Slide 1: BlackSky Q2 2023 Earnings Webcast
BLACKSKY Q2 2023 EARNINGS WEBCAST August 9, 2023 © BlackSky 2023. All rights reserved. 1
Slide 2: Today's Presenters
Today’s Presenters Brian O’Toole Henry Dubois Chief Executive Officer Chief Financial Officer © BlackSky 2023. All rights reserved. 2
Slide 3: 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 4: Wagner CEO Yevgeny Prigozhin's Planes Detected in Belarus
Wagner CEO Yevgeny Prigozhin’s Planes Detected in Belarus © Wikimedia Commons 2x TDR-3 (or similar) Mobile Smokescreen vehicles generating smoke IVO transport aircraft 5x IL-76 Arrived on 25 June and departed less than 24 hours later. The aircraft are not typically seen at this location and are like
Slide 5: Rapid Construction of China's Second Major Military Naval Station
Rapid Construction of China’s Second Major Military Naval Station Ream, Cambodia Ream, Cambodia June 18, 2022 | 7:29 local July 13, 2023 | 12:03 local © BlackSky 2023. All rights reserved. 5
Slide 6: Recent Highlights
Recent Highlights 51% revenue growth in Q2 from imagery and analytic services over the prior year quarter 97% incremental contribution margin on YTD BlackSky continues revenue growth in imagery, software and analytics Won over $35 million in new contracts and renewal to win large contracts agreement
Slide 7: International Customer Demand Accelerates
International Customer Demand Accelerates Awarded a $30 million multi-year renewal agreement with a defense sector customer Won a two-year, multi-million-dollar contract to build ground station infrastructure for a Ministry of Defense Won a two-year, multi-million-dollar renewal agreement for advanc
Slide 8: Demand from U.S. Government Agencies Continues to Grow
Demand from U.S. Government Agencies Continues to Grow Won an annual subscription contract with a Department of Defense customer to provide on-demand imagery and other mission solutions Awarded two new contracts with the NRO to explore short-wave infrared (SWIR) imaging capabilities and enhanced lat
Slide 9: Expanding Solutions to Commercial Industries
Port of Cartagena, Spain Expanding Solutions to Commercial Industries Competitively selected by SynMax to monitor coal inventory at power plants Partnered with Spire Global to create an AI-driven maritime custody service to detect and track vessels worldwide © BlackSky 2023. All rights reserved. 9
Slide 10: Securing Launch Capacity for the Future
Mahia, New Zealand April 2, 2022 | Securing Launch Capacity for the Future Signed new agreement to secure a block of five dedicated launches Locks in launch capacity to replace, replenish, and expand on-orbit capacity Agreement includes deployment of our initial Gen-3 satellites in 2024 Provides agi
Slide 11: Q2 Financial Results
Q2 FINANCIAL RESULTS © BlackSky 2023. All rights reserved. 11
Slide 12: Q2 Revenue
Q2 Revenue Strong Revenue Growth ($ in millions) 28% $19.3 YoY Growth Revenue of $19.3 million, up 28% over the prior year period $15.1 $15.3 51% year-over-year growth in high- 51% YoY Growth margin imagery and analytics revenue $10.2 Strong customer demand and growing momentum from new and existing
Slide 13: H1 Imagery and Analytics Cost of Sales
H1 Imagery and Analytics 97% Incremental Contribution Margin Improvement Cost of Sales Over Prior Year (1) ($ in millions) +$13.6 $31.1 97% incremental contribution margin improvement for imagery and analytics(1) $17.5 97% Increased revenue of high-margin imagery and analytics drove improved perform
Slide 14: Responsible Cost Management
Responsible Cost Management Revenue Growth Compared to Cash Operating Expense Growth (Q2 YoY Growth %) 51% YoY Growth Cash operating expenses(1) of $16.8 million, up 10% over the prior year period 28% Year-over-year increase primarily due to YoY Growth expansion of the sales team and AI capabilities
Slide 15: Q2 Adjusted EBITDA
Q2 Adjusted EBITDA Strong Improvement in Adjusted EBITDA(1) ($ in millions) Adjusted EBITDA(1) improved 35% over the Q2'22 Q2'23 prior year period Included a $2.5 million expense in professional and engineering service costs Strong operating leverage enabled through low $(5.8) fixed-cost business mo
Slide 16: 2023 Outlook
2023 Outlook Annual Revenue Adjusted EBITDA(1) ($ in millions) • Anticipate achieving positive Adjusted EBITDA in Q4 of 2023 44% 4 Yr. CAGR Growth • Increased revenues, high incremental contribution margins and $84 - $96 responsible cost management driving EBITDA improvements $90 Revenue $65 • Expec
Slide 17: Path to Sustainable Profitable Growth
Path to Sustainable Profitable Growth Grow pipeline of sales opportunities worldwide leading to sizable multi-year contracts 2023 Key Objective Drive imagery and analytic revenue growth with new and existing defense and intelligence customers Achieve positive Deliver strong operating leverage throug
Slide 18: © BlackSky 2023. All rights reserved.
© BlackSky 2023. All rights reserved. 18
Slide 19: Appendix
APPENDIX © BlackSky 2023. All rights reserved. 19
Slide 20: Reconciliation of Net Loss to Adjusted EBITDA
BLACKSKY TECHNOLOGY INC. RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (unaudited) (in thousands) Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Net loss $ (33,431) $ (26,282) $ (50,746) $ (46,274) Interest income (648) (178) (1,083) (178) Interest expense 2,242 1,275 4,09
Slide 21: Reconciliation of Imagery and Software Analytical Service Costs
BLACKSKY TECHNOLOGY INC. RECONCILIATION OF IMAGERY AND SOFTWARE ANALYTICAL SERVICE COSTS TO ADJUSTED IMAGERY AND SOFTWARE ANALYTICAL SERVICE COSTS (unaudited) (in thousands) Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Imagery and software analytical service costs, $ 3,4
Slide 22: Reconciliation of Operating Expenses to Cash Operating Expenses
BLACKSKY TECHNOLOGY INC. RECONCILIATION OF OPERATING EXPENSES TO CASH OPERATING EXPENSES (unaudited) (in thousands) Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Operating expenses $ 30,720 $ 27,026 $ 59,540 $ 57,103 Stock-based compensation for selling, general and admin