BigBear.ai (BBAI) 18 Mar 222021 Q4 Earnings call transcript

Thank you for joining the BigBear.ai Fourth Quarter and Full Year 2021 Conference Call. [Operator Instructions] I will now turn the call over to Josh Kinley of BigBear.ai. Please go ahead, Mr. Kinley.

Good afternoon, everyone, and welcome to BigBear.ai's 2021 fourth quarter and full year earnings conference call, our first earnings call as a public company. Financial I'm Chief CEO, with Kinley, Dr. Josh Officer here and our I'm Brothers. Reggie

today, a certain are during the During the made on are may as that obligation the we call forward-looking the make BigBear.ai the this call. disclaims to actual are statements undue to update and cause assumptions be cautioned put statements forward-looking reliance could statements on discussed result, current forward-looking events to may and specifically any not Listeners These risks forward-looking statements based to Many factors differ on expectations materially and from subject call. and uncertainties. statements.

more of filings. For refer section the please earnings uncertainties, press today risks about SEC information release and our statements to the forward-looking issued these and

financial for our reconciliations and you Brothers. be GAAP I over will discuss the measures can GAAP turn will to during the find financial call non-GAAP with non-GAAP With some call Reggie should replacement not within These We be a the earnings said, results, should Dr. release. non-GAAP measures that read together considered today. also to

Thanks, today. Thank listing first an is milestone joining you report Josh, after quarterly This company, a for as public our in on our December. good and our afternoon, us everyone. It's BigBear.ai. call important for

I'm transforming make this to year for We our the the over and are last the entire grateful possible. business across hard team work of

Now turning to the results.

growth. $XXX.X year-end strong an the XX% engagements, resulted backlog several momentum, was background this backlog course represents win This cyber XXXX. million, $XX It's both increase total gives existing customer revenue opportunities backlog visibility business considerable additional and federal built ended the year into XXXX We of sector and ability million times X year, or XXXX revenue. believe and and last robust future expanding by customers. year commercial engineering we in noting We total work contract growing analytics among our to and revenue growing over of Over all $XXX new of year our revenue The of the that maintain with driven our public booking awards, million. longer-term worth areas. us this

very we're was government marginally process. QX did end resolutions activity relying largely of at continuing due between slowdown QX and backlog, which large a their decrease with it to work on While today contracting in until Two down slowed the our government the happy in for funding the fact, year.

BigBear.ai for Omicron the an Second, quarter the and continuing the for impact ultimately discuss contract contributed serve XXXX, a external innovation. solid year had to headwinds. revised future also our the awards and a our extended COVID long-term projects. ramp-up these fourth wave These as in we delays customers. they We as relationships relationships strong despite our This continued in with our growth of shortly. are deepened caused will for foundation which outlook to critical government

areas entered to and new us and with build significant our business transitioned scaled and invest also allow that will team opportunities, to believe a we We commercial company. new relationships capture customers we into our to public to continue several

on to fueling company. first call, our and this our scalable more our like first regarding And established with minutes building as growth we're is company first and some momentum position. earnings transformation spend provide the solutions more Importantly, to strategy transformation an to is competitive servicing steady technology few a our building this and from I'd color

technologies by to delivering actionable our transformative Our to and best mission customers the in possible BigBear is advice. future guide expert realize

with flow abundant. that of all visibility data lies this organizations in the Our right is We two opportunity sectors into AI-powered with people outcomes. software analytics the forces affect limited that the problems the make faced field time, even right believe helps ahead decisions in can at and today. BigBear.ai the serves

are difficult is to organizations and integrate complex of to driving interpret. that First, data dirty incomplete in

not learning decision-making artificial perform highly within and developers, to been is complexity making in very companies. this software enhance and taking At to because have time-consuming, and use way feasible of tackle users, making is expensive, and the consumable intelligence the mid-market we're to still small noise, Large data technical machine a to people, a visual, the through different by easily delivered scientists, system business cut is goal-oriented enterprise. technology decision or process AI business But with hiring BigBear.ai, part Second, gaps draw filling This actionable simplify limited real in operational tools not silos But world to and users. we're companies data deployments designed these for date problems AI integrators. advice. of scalable a are approach, for to not them. the of

incorporate the already address look into notice Force these. scale. to three-year land projects we revenue rates more as have customers. our of bring. gives I'll value the win power and rate. other booked through a announced products Research Therefore solutions value and start subset customer value recompete flexibility to have we happened our will XXX% from they intent creates offerings, expand This the offerings. of our had new This no-code components with Importantly, about historically the customers. certain that awards. of momentum is win of offering add This of existing new the capability. maintain and of signing several cases most see of In and our another pieces a They growth use with we the relationship we our once often vertical and out revenue out and start to quickly, driver the a we provide box Air a to our award the to also with a to to configuration in and modular important high from talk continue the very rapid us easily July, confidence significant a contract strategy few In Laboratory understand build expand XXXX, we contract. It's beyond ability

technology with awarded As create part to TACTICALCRUISER awarded real-time Machine October, the prototype composable we And platform a networks. their Information challenge five-year X and one-year initiatives tactical we of Navy's tracking December, and Phase this in States of price and challenge Repository contract one identity This United were itself, of analytics. Services. contracts Force industry actual first In were plan in to October, AI and Command to capabilities Agency engagement, Assisted a advance of were their air the contract awarded the notable develop time the in Management came Naval tested XX out using we element Hereto. an than develop place where drive proprietary differentiates and U.S. deliver Defense exceptionally ability supporting data top. we the by that dirty more area by that's force meaningful, to companies by information Intelligence prototype Cyber we awarded BigBear.ai's will on two Also Army. a a to Global we from were In data, we November, announced

space. with software In announced that addition, recurring we annual memorandum commercial of with Redwire with on software a understanding a the a generates revenue, multiple side, Orbital and Terran agreement agreement landmark Orbit Virgin partnerships including

with into partnership in to for expanding We the with our opportunity scaffolding an strategic growth commercial market both end-to-end markets. market and the announced federal our their November strategy significant and Palantir, to Our addressable in go of both which platform solutions see supports we plug us.

improving is BigBear.ai And have broader set strong that. matters loyal much than but with on the we the for technology government government. high-state Our is a federal customers, of opportunity

years market our projected in next is five a AI the XX% billion fact, XXXX. approximately In $XXX grow to reach by CAGR and about of over the at

scaling sectors growing to the We our and capitalize government offerings this quickly on are rapidly for both demand. commercial

focused, similar customer offerings solutions. use cases for be will strategy go-to-market existing from leveraging vertically Our commercial our

and For be to selection location our industries. intelligence example, capabilities site and space applied maritime commercial can

manufacturing the and see also We opportunities verticals. logistics in

federal and year strategy We are to XXXX into expect we meaningfully and XXXX. in ramp staff and of towards growth half back execute well-positioned the commercial growth revenue the to commercial our

and team to role Chief company. end, as year to will our of of experienced focus Chief on emerge key Officer. last Operating experienced Chief talented leaders, public a recently our building Marketing Human One be Resources and and Officer, support that To This XXXX. objectives growth appointed to was in Officer, the strategy we a an continue

for leaders added penetration We senior both with commercial and well as sales, across and leadership equipped business our states into as government well federal segments. accelerate have new execution markets. our marketing. product, and several capability business We to our local engineering, with and team We federal our commercial is bolstered the governments, grow our believe

inorganic to continue also targeted acquisitions. will and We carefully growth mergers through strategic evaluate

longer-term strategically makes objectives. strategy ramp targets for the ability the evaluate sense accelerate for most our to we potential continue and our that M&A will We several growth to

We in contribute coming our expect the M&A years. this will revenue and to year

full million expect between to XXXX now and turning Now year revenue outlook. of $XXX We million. $XXX

reflects earlier, outlook in environment the this no which government control. have As revised conditions contract I mentioned in we award

partners agency are ago, two resolution sales longer creating under until operating Our days continuing cycles.

areas internal did pre-COVID. business fact, is it In to government in along shows relative contractual process significant the than analysis our taking that

government of government the While factors the not appropriations the things to contract more for we found emphasize a for contracting the crucial being viewers considerably the time I to award fiscal these and between COVID in award, AI bills end the year fact the that released and in the and solicitation-specific to calendar willingness contract XXXX of normal want XXX and that year, XXXX. not were BigBear.ai's XXXX, days new invest while variant the between activity market, and was return timing of been enacted. going than ML industry grew at technology XXXX, the than the to contract the signs actual need by XXXX more the federal to impacting there in doubled solutions. our and Things suppressed to or are to have a solicitation are

fact, today advanced We demand increasing operation support, capture amongst customers. and demand the growing AI is geopolitical solutions, guidance solutions. remain expert In for to for Government's technical the well-positioned to continue federal our climate

have of mean does a awards projects. in delays while or projects, So resulted loss factors of in in ramp-up and cancellation these revenue this in extended not

was for it important to a estimate award our more However, reflect conservative to revise timelines. guidance

our for capabilities acknowledged strong current Defence energized side, March million past that, of AI even I'll need success operationalize the the the services. ahead billion for a on AI. geopolitical in significant confirmed we increased made in has Josh. with crisis the budget increase X% defense, XXXX Applications. office Until of funding of and in was Security specifically delays, AI very developed $XXX.X the in federal more accelerate couple includes based and the over deployment The to a Act XXXX. budget, and weeks XX. $XX.X public quickly over infrastructure. the and showing Ukraine, they're strategy markets. billion to solid both the defense National through on each and On $XXX is the the signed critical for The salaries With intent We're the is the the we've the current by received adoption we for BigBear.ai is of of progress team for in Secretary AI funding the Despite our by The This team happy of commercial communication opportunities and the are in business increase positive defense to This and AI. backed confident turn Consolidated the call increased on Appropriations spending. of

momentum progress quarter. by significant $XX.X in want for $XXX.X million we've we just in the upside. building. about was I We're financial Revenue we're echoing Reggie. fourth entering position million the strong to the with Thanks, how start made XXXX XXXX approximately and excited a with are

our in mentioned Reggie driven prohibited appropriated. approved agencies considerable until from and revenue the backlog, by into been contracts awarding and but has periods government Our resolution projects contract COVID-related pushed new some as that workplace continued budget of continuing delays future the awards, federal and execution was fully because revenue was restrictions, government of

visibility that continue to and share new about And revenues pending from million our growth. beginning for engagements, wait Engineering. million with providing As our backlog clear provides the roughly and more while we strong skew existing coming our from revenue coming revenue with base the business, Analytics customer analytics We're this our projected $XX for foundation awards. will to Cyber $XX higher-margin our happy heavily towards future

just with the revenue line in we saw While margins impacted we by that factors was were our projections. gross discussed,

our is the merger. with is but contract future periods. gross year legacy analytics full expand expense gross fourth for our million expenses quarter. a stock-based margin of the heavy This increase that opportunities considerable including the margins quarter. $XX equity achieved gross segment still a primarily investments a we're long-term largely margin few $XX in the expect transaction-related, million full adjusted adjusted XXXX, of was the Despite in worth on is we for year we in Operating to delays, that XX% of amount that vested even For related margin $XXX In million our large was projections to upon XX%. Cyber OpEx, This pursuing. Engineering fourth dramatic segment upfront the grants year noting over completion and it's year the prior were this with compensation associated the and

and the and are was investments important the expenses was teams. capital Excluding increase to the some pushed despite OpEx to roughly advisory our building strategic and that $XX about due XXXX. into future critical over the with $X transaction-related public fees readiness, for are company aforementioned of the our million QX transaction-related stock-based of of growth SG&A was and periods. expense a bonuses, investments quarter third The increased million, future the all markets external increase to million $X revenue product associated compensation now executives, of expenses the that hiring largely delays including These other our make that's it

million the driven EBITDA and timing share overall our million year, $XX third loss had fair in net the related a for a in margins, full related revenues, transaction-related the of $X.X quarter, million also $XX primarily of from about was decrease other impacting forward million by gross for million million, to and we expenses expenses. $XX this change value year. of delays and total XXXX, expenses agreements expense full in compensation stock-based For the purchase $XXX.X one-time year to driven was about $X.X Adjusted higher the aggregate. operational by

corporate and consists our cash Turning million which borrowing our of liquidity balance of $XX sheet, equivalents $XXX.X available Proceeds cash we into from will of working on total December our on and be general of million, now million capital to XXXX. available X, and entered is purposes. America fund used facility expenditures, $XX.X Bank credit credit to which needs, facility, capital other the

to XXXX of XX, drawn the cash anticipate December XXXX, on on not had we current needing draw do and operations not in the of flows. we credit As and based on line facility

to turning Now outlook.

We and revised in between of a pace the projections full-year for result now to As mentioned expect we slower our of revenue activity million. government come XXXX. million $XXX earlier, $XXX

does BigBear.ai. As the revenue in pending impacted means reflects the not for budget mean specific things the and range This around uncertainty delays revenue, contract Reggie the government said, the the getting lost move timing it industry delay and activity contracting place XXXX in right to this final is across us for U.S. in awards. and of to and experienced not the

that I to basis towards on growth a opportunities XX% we're already want revenue to year of for and we're company. year, in in an for from and remain managing revenues about One positive of long-term that resources excited total in EBITDA these X% Overall, most of anticipated we're This we're is while the enable to XX% is commercial commercial our basis and do that than we're Because our our go-to-market incredible our objectives evaluate expenses revenue adjusted committing XXXX. will an strategy for expect for not our items year confident throughout commercial our total we such projections the growing projection case-by-case investment prior EBITDA the the increase less success an customers. approach SaaS-based investing to going on is this year. are to We XXXX we the backlog. in reflects offerings, of accelerate captured the projections. emphasize expect with providing momentum

new with we're great there on closing, our confidence backlog We strong and government, continue our and new the execute In opportunity the significant and could recent market from geopolitical to upside in be events to see strategy demand and and us gives bills our sectors ahead. a substantial government capture and prospects spending the in commercial excited opportunities. strong potential

it Q&A thoughts Now I for our before closing will back turn Reggie to

question-and-answer this deployment opportunity data and limited this demand and every by empower to to complex an new There to in strategies Thank joining solutions we're the turn and you to solutions best today. to my SaaS decision-makers develop Jeff I'll leaders for for Commercial. AI/ML Officer; make for the federal a Sam in our consolidated and around fantastic Gordy, right the operator of take now to our like to of over Thank futures of you, call and our reiterating it decisions session, by realize with possible Chief I'd I us guide Dyer, where of growing right to gratitude to and associated our Chief Frutchey, we're and excitement commercial will begin all and time, problems position and our Operating the be Officer the Josh future excellent We and challenge head-on, at execute Josh. Brian customers team. for Technology our President innovate my massive and BigBear.ai XXXX. joined close President Federal; is the time. eager

[Operator Mike Please state Capital first Latimore comes with your Instructions] question. question Our Northland from Markets.

or March here just XX things out guess, how mentioned you playing I opportunity see a that addition to little pipeline do faster. I in move passage from you is of bill. terms guess to there of to So opportunities an Reggie the

in Just how that? the play and out some of does that timelines on

Mike. Thanks, Yes.

passed, that it's good bill obviously news think, the right. I was So appropriations

uncertainty with backed -- there there still - right. things are is think reason still challenge the and still up, government a I because is one the

artificial how particularly on they ahead is unfortunate get which specifically Because of news on like have there exciting not that our But use new starts because the but things intelligence and to the of said, as can Ukraine, wait appropriations adversaries. focusing the good and opportunities on in make new I is also to they we really do, better just through data people that's analysis to pushing because us. move defense in decisions our are still the decision-making and which So of AI/ML and queue. new events more the order more to for tools get

opportunities impact -- right. I unblocking see awards, these we're to I good news areas also the develop. think that make other we see is an that we'll the So should that so critical speak, some to think I that seeing And in some think

climate seeming around would opportunities some dynamic, move geopolitical little that that urgency potentially? bit here and a Given that your forward of

It's not is clear It's because the forward. that the contracting not the clearly government exactly there simply that moving moving forward, Mike, has. personnel queue and

then commercial, some commercial or commercial Can are in of just cases gave most Okay. guidance? the terms And vertical use you $XX that the you in mention million guidance prominent that so. or

me him over President Let said to our of talk turnover Commercial. let And to Jeff, we new is about then as he that.

to but in federal strategy. understanding manufacturing, There factory it chain, predictive the options hello logistics. me focus we and were presented, lots much optimization and And start suited Mike, our have that There's on charter be trying Reggie. start our we for clear clientele that in determine were one so happened our for that innovation capabilities our question. Thanks, to go-to-market was commercial very for distribution created that's of or in where the side focusing some of has priorities thanks to supply the been on best federal commercial it AI/ML

centered some that pursue. know in to the is as opportunities But and predict product priority that set we'd going So control a to to beyond company there's like the very we foundation and the we XX much patterns manufacturing our could and can XX we verticals evolve we repeatable around be get months that. other

-- And I just guess Thank of terms helpful. that's Great. in you,

Gordy. And this is Sam

that wanted jump emphasize federal Sorry, into to on just I there of on client vertical pursuing certainly and from on that, the just side federal across market any has look side market federal side, the we're the that Jeff's bring comment we'll a commercial as a to the like well. and perspective on

assume traditional And progression just should it's pretty kind revenue towards thinking think of about government year, half? in second we or this about it I Got weighted line patterns heavily with it. Okay. the then of the

want Josh, take to you that?

Yes. with been on would in I Mike, to a of to contracts we've this fiscal go that the the Certainly, lot agree the with the to have honestly work is there that. that, our had government customers through ability waiting of queue. tend year out half Josh. for Yes,

the months to bill expect fix. the as Reggie instantaneous not authorization expect to being of back customers. would downhill fiscal say a year we see for But kind But pointed as XXXX. number the half would procedural coming we various it's over the So of, of government the to I'll happen that that There's passed, out, sure. actions accelerating have the rolls an

Please with your Kidron Our comes question. next question Oppenheimer. from Ittai state

deals at make Just the I my your 'XX regards Josh, on right far pushed that COVID backlog. sure bearings be because out I will numbers guide of the in How the the in. government if here in comment come bill want and with to XX% to have materialize? made those the annual to is you opportunities get the Should you bill the estimate of been above that delay and

Yes, Ittai. for the thanks question,

question. good a that's So

we with continuing lot bandwidth As have we about is resolution to award of issue things, to With the that was be said, passed things started dates, when awarded. are -- absolutely what government comfortable our looking are were they they guidance that customers as them referring XX% of projecting the lot side today. on and we their a a prompted to at having new has expect on issues new

and things seen we've 'XX there potential the to focus there range we the certainly said, over XXXX, that upside move realistic good 'XX. some range our certainly to achieve is last, out beyond were seen With But but seen out and for nine ability at XXXX in in to a was give projected I'll government's performance, or what that. 'XX. our ourselves upside submitted, say projection scenario into to look we've put is that we've so that and was things projections thought we And taking that budget XX push most for that months that the beyond the also and

number sure have on based So, for we've I'm there previously. what that we gave But was the specific there. realistic you, if possibility a seen the is range not most out I

Got it.

-- It could sounds but in Okay. kind period. no be not up some, there to be like it like jump of there feels is happened significant necessarily a did going catch big it

feel of two You everything a would is by don't been I the side, for already got If in that? so your that has and pushed for how $XX to guess or getting $XX how lot you, Makes you a million from starting like things of commercial standpoint it quarter everything locked of -- in, what basically say How out then guidance again that's I'd just XX%, like year. over contract we just these of a think we're pushed about on scheduling would all of sense. out you? much on some I already ask commercial on and And million call would the much about is having that know, I on deals.

Yes.

not that our up performing say of that on on contracts out today. already But those backlog So considerable locked a we're and I'll we're been portion has breaking basis.

entire Just to for we it, our XXXX, sense commercial the QX our to prior surpass year. give of you for expect some of revenue revenue

we've quickly these on efforts,. up So, ramped already

coming work the on that over current and thrown more into months. we be backlog based expect way We that in projection we're -- performing that we're to XXXX well, expect good towards

faster And that think That's about follow-up Jeff, to in what way think approach deals, great. And -- help the different you'll context it. maybe on win cookie-cutter closing more How really to in of having deals be this the side, these speed them? commercial? a able one you initial commercial, projects a will speed me and deals. you're trying projects the you're me, commercial Got you're initial are it as such execute that at then about these they trying it to -- doing create let's how in be than year forward mold move last call to from of on I'm going to deals now executing on pace much and

and customer for roadmap footprint commercial to the and many without to But of are the without us huge strategy, quickly. investments in thanks question, we're the being there's scientists, roadmap great that the delivery ways problems in way the maturity allows to a model we to value make sector in we a picked said that the with IP Reggie of manufacturing also to hopefully is relationships deliver that commercial help product realize data partner. heavy allow environments a the us healthy analytics predictive call sure we manufacturing a help starting investment going Again a very valuable his very lot then it's of initially large that synergistic that provide for commercial SaaS decisions. allows staff capabilities package believe side the the as in believe our to in complementary meaningful We we're as AI/ML are product we can us back trying market making It's for have selective business very land quickly. relationships, expand be the come federal that focused them right customers in with other it. in labor to with a that on engage cadence a our on solving grow and incentive they software comments, very problems. value gives commercial and their quickly, have solve value space We're value and that we for companies to and it reason, or But and give prove we're

me. I And last of Got from the it. then makes Well, That one guess you. sense. both or that's I maybe guess, for Jeff, Josh

kind to I As aimed about to and customize in those Cyber high mix at gets you of that even details that low it the them it's nail kind more broadly? those be before in to your next, down the still would you everything try Engineering perhaps transactions to going least them Cyber make ramp be year, fair on deals as running is be mix conceptually of out start this assume and in think worked them the part of though here, Engineering sure

that. probably it's certainly to on Brain comment ask Most Brain -- I'd

I a give better how leverage think he can that answer we around asset.

regard revenues so talking Engineering Ittai, how is sales? can Cyber just the question Are clarify you commercial And type the incorporated into I those to with there.

mean, your not defense involved wondering was is make and just their those right and little will Yes, labor the term, was involved on than I'm up got the long-term gross the higher wondering deals and sure term and commercial different is commercial that faster makes element whether learn just because understand and I near to just you're can deals much deals to I on a move much it, much it the longer and at I margins you more deals from the better because bit margin? doing in a you sense everything that vision margin goes such just deals be -- first that of replicate drive total follow lower. any you that

what at? any to deals? referring the old commercial and and in you're you're getting is services What component Is that

Yes.

Jeff, Okay. about that? to want you talk

Sure.

clarifying. for Thanks that. for sorry And

with. how being a there to second out the we we're that half your future. we labor than disclosed, more that fully is opportunities careful area question Again, we're that answer understand question, of on it To and of cyber customize because we're as of said will very a needs plays to that implement and early certainly work the and configure now lot I so, of our have customer's, focused until the year each capabilities, I as selective in There's you. number but in choosing demand, roadmap customers require unique aspects and thought of on We thank was technology. your being I the

trying the to we're So, that that select product early alignment make with we with to sure customers work great our roadmap. have

So paradigm. component time initially product that even though as it package is we modern matures more will there SaaS some multi-tenant and consumable the suppress over services

Appreciate guys. thanks, it. Excellent, good. Very

a I insight gross Ittai, how And little on bit can you those are margins give maturing. more actually there

the than higher certainly and we a in the communicated had engagements expect seeing margin from sources government we that to revenue these As coming past, commercial already. have we're the gross

integration we're in in projections forward. which engineering, margins to plus we'll While able we we're over and margins. multiple become the gross line is they repeatable, upfront years now and considerably gross be solutions at starting we Obviously, the we're was to, move speaking see the But these XX% achieve deployable doing we're previously, of customers, as XX% seeing it Jeff that And to expect with early already coming communicated level. that at across higher engineering would engagements kind that the

Blair. ahead. question Our Please comes Instructions] go Louie [Operator William DiPalma with next from

program. announced of prospects, have you Management Information the you fall same specifically seems partnership Force dynamics Global Department co-op Analytics pursuing with that many Defense, are attrition a Palantir. you Can that Data the Palantir Last discuss with the of it as you and

So discuss, partnership guess the opportunities can future markets? you I defense your in commercial Thanks. and both

Thanks for the questions. Good question.

general talking some terms this, to you Sam can But and of to how these of you take the were more Palantir? I'd some hand over of First, things. on about talk to

Louie, thanks question. pleasure. My for Absolutely. the

you've in speak have capabilities, best-of-breed data us algorithms that and where our some joint customers. has heard provides -- our business some that that of current insights can experience about projects I our Palantir one to Palantir a I government specialized will And That our soon towards with for our that past both given on begun we generate news they relationship that space. both in have we our So customer AI to good the towards a positive processing is base believe that already hearing fabric, platforms. of the partnership as the that share so in appreciate, synergistic with think me focus

into our tandem to has with to to our leverage that capabilities to into team being package capturing Palantir joint base, we go installed are both customer the in already partnership early to joint So BigBear able we're as fruition come plug starting our think the we some opportunities markets I and their find in platform accounts. of

it Orbit, partnerships fair Virgin that be and that most the commercial that space with Terran most XXXX. to and industry it can from And revenue the in to -- assume of that that revenue of would Orbital announced your are Redwire? be you $XX you for forecasting assume Would is fair Great. million

to this? Jeff, to speak do you want

relationships commercial it on Those pursuing that are the set. agreements. we've build in represent be inorganically. other organically certainly the and it We're we're nice and does But there will customer uplift to those many is our as side great that believe of us we business. foundation a helping we excited clearly the revenue materialize opportunities And guidance help

And to long-term the Great. should data how as increases analytics higher gross for and as mix? EBITDA margin of revenue your your potentially your margin? plan And percentage your revenue scale can a you trend gross Josh, discuss

absolutely. Yes,

gross start me with let margin. So out the

pointed As skew I coming in segment out had from had the the analytics' analytics' XXXX. to towards started already revenue with the more majority

projecting that revenue the in year. to certainly being commercial of the continue expect XX% we're that revenue total which We is

that course, gross margins. has higher Of

gross So there. the we side, the on see as see and analytics of government margins we the more work will expand both the commercial

that of On to expenses two broke look go to I I'd the out OpEx XXXX, had all in do's that must we were those we this we SaaS some those in to there. and is out invest deploy the building we say in there the to deploy buckets, them must-do XXXX, out mean can EBITDA I do's, side, technology and had through had make strategy at investments obviously, investments our that is based to capability we'd which investment, commercial we commercial like

like number and But have are along had pointed we investments the forward. markets could we that have think company increase award we investment the to that And things in we can really public go-to-market a But is expenses to we highest the with OpEx defer supply so manufacturing the a those mentioned make in out, those the development moving those where vertical must-do of considerable amount investments to and what or Certainly, substantial chain our We of pursued are as a different upfront. already had was gains. that we that, pursue. opportunities and I we made. do's, are could on Jeff we come teams think don't that focusing readiness the commercial feel we're space. see like all the not and earliest that

focusing there, largely and on already. board team those by are investments our our So, development investments

revenue that projecting think moving I up, see we're you'll the ramps that expansion as forward. So, EBITDA

So, it makes sense, Louie?

further turn floor no will you. Thank remarks. Reggie questions the back for are this to time. closing at Dr. Brothers There I

the Well, Thanks, I look, we I joining just wanted spring. reporting to to appreciate for this call. thank XXXX questions progress call again. forward on look later and our QX our everyone our

evening. parties today's All Have Thank a disconnect. conference. may great concludes you. This