BlackSky Posts Double-Digit Revenue Increase in Q2
BlackSky Technology reported $19.3 million in revenue in the second quarter of 2023, up 28% from the prior year period, citing increased demand for satellite imagery and monitoring. The company reported financial results on Wednesday, along with a deal for five Rocket Lab launches.
The launches with Rocket Lab are expected to begin in 2024 from New Zealand. These launches will include BlackSky’s initial launch of its third generation satellites. BlackSky has now contracted more Electron launches than any other commercial customer — the company has launched with Rocket Lab six times since 2019.
For the second quarter, BlackSky reported imagery and software analytical services revenue of $15.3 million, up 51% over the prior year period, driven by increased demand from new and existing U.S. and international government customers. Professional and engineering services revenue was $4 million in the second quarter of 2023, compared to $4.9 million in the prior year period.
The company said cost of sales related to imagery & software analytical services improved to 23% from 34% in the prior year quarter. However, it posted a net loss of $33.4 million for the quarter, compared to a net loss of $26.3 million in the second quarter of 2022.
CEO Brian O’Toole told investors on a Wednesday call that BlackSky won more than $35 million in new contracts and renewal agreements during the quarter, primarily supporting international and US government agencies. BlackSky has more than $200 million in year-to-date bookings, which O’Toole said demonstrates strong customer demand.
“The conflict in Ukraine and rising tensions around the world, including the Middle East and East Asia, have increased demand from various countries seeking to secure access to our dynamic monitoring and geospatial intelligence capabilities,” O’Toole told investors. “More and more international governments are looking to invest in space-based capabilities in support of national security and economic growth initiatives. Our focus on supporting these countries is significantly contributing to our growing book of business and includes multi-year agreements for assured capacity, which is a key driver towards strong, long-term revenue growth.”
He said the company is on track to achieve positive adjusted EBITDA in the fourth quarter, one of BlackSky’s major business objectives for this year.
However, BlackSky changed the lower end of its full year revenue guidance, shifting the window from the previous outlook of between $90 million and $96 million, widening the range to between $84 million and $96 million. The company said it is working with several major customers on a number of “sizable contracts,” but the timing is variable.