Spire Posts Record Revenue, Loss Reduction in 2Q 2023 Just Before Planned Stock Split
Space-based data, analytics and space services provider Spire Global turned in one of its best fiscal quarter performances in 2Q 2023, reporting its strongest revenue haul and lowest operating loss since going public. In the results posted Thursday afternoon, the company reported a 37% year-over-year increase in quarterly revenue to reach $26.5 million, which was $2 million over its initial forecast.
Though the company added only 32 customers during the quarter compared to 48 in the previous quarter, these new customers contributed $8 million in recurring revenue. Spire also saw increased service adoption by existing customers. The combination of new and existing customer revenue drove growth during the quarter. Spire ends the quarter with 813 ARR solution customers under contract.
A significant reduction in losses boosted Spire’s bottom line in 2Q 2023. Its net loss was $16.3 million this quarter, a 57% year-over-year improvement from net loss of $38.3 million in the same period last year. Adjusted EBITDA loss was $3.0 million, or negative 11% of revenue, for second quarter 2023, a sequential quarter-over-quarter improvement of $3.7 million that exceeded the midpoint of its expectations by $2.9 million.
“These strong results from the first half of 2023 and our continuing drive towards profitability allow us to project a number of notable milestones, including: positive cash from operations in the fourth quarter, positive non-GAAP operating margins in the second quarter of 2024, positive adjusted EBITDA in the first or second quarter of 2024, and positive free cash flow in the second or third quarter of 2024,” Spire CFO Thomas Krywe said in a statement.
Spire executives also said that they will execute a stock split within the next month to regain compliance with its NYSE listing.
Separately, Spire reported that it secured a $6.5 million, 12-month contract renewal to continue participation in NASA’s Commercial Smallsat Data Acquisition (CSDA) Program. The contract represents a $500,000 increase from the previous award of $6 million in June 2022.