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Jun 30, 2023

Blacksky Q2 2023 Earnings Report

Blacksky reported strong revenue growth and operating leverage, remaining on track for profitability.

Key Takeaways

BlackSky reported a 28% increase in revenue compared to the prior year period, driven by a 51% growth in imagery and software analytical services revenue. The company won over $35 million in new contracts and renewal agreements since the start of Q2, bringing year-to-date bookings to over $200 million. BlackSky is widening its 2023 revenue outlook to between $84 million and $96 million and remains on track to achieve positive adjusted EBITDA in Q4 of this year.

Revenue increased by 28% compared to the prior year period.

Imagery and software analytical services revenue grew by 51% over the prior year quarter.

Won over $35 million in new contracts and renewal agreements since the start of Q2.

Remains on track to achieve positive adjusted EBITDA in Q4 of this year.

Total Revenue
$19.3M
Previous year: $15.1M
+28.0%
EPS
-$1.92
Previous year: -$1.76
+9.1%
Adjusted EBITDA
-$5.8M
Previous year: -$8.8M
-34.1%
Gross Profit
$10.8M
Previous year: $5.32M
+103.2%
Cash and Equivalents
$41.1M
Previous year: $64.8M
-36.6%
Total Assets
$228M
Previous year: $261M
-12.7%

Blacksky

Blacksky

Blacksky Revenue by Segment

Forward Guidance

BlackSky remains on track to achieve positive Adjusted EBITDA in Q4 of this year. The Company continues to close a significant number of new contracts, further building a strong book of business. BlackSky is actively working with several major customers on a number of sizable contracts and given the variability on timing, the Company is widening the range of its 2023 revenue outlook to between $84 million and $96 million. Expectations for full year 2023 capital expenditures remain between $40 million and $45 million.

Positive Outlook

  • Remains on track to achieve positive Adjusted EBITDA in Q4 of this year.
  • Continued revenue growth
  • High incremental margins from imagery and analytic services
  • Continued responsible cost management.
  • Closing a significant number of new contracts

Challenges Ahead

  • Variability on timing
  • Widening the range of its 2023 revenue outlook to between $84 million and $96 million.
  • Net loss for the second quarter of 2023 was $33.4 million
  • Operating expenses for the second quarter of 2023 were $30.7 million
  • As of June 30, 2023, cash and cash equivalents, restricted cash, and short-term investments totaled $59.5 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income