BlackSky’s 45% Revenue Growth in 2023 Fueled by International Customer Gains

Rendering of a BlackSky satellite. Photo: BlackSky

BlackSky Technology closed out the 2023 fiscal year with record high revenues, new international customers, and a growing demand for the future. The company reported 2023 financials on Wednesday.

BlackSky’s total revenue for 2023 was $94.5 million, up $29.1 million, or 45%, from 2022. The company saw a 38% year-over-year growth increase in high-margin imagery and analytics revenue. BlackSky said the revenue growth was driven by new contracts, increased orders, and new customer wins. 

CEO Brian O’Toole also reported BlackSky increased its international customer base by 50%. Throughout the past year the company has put an emphasis on expanding its global customers. The revenue contribution from international business grew from 17% in 2022 to now over 37% in 2023.

“We’re continuing to see global demand for BlackSky’s products and services remain very strong around the world, especially in markets where governments are increasing their investments and accelerating programs to acquire space-based intelligence capabilities,” CEO O’Toole said. “This increased demand is driven by geopolitical, economic and national security concerns that governments around the world are facing now more than ever.”

The company won over $265 million in new multi-year contracts and renewal agreements in 2023, ending the year with $262 million in backlog. 

BlackSky highlighted  the $50 million deal with the Indonesian Ministry of Defense to supply subscription imagery and AI analytics, surveillance and to establish sovereign space capabilities. In this contract the Indonesian MoD will have access to BlackSky’s Gen 3 satellite constellation advanced ground station capabilities and flight operations support over the next few years. 

This contract utilized BlackSky’s software-first strategy, in which customers can have immediate access to BlackSky’s products to rapidly expand their space-based intelligence capabilities. 

BlackSky nearly broke even on adjusted EBITDA performance in 2023. The full year 2023 adjusted EBITDA loss was $1.1 million compared to a loss of $29.5 million in 2022. The company credited the improvement to the combination of strong revenue growth of imagery and analytic services and a cost management strategy. Adjusted EBITDA was positive in the fourth quarter at $9.3 million. 

The company narrowed its net loss in 2023 compared to 2022, posting a net loss in 2023 of $53.9 million, compared to a net loss of $74.2 million in 2022. 

BlackSky’s $94.5 million in revenue out-performed the adjusted guidance the company gave during the third quarter, of full year revenue between $84 million and $90 million. It was actually in line with BlackSky’s original guidance given a year ago, which expected revenue between $90 million and $96 million. 

However, BlackSky is not reaching the revenue targets the company set out when it announced plans to go public in 2021. In a SPAC presentation from 2021, BlackSky projected $223 million in revenue by 2023.

BlackSky expects the full year revenue for 2024 to be between $102 million to $118 million. Also in 2024, the company plans for its first Gen-3 satellites to launch with Rocket Lab.