DigitalGlobe Reports Revenue Spike in First Quarter 2017

DigitalGlobe headquarters. Photo: DigitalGlobe.

DigitalGlobe reported a 19.6 percent increase in revenue to $209.7 million for the first quarter of 2017. According to the company, its acquisition of The Radiant Group coupled with strong performance in both United States government and diversified commercial services contributed to the spike in revenue.

U.S. government revenue grew 25.4 percent to $28 million, while diversified commercial revenue grew 9.7 percent to $6.3 million due to increased demand for capacity on the WorldView 4 satellite.

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) was $95.5 million. Net cash flows from operations decreased 35 percent to $38.7 million on increased costs for WorldView 4, merger costs and higher incentive-based compensation payments due to better than expected 2016 performance.

One of the major highlights of the period was DigitalGlobe’s merger with MacDonald, Dettwiler and Associates (MDA), which the company expects to close in the second half of 2017.

DigitalGlobe’s 2017 revenue and adjusted EBITDA outlook remains unchanged, with revenue in a range of $840 million to $85 million and adjusted EBITDA in a range of $380 million to $395 million.