Planet Labs PBC (PL) 28 Mar 242024 Q4 Earnings call transcript

Good afternoon. Thank you for attending the Planet Labs PBC Fiscal Fourth Quarter and Full Year 2024 Earnings Call. My name is Victoria, and I'll be your moderator today. [Operator Instructions]I would now like to pass the call over to your host, Chris Genualdi, VP of Investor Relations. Thank you.

Chris. proceed, may You

call.We who referenced and call.I'm as hello, to recap Relations is filing Welcome on outlook at remind begin, of quarter forward-looking XXXX related provide everyone fiscal which and President for Marshall to please potential Genualdi, or encourage the may today's we Kevin as press Weil, of and represents reference fourth Will to earnings future year full not Investor available we joining release, sales will leads Planet and make our that that today's Q&A everyone us of results executed statements pipeline, the X-K for our qualified discuss a and today contracts. have everyone. Johnson, are which Ashley operator, current well by presentation website.Before like Chris outlook. earnings Investor Relations earnings to This Vice our We Planet's joined yet update who we'd call, events Thanks, our is Labs portion PBC. financial

our www.sec.gov. subject For found which we the can plans, such or be the to will The statements are filings, we may uncertainties of of referenced by expected projections. expectations Any be customer forward-looking based over should achieved.Such all please contract, future revenue. recognized plans, outlook, cite the term these forward-looking the are a of generally can can at last detailed the assumptions and revenue management's as and multiple be this risks vary, forward-looking and expectations note regarded estimates, inclusion which representation in call, and that contracts years.Further, contracts figures not information terms estimates, during SEC current Planet various that not realize on will statements be as

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the and fourth year. strong joining Chris, to delivered for quarter Thanks, everyone. a hello, today.Planet call the Thanks off cap

loss For million. was for year-on-year XX% revenue, $XXX.X margin million the generated gross $XX.X was growth. XX%, and representing a adjusted in fiscal record EBITDA year full Non-GAAP year we full the XXXX,

target progress We continue to towards make year. reaching EBITDA this profitability adjusted of by of fiscal our QX

was for sector. an exciting quarter by fourth for milestone X,XXX surpassed year the also of government We the led XXXX, Planet.Growth customers the during fiscal

saw vertical as while increased year-over-year, our climate & near be heightened to grew during term, vertical civil Intelligence the by by revenue government has in 'XX, XX% fiscal of priorities government our to will a over well.In growth sustainability particularly driven grow we which expect tasking business growth continue and Defense solid in the revenue period been fleet, risks.In During business differentiated the Intelligence the high-resolution year-over-year. historically continues sector, led security, market, Defense our & the

AI However, to recently, has value AI-enabled from value particularly solutions demand we've seen our our that daily new scan our advances the extract from data enhanced defense scanning always unique for clear, customers daily recent when of by solutions.While PlanetScope increased capabilities, are in leading PlanetScope proprietary set. critical been partner

we value. scan, national capabilities security threat customer into support throughout to is and data region.Planet which Navy's a are Pacific our barriers solutions and detection the awarded starting SynMax, based interest areas Pacific purposes.These over U.S. data to our and areas the do data analytics vessel recall, the strategic advanced recently can maritime NIWC monitoring AI domain of help enable prime other developed pipeline.As sold that SynMax flight we're vessel we contract procurement signals search the time pilot on in This AI Center, board trend speed Ocean. NIWC, whose defense successful, such area scale broad Warfare already provide entry the Information with locations. partner Houston-based example, partner their and maritime in ACV may our solutions on enabling new of previously governments is SeaVision these and partnership a potential we from with is but We Naval AI-based partner broad beginning, integrate we our classification.As which and have Planet customer applications is multiple to Similar help X-figure expanded bookings recently solutions, pilots the increased and of alongside for monitoring or applications. we primarily monitoring our shift a award, and to monitoring intelligence you Pacific NIWC and the X-figure key part energy in interest demand to see companies just AI-based growing throughout programs scan contract data. forward-leaning seeing an include breadth critical proprietary will customer for our in are significantly. platform our to insights satellite have are competitive pursue as agencies, intelligence together, already with focused These SynMax from Pacific SynMax This capabilities.Additionally, area purchasing for combined seeing a monitoring pilots by land-based improve capabilities awareness award, opportunities solutions we and increasing were and for and monitoring with lower to

also where of data. year.I'll sold many this solid large We now Civil we to for solutions our seeing traction pilots are are turn the alongside pursuing Government these vertical,

partners.In in-house many reliable of billions we greater as seized a their state opportunities X-figure in million local of Solutions pipeline. wins investment vertical its by expansion to planetary be line, opportunities assets opportunities aided the commercial expansion QX, which and and of previously both customers, those stream which Government National and developed civil is Civil in the to speeding to XX PlanetScope of new see partner-developed Environmental unlock for year, in government, Agrarian elimination driving data.With and by than of regulations solutions SkySat quarter enforce include over we variables product customers well as and than Institute fiscal The Civil we public over Hub to Hub's of in closed market to Sentinel Resources ranging with from to 'XX.Recent agriculture using value fourth sales Sustainability energy with manage and this Malaysia, built and areas an solutions, saved with to which Government our opportunities agencies qualified significant the the of internally leveraging such Variables Brazil's team additional well enhance their in titling and ROI of makes during Civil to is and Indian platform use more portion forested looking and areas the customers majority October, and we the customers opportunities large the developed has Ministry data, Planet's which expansions large is their can quarter existing our include with ability as an recall our as in opportunity governments by expanding for large Reform, Sentinel manage governments, federal government expansion dollars segments the any platform signed during state sectors. by property with fines, Bolivia's land expansions large up in capabilities, our and Natural frozen, the land.Shifting It's which for and as shared, Government and X-figure monitor and Planetary multiples you Odisha, purposes.As time a goods, planning fraud first Investor through of last for quarter, policy of from to the market data the $XXX broad our management close.As vertical, Day collected our of

particularly of market company on sector, way our see our X-year highlight However, in be budget models, of use. variables that strategy analyze, with claim year-over-year and The our Swiss and on claims leveraging process, difficult to GCP's temperature opportunities will existing We which soil customers completion data easily by for variable, the through program discussed Planet's the wins continues products variable vertical.During X-figure at parametric partner-led Swiss using we from onboard large and a ag to support an validation.We of addition These and expansion to business is data the the and monitoring update year-over-year Marketplace, growing. closed had insurance how develop land Planet's constraints markets.We insights derive prior planetary closed 'XX, in sales. content insurance commercial a tool platform can in best previously credit, large the but this addressable available serve allowing budgetary to a forecasting Cloud market is the a Re's commercial they Swiss already for and relationship proud that is to purchase already Planet now for identifying anticipate gears commercial and fiscal share purchase based that slower its scale. centered verticals. the announced we modernize planetary the marketplace.Shifting risk, so our insurance feeding pricing calls, the to credits, a in meaningful revenue the opportunities potential indications tools they solutions solutions.To our is GCP to and commercial surface around broad also QX sector crop in Swiss customer deal Re validating we've make to across be which a spans on renewal new Google PlanetScope area this contract, that Re's were partner, within also data drought a We've multi-year customers from Canada, efficient some in resulted adds an in comparison, to Re. commercial belt, decrease the strong continue lapped is recent we're grow of great and legacy overall expansion constraints, planetary which with sector.Our sector insurance for new agriculture-focused and our water that

Carbon expect begin key Mapper that X-figure afternoon. contract press have Carbon we the revenue arrangement contract for Mapper provide the to This XXXX.As would partner Tanager released agreement been extension license non-profit As seen hyperspectral in its of may imagery Planet a this with XXXX. the signed an data recently to this an is until a developing you reminder, existing hyperspectral an constellation. We under and partners to in has and

and shared our improve carbon our in demonstrates mission methane and around global confidence agreement dioxide and program reductions understanding the this shared accelerate emissions. Importantly, to

to me first satellite product Tanager continue turn to later let year.Now, to updates. the We launch expect this

The which well. hundreds tech in tests we Pelican the subsystems demo, perform that the over of first XX excellently. November, have continues gone launched of we've Our system satellite conducted to

with We making approach learnings towards agile our enables designs. shared fast in improvement are iteration progress platform.As gaining orbit the our of solid Pelican rapid spacecraft to capabilities previously, we valuable cycles on-orbit and operationalizing aerospace

and updates. constant months.Turning biomass understand more launch in speed solution. in customer as road yield to our products to very types the enabling and is Field better practice Boundaries data as AI-powered our summary, at Pelicans, satellites, level.We've addition Similar latest the data, to we our the including and our approach government solutions season, and software for well which accurate XX crop next improvements strong. the platform customers We helping crop improvements recently throughout of software building suite growth global planted rapid with accessible We detection to estimation now our launched expect Analytics, spacecraft, planetary to made PlanetScope time a agricultural and meaningful during variable provides additional value.In to Consistent our make sector different iteration first also production our well. variable more acres demand improvements spatial Boundaries the to our are of analytics in context recently for solutions. Field as upgraded is planetary necessary

We is unique our enabling business data. and shift vertical. and early in broad towards defense daily scan our are and selling exciting seeing intelligence AI traction search use our a is opening alongside atop with the solutions markets in area cases

front can prioritizing is are discipline, deals generating platform solutions for these the year, emphasize We on an cash and fiscal important initiatives be committed XXXX us, markets. that profitability business.Growth right and adjusted to a our of margin, so scaling behind our across to in striking EBITDA sustainable QX achieve want large balance investment by milestone growth that we building the partners path which areas.I we flow will globally and vertical remain operational by driven the between to of this closing high

engineering and excited more space to and on continue our equally the to come. there developments be technologies and about incredible couldn't make product here, and both teams strides more I software Our is stack, agile agile

the a hosting today. like so I which hand will discuss XXth, announced virtually be milestone earlier mic webcast management are encourage in.Before the tune I'd you We transition April Ashley, on to to over launch, to platform I

her the we to strategy Labs that expanded taking Ashley and is Board; express glad evolving the leading Weil's Planet.She very to his of & turn recognize Defense Ashley As an I'm role now and and CFO. PBC to this the performance organizations. focus is domain, she'll and my his she go-to-market about Planet to of all and at continues here to the Agency, Ashley of her to of on global a I'm a lead deep and Robert in excited shared, role outlook. and I'm operational Kevin who as Intelligence member experience wealth for has overseeing be role and share the and Kevin taking as advisor of you in will Head the way.I'd continuing depth be Federal Planet, right driving new of from relationships our like of XX look continue this our of him. business guidance to are excellence National and Planet during taking partnership our us leadership years globally.I'll of of and the business want work at role large asset with understanding the know, our make on over technology knowledge, will bring on person with call experience who and scaling to former thanks go-to-market new Geospatial Federal Cardillo, strategy Planet. Planet pleased for to business Ashley's the assuming that Over because, incredible on be businesses, to security financial a at an Planet be to role for will to understanding it Chair Her benefit forward congratulate national here for chapter.Additionally, today, I first to Planet responsibilities execution review results-driven and of that, this Intelligence impact is a over you, on and financials taking President to the President.I next Ashley. building

the the build guidance year-over-year, remarks. which international to line report quarter in was Intelligence or ready next with the ending the this in results this both on $XX.X take XXXX of better to Growth appreciate grew Will. and domestic go-to-market chapter than record on all with for we call. year million, Planet.I'm role, a vertical, markets. earnings excited with Thanks, that over came and in year-over-year Revenue driven product fiscal to for fourth honored represents NIWC XX% leaders, which also quarter new I on fourth & and my XXst quarter provided the global the in were XX% kind the expansions our really at Pacific customers by full our win by I'm incredible partner last Defense truly with foundation growth. January to for the and and led pleased

previously.For the customer our more We XX% vertical, capabilities in government growth strong Pacific also and grew area are adoption fourth discontinuation discussed solid year, than grew over grew year-over-year, Latin and and than America the than impacted more Asia more where North revenue a America year-over-year, Asia fiscal grew saw perspective, quarter, grew management XX% America XX% a primarily grew civil North EMEA less full more while the X% we've year-over-year. XX%, EMEA revenue year-over-year XX% digits, supporting year-over-year on Latin that of stayed revenue geographic broad year-over-year, America solutions basis, expansion.From than the mid-single than year-over-year. during in the the roughly contract legacy by revenue flat Pacific

noted, As the rate and the retention ACV at X,XXX net approximately was windback's of ACV rate FY weighted be was contract of ACV of expansions value, commercial offset of end-of-period dollar with with was budget-constrained by length government business slower on XXX%, XX% in or customers. the of dollar of Recurring partially an the end we or Net end over annual book continues customer our X-years contract basis. multi-year customers, 'XX saw year, average was QX, retention of as uptake contracts.Our XX% strong Will XXX%.During vertical. book and count ACV, consists end-of-period our of to our end-of-period annual business,

'XX were of New previously retention FY the improvement, year-over-year gross and than solutions. in saw we additions had expected, stronger our customer stickiness reflecting

had primarily was initiatives the FY to revenue Adjusted of for and including was gross ended which full to indicative year, provides were of $X.X the company.Capital we investments, of EBITDA end million expenditures, full to the the short-term across was and fiscal growth-accelerating the the with year we $XX.X still 'XX break-even XX% EBITDA for fiscal revenue for approximately the $XXX for million Adjusted to sheet, next $XX.X the which full quarter year for but it flow cash reflects no without and churn.Turning for for and and achieve focus additional rate and million. cash expected development, we losses XX% of margin, approximately RPOs, million of remaining of quarter to or to fourth performance for XX $XX.X year.Turning XX%, retention higher have needing core XXXX, capital, capital with XX% than applied the our software equivalents, narrowed balance and 'XX by dollar not fiscal loss margin the was the driven less the throughout year, capitalized $XXX.X efficiency gross continue and of for operational QX, our cash, non-GAAP for XX%. quarter, raise year net to we quarter-over-quarter million, quarter the million lower-than-expected the is next sufficient Our us XX% expansion months or outstanding.At the invest obligations, behind believe approximately debt X-years. were and the quarter

contracts $XXX includes other termination contracts million, $XX $XX approximately which the convenience million found and in represents next guidance XX% turn which me year-over-year. applied XX to 'XX. first growth which common XX% approximately of fiscal our U.S. be federal to expecting We're million, which backlog, XX% is for between X-years.Let for our of next the and Our to XX% clause, in and was the months approximately quarter to now contracts, customer to revenue of with occasionally a

to for anticipate the XX% margin sales, by quarter.Guidance expect our X we margin of $XX we to our expect be X of useful anticipated to approximately million reflects satellites, have impact for Gross an the some for expected the higher million. government to re-enter the which $X the partner be between lower and impacted in XX%. QX gross percentage-point the solutions the expense an is first and larger Earth's X quarter will inclusion non-GAAP between life impact estimated We QX also percentage-point year.We be and expect which loss from fiscal related to depreciation adjusted atmosphere within for SkySat EBITDA during shortened

replenishment recognize solutions for our next-generation expenditures contracts to million we to that We QX, capital in are CapEx fleets, and an the CapEx the and business year planning approximately increase in pipeline continued $XX ahead, large reflecting are for maintenance as constellation.Turning of our our as of in seeing existing partner well in investments PlanetScope $XX we million opportunities.

many in in pursuing power enabled that including this win. are multiple we from we convert partners promising large providing AI. new recent upside advancements operational the to the these As to with signals procurement The believe contracts pilots our have solutions business. seeing addition, potential position contracts, you've heard, that into in significant we year.In or very these customers significant government and existing are in have We X-figure with flight are us potential by solutions potential progress the are and in opportunities scale we of to receiving and give drive confidence our large

more and outlook. size, year, clarity That's why these opportunities be provide off will through color timing, these the predict. for gain on until to can However, the difficult hold guiding we going gain opportunities the on our we're to we visibility develop.As more year full such to how we on of opportunities structure

flow-generating business.In revolution will alongside investment targets reaching core enabled by in target as to to our we commitment us. I'd adjusted of to we reduce profitability, quarter adjusted sustainable, like financial we are front to behind EBITDA by and In seeing demand and sectors unfolding the to shift the Will AI. fiscal which areas business changed. mentioned, long-term in we parallel, necessary Our where EBITDA the for Further, a summary, capture government are strong, deliver a our on happening view emphasize on expenses are market key milestone the high-margin, not profitability this opportunity the prioritizing building of data have fourth cash year.As journey to our our solutions of

drive our streamlining trends these progress market investing and base engineering make our adoption we to continue launching cash next ensure teams generation our operations while efficiently align are cost toward to to capture our and profitable we behind deploy our globe have to ahead.Operator, customer growth.Simultaneously, share of We year accomplishment exciting in XXXX in incredibly a and the We more few platform of fiscal now excited launch our for that our take and around questions. concludes I'm teams the fleets, proud just comments. an coming weeks. can the even great

first Northland. Our a of comes Instructions] with [Operator question from line Latimore Michael

Just deal they sales like yes. On and -- to sizes, versus, how X cycles now are trending sales new X months ago?

I'd for sizes, seeing sales we're say -- sorry, increase. sales on definitely to opportunities sizes sales average to

given larger with of some form of we awarded, Just some have government which in pilots of what the awarded alluded with to the been contracts, been some contracts. have

to sales those As on side, we can although pilot the longer, know, see you turnarounds. shortened cycles tend be

stable positive I'd signals. seeing to, So, net-net, say

it. there Got deal one? effectively quarter. that in think then was an Any expansion kind I And the X-figure of that was on update last pipeline

Still share. in pipeline. to Nothing the

an NPS? Promoter have just you Net Score, updated do Got it. last, And

have We'll to circle time. back that. this at with Not to you

a from Jason The Citigroup. with comes of next question Gursky line

that you're, perform would would you that risk you be Will, the maybe for retire comes this gap get if some for capability was there Pelicans a have as up to delay gap any currently there, reason today in about is the and transition at on? in on of to and a do set about bit that a be able little contract the where a whatever capability know, SkySats whatever question these you. or, Pelicans. Talk performing before If set there's contracts not that the you a you SkySats reason for

The short answer is no.

provide So, at to we present our customers capacity plenty have time. of to the

that orbit, those We capacity increase lower improvements. by offset on sort software satellites generally is with those the from fact actually have of of seen some the we accelerated that routinely SkySats depreciation the but

the We're year, to XX%, of software good, a that prior really the pulled little give going in offered first just and I'm per planning year, So, track. the as that in and looks we than the months, in you Pelican operational an far together and also that, pleased incredible I tech the I that has and by the orbit and about of is that's It's remaining that satellites bit demo. a capacity with well. incredible mission. more Pelican of improvements.So, XX all satellite and with really doubling longevity and those bill last work the next all the improved sense team satellites on mentioned, higher because shared results it's so the for the

ask left, I'll existing same do X contracts? many you mean, I after SkySats your way, to these have many many Maybe go, a How you different perform on how will topic. need -- and how SkySats retire

and to that that's that. Yes, and the XX of the think we continue the we'll this I the but is sort revenue Again, have, It's that said, so, have that I with yes, capped approximately continue improving XX on to further year, it's grow. potential for We're going in work capacity not think remaining, improvements for not plenty revenue, like that just just out. year-on-year, and we growth still to plenty. we for revenue of see to in kind

first your EBITDA to which even revenue And you. with couple for get -- current Can of projected in the run rate, then, you quarter Ashley, you a break break 'XX?

we're we so thinking are that that the usual, that large this year, the with the our opportunity that much the our to work rate about confident I Yes, opportunities I'd our full-year these though we're deals partners as a aligning it's it fact costs in position but in we're compete we opposite.What makes accordingly. as of not generally say, that, for investing growth progress are our opposed number share and and fact even year have the opportunities very because and say through and from purposes, acceleration I sight hard own making way is and guidance than can difficult I'd obviously alluded to in we're of do that that, win more are behind year-over-year to there them, in budgeting assuming internal very and

the even? EBITDA the quarter, a guess I business question $XX roughly be break million can But is,

There's no reason couldn't why be. it

Yes.

And the and break on little okay. talk about, to flow yes, turns when drivers the cash around then, expectations positive that? number, Okay. and, then and gets cash flow, And even a of maybe bit timing

to I of a way our we different balancing guess, that it the is, I are cash talk number in balance. factors managing

services very to the is balance We've government invest balance, one that continue key a want look to to that that a they very balance sustain to maintain So, of cash us as can will on books a critical sheet. our X-figure behind provider customers we got us large we to, know healthy provide.

next-generation making other our So, investments we're that's one factor.The fleet. in is,

in a, mode, a those, so our that, advantage. growth invest space and we data continue what make behind drive sustain can And all are the solutions to that we are to and sure to investing those We cash and enabling achieve internal us Obviously, efficiencies we that call like we're is and acceleration that we we we're that to order beyond about CapEx exciting where want continue freeing in would balancing that revenue our opportunities continued flexibility, that of as operational we so platforms profitability to making are goals but that investments.So, core more are we're accelerates, earlier operations, ultimately we've things our quarter-after-quarter, prioritizing our the our internally on own about combined our talked gives it's flow. a capacity act. if are that in not relying that and we driving, up the that, sure think with we

X last Will, me. Okay. for

and there with got Slide bit is are? of little sources the demand geographic government the outlook XX, where you customers on which talk slide, that a large you've about the the those the opportunities opportunities can On government

is procurement, deals after deals the top about a program NGA we'll Yes, the commercial million-ish has had satellite customers dollars then, be CSDA a procurement we're government. with looking international be a some I really competing there, are layer the which And $XXX pursuit on civil a at big of budget partnerships Luno competing NASA of I few have the of analytics this X-figure for for significant There's space a can an actually, bit there.Globally, we for in fact mechanism of their expansions. elaborate year. we'll expansion data that of little today. lot that number to more the for the the important that, mentioned and going of active data and our we're has

in So, tees of as that well. sort

Yes, So, after and solid that a we're we're about this that deals year. going very there's I now. feeling pursuing feel that. we're yes, opportunities right about pretty the lot good

next comes Trevor question from Securities. of the JMP line The Walsh with

additional I'll mentioned That'd governments?And little come kind just how along? the to then might secondarily, other time. for or bit replicate U.S. of I the that be sensitive maybe able be the type to a then, of more and operationalize around case. might within you us beyond that is around other perspective governments to of be particular to area little might from kind program you, it a kind over that's you sense all kind I this, expansion how Just, Will, think of able guess, that of contract not Navy's of kind start broadening that talk just with NIWC-specific okay. use is about of of and GOs, from opportunity of you great. be for the that? contract, could the what's guess, interest Could contract services that a the that of there expand kind imagery whereas give Pacific Would had I the similar share maybe -- other if learning's

vessel area capabilities AI asked was also and and it's that, identifications, tracking that is new so as And incumbent system, detections, our based that of awareness. for see off scan scan that that. PlanetScope our was tasking that a it's in MDA, that certainly over competitive to is that pulls theirs getting well-suited really vessel obviously, That's out -- it called excited pull sector, frequent the to. competitive I'm obviously, Yes, at.I Look, happy fleet. need win.Now, win data Awareness, useful great an possible what within satellite right? more about, as had this our things contract for is that. really can like top but of a was there, And expansion to our ideal -- overall. for top large PlanetScope daily is a Maritime a that's It on on AI monitoring, you note that team situation an on is example the Domain enable was it's by where that,

that we've In customer. really more that initial broadly, fact, has contract can performance been yes, Very to far, And strong, that. indications Absolutely. customers? and of good this question, the got then by so to from excited your other go

there's other conversations any any doing us that already restricts It that than capability. more for up, nothing with that other from we fact, is countries products. In several ongoing and have brought

it's initially the financial prepared that, in in add said was Yes, to was and could commercial applicability and sector solution if a on & Will has his that markets this think I Intelligence Defense that sector. worth this that noting, remarks, to energy the for had I developed

things where then opposite but relates start as it government and commercial often, went go the geospatial this actually direction. it in one out So data, to is

color that, on both so Thanks good Awesome. the thanks. for me, segue and for

of leading been macro XX, really last the switch, part of I just and for the about then that looks the it's guess, back of a On some solutions? things for are the within the the other that of normalizing convincing, to and hurdles of of available like, to of for technical like really getting budget What of about you there that commercial the and I are are need just business. we've kind dollars value business do front, just guess, there fuller just health, the the is people going things business start all or would rates or it whatever year constraints around are talked months, the results that that just or you outside are, the once other feel flip to broader or talking to kind interest any XX part just kind budgets of

that lot of in Well, ag agriculture our which that. on particular, the challenges. mainly today, of segment, in changed. and the had fundamentally other a was has that's been sectors and sector I'd There's these so same. It it's affecting need the remains is pressure nothing say economy commercial its part is The proposition our biggest

sectors still So I and However, for that as we why on they would I there's do actually on data that in dollar that, and call we decreasing commercial say which multi-trillion lot us in crop same fundamentally insurance like reason fundamentals yield as other There's doing of work yield, fertilizer are this. well can the and improvements a no can long building and been say shouldn't term.So to less profitability sector. our improved inputs, be it, of enable for would the things, solutions, meaningful other other weighed right? things, solutions. they've that use

That's being have of strong to markets. So more that outlook planetary is the complex get temperature We some. mentioned of surface long do But the in parametric value effect about has term. having geospatial reinforcing opens to very sectors variable is to ability up their enable of about have the We nothing we kind without and right? the more do the immediate extra insurance. our changed understanding enabling do that, need the we to how those the land example fundamentally, Swiss and customer the data, because Re adding economy, thing to agricultural

it. Got

Okay.

I'm you The kind your the know anything last greater couple particular efficiencies was else also acceleration ones there think if anything helped that customer of in of in a helped. I of can. But provide quarter quick any to the kind for that just was achieve in ordinary the just new go-to-market you've the just I that mean, contributed there Can in logos about to so assuming you, metric? quarter. kind you great around maybe Ashley, of talking out was been -- that I processes, that?

have organization educating that been global an Planet would these these the say has value commercial relationships with as ordinary. customers. for end the I jumps building really drive Nothing on that of the me incredible market out and out opportunity at being that, to we

progress, And the persistent, is time, these the bring great it our coming from year given new expansion sales the between a in and to while interesting speaks it them some of of obviously motion.So just the typically have see and business, land was in us. year last front more to balanced deals majority tend any of business but just that sales much because we way to our logos part some new to more expect see these taken core was team's by in to been that opportunity expand growth and see and of nature expansions, of was

sort number and of the basis? same the converging. of like of one slide make working kind kind that essentially NDRR that essentially with NDRR kind kind off sort looking between less report of is we're less a I or just of a look meaningful so on the coming just Great. -- looks a of of call-out? And is and then It's on and as continue -- guess quarterly, lastly, less dictate, the as more into you'll something I'm to number, separate together. and that that yearly mean, looks it kind the I and winbacks -- like delta the Does the this is is would the of It happening music. numbers is pure deck, sheet winbacks

spikes we we educating ways the know, that contracts. things. on to And our on on-time X of end be getting in at more less of seasonal, continuity converge we customers peaks are contract our and of using data with work they that the happier can you business sectors driving renewals to really more drive And because their rather our be periodicity ends. when of see to me valleys. that don't than the X, me we being renewals just contract would customer would focuses doesn't the speak lead and sometimes should to and where tell One, can between We because the renewals of the the peaks there's on somewhat valuable, data more the you speak point and time, that and the across some those X the to with That being all when tends that valleys would a to I'll but so of as market obsolete having metric as expires customer. nothing just more serve our to report And when we're make become get gaps not and numbers for tell that elements business, renewal. -- need so data solutions winbacks. and that the

keep not to reporting than happier as to would we'll need make that it as said, number. it's long I report So as relevant, me but nothing

Instructions] the [Operator Koontz of comes next Ryan Our line from Company. & question with Needham

from talked of first, can impact your you housekeeping accelerated XXX-basis I you and point mention bridge a channel, the depreciation. gross just hit little the from as understood, the solutions in on of XXX if you I us a margin then about bps down sunk third-party Actually, of QX, there. through bit set kind heard

relative that XXX-basis my QX just is, could? to is or plan that before? us bridge, if to? that, of it walk of Is point through you what question your maybe relative hit I So kind maybe record So suppose,

Yes.

So numbers specific the was providing to guidance. QX were I

some just on So, context the year.

QX. satellites year With will by until the the that be gross be will margin X depreciation impacted for around full the from increased de-orbiting

pulling and Then that that when get relationship. impact but revenue to we part kind into an as it's also the revenue that act partner that a prime, as their million noted, you I respect gave So partners the QX.With the that's goes providing approximate over both I $X we period, impact on we're partners, of to of solution.

sold. goods cost through that our of So flows

our us depend other we to of we time side-by-side hard So scale, that and quantified it. exact a so full Gave little QX, and might prime to of come do say, so continue, it, see at quantify into expect of that we on impact how will point. in and this business into government partner are partner business the in or give the but than the of this Obviously, us actually it solution do traditional and unable are to leaning prime.So, sell how quantification are a partner we're on might leaning deals at more drive to we expect will help or you this to be you we that impact I that pulling much that a with year QX. is how much mix where these where where

prime? versus with explain Can Planet sense. you and how building and about you solutions trending now ways should of we future? in you maybe way Makes where process partner prime which Which the out common versus sell are more is the are in as think

the driving solutions things. looking the it's partner customer is which partners. this matter day that area a set AI But proposition really and data both AI I extracting in value our upon. train of those We're stack there. both both what, it because partner particularly have think the we is data time obviously AI primarily PlanetScope I each and area set driving suited lot to every the do series they that solutions. most of our those fundamentally, more is mean, here been no Planet what opening where solution up prime AI cases well at Typically, data.I algorithms from you to and our Planets to of own and have Yes, consistent out mean, means involve needs value fact we this, broad the and and from that revisit

is There most there example that I space.But there pilots any particular a we've that, anyway, that is this are been have our the but to and what that with don't very pretty AI anywhere We classical high a seen see partners appeal of asset between on machine mean, we're we mentioned companies call it's takeoff Navy So of trends. mentioned, we others. existing on. has I like the that learning. close I a couple would some has to work unique some of working differentiated good distinction

large that text, become both perspective. fundamental large from of models pilots based to something my growth us right would is to yet which Some multimodal that on doing things.I models will but say type most boon more are imagery there's a frontier language do now is text with capability language the is and capabilities, opening now opening huge a model up now fundamental are of up more of with stuff, more tackling classical the to these large language conversion,

the beyond that extrapolated an exciting I've So in domain. time it's think answer there, but I

how on of you're any how any progressing, of government you Great. seeing progressing? as strengthened that's or us just color could on that, update And X is I that the EOCL contract, a on just give if more, little come that's result can a these maybe

that know good that up that, providing that more affecting renewal feel It's don't our about so prospect. the We and this mainstays far services serious of generally, about in that to satisfied. against I very Planet of there how and do areas. important. we're one show good. contract, player feel customer's the the the understand do implementation and with I we space good a reliably a I think very reputation that's that we is as good We the contract. is it's other so team have coming that of

sense, it sort that a of yes. in So benefit, has indirect think I

your to boost Going brand.

next The of comes question Sachs. Noah with from Goldman Poponak line the

full-year is guess, if don't It sounds annual you're know prospects, where provide they'll and that like large when and XXXX you're but land. uncertainty, saying to less as the not guidance upside decision alluding to these you downside I uncertainty more

you'll consistent year compare You've with given that on somewhat the toughest far. full-year year-over-year your XQ guidance rate the XXXX, and face this by growth that's where is

there of us scenarios opportunities is a And then Is Or Are the depending a decelerates? the too is they optimistic? land? a growth scenario revenue on is large that reasonable assume on of there where XXXX's to outside the all floor, down? similar I base when for rate land, looking where kind upside so case there's if growth 'XX rate and is guess, it to

a has timing. to lot obviously, do of So with this

drive not we're progress is kind good business year-over-year the we as sure a things how have feel been the opportunity us year, the and convert that the to opportunity expressed, in on really as we're expressed we we to front much growth us as And the making ring you have pace in landed, of the and of So some in and of pilots business previously.So just should about we're I last we working, not timing. be invest that, and obviously, range have point, had around to that, confidence your our overall opportunity upside. we've that us really cost a but in assuming for teams rate, to hearing pipeline that that profitability, that think at challenging, the when mentioned, hoped managing to say that them, the I'm particular of and the just business.Beyond have not getting is fence the the visibility and and maturing I'd a we about growth continued tone really obviously where to it determine giving in front acceleration the best I helps any base we that place sort of in reason, uncertainty on

anticipate will range the year? a you you point that have Do at some through Okay.

on Obviously, business We'll we year. to as revenue give each the we how color. be more into will continue more to translating get progress as new quarter, lands visibility the

So we do as the progresses. year anticipate giving more color

revenue annual do and on you your maybe was the Ashley, year? me, a within kind directionally it as remind in you backlog And, book average, few Okay. the past of deliver how entered over or year when the framework, years, of much just versus the

Yes.

we've and to, really next-year tend decent amount the XX% assume then RPOs past the renewals. and in XX% remainder of half-weighted, of from So talked to back driving the seen lesser comes to the from there, And we current-year percentage be in and we've so kind more typically about bookings that that's revenue, backlogs a internal revenue. for and revenue purposes, to a contributing of representing amount new

it, in typically talked about how how it think that's we've about So past. we the

one or to although quarter in $XX look run as first run normalize I plan, to to do you how had capital What's year the percentage pretty of million last just is revenue the time? X start to a And wanted over ask then big that a is full rate, $XX about I does And Okay. quarter is is sort that guess, a the million that -- compared the range. on like? anomalous, last that we the number where year rate? guess, I for of

the as a I'd is And target long-term levels to we growth on and is and a of for our we year, anomalous, to where more this quantifying is CapEx expect metric move QX growth CapEx characterize see into I maintenance revenue, CapEx say but a this would are out be. not as so as what growth percentage what unchanged Well, percentage as revenue of we that expect phase in but of CapEx, CapEx revenue cycle. we're depends as this a year would

question with from The Jeff Van comes next of Rhee the Craig-Hallum. line

and Ashley. guess probably be Kevin would this I for

where the execution, you be On going good on, are sales get I transition just a with to with to it'd of you respect think now sales execution. the feel sense

working? So, #X, you? What's needs just what speaking, where not? are to change? What's generally And

excited just year, I year really in.So, so back team the strategy, the start And completed the to into going and partner Kevin? don't bringing I and there evolving ecosystem? we're we business that you of changes ready against to the to and would direct in, this we Any it. heavy on work, over implemented talked got QX. thoughtfully color would of in initiated globe. color year's Kevin, so, if were be and say, really to add want half our jump the that our to changes focused getting this out as I'd an where now and to performance on do everyone there, lifting the we make about Why thinking and we in say, to leaning we kickoff about, of and Yes. and lot where customers done a for in But numbers we've terms changes organizational those the upcoming see you add of those with strong a continuing additional executed we around lot any go-to-market back are want sales wanted the that

lot confidence execution. a and of Ash's ability who leads continue transition as in in to have team, I is here, this sales say I'd Charlie, All we our

easier commercial ag, got weakness their space while it. I lifting in changes Curious you're ag the and fundamentally trying little if with it it's in same a as then, soft landing there's to guess, respect function consume? I'd and Is and the thoughts X been be and general. as or and the factors customers I there's maybe obviously behavior a or now. in understand in of ROI? more those has. demonstrable a head to needing solutions ag I and more been commercial general, ag in mean, in it on the names productized why maybe and ag, Okay, for specifically more, commercial any the mean, Maybe And just to have new weigh, seeing would say, to but both just retaining,

and I I'd tempering commodity customers. The the a month, of That the for us expectations, just the year but very up, head pressures mean, and say we're whole.So, counterbalancing long-term for lot prices optimism as say, bullish particular, sector starting right. for off some with this sector in the sector. earlier of exciting sector this Agri-Tech opportunity large, we given in we're potential on conversations coming said, the to its our continued both at inflationary conferences our with a pick the for dynamics and remain in I'd had and agriculture customers of you're is we that commercial

a tiny thing. add just I'll

little course. of color story is We the energy, agriculture, If or you of there help have and others released too. Commercially, a weeks strong a one our ago, a great blog release, just of Bayer insurance, use of it's how we it here, not how want customers there. just bit of and tells do few the was case

about You were maturity solutions. of speaking

clear. think now solutions do I we are but some have that that critical, is really

on agriculture we focused that in parametric scaling Now, being we are which now. are insurance product, more

as a well into that very the as toeholds few market serious a there, are have We strong. fundamentals

with Li a of from comes question Flora line Bank. next Our Deutsche

Just quick a from X us.

Starshield? initial So, the SpaceX view what's on your

SpaceX what?

RO? The consolidation Starshield. -- SpaceX The

about came recently Yes. Is what Are that you're reports with the to? one of the you referring Starshield? programs to their out that referring

Yes.

Yes. government-owned I government-built. contracts, and These large operated a mean, government for look, basically, are that's satellites.

doing I think, for doesn't, way on supplying the commercial-first the security commercial internal of in satellites the like, playing classic a change any SpaceX. procure are sort domain, of always The Does if especially of our for their own role But different a make with It's like to they're will uses, government any business. market that that defense very they from and side you in sense? So, contractor. government.

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

wire, it Oh, didn't get under I in. the I would think

It discussion. I on CapEx follow-up your Ashley, close. know. Yes, was

the What with On CapEx the it's we start you growth capital. the growth if do sort the when CapEx about that discussion, of And folding talked former, program? versus maintenance associated in you do consider Pelican?

Yes.

If quickly fleet initial the we've at in with we'll pace replacement this I been being a our the after maintenance same fleet. revenue So, phase it. shift phase. would CapEx demo, think today, we growth the the about then for of We growth stay is we're can we've at the mode. Obviously, begin And the kind cash. and launches.And we first us Pelican move about operational seeing a really we important maintenance can can we're talked launching in definitely in more SkySat past a introduced we've say CapEx demand growth that lever and more gotten rate faster, managing our demand tech we've launch as the through into experiencing a then supports as if operational more a so high CapEx feeling

important our cash that is us manage our available to lever So, versus CapEx that enables an investments. us to

explanation. Great

honestly in here, But CRs normal? CR? I of from or the the kind budget year. every And mean are you Did that the are But old don't you we're we them you to what punch than nothing these obviously, of perspective, of contracts can you system a questions, same more freezing clock, Next melees new are did where, thing? programs, like, new and program starts have some of and one, of just are defense response question, lot important horizon sort is second okay, seeing? on. we a pass opportunities? for close your know, a you mean, do got up I the Does We Or on budget. specific X seeing there's anything just it's this going lots capacity it. the the a start budget extend mental CR? new.

like data dysfunctional we these I just just to because think the defense upticks are budgets serve our tracking things It's our on to of that, the the for government commercial be is do some things. clients particularly we by important No, generally And really partnership increasing. We course, budget passed saying And they track where have, program where NRO will we NASA, And have affecting been mean, the government areas put Look, and with And the we're increases that's good, glad to of general, side, side, end for mean, civil that. this anyway, But require affecting satellite right. in on both the the And them I ACL. it increased services, and the buyers larger with. and that versus so course, them. too. with they like exactly do. I No, we do you're year. do proud things working really complicated. we're has work think enables CR in contracts

higher happened? I And we you final level, And to good question, pointing industry, is yes, anything yet, to data that next saw that companies demise. are cycle, solar probably haven't they're of really go see point, good looking you years, other for we several but the solar guess, think older on real. have good clearly the of event out And what is feel an the where satellites early some activity data cycle. which I predicting mean, solar do operating? seen still kind about couple I higher to this enough say, if event. in got some it, Great. that I you was it an satellites was I back, mean, at but the

of in for the part isn't, have of as really at little SkySats.I'm our Look, this had in we for normal. pleased went to was But adapting redundancy our us is have depreciation There's an year say decrease the cycle we The accelerated well. ones that, I orbit been that's the teams that a fleet done present few now from and a XX Generally, are mentioned high. fleet great high been final have then standpoint, normal life cycle it us. bit now. higher our is very inherently helped that the in a the of anomaly the in anomalously normal. But earlier, we significantly done this has solar low has than in situation. This It our seen survived adapted, phase affecting capabilities. with has increase

out case. was scientific our the we that to services it has to some it learned well to we've largely, satellite community continued and on out there off in forward. our not show predict how scientists But meant operations trying fleet and lot. it are going guard papers again, be, do already of how has of caught And there to us make that and be this certainly, the raise of predict that have to enabled I will there'll and think able to and a going figure a So, very redundancy the satellites be agility despite so forward, lot our improve But this. this to mistake

no to Marshall, CEO, for any Will to remarks. are additional There closing pass would like at conference the I questions now time. back this waiting

significant very and in we're as of partnerships.Also, platform product that teams growth I executing next we're by been deals updating we XXth April adoption really happening But deals really our strong and if Earthdata the proud of end on with Obviously, ahead I real executing Yes, you mentioned, platform. demand AI. the there's have that a last early in year overall by forward like I I look pursuing for want to seen just focused a you saying through announcement in position we've into the to of the solutions satellite call. grow. increasingly And side selling to to that Pelican and sector on feel enabled the And We're some to on front that in. heads tune us milestone that I'm on on enabled big the the on the big the the of you are and we've their had revolution the particular government turning continues in see year would in in particular. down

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