On September 5, 2024, Planet Labs PBC (NYSE: PL), an Earth-imaging company, released its 8-K filing detailing the financial results for the second quarter of fiscal year 2025, ending July 31, 2024. The company reported record quarterly revenue of $61.1 million, a 14% increase year-over-year, but slightly below the analyst estimate of $61.82 million. The earnings per share (EPS) came in at -$0.13, missing the analyst estimate of -$0.11.
Company Overview
Planet Labs PBC is a leading provider of daily satellite data that helps businesses, governments, researchers, and journalists understand the physical world and take action. The company operates the largest Earth observation fleet of imaging satellites, providing mission-critical data and advanced insights to over 1,000 customers globally.
Performance and Challenges
Planet Labs PBC reported a net loss of $38.7 million for the second quarter, compared to a net loss of $38.0 million in the same period last year. The company attributed $10.5 million of this loss to non-recurring charges related to headcount reduction. Despite the net loss, the company's gross margin improved to 53% from 49% year-over-year, and the non-GAAP gross margin expanded to 58% from 52%.
“During the second quarter, we saw continued strength with government customers, especially in the Defense & Intelligence sector where revenue grew over 30% year-over-year,” said Will Marshall, Planet’s Co-Founder, Chief Executive Officer and Chairperson.
Financial Achievements
Planet Labs PBC achieved several financial milestones this quarter:
- Record quarterly revenue of $61.1 million, up 14% year-over-year.
- Gross margin expanded to 53%, with a non-GAAP gross margin of 58%.
- Adjusted EBITDA loss improved to $4.4 million from $14.5 million year-over-year.
- Strong balance sheet with $249 million in cash, cash equivalents, and short-term investments, and no debt.
“Our results for the second quarter demonstrate continued progress towards our target of achieving Adjusted EBITDA profitability in Q4 of this fiscal year,” said Ashley Johnson, Planet’s President and Chief Financial Officer.
Key Financial Metrics
| Metric | Q2 FY2025 | Q2 FY2024 |
|---|---|---|
| Revenue | $61.1 million | $53.8 million |
| Gross Margin | 53% | 49% |
| Net Loss | ($38.7) million | ($38.0) million |
| Adjusted EBITDA Loss | ($4.4) million | ($14.5) million |
| Cash and Equivalents | $249 million | $215 million |
Operational Highlights
Planet Labs PBC launched 36 SuperDove satellites and its first Tanager hyperspectral satellite during the quarter. The company also secured significant contracts with NATO, an international defense customer, and the Government of the Kingdom of Bahrain, among others. These contracts highlight the growing demand for Planet's high-resolution imaging and AI-enhanced data solutions.
Analysis
While Planet Labs PBC missed analyst revenue and EPS estimates, the company showed significant progress in operational efficiency and margin expansion. The strong performance in the Defense & Intelligence sector and the successful launch of new satellites indicate a robust growth trajectory. However, the net loss and non-recurring charges pose challenges that the company needs to address to achieve its profitability targets.
For more detailed insights and the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Planet Labs PBC for further details.
