Planet Labs PBC (PL) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Since a cha ...

Before today's trading session began, shares of Planet Labs (PL -12.17%) were in the black for 2024, having risen more than 3%. Today, however, the stock finds itself in the red for the year. With the company reporting disappointing fourth-quarter 2024 financial results after the market closed on Thursday and unfavorable attention from a Wall Street analyst today, investors are trimming -- or exiting altogether -- their positions in this satellite imaging stock.As of 2:07 p.m. ET, shares of Planet Labs are ...

Financial Data and Key Metrics - Revenue for Q4 2024 was $58 9 million, representing 11% YoY growth [149] - Full-year revenue for FY2024 was $220 7 million, a 15% YoY increase [108] - Non-GAAP gross margin for Q4 was 58%, and 54% for the full year [154] - Adjusted EBITDA loss for Q4 was $9 8 million, and $55 3 million for the full year [154] - Net dollar retention rate (NDRR) for FY2024 was 101%, and 103% with winbacks [153] - Capital expenditures for Q4 were $10 1 million, and $42 4 million for the full year [154] Business Line Data and Key Metrics - Defense & Intelligence vertical grew over 30% YoY in FY2024, driven by the NIWC Pacific win and expansions [118] - Civil Government vertical saw solid growth, with over 50 new and expansion opportunities in Q4 [124] - Commercial vertical revenue decreased YoY due to budget constraints and the completion of a large legacy contract [129] - Agriculture sector faced challenges due to economic pressures, but long-term fundamentals remain strong [3][4] Market Data and Key Metrics - EMEA revenue grew over 20% YoY in Q4, and over 50% for the full year [150][151] - Latin America revenue grew over 30% YoY in Q4, and over 20% for the full year [150][151] - Asia Pacific revenue grew over 15% YoY in Q4, and mid-single digits for the full year [150][151] - North America revenue remained flat YoY in Q4, and grew less than 5% for the full year [150][151] Company Strategy and Industry Competition - The company is shifting towards selling solutions alongside its data, enabled by AI advancements [120][141] - Partnerships with companies like SynMax are driving new capabilities in maritime domain awareness and other areas [121][122] - The company is investing in next-generation fleets, including the Pelican satellite, with the first operational launch expected within 12 months [138] - The company is focusing on operational efficiency and cost reduction to achieve adjusted EBITDA profitability by Q4 FY2025 [161] Management Commentary on Operating Environment and Future Outlook - Management remains optimistic about long-term opportunities in agriculture, insurance, and other commercial sectors despite short-term economic pressures [3][4] - The company is seeing increased demand from defense customers for AI-enabled solutions, particularly in broad area monitoring [109] - Management expects growth to continue to be driven by the government sector, with strong demand in Defense & Intelligence and Civil Government verticals [118][119] - The company is pursuing multiple seven-figure pilot programs with defense agencies, which have the potential to scale significantly [123] Other Important Information - The company surpassed 1,000 customers in Q4 FY2024, a significant milestone [118] - The company signed an eight-figure data license agreement with Carbon Mapper, extending their partnership until 2030 [134] - The company launched Field Boundaries analytics, enhancing its Planetary Variable Solutions suite [139] - The company is hosting a milestone platform launch on April 11, 2024 [143] Q&A Session Summary Question: What are the technical hurdles for the commercial business to recover? - The main challenge is the economic environment, particularly in the agriculture sector, but the long-term fundamentals remain strong [3][4] Question: What contributed to the acceleration in new customer logos in the quarter? - The global commercial organization has been building relationships and educating the market, leading to new customer acquisitions [7][8] Question: Is the winback metric becoming less meaningful? - The convergence of NDRR and winback metrics indicates improved renewal rates, and the company hopes to see the winback metric become obsolete [11][13] Question: Can you explain the gross margin step down in Q1? - The gross margin is impacted by a 300 bps hit from third-party solutions and a 500 bps hit from accelerated depreciation [17][18] Question: How is the EOCL contract progressing? - The implementation is going well, and the company feels confident about the upcoming renewal [25] Question: What is the outlook for the agriculture sector? - The sector is starting to recover, but inflationary pressures and commodity prices remain a challenge [47][48] Question: What is the initial view on SpaceX Starshield? - The Starshield program is a government contract and does not directly impact the commercial market for satellite data [54] Question: What is the status of the Pelican program? - The Pelican program is in a growth CapEx phase, with the first operational satellites expected within 12 months [62] Question: How is the solar cycle affecting satellite operations? - The solar cycle has caused some accelerated depreciation of SkySats, but the fleet has adapted well, and the company has learned valuable lessons [65][66] Question: What is the outlook for large government opportunities? - The company is pursuing multiple large government contracts, including the NGA Luno procurement and NASA CSDA program, with significant potential for growth [83][84]

Financial Performance and Losses - Company reported net losses of $140.5 million, $162.0 million, and $137.1 million for fiscal years ended January 31, 2024, 2023, and 2022, respectively, with an accumulated deficit of $1,079.8 million as of January 31, 2024[105] - The company has experienced net losses and negative cash flows, and its capital-intensive business strategy may require additional financing, which could be limited by market conditions or financial performance[223][224] Competition and Market Risks - Company faces intense competition from entities like Airbus Defense and Space, BlackSky Global LLC, and Maxar Technologies Ltd., as well as government-operated satellites[110] - Competitors with greater resources could develop superior offerings or lower-priced alternatives, potentially reducing market share[109] - U.S. government and European Commission operate their own imagery satellites, which could reduce reliance on commercial suppliers and increase competition[111] - Increased competition from government-subsidized entities and low-cost imaging satellites could negatively impact market position[113] Revenue and Customer Risks - Market for satellite imagery and analytics may not grow as expected, potentially impacting revenue growth and profitability[106] - Customer retention and renewal rates are critical, with macroeconomic and geopolitical factors potentially impacting sales cycles and contract renewals[117] - Company's ability to attract new customers cost-effectively and expand relationships with existing customers is crucial for growth[115] - Net Dollar Retention Rate must be maintained or improved to support growth, with potential declines adversely affecting financial results[119] - Sales to large enterprises and U.S. and foreign governments face risks such as longer sales cycles, complex procurement requirements, and reduced or delayed technology spending due to macroeconomic and geopolitical conditions[135] - A meaningful portion of the company's revenue is generated from U.S. and foreign government contracts, which are subject to stringent regulations and potential unilateral modifications or terminations by the government[137] - Customer concentration is a risk, with one customer accounting for 21% of revenue in fiscal year 2024, making the company vulnerable to revenue fluctuations[169] Investment and Operating Expenses - Company plans to invest heavily in platform development, satellite launches, data analytics capabilities, and sales force expansion, which may increase operating expenses[105] - Significant investment in improving and developing new data solutions such as Planet Monitoring, Planet Tasking, Planet Archive, and Planet APIs to expand customer adoption[120] - Expansion of operations in Europe to build a customer base and increase market share, despite potential regulatory and cost challenges[121] - Increased costs and potential revenue shortfalls from introducing new products or discontinuing existing features[134] Operational and Technological Risks - Risks associated with global operations, including geopolitical tensions, regulatory changes, and currency exchange rate fluctuations[122] - Potential objections from foreign governments or entities due to sensitive data collection, which could lead to operational curtailment[123] - Development of next-generation satellites (Pelican and Tanager fleets) faces uncertainties, including delays and cost overruns[124] - Risks of satellite launch delays, failures, or increased costs, which could impact deployment timelines and financial results[126] - Potential satellite performance issues or failures due to environmental stresses, technical flaws, or catastrophic events[127] - Ground operations infrastructure failures or signal interference could impair satellite performance and harm business operations[130] - Challenges in timely development and market acceptance of new satellite technologies and data analytic products[131] - Rapid technological advancements in the industry could render the company's satellites or components obsolete, requiring significant R&D investments to remain competitive[172] Government Contracts and Compliance - Government contracts may increase costs due to compliance requirements, bid protests, and potential liability for subcontractor performance[139][140] - The company faces risks of non-compliance with government regulations, which could result in contract termination, financial penalties, or suspension from future government contracts[141] - Disruptions in U.S. government operations, such as shutdowns or budget uncertainties, could materially impact the company's revenue and financial condition[144] - The company's competitive position depends on maintaining compatibility with third-party products and services, and failure to do so could harm its business and financial condition[145] - The availability and reliability of third-party data sets and imagery are critical to the company's products, and any unavailability could negatively impact its business[146] - The company's revenue and reputation could be negatively impacted if its products fail to meet contractual requirements or contain defects[147] - The company relies on resellers and partners for a portion of its revenue, and their failure to market or sell its products successfully could harm its business[150] Economic and Geopolitical Risks - Downturns or volatility in general economic conditions could materially adversely affect the company's business, financial condition, and results of operations[151][152] - Risks associated with global operations, including geopolitical tensions, regulatory changes, and currency exchange rate fluctuations[122] - Natural disasters, cyber-attacks, and geopolitical instability could disrupt the company's operations, particularly affecting its headquarters in the San Francisco Bay Area, known for seismic activity[180] - The company's satellite operations and infrastructure are vulnerable to damage or interruption from natural disasters, power loss, and cyber-attacks, which could result in service interruptions and reduced revenue[181] - The company's satellites may not capture Earth images due to weather, natural disasters, or high demand in certain areas, potentially affecting customer relationships and reputation[184][185] - The company faces heightened cybersecurity risks due to geopolitical conflicts, such as the wars in Ukraine and Israel, and the sensitivity of its data[207] Cybersecurity and Data Risks - Cybersecurity risks include potential cyber-attacks, ransomware, and unauthorized access to customer data, which could harm the company's reputation and operations[201] - The company relies on third-party service providers for data processing, increasing risks of security breaches and unauthorized access to sensitive information[202] - Remote work by employees may increase data security risks, such as phishing and spam attacks[203] - Artificial intelligence technologies may increase cybersecurity risks, including the potential for more effective cyber-attacks[208] - The company may incur significant costs to address security breaches, which could lead to service disruptions, reputational harm, and legal liabilities[209] Intellectual Property and Legal Risks - Intellectual property protection is critical, with risks of infringement, misappropriation, and challenges to patents and trademarks, particularly in international markets[212] - The company may face costly intellectual property litigation, which could require settlements, licensing agreements, or the development of alternative technologies[214] - The company uses open source software in its platform, which could expose it to legal risks, including demands to release proprietary source code, legal expenses, damages, or costly remediation, potentially harming its business and financial position[216] - The company processes personal data, subjecting it to complex and evolving privacy and data protection laws across multiple jurisdictions, which could require significant compliance investments and impact business strategies[218][219][220] - Non-compliance with privacy laws or obligations could result in legal claims, fines, reputational damage, and reduced demand for the company's products and services[221] - The company may face adverse business and reputational consequences due to its policies on customer confidentiality and privacy, especially when responding to government requests for data[222] Regulatory and Compliance Risks - The company operates in a highly regulated industry, with potential adverse effects from changes in laws and regulations, particularly in satellite technology and environmental compliance[238] - Regulatory approvals, such as those from NOAA, are critical for the company's operations, and failure to obtain or maintain these could disrupt services and impact competitiveness[241] - The company's satellite operations require FCC licenses, and failure to meet regulatory requirements or obtain renewals could adversely affect revenue generation and business operations[244] - The company must comply with international regulations, including ITU requirements, and failure to secure necessary foreign licenses could negatively impact its ability to downlink imagery[246] - The company's classified U.S. government work requires facility and personnel security clearances, and any loss of clearance could negatively affect its ability to perform classified contracts[250] - The company is subject to anti-corruption, anti-bribery, and anti-money laundering laws, with non-compliance potentially leading to criminal or civil liability and harming the business[254] - Risks of non-compliance with international trade, export, and import controls could result in significant fines, loss of export privileges, and reputational harm[257][258] Stock and Warrants Risks - The company's Class A common stock and warrants may experience price volatility due to factors such as industry changes, operational disruptions, and regulatory shifts[263] - The company's multi-class stock structure concentrates voting power with the CEO and Co-Founder, holding over 62% of voting power, which may limit investor influence on major decisions[267] - The company does not intend to pay cash dividends in the foreseeable future, retaining earnings for business development and expansion[270] - The company may redeem outstanding public warrants at a disadvantageous time for holders, potentially making the warrants worthless[272][273] - The company may redeem outstanding public warrants, potentially causing warrant holders to lose embedded value if the warrants are "out-of-the-money"[276] - The company can amend warrant terms with approval from at least 50% of outstanding public warrant holders, potentially increasing exercise prices or shortening exercise periods[277] - The Warrant Agreement designates New York courts as the exclusive forum for certain disputes, limiting warrant holders' ability to choose favorable judicial forums[278] Corporate Governance and Public Benefit Risks - Delaware law and the company's Charter provisions could make takeover proposals more difficult, potentially limiting stockholders' ability to obtain a premium for their shares[281][282] - As a public benefit corporation, the company must balance stockholder interests with public benefit goals, which may negatively impact financial performance[283][289] - The company is required to provide biennial reports on public benefit performance, and failure to do so could harm its reputation[284] - The company's Charter designates Delaware courts as the exclusive forum for certain stockholder disputes, potentially limiting favorable judicial forums[287] - Indemnification claims by directors and officers may reduce funds available for third-party claims or stockholder distributions[285][288] - The company's public benefit status may make it less attractive as a takeover target, limiting stockholder investment realization opportunities[291] - Directors must consider public benefit and stakeholder interests, which may conflict with stockholder interests and impact financial outcomes[292] - The company may face increased derivative litigation due to its status as a Delaware public benefit corporation, potentially impacting financial condition and operations[293] - Stockholders owning at least 2% of shares or shares valued at $2,000,000+ can file derivative lawsuits, a risk not applicable to traditional corporations[293] Public Company and Management Risks - Public company obligations require significant expenses, resources, and management attention, diverting focus from business operations[294] - Compliance with SEC, Sarbanes-Oxley Act, and NYSE listing standards increases legal, accounting, and financial compliance costs[294] - Stockholder activism could lead to additional costs, management distraction, and operational impacts[294] - Disclosure requirements may result in threatened or actual litigation, including from competitors[294] - Management team has limited experience managing a publicly traded company, potentially affecting compliance and investor relations[295] - Senior management's attention may be diverted from day-to-day operations due to public company obligations[295] Environmental and Social Risks - Compliance with environmental and social regulations, such as the Uyghur Forced Labor Prevention Act, could require costly supply chain adjustments and risk fines or reputational damage[156] - Climate change-related risks, such as extreme weather events, could disrupt operations, increase costs, and impact insurance availability or affordability[178] - The company faces risks from climate change, including increased regulations, evolving stakeholder expectations, and changes in market demand, which could disrupt operations and impact financial results[179] - Increasing attention to ESG initiatives could increase costs, harm reputation, and impact the company's business, financial condition, or results of operations[186] Tax and Financial Risks - Changes in tax laws or regulations, such as the Tax Cuts and Jobs Act of 2017 and the Inflation Reduction Act of 2022, could increase the company's effective tax rate and reduce cash flow[226][227] - The company may face sales and use tax liabilities in jurisdictions where it has not historically collected taxes, potentially resulting in substantial liabilities and administrative burdens[228] - As of January 31, 2024, the company has federal net operating loss carryforwards of $555.3 million, with limitations on their utilization due to potential ownership changes under Sections 382 and 383 of the Internal Revenue Code[229][230] - The company relies on internal and third-party data to calculate key metrics, and any inaccuracies in these metrics could harm its reputation and business[231] - Changes in U.S. accounting principles could significantly impact the company's reported financial results, particularly due to new standards on lease accounting[232] - The company's financial statements rely on management's judgments and estimates, which, if incorrect, could lead to results falling below expectations and a decline in stock price[233] - The company's investment portfolio, consisting of money market funds, commercial paper, and government debt, could be impaired by financial market volatility[234] - Foreign currency exchange rate fluctuations, particularly in the Euro, could negatively impact the company's non-U.S. operations and revenues[236] - The company faces risks of substantial losses if financial institutions holding its cash and investment accounts fail, as amounts exceed FDIC insurance limits[237]

San Francisco, CA – March 28, 2024 – Planet Labs PBC (NYSE: PL) ("Planet" or the "Company"), a leading provider of daily data and insights about Earth, today announced financial results for the period ended January 31, 2024. "Planet delivered a solid fourth quarter to cap off the year. We saw strong demand in the government sector and an evolution toward selling solutions alongside our data, enabled by the revolution happening in AI. We are prioritizing investment behind these trends to capture the opportun ...

SAN FRANCISCO--(BUSINESS WIRE)--Planet Labs PBC (NYSE: PL), a leading provider of daily data and insights about Earth, today announced improvements to its Crop Biomass Planetary Variable, including the integration of its daily, global PlanetScope data. Crop Biomass is a cloud-free, analysis-ready data product for monitoring agricultural fields that combines radar and optical signals to help agronomists and farmers better understand the status of their operations. Crop biomass in agricultural fields is hi ...

SAN FRANCISCO--(BUSINESS WIRE)--Planet Labs PBC (NYSE: PL), a leading provider of daily data and insights about Earth, today announced the release of Field Boundaries, the latest add in their suite of advanced data feeds called Planetary Variables. Field Boundaries will provide critical infrastructure for agriculture solutions, including regional crop monitoring and yield estimation over broad areas, serving customers in civil government, commercial agriculture, finance, and consumer packaged goods industri ...

SAN FRANCISCO--(BUSINESS WIRE)--Planet Labs PBC (NYSE: PL), a leading provider of daily data and insights about Earth, today announced its fully owned subsidiary, Planet Labs Federal Inc., was awarded a seven-figure contract by the Naval Information Warfare Center (NIWC) Pacific for vessel detection and monitoring over key areas of interest throughout the Pacific. The project will integrate both Planet’s daily, global PlanetScope data and high-resolution SkySat data into the Department of Transportation’s S ...

SAN FRANCISCO--(BUSINESS WIRE)--Planet Labs PBC (NYSE:PL), a leading provider of daily data and insights about Earth, today announced that it plans to release its fiscal fourth quarter and full year 2024 financial results for the year that ended January 31, 2024, after market close on Thursday, March 28, 2024. Planet’s management will host a conference call to discuss the financial results and business outlook at 5:00 p.m. ET / 2:00 p.m. PT the same day. Planet invites you to listen to the conference call, ...

SAN FRANCISCO--(BUSINESS WIRE)--Planet Labs PBC (NYSE: PL), a leading provider of daily data and insights about Earth, today announced that their PlanetScope satellite data is now available on Google Cloud Marketplace through the listing: PlanetScope on Google Cloud Marketplace. Through this integration, Planet, a “Google Cloud Ready Sustainability Partner,” aims to bring a new level of collaboration and convenience to users. Leveraging the scalability and reliability of Google Cloud, customers can analy ...