the changed seeing in Are year? just you expectations the quarters. pulling Are you've

is outlined payments these seeing seeing of No, I timing in deploying the the have satellites Yes, production as we're What well-defined, of we Brian. contracts. satellites. to later not this Jeff, increase comments, any year. it's a the against schedule And these you're cost deployment in my begin

at change plan. to our no So all

are There's interesting on it Why increasingly, on little couple you scan scan. area there than you maybe then scanning, area maybe right. winning more just a others All broad of specifically, with why about maybe recent a on area like? And And heard a sounds the the And emphasis what's out there? Okay. broad the I've changed others comments there on win? maybe did few in the broad past. Talk wins.

technology I in our as We're winning software-first been and XX said the a because AI past, capabilities. platform multisource our we've developing of years. And now almost for

new strategy adopted happen are this fruition you're by this significant to now pretty BlackSky. some technical the with is being government. that to now not What is come So capabilities to seeing

a intelligence. lot to using so data but approach of to And actionable this long-term it reflects our scalable advanced think come, it there's more we take AI into techniques raw and software-first turn processing and

revisit win is, If one primary is higher it there's resolution Is you there's those, reason AI? curious the a difference. resolution play I'm they all I sure mean I'm the defining the higher the it if higher is a rate? role.

of program, In the and is SMART XXX% software case our capabilities. the it AI

imagery software We contract. are imagery that other not or as of part from providing of It's using provider. lots

cost-effectively our at is to So process driven scale. AI aspects. is deliver is processing scale two able One infrastructure a X our that by results and AI massive and it's primarily techniques,

commercial U.S. we in in yourselves, shift are everybody, know I but -- but the than it's few cases, there a long lot change me talk, for the improvement been on quarters trajectory? about the to of maybe much, seen a I'd providers. particularly exponential, gradual steeper Maybe Okay. think, been lots you're Is maybe I of as were opposed including in don't expected. you've discussion, Obviously, been to we much curve. say then. still last if slower, government, any most There's on Or there? and the the of Maybe last momentum that

in outlined in continue their they come are commercial the are Force we Space mind, organizations -- our strategy expected in still early like to think I here shortly. and to footprint, with you're seeing as days, us their grow our out publish Keep remarks.

we're Indonesia contracts you transitioning term. in international heavily won other we're bookings that know, evidenced we've the towards So the demand as what the year. in this we And there. been markets and revenue looking that significant by focused and seeing into as we long all demand But did as the large on

with Quilty line from Chris Quilty Our the of Space. comes next question

house Just of us a One couple or Indonesia it? how the portion of of that can you cleaning Is entire contract quick you the remind items. backlog? a with book contract,

That's contract. recognized. the [indiscernible] entire

What If sounds I what million booked too because wasn't Right. you it don't expected. you though, caused had And early and landed sense in what get you've XX% Henry, that to have And imagery booked, chunk like about you -- what can 'XX, to on of a it had there's $X that got much us was it rate. mean, mix that that I it growth that ground that you want obviously between into revenue the caused get accounting give activity? different margin and be of potential? might contract

work of at it's we the margins customer. been already across into contract And really based and total to contract. we one we've on that are recognize look on a the point. the take to that progress progress terms you conditions date look we when because to to these to similar yes, value and Chris, recognize were to doing able had getting Indonesian the things we'd is contract, at to -- over where final And made the that we're able transfer it the add the

what Indonesia language. doing as looking mentioned organic there's service possibility Great. their You've financing. to service? constellation is if mean And the qualify a own implied you or of financing? vendor as that build at vendor or from satellite capability I Does a the so, as that's would mentioned a that And that least that

question, Yes, I good a it's Chris. think

their capability. ground, here space, we the and to market the future constellation model long-term what platforms. our offered think, sovereign space and into that demand subscription Gen-X have them our enables integrate of accelerate to and solution leverage build-out is we're seeing technologies services the I is What a in yes, software off current of

see the exciting the type of this this development, an really, interest we model accelerate in So world. as around seeing, we're and

coming online. like? to Gen-X uptick be Got is sounds you. it what what to we with a is on expect flattish Should contingent on just the mostly like XXXX? it's EOCL. clarification the Or Because was tied And it done in renewal that looks

we yes, expect Gen-X the on I further today. do And the renewal Well, and we're as providing as quarter said, expecting expansion second I think, comes in the we're services then products a online.

EO or slower Henry, of impact? into you a as can a are us, the revenue sources you in and partners that core us from and or than data other is multi-INT imagery for And in margin sense either growth capability that multi-end faster And how other remind imagery? accounted from Great. give at you take the can seeing you platform,

take That's multisource, to usually Well, that as our us Brian we from the us and delivered by to capabilities customer. customers. allow get a Chris, certain said, do

very our to AI analytics and are imagery. similar So imagery on margins our the deliveries, our

percent. So contribution in XX-plus margins incremental mean the are I

the of Good. I can customer base And of new contribution -- a increased sense from last us think you give Is had year. over that that customers? or the number also, revenue by customers you said you XX%

the these long-term announcements agreements these winning subscription It's of we of stop expect a building customer new and their that. that's you're initial customers. a to in These transition into contracts long-term these put deals important number over phases, multiyear seeing to in base. and anchor is are customer just new of Chris, an -- What time. we're customers larger

So development out as coming strong expected. of 'XX we another that's

Great. the on win. and quarter Congrats the

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