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Planet Delivers Record Revenue in Q2, But Cuts Full-Year Guidance

By Rachel Jewett | September 8, 2023

      A Phytoplankton swirl in the Sea of Marmara in June 2021. Photo: Planet

      Planet Labs delivered record quarterly revenue of $53.8 million in the second quarter of its 2024 fiscal year, beating guidance on gross margin and Adjusted EBITDA, but cut its full-year revenue outlook. The Sept. 7 financial update comes after the company laid off 117 employees at the end of the first quarter, saying it needed to hone its focus on high-value opportunities. 

      CEO Will Marshall told investors on a Thursday call that the company spent the second quarter “sharpening focus, increased operational efficiency, and improving execution.” 

      “In Q2, we undertook significant efforts to focus and optimize resources in support of sustainable, long-term growth and profitability. On August 1, we announced a headcount reduction that led to an approximately 10% reduction in force. This was a difficult decision, but one that ultimately better positions Planet to the opportunity ahead of us,” Marshall said. 

      Planet is aligning its teams and investments behind what it sees as the core opportunities in defense and intelligence, civil government, and agriculture solutions, he said. 

      In the second quarter, Planet’s non-GAAP gross margin was 52%, above the high end of  its expected range. EBITDA loss for the quarter was $14.5 million, better than expected. Planet ended the second quarter with 944 unique customers. Revenue of $53.8 million was up 11% year-over-year. 

      However, Planet cut its full-year guidance for the second time in a row. Planet expects revenue to be in the range of approximately $216 million to $223 million, representing approximately 15% year-over-year growth at the midpoint. 

      Previous guidance was between $225 million to $235 million, and original guidance was between $248 million to $268 million.  

      Planet saw delays in the second quarter with large government opportunities, which impacted guidance, CFO Ashley Fieglein Johnson told investors. She said the low range of guidance assumes that current larger contracts that are unsigned will contribute minimal revenue this year. 

      “It’s been a challenging year in terms of the pacing of new business, which remains in contrast with the strong demand signals we continue to get from the market in the form of robust pipeline generation and high gross retention and expansion opportunities with our customers,” Fieglein Johnson said.