Blacksky Technology Inc. · NYSE:BKSY
Blacksky Technology — SPAC Merger (February 2021)
39 slides from Blacksky Technology's SPAC merger presentation, Feb 18, 2021
Slide 1: Defining the Future of Real-time Geospatial Intelligence
Defining the Future of Real-time Geospatial Intelligence February 2021 Exhibit 99.2
Slide 2: Confidentiality and Disclosures
Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. Confidentiality and Disclosures This presentation has been prepared for use by Osprey Technology Acquisition Corp. (“Osprey”) and BlackSky Holdings, Inc. (“BlackSky”) in connection with their proposed business combination. T
Slide 3: Use of Data
Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. Use of Data The data contained herein is derived from various internal and external sources. All of the market data in the presentation involves a number of assumptions and limitations, and there can be no guarantee as to th
Slide 4: Today's Presenters and Transaction Overview
Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. Today’s Presenters and Transaction Overview Transaction Highlights Osprey Technology Acquisition Corp. (NYSE: SFTW) is a publicly listed special purpose acquisition company with $318m cash in trust Raised $180m of PIPE commi
Slide 5: Osprey Technology's Investment Thesis for BlackSky
Osprey Technology’s Investment Thesis for BlackSky Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. Enormous New Commercial Market Unlocked by Low-cost Data Capture and On-demand Delivery of Analytics Osprey Merger Expected to Accelerate Growth in Satellite Constellation,
Slide 6: > aC 0) Oe ¢ ae Ms
> aC 0) 4 Oe ¢ ae Ms
Slide 7: Monitoring the Global Economy in Real-time
Monitoring the Global Economy in Real-time Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. Reveal Change That Matters Most to You Observe the World in Real-time Detect and Monitor Global Activity Understand and Predict Change
Slide 8: A First Mover in Real-time Earth Observation
Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. A First Mover in Real-time Earth Observation ~$40bn Total Addressable Market 23 Smallsats on Orbit by 2023 ~90% / ~90% of 2021E / 2022E Contracted and Follow-on 75%+ / 45%+ Gross / Adj. EBITDA Margins(1) at Scale $1.7bn Pipe
Slide 9: Deep, Experienced BlackSky Management Team
Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. Deep, Experienced BlackSky Management Team Patrick O’Neil Chief Data Scientist Brian O’Toole CEO Brian Daum, CPA CFO Peter Wegner CTO Nick Merski COO Scott Herman Chief Solutions Architect Katie Keane VP, Legal Founder & CEO
Slide 10: BlackSky's Disruptive Economic Model
Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. BlackSky’s Disruptive Economic Model Lowest Cost Imagery Capture… (Estimated monthly cost for daily imagery collection for 25km2 site, $ in thousands) ü Higher Capital Efficiency …Drives Capital Efficiency and Operating Leve
Slide 11: BlackSky's Fully Operational Software Technology Stack
Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. BlackSky’s Fully Operational Software Technology Stack Customer Applications Product Application Layer Developer APIs AI / ML Modules Real-time Data Management Real-time Earth Observation Sensor Network 3rd Party Sensors Bla
Slide 12: AI and Machine Learning Capabilities Deliver Valuable Insights
Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. BlackSky’s Artificial Intelligence and Machine Learning Capabilities Deliver Valuable Insights Event Detection Natural Language Processing Event Clustering and Summarization Anomaly Detection and Trending Collection Recommen
Slide 13: Monitoring the Earth in Real-time
Monitoring the Earth in Real-time (Multiple Spectrum) Actionable Intelligence Monitor Global Activity Detect and Track Change Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. CONTINUOUSLY GROWING PROPRIETARY INTELLIGENCE DATA LAKE BlackSky’s Proprietary Data is a Competiti
Slide 14: BlackSky Serves a Large and Expanding Market for Space Data and Analytics
Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. BlackSky Serves a Large and Expanding Market for Space Data and Analytics Space-based Communications: ~$150bn Launch: ~$7bn Satellites: ~$3bn Enabling Infrastructure (2020) Space Data and Analytics 2025 BlackSky TAM: ~$40bn
Slide 15: BlackSky Has Built Several Valuable Competitive Advantages
Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. BlackSky Has Built Several Valuable Competitive Advantages High-revisit Smallsat Constellation Proven smallsat design Revenue generating assets on orbit Disruptive economic model Fully operational real-time space architectur
Slide 16: Customer Validated and Merger with Osprey Fully Funds the Growth Plan
BlackSky is Customer Validated and the Merger with Osprey Fully Funds the Growth Plan Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. Expand sensor network Meet robust Defense and Intelligence customer demand Accelerate commercial channel / go-to-market 2020A 2025E 2025+
Slide 17: Valuable Relationships with the Most Demanding Customers
Valuable Relationships with the Most Demanding Customers Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. IARPA Intelligence Advanced Research Projects Activity invests in research programs on behalf of the U.S. Intelligence Community National Geospatial Intelligence Agenc
Slide 18: Illustrative Commercial Market Applications for Real-time Geospatial Intelligence
Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. Illustrative Commercial Market Applications for Real-time Geospatial Intelligence Pipeline Monitoring: Regulatory requirement for detecting leaks, hazards, intrusion and theft Inventory Monitoring: Business and competitive i
Slide 19: BlackSky's Value Creation Milestones
Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. BlackSky’s Value Creation Milestones Execute on backlog and meet substantial Defense and Intelligence customer demand Expand in U.S. and International Government Launch commercial vertical pilots Drive channel development an
Slide 20: A First-mover Advantage in Real-time Earth Observation
Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. Defining the Future of Real-time Geospatial Intelligence A First-mover Advantage in Real-time Earth Observation A First Mover Large and Expanding Market Opportunity ~$40bn TAM Proprietary, Integrated Smallsat Sensor and Soft
Slide 21: Financial Overview
BLACK|SKY Financial Overview TL ler WK . 7a
Slide 22: BlackSky's Attractive Financial Profile
(1)Adj. EBITDA Margin is a non-GAAP measure. See reconciliation of historic measure in Appendix. Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. BlackSky’s Attractive Financial Profile High Growth, Scalable and Capital Efficient 75%+ Gross Margins and 45%+ Adj. EBITDA Mar
Slide 23: BlackSky's Business Model
Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. Engineering & Integration Advanced satellite / payload development programs Operational / engineering solutions for Government customers Fixed price contracts ~10% 3% Data, Software & Analytics Proprietary AI / ML algorithms
Slide 24: Revenue Growth and Operating Leverage
Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. Revenue Growth and Operating Leverage ($29) ($39) Revenue Gross Profit Adj. EBITDA(2) 21% (4%) 30% 63% 73% 80% 78% 31% 45% 45% ($ in millions) 50% 109% 149% 96% 41% 73% ($1) ($30) 1% Note: Percentages above revenue, gross pr
Slide 25: Pipeline of $1.7bn Has Increased Over the Last 12 Months
Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. BlackSky’s pipeline of $1.7bn has increased by ~$1.1bn over the last 12 months Revenue ($ in millions) Near-term Revenue Growth Largely Driven by Existing Customers (1) Our audited consolidated financial statements for our y
Slide 26: BlackSky Financial Forecast
Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. BlackSky Financial Forecast Note: Financials represent BlackSky only and exclude discontinued operations for the Launch Division which was sold in June 2020. 2020A financials are unaudited. Other Operating Expense includes e
Slide 27: Transaction Overview
BLACK|SKY Transaction Overview TL ler WK . 7a
Slide 28: Detailed Transaction Overview
Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. Detailed Transaction Overview ($ in millions, except share price) Pro Forma Capitalization Pro Forma Ownership Split(3) Sources & Uses Amount PF Shares Outstanding(1) (m) 147.7 Share Price $10.00 PF Equity Value $1,477 (-) A
Slide 29: Defining the Peer Group for BlackSky
Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. Mature / low growth Capital intensive Limited-to-no data / software / analytics New Space Technologies Next Generation Data / Analytics Legacy Space û û û Defining the Peer Group for BlackSky ü First movers in new categories
Slide 30: Selected Operational Benchmarking: New Space Technologies Peers
Selected Operational Benchmarking New Space Technologies Peers Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. 21% Revenue Gross profit and % margin $0 30% NM 18% NM NM NM NM ($ in millions) 2019A 2020A 2021E NM $0 Selected Operational Benchmarking New Space Technologies
Slide 31: Selected Peer Operational Benchmarking: Next Generation Data / Analytics
Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. Average: 77% Average: 30% 2025E ’20-’25E CY’20A-CY’22E Revenue CAGR(1) CY’22E Gross margin(1) Median: 25% Median: 76% 2022E ’20-’22E Selected Peer Operational Benchmarking Next Generation Data / Analytics Peers Source: Compa
Slide 32: Selected Peer Valuation Benchmarking
Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. EV / CY’22E Revenue(1,2) NM Average: 47.3x Average: 23.8x Next Generation Data / Analytics New Space Technologies Average: 16.9x Average: 17.3x EV / CY’23E Revenue(1,2) Median: 16.7x Median: 13.2x Median: 47.3x Median: 11.2x
Slide 33: Transaction Priced at a Discount to Peer Multiples
Applies a range of multiples to BlackSky’s 2022E and 2023E management forecasted Revenue to arrive at an implied enterprise value The applied range of multiples is centered around the medians (16.7x 2022E Revenue and 13.2x 2023E Revenue) of BlackSky’s Next Generation Data / Analytics peer group, wit
Slide 34: A First-mover Advantage in Real-time Earth Observation
Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. Defining the Future of Real-time Geospatial Intelligence A First-mover Advantage in Real-time Earth Observation A First Mover Large and Expanding Market Opportunity ~$40bn TAM Proprietary, Integrated Smallsat Sensor and Soft
Slide 35: Appendix
BLACK|SKY Appendix TL ler WK . 7a
Slide 36: Reconciliation of Non-GAAP financials
Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. Reconciliation of Non-GAAP financials Note: Financials represent BlackSky only and exclude discontinued operations for the Launch Division which was sold in June 2020. (1)Our audited consolidated financial statements for our
Slide 37: Customers Don't Want the Data, They Want the Answer
Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. Customers Don’t Want the Data, They Want the Answer ü+ ü+ ü+ ü+ ü+ Data processing: increasingly, customers want answers and solutions, not just data Sensor fusion: ability to feed multiple sources of intelligence into singl
Slide 38: Vertically Integrated Manufacturing and Design Model
Expertise in satellite design, assembly, and supply chain management Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. U.S.-based joint venture with Thales Alenia Space, the largest European satellite manufacturer Specialized in smallsat design and assembly(1) 40 satellite
Slide 39: Purpose-built Global Space Architecture
Proprietary Smallsat Constellation Scalable Cloud-based Processing Autonomous Global Mission Operations Supported by Fully Operational Proprietary Constellation with Scalable Cloud-based Processing Copyright © BlackSky 2021. All rights reserved. Confidential & Proprietary. Global Ground Station Netw