Blacksky Technology Inc. ((BKSY)) has held its Q4 earnings call. Read on for the main highlights of the call.
BlackSky Technology Inc. recently held its earnings call, reflecting a positive sentiment overall. The company celebrated significant achievements, including the successful launch of the Gen-3 satellite, securing substantial contracts, and achieving positive adjusted EBITDA for the first time. Despite facing challenges with the LeoStella acquisition and a slower ramp of the Luno contract, the outlook for 2025 remains strong, with expectations of revenue growth and market expansion.
Successful Launch of Gen-3 Satellite
The highlight of BlackSky’s achievements was the successful launch of its first Gen-3 satellite. The satellite began initial imaging operations within just five days, surpassing customer expectations with its image quality. This milestone marks a significant advancement in BlackSky’s technological capabilities and positions the company as a leader in satellite imaging.
Major Contract Wins
BlackSky secured impressive contract wins, including a seven-year deal valued at over $100 million with an existing international customer. Additionally, the company won $20 million in contracts with India, enhancing its earth observation capabilities. These contracts not only boost BlackSky’s revenue but also expand its global footprint.
Positive Adjusted EBITDA
For the first time, BlackSky achieved a full year of positive adjusted EBITDA in 2024, totaling $11.6 million. This is a significant turnaround from a $1 million loss in 2023, highlighting the company’s effective cost management and operational improvements.
Revenue Growth Forecast
Looking ahead, BlackSky forecasts a 30% revenue growth for 2025, supported by a robust backlog and new contract wins. This optimistic outlook is driven by the company’s strategic initiatives and expanding market presence.
Expansion Into New Markets
BlackSky successfully entered the Indian market, securing significant contracts that mark its initial presence in this rapidly growing region. This expansion is a testament to BlackSky’s strategic efforts to diversify its market reach and capitalize on emerging opportunities.
Impact of LeoStella Acquisition on Expenses
The acquisition of LeoStella led to a $1.8 million increase in operating expenses due to the reclassification of previously capitalized costs. While this impacted short-term financials, it is expected to enhance long-term operational capabilities.
Slower Ramp of Luno Contract
The transition of the NGA EIM contract into Luno experienced delays, affecting imagery revenue growth. Despite this challenge, BlackSky remains committed to optimizing contract execution and improving revenue streams.
Forward-Looking Guidance
During the earnings call, BlackSky provided guidance for 2025, forecasting a 30% year-over-year revenue growth with an expected revenue range of $125 million to $142 million. This growth is bolstered by a strong backlog, now approximately $390 million, following recent contract wins. The company anticipates full-year adjusted EBITDA to be between $14 million and $22 million, with capital expenditures projected between $60 million to $70 million, driven by the ramp-up of Gen-3 satellite production and launches.
In summary, BlackSky Technology Inc.’s earnings call conveyed a positive outlook, underscored by significant achievements and strategic growth initiatives. The successful launch of the Gen-3 satellite, major contract wins, and positive adjusted EBITDA highlight the company’s strong performance. Despite challenges, BlackSky’s forward-looking guidance suggests continued growth and market expansion in 2025.