BlackSky Reports Fourth Quarter and Full Year 2024 Results
First Very-High Resolution Gen-3 Satellite Delivering Imagery Five Days from Launch
Company Secures Over
2025 Total Revenue Forecasted to Grow
“I’m happy to report that within 5 days of launch our new Gen-3 satellite is already exceeding customer expectations for initial very-high resolution image quality,” said Brian E. O’Toole, BlackSky CEO. “The addition of very-high resolution imagery to our high-frequency monitoring constellation enables us to deliver AI-derived insights at the speed of conflict, providing our customers with advanced space-based intelligence solutions. Building on this significant milestone, we are now set to begin a regular cadence of Gen-3 satellite launches to expand our capabilities. With early Gen-3 success and a number of significant recent contract wins, we’re off to a strong start to 2025.”
Full Year Financial Highlights:
-
Revenue of
$102.1 million -
Imagery & software analytical services revenue grew to
$70.1 million -
Imagery & software analytical service cost of sales(1), as a percentage of revenue, improved to
20% -
Net loss(2) of
$57.0 million -
Adjusted EBITDA(3) improved to
$11.6 million $1.0 million
(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) This represents our current estimate of net loss for the period ended December 31, 2024, which is subject to the completion of our financial closing procedures and adjustments that may result from the completion of the audit of our consolidated financial statements. As a result, this net loss estimate may differ from the actual net loss reported in our consolidated financial statements when they are completed and publicly disclosed in our Annual Report on Form 10-K. |
(3) Non-GAAP financial measure. See “Non-GAAP Financial Measures” below and reconciliation table at the end of this press release. |
Recent Highlights
- Successfully launched first Gen-3 satellite and began delivering imagery that is exceeding customer expectations for initial image quality five days after launch
- The National Reconnaissance Office extended its subscription for Gen-2 imagery services under the Electro-Optical Commercial Layer program into 2026
-
Awarded a more than
$100 million -
Won multi-year contracts totaling approximately
$20 million -
Awarded a multi-year contract valued up to
$200 million - Won a multi-million-dollar expansion contract with the Defense Innovation Unit to demonstrate space-based tactical ISR capabilities and provide on orbit operations under the TACGEO program
- Awarded a six-figure contract with a new strategic international customer to provide on-demand Gen-2 imagery, analytic services, and training on BlackSky’s Spectra tasking and analytics platform
- Won a multi-year subscription contract with EMDYN, a geospatial intelligence fusion company, to deliver space-based imagery services to international customers
-
Recent 2025 contract awards increases the December 31, 2024 backlog of
$261 million $390 million
Financial Results
Revenues
Total revenue for the fourth quarter of 2024 was
For the full year 2024, total revenue was
Cost of Sales(1)
Total cost of sales as a percentage of revenue improved to
For the full year 2024, cost of sales as a percentage of revenue improved to
Operating Expenses
Operating expenses for the fourth quarter of 2024 were
For the full year 2024, operating expenses were
Net Loss(2)
Net loss for the fourth quarter of 2024 was
For the full year 2024, net loss was
Adjusted EBITDA(3)
Adjusted EBITDA for the fourth quarter of 2024 was
For the full year 2024, Adjusted EBITDA was
Balance Sheet & Capital Expenditures
As of December 31, 2024, cash and cash equivalents, restricted cash, and short-term investments totaled
2025 Outlook
BlackSky expects full year 2025 revenue to be between
Investment Community Conference Call
BlackSky will host a conference call and webcast for the investment community this morning at 8:30 a.m. EST. Senior management will review the fourth quarter and full year 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 1-877-589-7299 or 1-201-689-8778 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 13751159. The audio replay will be available from approximately 12:30 p.m. EST on March 6, 2025, through March 20, 2025.
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 system 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
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; non-recurring transaction costs; severance; litigation, settlements, and related costs; impairment losses, income on equity method investment; transaction costs associated with debt and equity financings; and investment loss on short-term investments. 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
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 the receipt of cash from customers over the next 12 months, 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. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited) (in thousands, except per share amounts) |
|||||||||||||||
|
|||||||||||||||
Three Months Ended December 31, |
Years Ended December 31, |
||||||||||||||
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
||
Revenue |
|
|
|||||||||||||
Imagery & software analytical services |
$ |
17,484 |
|
|
$ |
19,039 |
|
|
$ |
70,062 |
|
$ |
65,391 |
|
|
Professional & engineering services |
|
12,886 |
|
|
|
16,469 |
|
|
|
32,031 |
|
|
29,101 |
|
|
Total revenue |
|
30,370 |
|
|
|
35,508 |
|
|
|
102,093 |
|
|
94,492 |
|
|
Costs and expenses |
|
|
|
|
|
||||||||||
Imagery & software analytical service costs, excluding depreciation and amortization |
|
3,348 |
|
|
|
3,159 |
|
|
|
13,907 |
|
|
|
13,793 |
|
Professional & engineering service costs, excluding depreciation and amortization |
|
3,519 |
|
|
|
8,851 |
|
|
|
13,525 |
|
|
|
19,988 |
|
Selling, general and administrative |
|
19,078 |
|
|
|
17,328 |
|
|
|
74,069 |
|
|
|
72,617 |
|
Research and development |
|
559 |
|
|
|
118 |
|
|
|
1,344 |
|
|
|
643 |
|
Depreciation and amortization |
|
9,956 |
|
|
|
10,696 |
|
|
|
43,542 |
|
|
|
43,431 |
|
Total costs and expenses |
|
36,460 |
|
|
|
40,152 |
|
|
|
146,387 |
|
|
|
150,472 |
|
Operating loss |
|
(6,090 |
) |
|
|
(4,644 |
) |
|
|
(44,294 |
) |
|
|
(55,980 |
) |
(Loss) gain on derivatives |
|
(11,408 |
) |
|
|
234 |
|
|
|
(2,815 |
) |
|
|
7,679 |
|
Income on equity method investment |
|
1,401 |
|
|
|
3,252 |
|
|
|
1,401 |
|
|
|
4,165 |
|
Interest income |
|
573 |
|
|
|
461 |
|
|
|
1,560 |
|
|
|
2,063 |
|
Interest expense |
|
(3,382 |
) |
|
|
(2,679 |
) |
|
|
(12,187 |
) |
|
|
(9,306 |
) |
Other income (expense), net |
|
75 |
|
|
|
1 |
|
|
|
56 |
|
|
|
(1,807 |
) |
Loss before income taxes |
|
(18,831 |
) |
|
|
(3,375 |
) |
|
|
(56,279 |
) |
|
|
(53,186 |
) |
Income tax expense |
|
(394 |
) |
|
|
(413 |
) |
|
|
(744 |
) |
|
|
(673 |
) |
Net loss |
|
(19,225 |
) |
|
|
(3,788 |
) |
|
|
(57,023 |
) |
|
|
(53,859 |
) |
Other comprehensive income |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total comprehensive loss |
$ |
(19,225 |
) |
|
$ |
(3,788 |
) |
|
$ |
(57,023 |
) |
|
$ |
(53,859 |
) |
|
|
|
|
|
|
||||||||||
Basic and diluted loss per share of common stock: |
|
|
|
|
|
|
|
||||||||
Net loss per share of common stock |
$ |
(1.01 |
) |
|
$ |
(0.21 |
) |
|
$ |
(2.66 |
) |
|
$ |
(3.18 |
) |
|
|||||||||||||||
Weighted average common shares outstanding - basic and diluted |
|
19,120 |
|
|
|
17,668 |
|
|
|
21,443 |
|
|
|
16,931 |
|
BLACKSKY TECHNOLOGY INC. CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands, except par value) |
|||||||
|
|||||||
|
December 31, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
13,056 |
|
|
$ |
32,815 |
|
Restricted cash |
|
1,322 |
|
|
|
619 |
|
Short-term investments |
|
39,406 |
|
|
|
19,697 |
|
Accounts receivable, net of allowance of |
|
14,701 |
|
|
|
7,071 |
|
Contract assets |
|
27,852 |
|
|
|
15,213 |
|
Inventories |
|
6,043 |
|
|
|
— |
|
Prepaid expenses and other current assets |
|
4,356 |
|
|
|
3,916 |
|
Total current assets |
|
106,736 |
|
|
|
79,331 |
|
Property and equipment - net |
|
45,614 |
|
|
|
67,116 |
|
Operating lease right of use assets - net |
|
4,029 |
|
|
|
1,630 |
|
Goodwill |
|
9,393 |
|
|
|
9,393 |
|
Intangible assets - net |
|
6,508 |
|
|
|
1,357 |
|
Satellite procurement work in process |
|
80,601 |
|
|
|
55,976 |
|
Other assets |
|
1,461 |
|
|
|
9,263 |
|
Total assets |
$ |
254,342 |
|
|
$ |
224,066 |
|
Liabilities and stockholders’ equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and accrued liabilities |
$ |
20,420 |
|
|
$ |
11,573 |
|
Amounts payable to equity method investees |
|
— |
|
|
|
10,843 |
|
Contract liabilities - current |
|
2,183 |
|
|
|
3,670 |
|
Debt - current portion |
|
1,927 |
|
|
|
— |
|
Other current liabilities |
|
1,493 |
|
|
|
1,405 |
|
Total current liabilities |
|
26,023 |
|
|
|
27,491 |
|
Operating lease liabilities |
|
8,048 |
|
|
|
3,041 |
|
Derivative liabilities |
|
17,964 |
|
|
|
15,149 |
|
Long-term debt - net of current portion |
|
105,736 |
|
|
|
83,502 |
|
Other liabilities |
|
2,387 |
|
|
|
1,724 |
|
Total liabilities |
|
160,158 |
|
|
|
130,907 |
|
Stockholders’ equity: |
|
|
|
||||
Class A common stock, |
|
3 |
|
|
|
2 |
|
Additional paid-in capital |
|
750,174 |
|
|
|
692,127 |
|
Accumulated deficit |
|
(655,993 |
) |
|
|
(598,970 |
) |
Total stockholders’ equity |
|
94,184 |
|
|
|
93,159 |
|
Total liabilities and stockholders’ equity |
$ |
254,342 |
|
|
$ |
224,066 |
|
BLACKSKY TECHNOLOGY INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands) |
|||||||
|
|||||||
|
Years Ended December 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(57,023 |
) |
|
$ |
(53,859 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization expense |
|
43,542 |
|
|
|
43,431 |
|
Transfer of satellite procurement work in process to engineering service costs |
|
334 |
|
|
|
4,854 |
|
Operating lease right of use assets amortization |
|
583 |
|
|
|
883 |
|
Bad debt expense |
|
145 |
|
|
|
179 |
|
Stock-based compensation expense |
|
11,169 |
|
|
|
10,862 |
|
Amortization of debt issuance costs and non-cash interest expense |
|
9,207 |
|
|
|
7,967 |
|
Loss (gain) on derivatives |
|
2,815 |
|
|
|
(7,679 |
) |
Non-cash interest income |
|
(1,074 |
) |
|
|
(796 |
) |
Loss on impairment of assets |
|
131 |
|
|
|
81 |
|
Loss on disposal of assets |
|
44 |
|
|
|
127 |
|
Income on equity method investment |
|
(1,401 |
) |
|
|
(4,165 |
) |
Other, net |
|
321 |
|
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(7,775 |
) |
|
|
(4,137 |
) |
Contract assets - current and long-term |
|
(4,989 |
) |
|
|
(16,299 |
) |
Prepaid expenses and other current assets |
|
556 |
|
|
|
1,118 |
|
Other assets |
|
2,428 |
|
|
|
1,328 |
|
Accounts payable and accrued liabilities |
|
(4,080 |
) |
|
|
3,316 |
|
Other current liabilities |
|
(356 |
) |
|
|
(1,041 |
) |
Contract liabilities - current and long-term |
|
(978 |
) |
|
|
(3,053 |
) |
Other liabilities |
|
17 |
|
|
|
(538 |
) |
Net cash used in operating activities |
|
(6,384 |
) |
|
|
(17,421 |
) |
Cash flows from investing activities: |
|
|
|
||||
Purchase of property and equipment |
|
(15,678 |
) |
|
|
(15,274 |
) |
Satellite procurement work in process |
|
(34,558 |
) |
|
|
(28,441 |
) |
Purchases of short-term investments |
|
(52,860 |
) |
|
|
(40,078 |
) |
Proceeds from maturities of short-term investments |
|
34,225 |
|
|
|
59,110 |
|
Cash received from business acquisition |
|
541 |
|
|
|
— |
|
Proceeds from sale of equity method investment |
|
— |
|
|
|
9,450 |
|
Proceeds from sale of property and equipment |
|
— |
|
|
|
22 |
|
Net cash used in investing activities |
|
(68,330 |
) |
|
|
(15,211 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from equity issuances, net of equity issuance costs |
|
47,009 |
|
|
|
32,733 |
|
Proceeds from issuance of debt |
|
20,000 |
|
|
|
— |
|
Proceeds from options exercised and ESPP shares purchased |
|
308 |
|
|
|
10 |
|
Debt payments |
|
(10,000 |
) |
|
|
— |
|
Payments for debt issuance costs |
|
(632 |
) |
|
|
— |
|
Withholding tax payments on vesting of restricted stock units |
|
(967 |
) |
|
|
(1,410 |
) |
Payments for deferred financing costs |
|
— |
|
|
|
(67 |
) |
Payments for deferred offering costs |
|
(60 |
) |
|
|
— |
|
Payments of transaction costs for debt modification |
|
— |
|
|
|
(1,311 |
) |
Payments of transaction costs related to derivative liabilities |
|
— |
|
|
|
(905 |
) |
Net cash provided by financing activities |
|
55,658 |
|
|
|
29,050 |
|
Net decrease in cash, cash equivalents, and restricted cash |
|
(19,056 |
) |
|
|
(3,582 |
) |
Cash, cash equivalents, and restricted cash – beginning of year |
|
33,434 |
|
|
|
37,016 |
|
Cash, cash equivalents, and restricted cash – end of year |
$ |
14,378 |
|
|
$ |
33,434 |
|
|
|||||||||||||||
BLACKSKY TECHNOLOGY INC. RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (unaudited) (in thousands) |
|||||||||||||||
|
|||||||||||||||
|
Three Months Ended December 31, |
|
Years Ended December 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net loss |
$ |
(19,225 |
) |
|
$ |
(3,788 |
) |
|
$ |
(57,023 |
) |
|
$ |
(53,859 |
) |
Interest income |
|
(573 |
) |
|
|
(461 |
) |
|
|
(1,560 |
) |
|
|
(2,063 |
) |
Interest expense |
|
3,382 |
|
|
|
2,679 |
|
|
|
12,187 |
|
|
|
9,306 |
|
Income tax expense |
|
394 |
|
|
|
413 |
|
|
|
744 |
|
|
|
673 |
|
Depreciation and amortization |
|
9,956 |
|
|
|
10,696 |
|
|
|
43,542 |
|
|
|
43,431 |
|
Stock-based compensation expense |
|
2,925 |
|
|
|
3,137 |
|
|
|
11,169 |
|
|
|
10,862 |
|
Loss (gain) on derivatives |
|
11,408 |
|
|
|
(234 |
) |
|
|
2,815 |
|
|
|
(7,679 |
) |
Non-recurring transaction costs |
|
231 |
|
|
|
— |
|
|
|
459 |
|
|
|
— |
|
Litigation, settlements, and related costs |
|
218 |
|
|
|
— |
|
|
|
355 |
|
|
|
— |
|
Severance |
|
— |
|
|
|
28 |
|
|
|
219 |
|
|
|
590 |
|
Impairment losses |
|
60 |
|
|
|
81 |
|
|
|
131 |
|
|
|
81 |
|
Income on equity method investment |
|
(1,401 |
) |
|
|
(3,252 |
) |
|
|
(1,401 |
) |
|
|
(4,165 |
) |
Transaction costs associated with debt and equity financings |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,738 |
|
Investment loss on short-term investments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
55 |
|
Adjusted EBITDA |
$ |
7,375 |
|
|
$ |
9,299 |
|
|
$ |
11,637 |
|
|
$ |
(1,030 |
) |
BLACKSKY TECHNOLOGY INC. RECONCILIATION OF OPERATING EXPENSES TO CASH OPERATING EXPENSES (unaudited) (in thousands) |
|||||||||||||||
|
|||||||||||||||
|
Three Months Ended December 31, |
|
Years Ended December 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Operating expenses |
$ |
29,593 |
|
|
$ |
28,142 |
|
|
$ |
118,955 |
|
|
$ |
116,691 |
|
Stock-based compensation for selling, general and administrative costs |
|
(2,779 |
) |
|
|
(2,969 |
) |
|
|
(10,526 |
) |
|
|
(10,118 |
) |
Depreciation and amortization |
|
(9,956 |
) |
|
|
(10,696 |
) |
|
|
(43,542 |
) |
|
|
(43,431 |
) |
Cash operating expenses |
$ |
16,858 |
|
|
$ |
14,477 |
|
|
$ |
64,887 |
|
|
$ |
63,142 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250306798854/en/
Investor Contact
Aly Bonilla
VP, Investor Relations
abonilla@blacksky.com
571-591-2864
Media Contact
Pauly Cabellon
Senior Director, External Communications
pcabellon@blacksky.com
571-591-2865
Source: BlackSky Technology Inc.
