Spire Global Posts Record Revenue in Q3, Continuing to Add Customers in 2022
Artist rendition of Spire’s Lemur-2 satellite. Photo: Spire
Spire Global posted record revenue of $20.4 million in the third quarter of 2022, a gain of 114% over the same time period last year. This was in line with the high end of previous guidance, and Spire said growth was driven by new customers, and increased adoption from existing customers.
Revenue was also up quarter-on-quarter, after the company posted $19.4 million in revenue in the second quarter.
Net loss was $21.8 million, compared to $56 million in the same time period last year.
As of September 30, annual recurring revenue (ARR) was $98.1 million. Spire added 25 net new ARR solution customers during the quarter, ending Q3 with 717 ARR solution customers, above the midpoint of the company’s guidance.
“Being on the cusp of achieving $100 million of ARR just five years since we had our first $1 million of ARR puts us among the fastest growing subscription businesses to reach such a level, and speaks to the exceptional value that our data and solutions bring to our customers,” Spire CEO Peter Platzer said on an investor call on Nov. 9.
CFO Thomas Krywe commented that growth in ARR was driven by expanding business with existing customers like NOAA, and new customers as well.
“We really had a minimal amount of churn in the quarter. It was a fantastic quarter for us across the board, not just with the expansion with the customers, but the minimal churn, which again shows that stickiness that we have with our solution. It shows that once customers come with us, we clearly are solving use cases,” Krywe said.
By the end of the year, Spire expects to have between 735 to 745 annual recurring revenue solutions customers. Full year revenue guidance remained between $80 to $82 million, after Spire lowered guidance last quarter from original 2022 guidance of between $85 million to $90 million.
Spire’s stock (SPIR) is trading at less than $2. Share price increased slightly after the quarterly results, from around $1.24 to around $1.45.