BlackSky Records 69% Increase In Q4 Revenues; Expects Positive Adjusted EBITDA In 4Q23

  • BlackSky Technology Inc BKSY reported fourth-quarter revenue growth of 69% year-over-year to $19.42 million, missing the consensus of $19.62 million.
  • Imagery & software analytical services revenue improved 196% Y/Y, and Professional & engineering services revenue was $3.25 million (-46.1% Y/Y).
  • EPS loss was $(0.13, beating the consensus of $(0.16).
  • Cost of sales as a percent of revenue was ~40% compared to ~89% in 4Q21.
  • Operating loss for Q4 totaled $(18.3) million versus $(31.9) million in 4Q21.
  • Adjusted EBITDA loss was $(4.6) million compared to $(14.4) million in the prior year.
  • As of Dec. 31, 2022, BKSY held cash and equivalents of $75 million. Net cash used in operating activities for the fiscal totaled $(44.46) million, compared to $(53.87) million a year ago.
  • BlackSky bagged a multi-year subscription contract award of $150+ million from a major international ministry of defense. BlackSky will provide this customer with next-generation space-based tactical geospatial intelligence services. The company's multi-year backlog increased to over $250 million.
  • Additionally, BlackSky announced a private placement of $29.5 million from a syndicate of new and existing institutional investors. The company intends to use the net proceeds from the transaction for general corporate purposes and investments in its space and software platforms.
  • FY23 Outlook: BlackSky expects FY23 revenue to be $90 million-$96 million (consensus $105.89 million), representing 42% growth Y/Y at the mid-point.
  • It expects capital expenditures for FY23 of $40 million - $45 million. 
  • With strong revenue growth, high incremental contribution margins, and prudent cost management, the company anticipates achieving positive Adjusted EBITDA in the fourth quarter of 2023.
  • Price Action: BKSY shares are trading lower by 10.10% at $1.74 on the last check Tuesday.
  • Photo Via Company
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