Blacksky Technology Inc. · NYSE:BKSY
Blacksky Technology — Q1 2023 Earnings Presentation
20 slides from Blacksky Technology's earnings presentation, May 10, 2023
Slide 1: BlackSky Q1 2023 Earnings Webcast
BLACKSKY Q1 2023 EARNINGS WEBCAST May 10, 2023 © BlackSky 2023. All rights reserved. Confidential & Proprietary. 1
Slide 2: Legal Disclaimers
Legal Disclaimers FORWARD-LOOKING STATEMENTS Certain statements in this presentation may contain forward-looking statements within the meaning of the federal securities laws with respect to BlackSky. Words such as “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “futur
Slide 3: Today's Presenters
Today’s Presenters Brian O’Toole Henry Dubois Chief Executive Officer Chief Financial Officer © BlackSky 2023. All rights reserved. Confidential & Proprietary. 3
Slide 4: Recent Highlights
Recent Highlights 114% revenue growth in Q1 from imagery and analytics over the prior year quarter Imagery and 97% incremental contribution margin on revenue growth in imagery, software and analytics analytics revenue Won over a dozen new contracts and renewal agreements primarily in support of inte
Slide 5: Growing Demand Across International Markets
Fire at Limak Port, Iskenderun, Turkey February 8, 2023 | 1:44pm local Growing Demand Across International Markets Won several new contracts in support of various international government agencies, some of which are multi-year, multi million- dollar awards Customers entering into long-term contracts
Slide 6: Continuing to Expand Services to the U.S. Government
Continuing to Expand Services to the U.S. Government Received additional orders exercised under NGA’s EIM program options Won a multi-year contract renewal with the U.S. Air Force and U.S. Space Force to continue R&D activities on new space-based capabilities Awarded a multi-year contract by the NRO
Slide 7: Delivering Unique Solutions to Commercial Customers
Delivering Unique Solutions to Commercial Customers Signed contract with a large multinational commercial customer Providing BlackSky’s monitoring services in support of advancing their supply chain intelligence capabilities Converted a successful pilot program into a six-figure annual subscription
Slide 8: Alleged Airship on Runway at Veiled Military Base in China
Korla East Test Site, China November 4, 2022 | 9:00am local Alleged Airship on Runway at Veiled Military Base in China 8
Slide 9: On-Demand Imagery During Mission-Critical Times
On-Demand Imagery During Mission-Critical Times © BlackSky 2023. All rights reserved. 9
Slide 10: Deployed New High-Resolution Satellites
Deployed New High- Resolution Satellites On March 24th, BlackSky successfully deployed two new Gen-2 satellites into orbit Satellites entered revenue-generating operations within 18 hours of launch Industry-leading ability to rapidly deploy and immediately deliver value to our customers New satellit
Slide 11: Q1 Financial Results
Q1 FINANCIAL RESULTS © BlackSky 2023. All rights reserved. Confidential & Proprietary. 11
Slide 12: Q1 Revenue
Q1 Revenue Strong Revenue Growth ($ in millions) Revenue of $18.4 million, up 32% over 32% $18.4 YoY Growth the prior year period $13.9 114% year-over-year growth in high- margin imagery and analytics revenue Imagery and analytics revenue mix grows to 86% of total revenue vs. 53% in Q1’22 Strong cus
Slide 13: Q1 Imagery and Analytics Cost of Sales
Q1 Imagery and Analytics 97% Incremental Contribution Margin Improvement Cost of Sales Over Prior Year (1) ($ in millions) +$8.4 $15.8 97% incremental contribution margin improvement for imagery and analytics(1) $7.4 97% Increased revenue of high-margin imagery and analytics drove improved performan
Slide 14: Q1 Adjusted EBITDA
Q1 Adjusted EBITDA Strong Improvement in Adjusted EBITDA(1) ($ in millions) Adjusted EBITDA(1) improved 57% over the Q1'22 Q1'23 prior year period Growth in high-margin imagery and analytics revenue drove significant improvement $(4.1) Strong operating leverage enabled through a predominantly fixed
Slide 15: 2023 Outlook
2023 Outlook Annual Revenue Revenue ($ in millions) • Expect full year 2023 revenue to be between $90M - $96M 45% 4 Yr. CAGR Growth • 42% year-over-year growth, at the mid-point of the range $90 - $96 Adjusted EBITDA(1) • Anticipate achieving positive Adjusted EBITDA in Q4 of 2023 $93 $65 • High inc
Slide 16: Path to Sustainable Profitable Growth
Path to Sustainable Profitable Growth Continuing to drive long-term, high-visibility revenue 2023 Key Objective growth by winning new multi-year subscription contracts Expanding our sales pipeline and customer base through an aggressive go-to-market strategy Achieve positive Delivering strong operat
Slide 17: © BlackSky 2023. All rights reserved. Confidential & Proprietary.
© BlackSky 2023. All rights reserved. Confidential & Proprietary. 17
Slide 18: Appendix
APPENDIX © BlackSky 2023. All rights reserved. Confidential & Proprietary. 18
Slide 19: Reconciliation of Net Loss to Adjusted EBITDA
BLACKSKY TECHNOLOGY INC. RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (unaudited) (in thousands) Three Months Ended March 31, 2023 2022 Net loss $ (17,315) $ (19,992) Interest income (435) - Interest expense 1,853 1,255 Income tax 113 - Depreciation and amortization 9,655 7,391 Stock-based compensa
Slide 20: Reconciliation of Imagery and Software Analytical Services Cost of Sales
BLACKSKY TECHNOLOGY INC. RECONCILIATION OF IMAGERY AND SOFTWARE ANALYTICAL SERVICES COST OF SALES TO ADJUSTED IMAGERY AND SOFTWARE ANALYTICAL SERVICES COST OF SALES (unaudited) (in thousands) Three Months Ended March 31, 2023 2022 Imagery and software analytical services cost of sales, $ 3,699 $ 3,5