Spire Global (SPIR) 15 May 242024 Q1 Earnings call transcript

Greetings, and welcome to the Spire Global First Quarter 2024 Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] It is now my pleasure to introduce your host, Ben Hackman, Head of Investor Relations. Thank you, sir.

begin. may You

everyone, our Hello, you joining for Thank quarter and XXXX for first earnings us you. thank conference call.

release website CFO. replay is Peter Our on With me also press and CEO; call can available. filings earnings today the be be our made IR today's and at of A Platzer, on ir.spire.com. call will SEC found Leo Basola

be GAAP as today of reminder, include on non-GAAP investor can our our our ir.spire.com. between at well as commentary our will IR in our press and a which earnings results As Reconciliations non-GAAP in found our release found guidance items. website can and be both presentation,

Some are these of results these to factors results to to A around should of Peter. that be other With to that any our is company statements and uncertain our change. prove these today operations Should actual could and hand to description fail our are our forward-looking included incorrect, materially and financial affect could expectations assumptions and risks, of our subject me SEC conditions call financial the subject assumptions. forward-looking or materialize uncertainties comments assumptions contain expectations that, filings. our uncertainties of In over results statements. risks, and in from let differ particular,

basis. life us off regular on improving Ben. innovations are Good to boundless my extending by industry-wide deepest Their forward, start earth call. today's team unwavering delivering first gratitude from to dedicated space. you, Thank our and want afternoon, everyone, to with and propelling a I commitment to exceptional data welcome on

in our year, rate of of plan. million positive We achieving starting being XXXX. revenue our have ahead doorstep At we to has set at of with of QX today, space the EBITDA profitable, delivered grown adjusted of standard not thereafter. growth last been high-growth of something flow XXX% are over continued far the since aim positive demonstrated. at a company, free high-margin, first positive $X so We compound adjusted And a in cash in profitability, industry EBITDA full the end we that quarter and annual by

We are SaaS threats for life and space improving to cap machine profitably AI and market we trends, increasing with and believe generational and of XX% the the XX future. over years, more grew power digital commitment from of by by than leading XXXx. market large, that at as for massive learning our are growth companies security by driven And inspired Spire's supported least economy data and earth including climate by the impact, the opportunity

at not Our be industry, the shaping about that our ahead. could future I team and journey of excited more Spire is

landscape change and in the to of the persistent our weather China trajectory decade, impacts and security climate conflict has Meanwhile, The For escalating tensions the world. induced Spire's Ukraine, surprise ongoing complexities in megatrends, the two the continues volatility change. exponential the been South enduring underscore climate global challenges world. Middle ever-evolving global shaped expanding over in a East by the of geopolitical Sea

it temperatures, criticality relevance XX scientific experienced disruptions, Spire's surface busiest receiving highlight of one at hurricane in to in year. this including rain to Dubai up than and of projected to deluge, world's active a led does force. XX-hour and reveal March recently, flooding an XXX the in years season period Just This warmest more climate air storms. the With These widespread entire past extremely experts that for are the Atlantic of bracing Furthermore, mission. enduring data. typically stark was a elevated sea an named realities records spawn

profitability free expectations measured on for and flow basis, come. our In never to positive fell to the successfully first short wavered. remain over be not of achieving We a the guidance, but track revenue EBITDA midpoint will of adjusted cash quarter, our our decades summer. quarterly impact we this Our on the reached commitment and

steadfast As sustained towards growth. we've profitability done profitable in the past, our and the business we drive optimized for maintained

foundation, a highly with business leveraged business efficient have We a model. coupled operationally established strong

As anticipate we profitability, to continue business. in we achieving to reinvest strong scale, allowing us the prudently

improving beyond, to further ahead metrics. by second we customer Looking the pivotal in demand driven quarter high our and moments expect journey, line and bottom

advancements security delivers solutions machine The intelligence and in challenges climate the also change global As integrating astounding. address technologies innovative we with associated and of most learning. formidable speed cutting-edge Spire in are change, these is that artificial

with the of are of quickly data new the new the acquire propelling our and revolution to a demand for power horizons data. those on with those of of heart its and unique reshaping early Spire industrial similar these can access intelligence, emergence took possibility. We supercomputers. industrial revolution drive to proprietary AI potential learning that with boundaries computers facilitate the achieved, for the emergence us be rather lies technologies the are to beginning what of recognized artificial a machine to paradigm the possessing where Internet. to shift massive than now with at place They

accuracy, learning that be Our the weather from one processes. customers applicability is and in traditional are seeing collected up-end data can to space quickly deliver we affords capabilities that machine previous wealth and to surpassed opportunity standards industry value. AI only us of the which in And

to industry supercomputing relied the requiring and on times processing For power physics-based numerical weather decades, generate models, lengthy forecast. has prediction

models. expressed skepticism weather the years regarding whether AI-driven ago, two Just efficacy of experts

XX-day the physics-based in one $XXX a global achieved However, the run run running changes the of less rapid weather that we model AI process in establishing these GPU. are began seeing a that single and in weather Instead And models of within cost This forecast time. Instead than their requiring supercomputer model. with are hours of a aligns was Spire's team a million, weather industry. surpasses analyses the AI AI long-standing to on reveal agency this on $XX global million prominent data, to Recent models of forecasting span remarkably a short advancement year, minute. an accuracy a their model.

from augmentation others. empowers of of to to massive Spire data weather encompasses Previously, probability forecasts. too ocean comes training for models, low This new models intensifying tailored and types the probability, is capture such individual of and dataset capabilities announced forecast this space-based our Spire high which new AI have temperature, has allows world-class data, data initial AI set seismic data this grids precipitation are these [indiscernible] differentiator. us or events, the such and that generate demand comprehensive spectrum of data. class for severe sources, in aggregating us own data weeks. Furthermore, of of the assimilation assessments. the knowledge forecasts With deep This to for these experience with computational to hundreds same was of flooding. of but into beyond weather rapidly sole of events we changing high-impact comprised rapidly proprietary on This efficiency computational of generate set these wins omission and models. generate prediction CIS, among few in the from us humidity data seeing models resulting industry. hurricanes combined conventional rich as forecasts, assimilation having and information moisture in AI weather allows pressure, inference a changes our That's trained been means major a of set an unique now every we Most additional industry, where

information Crafting our own meticulously empowers neural such and Additionally, Spire's leaders of accuracy in effectively enhancing AI is AI as collaborating models. data modeling industry and area proprietary to with us NVIDIA. predictions. we extracting we are reliability weather the investing actively whether their tailor pursuing in are development architecture, model ultimately from addition AI our which an thereby to prudently of the our proprietary network

As this journey, monetize we are of our data progress along capabilities. looking each we to and step

capabilities soil our soil of enriching and input offer innovative the extend AI is enabling By the our our constellation models, the view market. an we solution. moisture exclusive phase, leveraging recent introduce Beyond ML sophisticated algorithms, post-processing learning us side of the can obtained moisture to moisture to to globe. by soil measurements example also the satellite solutions unparalleled and and advanced AI introduction of around A integrated Insights machine Spire's

human success the long a multimillion-dollar recently X-day experience. develop with firm AI-powered an that deal a for for secured just and aspect This opportunities. financial list almost We seeing model marketplace. of we We our Weather early forecasting. announced of long-range in are solutions a is our the to beginning high-resolution impacts of every weather forecast the of

an weather companies, GDP We of to is that be position can that by and This estimated expect and logistics in capture trillion firms, adverse It is or trillion absolutely companies is a of massive with from impacts companies $X weather. and insurance governmental mitigatable. is portion $XX energy and organization, a market interest infrastructure impacted of Spire XX% that commodity it. prime

us revolution contributor by AI as significant and Our learning. to distinctive a space-based data the being positions machine driven

announced opportunities first what Since is our founding, on we new life leveraging rapidly anticipated improve the is space to to focused award many capabilities. have be as Our of the adopts Earth. these marketplace on

and so have to Spire climate technologies global As can the advanced security. have capabilities to cumbent bring change that

in provide changing to opportunity make the earth previously better, what ultimate point faster next space decisions and vantage smarter, from fortitude do insight about the have to unattainable people and We knowledge rapidly help about of world. to a

a sign belief of vastness glimpse progressing Leo. hope of a us day even future, back, space space the the with or to I'll compelling that, with over up every look the Spire, future. of turn humans an act. to brighter hope for And it to of As we are At stares and

Peter. you, Thank

non-GAAP my unless stated. discussing I otherwise During section, will be measures financial

Relations release year-over-year on a million, There in in are GAAP We for our drivers to were conjunction below and investor this our earnings financials revenue for three call. This our earnings our which of first non-GAAP should main $XX.X presentation, quarter of X% was with expectations. GAAP reconciliation and have both was provided performance. reviewed revenue Investor available our growth. be website

First, solar the data production constellation Lemur from activity. impacted was the increased by cycle our

clean a resulted the customers. delivery implementation of the orbiting lower-than-anticipated early coupled to delay some Some in in from sales countermeasures with of data

and was this continuing orders federal in short-cycle geolocation of the not resolution both the or very in agencies. revenues RFGL. radiofrequency of the delay was in new The This Second, late impacted follow-on government resolved XXXX, quarter. evident particularly U.S. nature QX resulting until from business high-volume orders in government and in

and consequent third-party services a resulting that propulsion Finally, full our profitability, guidance. EBITDA of operation longer-than-anticipated quarter control kept and priority to a commitment launch and under non-GAAP achieving set design our stated mission. into near-term between assets of and and at unit for the landed lapse tight our adjusted we first consistent a their space underperformed midpoint our loss of to #X production with costs capabilities, Nonetheless, revenue operating in integrated

loss was improvement the aligned with our operating non-GAAP reflects and year-over-year. was EBITDA This quarter, Adjusted expectations. a negative a prior first over XX% an aligned million, with quarter $X negative the $X.X For reflects the XX% million, improvement our for expectations also year. first

first XXXX guidance. our loss The of strong since in execution marks early quarter another and non-GAAP meeting operating beating EBITDA or adjusted quarter

navigating challenges we period economic years, two uncertainties. tensions last geopolitical marked the have Over to from been through by a

However, onwards. of XXXX from our EBITDA positive sustainable strategy flow adjusted stream a and has unwavering, been delivering free cash

addressable Although positively I perspective. paramount opportunities also opportunities debt in cash generation, significant that believe provider investor regarded more the value up our much Generating and self-sustaining growth Spire equity opens for given flow long-term growth from markets company within grows the is both additional a an own profitable is markets. to our that

quickly reflecting at to a retention $XXX Reported was XX% ARR additional at over Turning ARR net growth. end million, rate XXX% Spire's year-over-year XXX%. few quarter a exceeded metrics.

$XXX performance approximately Our at remaining robust million. remained obligations

be in a We over recognized to months. expect XX next XX% this little the revenue of

now position. of the sheet equivalents million. specifically Let's cash, move $XX to our with short-term and and approximately marketable our cash ended quarter balance cash We securities

million financial raised price of we During $XX per an costs. used average our quarter, the of outstanding $XX.XX to a and have of at prepay reduce share first gross and $XX our portion million debt proceeds

even put existing Torch accomplishments 'XX and summer. our funding. to capital remain track Blue free We in lower this QX cash position an positive expect flow refinance of to stronger We EBITDA believe adjusted loan for our us cost in these on positive

numerous with market We make better spent institutions the understand have current continued progress this to time to on front, having landscape. financial

for prevalent by outlook quarter end to year. market Given targeting XXXX.Now refinance to full of conditions completed our the and today, we're of the turning second the have the as

second the range a in strong record revenue expect million a of We rebound in $XX amount in to million. quarter $XX to the

operating or line. Given We through business, income with $X year-over-year the nature operationally million operating to a and strong bottom million our The would we to the anticipate leveraged best-ever revenue positive non-GAAP non-GAAP $X midpoint represents represent of performance. range negative midpoint $X expect loss the a QX largely Spire's $X to also and growth improvement negative million, of flow million. loss between

again We to expect and positive the positive adjusted EBITDA million. turn range be $X to once of $X in positive million

expect from We onwards. QX remain 'XX adjusted EBITDA positive to

non-GAAP share negative turn $X.XX loss million from I would count per $X.XX the range XX.X For average share, now to to expect shares. assumes second like for quarter, we year outlook. a weighted the a approximately to basic which of full negative

revenue Some in events of revenue the also full the impact expectations. that year impacted quarter first our

controls. negative anticipate full between million represents of focus improvement guide. from million. $XXX million We profitability, a $XX year-over-year. at the expect year-over-year range $XX the line operating cost growth $X This our negative on nearly represents expect year at maintain which with midpoint and revenue loss $XXX We non-GAAP million, million to we XX% tight to to our In midpoint

from We EBITDA $XX represents expect positive to at million, a midpoint million positive year-over-year. range the adjusted $XX which million to $X improvement

assumes For basic we the million full of weighted from count expect average our $X.XX, to approximately which share a shares. to loss negative XX.X range per non-GAAP $X.XX negative share year,

has into perspective dream Spire Earth. problems future. those jump would uncertainty geopolitical did in align would a you and if and tensions joined of allow to personal from face full I to me, to a inception, satellite our strength resolving on related with company moved a since only the In back as look We matter, a and like nano my share company's ever-increasing Q&A, allow we managing quality data radio a Before challenging original pursuit those ADS-B manufacturing constellation now a of strong work offering most Spire a and myself that to a my Spire tell superior valuable and and to for service the that customers. daily. that challenges that change and skill And demonstrated to for starting we company escalating of space, our to I to proudly applications. climate type capability issues through from its I the me are the contributed AIS, on capture that offer innovation. decade, we're grandchildren increased improved deployed occultation weather the we aviation a maritime, satellites, solutions with

detecting of challenges and wildfire the emissions the capabilities frontiers, jamming gas change widening my the see and This space spoofing, journey had our and capturing profitability. makes data the pushing of we're we Now unwavering our then turn is images significant have cash commitment difference. step positive deliver and will the data, that relentless greenhouse tracking boundaries assets, all awareness way. the Spire It's with new as GPS along Wow, the for I and free just and of ahead flow and a us beginning, in summer colleagues at sustainable prevention.

happens. And achieve will the questions. for this that when call imagine now like to to open Just I team able what be would

you. Thank

from question-and-answer Genuity. conducting Instructions] line question Our session. We will with comes Moeller first of Austin Canaccord the [Operator be now a

first my question Just here.

this to materially CapEx If have next expect constellation? to do or Lemur you to year accelerate maintain depreciation, you the year change

is timing. Thanks clearly for deployed and really of I the impacting as soon. A of last the And of basically call, fully no, the we eventually and I've a solar our orbit also the anticipated would And those mean we assets basically that planning. question. a assets, they our not. cycle it's mentioned fully replenishment have depreciated, were some orbiting constellation, lot

that mentioned, and we we're what still of million, our no, standpoint. replace seeing, our And will own for from believe needs and for orbit, data replenish. $X -- internal we $X we between a it's Some as million need we that the assets the will generation

is So most say, really XX% I needs. and of XX% is of services would XX% own ratio our our a CapEx, constellation space to XX%,

you failure? fall policy And also then from space the an And did on And could that services into again? you if have you propulsion go system the about customer particular particular satellite? that customer -- happening insurance treat for

going in and came corrective And that happen the That units in not space you stringent better taken with over measures factories, performance this ground, unfortunately, it's process, the we run future most very, one. selected still dozen sheet. people sub-nominal supply the satellite we to the fact robust at had seeing a up than not as gone once selection deployed is have space delivered very in a with short again know, the a We from so one. chain vendors, them has talking whittling through smaller the many, been to So vendor. the with down, the before looking and

And do of And not expect that you your question had issues to last the question? item asking. be I forgot And repeat with there so was then last we that. what a

just an insurance on if I that had asked you policy customer satellite?

for not have insurance on But is most market types especially yet that vehicles, deployed these for insurance time, insurance not expect the The that deploy currently there of opportunity. we the using. available spacecraft. launch orbit, market in market that I the in So once point But normal spacecrafts at to we future, not market ones is an revenue available, are do becomes and this so spacecraft policies do that available is on-orbit far for an as it. unfortunately. a more there insurance it as embrace are will insurance more

Our the with of comes next line from Meuler Jeff question Baird.

full revenue that year QX of bit the a full quite is but magnitude some So year guidance revenue the more reduction events the you material. expectations, I said impact the think of

that of order then magnitude just year about So, and on what of into there's a and kind any sort talk bridge any from just like broadly of demand more kind maybe drivers? change QX if carries And in full factors demand greater the other can go to you guidance? of

Jeff, with that anything, any way. of of in change the meaningful let they have see you some and me global changed, if I drivers issues all, think not our climate drivers right? that decreased that demand slowly you QX, this the orders really intensified, trickling the first A from tell haven't the have, secular When in happen through So, we expected So challenges the March. in security mean, QX lot anticipated we agencies and of also. was mentioned example, I resolved that resolution, continuing in those for of the not late some my in orders did and commentary, are right? of

of is of be a the these in only expecting you but think have come the measured we to latter the going that counter year. government to for few will the we're our cycle, the orders have a issue. QX impact necessarily of we the and item, not the that that with when latency But of deorbiting quality to we that you QX So, the the from a some right volume everything issue provision, about agencies, When of not about end the U.S. now had the of here kind example, but and shifts until think solar of solar in when part latency timely a particularly issues the mostly with created not cycle assets finish because through QX, issues data

in believe midway NASA picked and I think I this basically XXXX. through Noah

in problem timely necessarily during after that will a XXXX. So, fully become the things continue that will to overcome regard we things we cannot And year. what can see and that is these improve

to a is we in Our some had basically to expectation are recover rightsized provision some latency the why our it data. of growth the of at that and puts have in path we've we on, this good issues midpoint. so And replenishment showing where strategy XX% with us

it And with coming about add ARR on Austin, changed, gotten continually that that, has the if per has start of grown X-figure is in more do asked almost X-figure nothing up we as contracts kind become contracts contracts segment. to picture, substantially showing more see larger true see X-figure the anything, has X-figure some And that be. stronger. demand And contracts. you single numbers. through see if on this segment, customer focus year-over-year And customers our demand a are in single XX% I contracts to to as The in regard used size every growth XXx we that become In contracts, potential. of contracts that we well. every further you those

of our to feet Bluetooth of Bluetooth for Just that a leave one expect -- device spacecraft. that spacecraft and this a coming announced that And to months. stories magical weeks their customers as of the Spire connect we about here has we to target size of a constellation of other spacecraft be still delivered number having that to connectivity XX talking quite today, deciding use similar a there's will in I

a Leo to a not business changed going those as platform, global quarter month or So continue iota. and the few of be we indicated have And I the demand underlying here one technology decades change exponentially on, It's impact decades Spire's those model years be to impact think impact for earlier a on come. going challenges. picture in and measured an to in impact a rise massive has Climate to the measured security, to not make generation or as them. the of years and is

the inflection. then progress the ongoing And respect positive reiterating free cash flow and I profitability

in reducing already revenue understanding understand given terms running Just of you're help maybe magnitude the was pretty what differently of are just it what you're you in doing can lean. given you model us just expenses the adjustment, my the

lead similar you of we to guiding to rate we're And nothing anything we're a but QX, run expenses, amount mean, spend that we expenses that significant growth I prioritizing on from and see right? making the control. doing around QX basically to we a and to we don't expense on opportunities day, our the is are slowing No, diligent see run are you QX think have. basically the at extraordinary. potential, can every see discretionary outrageous on that rate decisions I and when should it doing bidding biggest without just managers, sales where expansion the expense that down moment marketing anything that So, we're the comes to basically that basically is things we particularly

you grow. out, that little the mean, a I opposite. have spend to you out if to the shift is quite money would No, generally, grow. spend you that And growth then do to money bit shifted

So, we spent that spend to that there's It's here. We're is magical now. for would later. nothing actually money just going something particularly have happening like not

you flowing through the see in And profitability numbers. that so

comes question line next from Our the Stifel. Rasmussen Erik of with

by you about third-party what propulsion. And that is is didn't ask at what from I that were wonder X, guess earnings we midpoint, trying like materialize? we trying just months at a would and time, be everyone in was I'm bit out full else coming to a of like Because week. would mean, same still control decrease? the kind else March slower your the to like XX%. understand, then that. or trying seemed we're solar the at year-over-year what growth this lowered in have I was -- something two I things accelerated Jeff can knew you out changed of that I'm because And to that, sooner. the I mean so trying know of had just assuming about what And camp resolution part and of little that then XX% now [indiscernible] I'm think to resolved activity. earlier The appreciate was customer that understand getting And I coming

Yes.

is what long-term Spire if increasing. not demand same us. we So, are demand still a for is number growth the seeing is months the that a is a market at that out I think, our What anything, is it looking perspective, showing and products again, few from

have best So activity physicist, you our really know, predict prospect the a week-to-week doing a long-term is I'm And way above month-to-month even perfectly solar and one not physicists Eric, as changed how I but XX% growth wish from the iota. basis. -- things cannot

after We weeks things So highly going quickly, six dynamic have to to you And asset have the done, perspective. The assets you full it's asset six then also have months to the be it's how early and to figuring going by is be. move another of not to you done it underperformance stage a out thought much just the actually to continuing some propulsion resolution can not an how launch much from an from you much right? reasonably then it it clear full the going is side, can was for delay run extended those thing out a underperformance for that the And there process same have quarter. be. happen from about the was figure certainly on then where other actually dynamics how another for

So straightforward processes. they and reasonably are dynamic not

now. so, given I in like assessments estimates right what make abilities to we you're XXX% it accurate, sometimes, be our the best and of But And gave to every point not out at is, time. seeing those turn think, that

And then then. on maybe just that

plus growth top revenue for can we still had? So, not XX% come last for growth you've you these talked I think in the as that out of episodic sort about this the long-term prospects still see we issues line of has really of changed. then mean I sort call,

Bluetooth power long-term supportive And we data separated ago. the space. that global data. more digitalization corporations according the it investment heightening are to economy, is years removes a at in Every about this to demands further single it the of this to space There these we because while company very, strategy. can and up less the of of space. exceptionally many that ones and supercomputers that We changed those drivers. for that come the AI given still ideas demand consider transformative. nations substantially sustainable that rate in capabilities those is serve is those their making picks weather to this course, generational Jeff, just two have and be generate are some which McKinsey, the and that cash Again, those space those massive have needs space believe happening of power growing positioned trends a profitable and with happening. every the with Nothing heightening shovels we generational trends I mentioned of the power the data and have single many, impact to talked new And Spire wants mean can has And the both climate have trends. be the and as growth drive and I the is to that situation tilts security increasing itself but earlier well reduces to builder that three machine very and oil generational quite and all by country producing data change and rates, further with that own into the learning, one of and trends that no are, valuable. where access then and not rate, as or the more are those our unique to that supported that achievable

picks weather in fuel is model business. our thousands and data, the hundreds on created changed, than other Amazon Services and the I sufficient is Internet the and selling strength deliver the products to now think using those Services drive and you other believe high Amazon was And of analogy, infrastructure ideas Space has built through Spire shovels for the and the data selling an shovels data its Nothing you me and and mentioned. trends have their and Web Internet, companies to for and other to allows technology their maritime others but about us it providing of thousands numbers kind just you for their aviation for services. If available growth rate a to Spire and things, and picks that exceptionally more business of that of leveraging potentially of hundreds to business drive its that are a the allow customers' has if use model. second new was books of CDs then business

have want service with said, of Eric, maybe scratched that have, I -- new way really working the constellation. on small customers the there's we to And they with customers start first to done but it because have to you to deploy And the have of have we EURIALO talked that customers a satellites And bunch aviation, four technology. the of as us that from services, right? terms when number mentioned, we inclination coverage applications lot seem are a So, technology potentially additional ESA. provide And orders, will and deploy traffic know to coming services the project that space technology comes or with of those we surface really that global. right? our And shortly. three to our you that aviation, about want come we growth more and that is infrastructure allow as all that this a right, a to in on So, follow-on secondary then able space sign to and a on of control similarly, air we're that is with commercial for scratch

So large growth also. and infrastructure significant very drivers very, plays there

you talked your And near-term year? this And more longer maybe down But what's with to the can the Obviously, further I of think XX%. revenue. that just understandable if the or the scale you I guess, model, to it's drive if here, efficiencies, guide, margins additional And about there? we where about get go? path as longer-term term step can and gain the margins. Is still a as we achievable then think

satellites can and satellites are last radically replenish, of and factor So, It's the versions when we X love depreciation you for the go those above we for a we're as depreciation our We price we early most of years, we're P&L. because are a QX, right? lifetime at of do. the year, and that what over by of improve these times, short-lived and of constellation to four seeing thing a things the to driven The for QX, impact saw several that, consideration, given full what have we're QX. now moment. built of of really going we into and that in in the same effectively assets the -- you taken short-term most we satellites it it is the the amortization basically XXx This assets impact. the a we see we But for talked about guiding the assigning we and this XX%, happens effectively are capabilities So cycle to impact. the assets solar replenishment, accelerated can XXX because sell

So, a going one-for-one from we're not to replenish satellite standpoint.

So, CapEx tab has significantly. my reduced

my replace because higher-performing it less with first numbers. P&L needs see in from assets own all, they of of can can assets, my these with second You all, and

provision when which we see thing after So margin you Space significant level, cash of that, business run. those is very do kind expect Services for are Space again, improve us also we XX% where should the profit those depreciation do And items to the run long that but yes, from and that component gross significant, in the the to XX% for account XX% data roughly gets you our to we we a for also. same math on my gross will with the has the And GAAP assets launch. continue long remain very to services. profit

Partners. question comes of Brian Kinstlinger from next the line with Our Global Alliance

demand to see environment you the hasn't might some in this short-term in you guess stronger the half second impact to I changed. the the of lead the second year? near-term speak delays? half year pipeline? certainly and activity the awards the While commented what's solar Can of you given Do the

supports the the have our pipeline from expanding clearly land new and share This of existing new estimates in wallet So, half. for customers. we of significant combination both a and second strategy we it's the a our accounts comes that So right? expand, have pipeline of of and accounts growth

critical line space from good follow of We customers. sight services to have orders on

very Some of be are them and that QX significant. will announced very, QX potentially in in

support And some half. that assets say as expansion countermeasure to We we not we're and provide plans those latency to And right? data those the we to of mostly things. necessarily quality is we facing some that attached have the we launched second basically of those. largest of have what able the a producer are we [cloud] things. of have commercially, I volume that but campaigns remember, again, that data solve the during are our And also would a

the really so that they and on the about. are contracts some for talking forth. quantities as And And data long contracts so renewal, not come and pricing extremely reset provision they out for of we're

that all sharing second our that half put we're potential about thinking how growth we're into is targets So, consideration in and of with the you.

little an the you a translated like if accurate in recently And and The some many bit, far under valuable pipeline, started was of of operating contract that translate many, multimillion-dollar global kind with the actually are aware, sure same to constraints trends power which there already. like in as the see kind many, of the you forecast more and a customers has, interest I'm you're data. for into of that industry, generating AI same

of deploy soon has a to And orbit, that the see to start translating XX Hubble again, you very like assets Spire start thereafter, you in into mentioned larger earlier launch a see from customers now which of into satellite services I those are customer, space Spire orbit puts they and So Whenever contracts. first that on of assets into constellations. them the keen to constellation operation. one

what that also happening, is on the opportunities or on go hundred growing long do term time of driving how the is we side, into that midterm, see And customer the see one translates space services constellation. single more larger term for the the that side, short a And for customers confidence every so, the type that have percent what at in to we because we many in guidance is many, same they new we it the is customer given. a start into you have scale and but a

me leads challenges questions away about which now. asked little follow-up, a to my the takes you That of the right some of bit all

announced launch contracted mentioned term. when have In use they for easy you taking another is What's How services the constellations for maybe satellites customer to satellites? it plan Can You a have through you operate competitive multiple advantage they you build of you your to to space services, they their you? for. large use HANCOM, for of long terms and these like space them just aspire that provider vendors, are that?

other this are answer not then So Like costs your for become technology "I'm straightforward. stuff going costs for know, it change to to cars well." you buy yes, your cars relationship buying, I There stomach that because you your actually gets don't are to When work, and switching the is your company, and course. that. the you as of space as simple say, that BMW could a and in knot like if simple need is,

work, are my world. doesn't a there to work, building my work. as doesn't And and technology stuff They So yes, talk I business exactly theoretically, in can the you If but customer your the doesn't on one same my say, is that doesn't your work. the stuff am no using. stuff if stuff one

that. say it. because make is my much It's I'm try dishes going Spire one So on to spacecraft, at planet. no No a commitment everyone unparalleled technology space they because to it one work the else, using their the to month just for It's across putting of through as technology they're on XX,XXX is as heritage. doing multipurpose years contacts XX [indiscernible] There XXX space Spire. not fix the is

no proven switch, the prove but can high as a same So it always is theoretically pretty reliability one you to Spire. can yes, and you and risk resilience

Kaila line with comes The Quilty of Penry from next the Space. question

there's partnership the Spire details any that question associated share A ago. that with bit Can NVIDIA near-term about a you let little : economic about us any benefit that and if announced more know deal?

in understanding, And the make So people similar a to GPUs and is way my it GPUs. of for to easy GPUs this business you NVIDIA, is kind is for means be in sell ideas use solve the need selling useful have best on case, to have CPUs they like maybe consuming seated one that data. problems of the for need with can they data of the to them. what access to is running they something you this and Which,

training to models, infrastructure, GPU access getting is for it hurdle. Spire, of the a For infrastructure and massive GPU that's especially

task does and It more NVIDIA And customers. Spire so enlarges esoteric, Because that to and NVIDIA access weather of for and data GPUs so, provides that thing the the use the was models meaning universe it their they can the do then a that while cases, past, very, sales selling on for same does forecasting. this a very train What to the in difficult it. for gets Spire Spire. it is models to run the our get to trade models is material GPUs as here

weather you your to can of some buy data those and Spire. It's then run amount take has model. who and models, of largest buy Guess data? NVIDIA the fleet and of some weather the space-based producing Now some largest variety you veracity craft you can GPUs space

at and higher a that's to make it we very, So a our to efficiency can combination. build cost customers. available sell But us that also allows then very powerful models

recently potentially as something And translate into contracts dollar multimillion we've some announced. that of then

you some : On talked you I've commercial other any seen space about government deals services seeing Hubble Are and announced. the customers? division, traction from

it now, I a right? of constellations significant that that about. right some in also are tracking, if the to basically particularly close to I talking example, to resolve have There we assets have, services, mean where want comes interest for Canada, amount agencies And some you live we and really big then emissions wildfire you we're that potentially sell right? data around some and And some services, of wildfire we intelligence countries protection interest some some understand space greenhouse have applications. what when we But I'm sets. issues, space yes, what seeing data it's intelligence think for for other from

And a last just then question. :

propulsion already of the to that Has You thoughts integrate to issues. in-house? Spire that or vertically planning how lot systems or seeing any Spire the about has talked spacecraft a given other something

necessarily And We priority. when at our we an have say, we issues. point, not history have some may consider basically immediate, going of I'd manufacturing I It's a also. integrating, into but own vertically not yes, components propulsion think

will what issue would I like have not the that That's in-source But issues. have only only It to working not and but vendor, mean, these capability other we fix cost with, issue. a items that right? issue, these is not a -- way, there we say, took see to of longer, we're I also that don't anticipate but By have bit vendors this issues. issues my couldn't demand or the us we had, we it's We said in a I these critical when remarks. consider some we

parts, of the where lot of the a should material than costing. be more unit call we is and the stupid -- have We well right, what cost

have So the yes, those for on sure. we for R&D, deck

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find we a because point, very, to often, the going in discussion the at in-source very, medium very component not them. do said, issues very experience love some or reliable, the single spacecraft, term, about If that. very successfully the working very on talked, is to becomes reliable. And supply that and with And we like this Spire one reliable it find chain the have doing term mutual then on and high-volume But every record done we so just we think we so. short buyer. and we're when I successful continue a just As Spire Leo has the we just is suppliers, is because in track

of end the our question-and-answer conclude session. will reached that, teleconference. have today's And We with this