Spire Hits Positive Cash Flow in Q4, Grows Revenue 32% Year-Over-Year

Rendering of Spire satellites. Photo: Spire

Spire Global had a strong 2023 full year financial performance, achieving positive cash flow from operations in the fourth quarter, and full year revenue growth of 32% compared to 2022. Spire reported its full year 2023 results on March 6. 

Spire reported $105.7 million in revenue in 2023, in line with guidance. The company has seen 10 consecutive quarters of record revenue.

In the fourth quarter, Spire reached the milestone of positive cash flow from operations of $4.1 million, a sequential quarter-over-quarter improvement of $9.2 million. Spire also achieved positive adjusted EBITDA of $2 million in Q4. 

CFO Leo Basola put the number in context during a call with investors: “In the quarters prior to taking out our current loan, Spire was burning over $16 million of operating cash flow each quarter. Last quarter, Spire generated over $4 million of positive operating cash flow, and we expect to continue generating positive operating cash flow, going forward.” 

Basola addressed some of the things Spire plans to invest in when it reaches free cash flow. He said the company’s offering is more data provision, and the company wants to invest in analytics and predictive analytics. Spire also wants to expand product offerings, and increase spending on marketing and sales.  

Net loss for the full year was about $64 million, compared to $89 million in 2022. 

CEO Peter Platzer said the company is on track to meet positive free cash flow by summer 2024. 

“Over the last two years, we’ve not just met our profitability targets, we more often than not exceeded them, even amid the rollercoaster of economic conditions during this period. This speaks volumes about our strategic focus and operational excellence,” Platzer told investors on Wednesday. “Despite the external pressures, we have not only stayed the course, but have also marked significant milestones towards our goal of sustained profitability.” 

Platzer emphasized that Spire’s data is used for climate purposes and global security, two areas that are growing even more important. 

“From floods to droughts to wildfires and devastating storms, the extent of the daily headlines reminds us of the weather volatility that is becoming ever more common,” Platzer said. “There has been ongoing conflict in Europe, the Middle East, and tensions in Asia. Shipping has been interrupted in the Red Sea. Funding of certain geopolitical activities and sanctions against other activities has resulted in a highly-dynamic environment, an environment in which truth and transparency have never been more important, an environment that remains supportive and, some might say, in need of Spire’s solutions.”

While Spire has seen significant growth year-over-year, at 32% in 2023, and an 85% increase in 2022 over 2021 levels, it is falling short of the projections the company gave investors when it announced plans to go public in 2021. At that time, Spire projected the company would reach $305 million in annual recurring revenue in 2023. 

Spire provided guidance for 2024, expecting full-year revenue between $138 million and $148 million — between 31% to 40% year-over-year growth. Non-GAAP operating loss or income is expected to be between a loss of $5.5 million and income of $2.5 million. 

The company’s shares are now trading around $11, up 50% in the past month. Spire executed a reverse stock split during the third quarter to raise its share price, which was less than $1.