[ Back ]   [ More News ]   [ Home ]
BlackSky Reports Second Quarter 2024 Results

Q2 Total Revenue Increases 29% Over Prior Year Period

Company Wins $40 Million in New Contracts and Renewal Agreements

First 35cm Very High Resolution Gen-3 Satellite Planned for Launch in Q4

HERNDON, Va. — (BUSINESS WIRE) — August 8, 2024 — BlackSky Technology Inc. (“BlackSky” or the “Company”) (NYSE: BKSY) announced results for the second quarter ended June 30, 2024.

Second Quarter Financial Highlights:

“BlackSky delivered another strong quarter driven by a 29% year-over-year increase in second quarter revenue and substantial operating leverage which led to improved margin performance,” said Brian E. O’Toole, BlackSky CEO. “We won $40 million in new awards and extension agreements, including the continuation of subscription services under the EOCL contract. Our Gen-3 constellation remains on track to unlock our next phase of growth by enabling transformative solutions our customers are demanding, using the power of our very high resolution imagery, combined with high-frequency monitoring and automated AI.”

Recent Highlights

(1) Cost of sales is defined as imagery and software analytical services costs and professional and engineering services cost, less depreciation and amortization expense.

Financial Results

Revenues

Total revenue for the second quarter of 2024 was $24.9 million, up $5.6 million, or 29%, from the second quarter of 2023. Imagery and software analytical services revenue was $17.5 million in the second quarter of 2024, up 14% over the prior year period, primarily driven by incremental customer orders for BlackSky’s imagery services. Professional and engineering services revenue was $7.5 million in the second quarter of 2024, up 87% over the prior year period. The significant year-over-year increase was primarily related to the execution step up of multiple major international contracts. Professional and engineering services contracts are milestone-based contracts that may have quarter-over-quarter revenue variability, in contrast to the imagery and software analytical services, which are typically recurring subscription-based revenues.

Cost of Sales(1)

Total cost of sales as a percentage of revenue improved to 28% for the second quarter of 2024, compared to 44% in the second quarter of 2023. Imagery and software analytical service costs as a percentage of revenue improved to 20% in the second quarter of 2024, compared to 23% in the second quarter of 2023, primarily driven by greater volumes of revenue that inherently have a low fixed-cost structure as a percentage of revenue.

Operating Expenses

Operating expenses for the second quarter of 2024 were $29.8 million, which included $2.2 million of non-cash stock-based compensation expense and $11.3 million in depreciation and amortization expenses. Operating expenses for the second quarter of 2023 were $30.7 million, which included $2.1 million in non-cash stock-based compensation expense and $11.8 million in depreciation and amortization expenses. Excluding the non-cash stock-based compensation and depreciation and amortization expenses from both years, cash operating expenses(2) for the second quarter of 2024 were $16.3 million, compared to cash operating expenses of $16.8 million for the second quarter of 2023. The year-over-year decrease of $0.5 million, or 3%, was primarily driven

by reductions in general corporate costs, which more than offset investments in our go-to-market initiatives.

(1) Cost of sales is defined as imagery and software analytical services costs and professional and engineering services cost, less depreciation and amortization expense.

(2) Non-GAAP financial measure. See “Non-GAAP Financial Measures” below and reconciliation table at the end of this press release.

Net Loss

Net loss for the second quarter of 2024 was $9.4 million, compared to a net loss of $33.4 million in the second quarter of 2023.

Adjusted EBITDA(2)

Adjusted EBITDA for the second quarter of 2024 was $2.1 million, compared to an Adjusted EBITDA loss of $5.8 million in the second quarter of 2023. The $7.9 million year-over-year improvement was primarily driven by strong operating leverage achieved through higher revenues, improvement in gross margins, and reductions in cash operating expenses.

Balance Sheet & Capital Expenditures

As of June 30, 2024, cash and cash equivalents, restricted cash, and short-term investments totaled $42.3 million. In addition, the Company anticipates receiving approximately $28.2 million in payments over the next 12 months as interim milestones on a few major customer contracts are met and expected to be billed, further enhancing the Company’s liquidity. Capital expenditures for the second quarter of 2024 were $12.9 million.

2024 Outlook

The Company maintains its outlook for full year 2024 revenue of between $102 million and $118 million, and full year 2024 Adjusted EBITDA of between $8 million and $16 million. In addition, the Company maintains its expectations for full year 2024 capital expenditures of between $55 million and $65 million, primarily driven by investments in our Gen-3 satellites.

Investment Community Conference Call

BlackSky will host a conference call and webcast for the investment community this morning at 8:30 a.m. EDT. Senior management will review the second quarter results, discuss BlackSky’s business, and answer questions. To access the live webcast or the archived webcast following completion of the call, please visit the Company’s investor relations website at http://ir.blacksky.com and then select “News & Events” for the link to the webcast. A presentation accompanying the webcast can also be found on the investor relations website. To access the conference call, participants should dial 1-800-715-9871 or 1-646-307-1963 using conference ID 5380118 or “BlackSky” at least ten minutes prior to the start of the call. To listen to a replay of the conference call, please dial 1-877-660-6853 or 1-201-612-7415 using access code 13748009. The audio replay will be available from approximately 12:30 p.m. EDT on August 8, 2024, through August 22, 2024.

(2) Non-GAAP financial measure. See “Non-GAAP Financial Measures” below and reconciliation table at the end of this press release.

About BlackSky

BlackSky is a real-time, space-based intelligence company that delivers on-demand, high-frequency imagery, analytics, and high-frequency monitoring of the most critical and strategic locations, economic assets, and events in the world. BlackSky owns and operates one of the industry’s most advanced, purpose-built commercial, real-time intelligence systems that combines the power of the BlackSky Spectra® tasking and analytics software platform and our proprietary low earth orbit satellite constellation.

With BlackSky, customers can see, understand and anticipate changes for a decisive strategic advantage at the tactical edge, and act not just fast, but first. BlackSky is trusted by some of the most demanding U.S. and international government agencies, commercial businesses, and organizations around the world. BlackSky is headquartered in Herndon, VA, and is publicly traded on the New York Stock Exchange as BKSY. To learn more, visit www.blacksky.com and follow us on X (Twitter).

Non-GAAP Financial Measures

Adjusted EBITDA is defined as net income or loss attributable to BlackSky before interest income, interest expense, income taxes, depreciation and amortization, as well as significant non-cash and/or non-recurring expenses as our management believes these items are not as useful in evaluating the Company’s core operating performance. These items include, but are not limited to, stock-based compensation expense, unrealized (gain) loss on certain warrants/shares classified as derivative liabilities, litigation, settlements, and related costs, severance, income on equity method investment, investment loss on short-term investments, and transaction costs associated with debt and equity financings. Cash Operating Expenses is defined as operating expenses less stock-based compensation expense for selling, general, and administrative costs, and depreciation and amortization expense. The Company believes evaluating cash operating expenses is useful to manage expenses as it excludes non-cash items that may obscure the underlying business performance.

Adjusted EBITDA and cash operating expenses are non-GAAP financial performance measures. These measures should not be considered in isolation or as an alternative to measures determined in accordance with GAAP. Please refer to the schedule herein and our filings with the U.S. Securities and Exchange Commission (the “SEC”) for a reconciliation of Adjusted EBITDA to net loss and a reconciliation of cash operating expenses to operating expenses, the most comparable measures reported in accordance with GAAP and for a discussion of the presentation, comparability, and use of these financial performance measures.

Forward-Looking Statements

Certain statements and other information included in this press release constitute forward-looking statements under applicable securities laws. Words such as "may", "will", "could", "should", "would", "plan", "potential", "intend", "anticipate", "believe", "estimate", "future", "opportunity", "will likely result", or "expect" and other words, terms, and phrases of similar meaning are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. All statements, other than statements of historical fact, contained in this press release, including statements as to future performance, our guidance outlook for the year and expected capital expenditures, our ability to sustain revenue growth, expectations regarding global demand for our products and services, our anticipated liquidity and cash flows, our anticipated Gen-3 satellite launch timing, and our expectations related to future profitability on an adjusted basis, are forward-looking statements.

Forward-looking statements are subject to various risks and uncertainties, which could cause actual results to differ materially from the anticipated results or expectations expressed in this press release. As a result, although BlackSky's management believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because BlackSky can give no assurance that they will prove to be correct. The risks that could cause actual results to differ materially from current expectations include, but are not limited to, factors such as long and unpredictable sales cycles, customer demand, and our ability to estimate resources for fixed-price contracts, expenses, and other operational and liquidity needs, as well as the risk factors discussed in our most recent Annual Report on Form 10-K and other disclosures about BlackSky and its business included in BlackSky's disclosure materials filed from time to time with the SEC, which are available on the SEC's website at www.sec.gov or on BlackSky's Investor Relations website at ir.blacksky.com.

The forward-looking statements contained in this press release are expressly qualified in their entirety by the foregoing cautionary statements. All such forward-looking statements are based upon data available as of the date of this press release and speak only as of such date. BlackSky disclaims any intention or obligation to update or revise any forward-looking statements as a result of new information or future events, except as may be required under applicable securities law.

BLACKSKY TECHNOLOGY INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(unaudited)

(in thousands, except per share amounts)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2024

 

2023

 

2024

 

2023

Revenue

 

 

 

 

 

 

 

Imagery & software analytical services

$

17,469

 

 

$

15,328

 

 

$

35,302

 

 

$

31,088

 

Professional & engineering services

 

7,469

 

 

 

3,999

 

 

 

13,872

 

 

 

6,636

 

Total revenue

 

24,938

 

 

 

19,327

 

 

 

49,174

 

 

 

37,724

 

Costs and expenses

 

 

 

 

 

 

 

Imagery & software analytical service costs, excluding depreciation and amortization

 

3,432

 

 

 

3,456

 

 

 

6,877

 

 

 

7,155

 

Professional & engineering service costs, excluding depreciation and amortization

 

3,450

 

 

 

5,070

 

 

 

7,038

 

 

 

7,849

 

Selling, general and administrative

 

18,214

 

 

 

18,768

 

 

 

37,030

 

 

 

37,717

 

Research and development

 

286

 

 

 

176

 

 

 

742

 

 

 

392

 

Depreciation and amortization

 

11,277

 

 

 

11,776

 

 

 

22,461

 

 

 

21,431

 

Total costs and expenses

 

36,659

 

 

 

39,246

 

 

 

74,148

 

 

 

74,544

 

Operating loss

 

(11,721

)

 

 

(19,919

)

 

 

(24,974

)

 

 

(36,820

)

Gain (loss) on derivatives

 

5,273

 

 

 

(11,098

)

 

 

5,019

 

 

 

(9,567

)

Income on equity method investment

 

 

 

 

56

 

 

 

 

 

 

585

 

Interest income

 

330

 

 

 

648

 

 

 

730

 

 

 

1,083

 

Interest expense

 

(3,029

)

 

 

(2,242

)

 

 

(5,663

)

 

 

(4,095

)

Other income (expense), net

 

2

 

 

 

(867

)

 

 

3

 

 

 

(1,810

)

Loss before income taxes

 

(9,145

)

 

 

(33,422

)

 

 

(24,885

)

 

 

(50,624

)

Income tax expense

 

(252

)

 

 

(9

)

 

 

(322

)

 

 

(122

)

Net loss

 

(9,397

)

 

 

(33,431

)

 

 

(25,207

)

 

 

(50,746

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive loss

$

(9,397

)

 

$

(33,431

)

 

$

(25,207

)

 

$

(50,746

)

 

 

 

 

 

 

 

 

Basic and diluted loss per share of common stock:

 

 

 

 

 

 

 

Net loss per share of common stock

$

(0.06

)

 

$

(0.24

)

 

$

(0.17

)

 

$

(0.39

)

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic and diluted

 

145,186

 

 

 

137,208

 

 

 

144,214

 

 

 

130,712

 

BLACKSKY TECHNOLOGY INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in thousands, except par value)

 

 

June 30, 2024

 

December 31,
2023

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

25,552

 

 

$

32,815

 

Restricted cash

 

1,097

 

 

 

619

 

Short-term investments

 

15,680

 

 

 

19,697

 

Accounts receivable, net of allowance of $22 and $151, respectively

 

8,218

 

 

 

7,071

 

Prepaid expenses and other current assets

 

3,736

 

 

 

3,916

 

Contract assets

 

28,166

 

 

 

15,213

 

Total current assets

 

82,449

 

 

 

79,331

 

Property and equipment - net

 

52,479

 

 

 

67,116

 

Operating lease right of use assets - net

 

4,220

 

 

 

1,630

 

Goodwill

 

9,393

 

 

 

9,393

 

Intangible assets - net

 

1,076

 

 

 

1,357

 

Satellite procurement work in process

 

71,716

 

 

 

55,976

 

Other assets

 

2,963

 

 

 

9,263

 

Total assets

$

224,296

 

 

$

224,066

 

Liabilities and stockholders’ equity

 

 

 

Current liabilities:

 

 

 

Accounts payable and accrued liabilities

$

11,480

 

 

$

11,573

 

Amounts payable to equity method investees

 

2,378

 

 

 

10,843

 

Contract liabilities - current

 

4,580

 

 

 

3,670

 

Debt - current portion

 

309

 

 

 

 

Other current liabilities

 

933

 

 

 

1,405

 

Total current liabilities

 

19,680

 

 

 

27,491

 

Operating lease liabilities

 

6,868

 

 

 

3,041

 

Derivative liabilities

 

10,130

 

 

 

15,149

 

Long-term debt - net of current portion

 

108,273

 

 

 

83,502

 

Other liabilities

 

2,814

 

 

 

1,724

 

Total liabilities

 

147,765

 

 

 

130,907

 

Stockholders’ equity:

 

 

 

Class A common stock, $0.0001 par value-authorized, 300,000 shares; issued, 148,910 and 145,232 shares; outstanding, 146,530 shares and 142,837 shares as of June 30, 2024 and December 31, 2023, respectively.

 

15

 

 

 

14

 

Additional paid-in capital

 

700,693

 

 

 

692,115

 

Accumulated deficit

 

(624,177

)

 

 

(598,970

)

Total stockholders’ equity

 

76,531

 

 

 

93,159

 

Total liabilities and stockholders’ equity

$

224,296

 

 

$

224,066

 

BLACKSKY TECHNOLOGY INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)

 

 

Six Months Ended June 30,

 

2024

 

2023

Cash flows from operating activities:

 

 

 

Net loss

$

(25,207

)

 

$

(50,746

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

Depreciation and amortization expense

 

22,461

 

 

 

21,431

 

Operating lease right of use assets amortization

 

374

 

 

 

613

 

Bad debt expense

 

108

 

 

 

15

 

Stock-based compensation expense

 

5,725

 

 

 

5,323

 

Amortization of debt issuance costs and non-cash interest expense

 

4,382

 

 

 

189

 

(Gain) loss on derivatives

 

(5,019

)

 

 

9,567

 

Non-cash interest income

 

(495

)

 

 

(337

)

Income on equity method investment

 

 

 

 

(585

)

Loss (gain) on disposal of assets

 

46

 

 

 

(22

)

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

(1,256

)

 

 

(4,278

)

Contract assets - current and long-term

 

(6,693

)

 

 

(4,101

)

Prepaid expenses and other current assets

 

(94

)

 

 

1,142

 

Other assets

 

403

 

 

 

1,117

 

Accounts payable and accrued liabilities

 

(1,961

)

 

 

1,015

 

Other current liabilities

 

(309

)

 

 

(1,097

)

Contract liabilities - current and long-term

 

1,958

 

 

 

(3,491

)

Other liabilities

 

(25

)

 

 

8,620

 

Net cash used in operating activities

 

(5,602

)

 

 

(15,625

)

Cash flows from investing activities:

 

 

 

Purchase of property and equipment

 

(6,576

)

 

 

(8,446

)

Satellite procurement work in process

 

(20,984

)

 

 

(19,925

)

Purchases of short-term investments

 

(13,488

)

 

 

(19,416

)

Proceeds from maturities of short-term investments

 

18,000

 

 

 

41,110

 

Proceeds from sale of property and equipment

 

 

 

 

22

 

Net cash used in investing activities

 

(23,048

)

 

 

(6,655

)

Cash flows from financing activities:

 

 

 

Proceeds from issuance of debt

 

20,000

 

 

 

 

Proceeds from equity issuances, net of equity issuance costs

 

2,947

 

 

 

30,074

 

Proceeds from options exercised and ESPP shares purchased

 

157

 

 

 

5

 

Payments for debt issuance costs

 

(632

)

 

 

 

Withholding tax payments on vesting of restricted stock units

 

(524

)

 

 

(414

)

Payments for deferred offering costs

 

(83

)

 

 

 

Payments of transaction costs for debt modification

 

 

 

 

(561

)

Payments of transaction costs related to derivative liabilities

 

 

 

 

(905

)

Net cash provided by financing activities

 

21,865

 

 

 

28,199

 

Net (decrease) increase in cash, cash equivalents, and restricted cash

 

(6,785

)

 

 

5,919

 

Cash, cash equivalents, and restricted cash – beginning of year

 

33,434

 

 

 

37,016

 

Cash, cash equivalents, and restricted cash – end of period

$

26,649

 

 

$

42,935

 

BLACKSKY TECHNOLOGY INC.

RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA

(unaudited)

(in thousands)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2024

 

2023

 

2024

 

2023

Net loss

$

(9,397

)

 

$

(33,431

)

 

$

(25,207

)

 

$

(50,746

)

Interest income

 

(330

)

 

 

(648

)

 

 

(730

)

 

 

(1,083

)

Interest expense

 

3,029

 

 

 

2,242

 

 

 

5,663

 

 

 

4,095

 

Income tax expense

 

252

 

 

 

9

 

 

 

322

 

 

 

122

 

Depreciation and amortization

 

11,277

 

 

 

11,776

 

 

 

22,461

 

 

 

21,431

 

Stock-based compensation expense

 

2,362

 

 

 

2,311

 

 

 

5,725

 

 

 

5,323

 

(Gain) loss on derivatives

 

(5,273

)

 

 

11,098

 

 

 

(5,019

)

 

 

9,567

 

Litigation, settlements, and related costs

 

165

 

 

 

 

 

 

165

 

 

 

 

Severance

 

60

 

 

 

111

 

 

 

141

 

 

 

199

 

Income on equity method investment

 

 

 

 

(56

)

 

 

 

 

 

(585

)

Transaction costs associated with debt and equity financings

 

 

 

 

833

 

 

 

 

 

 

1,738

 

Investment loss on short-term investments

 

 

 

 

 

 

 

 

 

 

55

 

Adjusted EBITDA

$

2,145

 

 

$

(5,755

)

 

$

3,521

 

 

$

(9,884

)

BLACKSKY TECHNOLOGY INC.

RECONCILIATION OF OPERATING EXPENSES TO CASH OPERATING EXPENSES

(unaudited)

(in thousands)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2024

 

2023

 

2024

 

2023

Operating expenses

$

29,777

 

 

$

30,720

 

 

$

60,233

 

 

$

59,540

 

Stock-based compensation for selling, general and administrative costs

 

(2,222

)

 

 

(2,147

)

 

 

(5,370

)

 

 

(4,884

)

Depreciation and amortization

 

(11,277

)

 

 

(11,776

)

 

 

(22,461

)

 

 

(21,431

)

Cash operating expenses

$

16,278

 

 

$

16,797

 

 

$

32,402

 

 

$

33,225

 

 



Contact:

Investor Contact
Aly Bonilla
VP, Investor Relations
abonilla@blacksky.com
571-591-2864

Media Contact
Pauly Cabellon
Director, External Communications
pcabellon@blacksky.com
571-591-2865