Slide 1: BlackSky Q3 2023 Earnings Webcast
BlackSky Proprietary BLACKSKY Q3 2023 EARNINGS WEBCAST November 8, 2023 © BlackSky 2023. All rights reserved. BlackSky Proprietary
Slide 2: Today's Presenters
BlackSky Proprietary Today’s Presenters Brian O’Toole Henry Dubois Chief Executive Officer Chief Financial Officer © BlackSky 2023. All rights reserved. 2 BlackSky Proprietary
Slide 3: Legal Disclaimers
BlackSky Proprietary 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
Slide 4: Global Events Accelerate Need for Space-Based Intelligence
BlackSky Proprietary Global Events Accelerate Need for Space-Based Intelligence © BlackSky 2023. All rights reserved. Illustrative area coverage 4 BlackSky Proprietary
Slide 5: Recent Highlights
BlackSky Proprietary Recent Highlights Q3 record revenue of $21.3 million, a 26% revenue growth over the prior year quarter Continue to see Signed new contracts and renewal agreements valued up to $20 million supporting multiple U.S. and international government agencies strong momentum and 98% incr
Slide 6: International Customer Demand Continues to Grow
BlackSky Proprietary International Customer Demand Continues to Grow Signed a multi-year master service agreement for up to $8 million to support a new International Ministry of Defense Expanded a contract with an existing International defense customer to increase assured access over their regions
Slide 7: Strong Demand from U.S. Government Agencies
BlackSky Proprietary Strong Demand from U.S. Government Agencies Awarded over $9 million in contract expansions with existing U.S. government customers Won a contract with the U.S. Air Force Research Laboratory to provide an automated target recognition service Won a multi-year IDIQ contract with a
Slide 8: BlackSky Achieves Critical Integration Milestone with NRO
BlackSky Proprietary BlackSky Achieves Critical Integration Milestone with NRO Successful integration of BlackSky’s high- frequency imagery services with the NRO’s new data architecture Completed the Initial Operating Capability (IOC) milestone required under the EOCL contract Enables BlackSky to sc
Slide 9: Innovating Advanced Space and AI Technologies for New Mission Applications
BlackSky Proprietary Innovating Advanced Space and AI Technologies for a Range of New Mission Applications AI Enabled Site Moving Target Indicators Broad Area Search Non-Earth Imaging Monitoring © BlackSky 2023. All rights reserved. BlackSky Proprietary
Slide 10: Gen-3 Remains on Track for Launch in 2024
BlackSky Proprietary Gen-3 Remains on Track for Launch in 2024 Gen-3 satellite program remains on track for initial launch in 2024 Receiving critical and long-lead components and moving into assembly and integration of first satellites Scaling satellite manufacturing production line © BlackSky 2023.
Slide 11: Q3 Financial Results
BlackSky Proprietary Q3 FINANCIAL RESULTS © BlackSky 2023. All rights reserved. 11 BlackSky Proprietary
Slide 12: Q3 Revenue
BlackSky Proprietary Q3 Revenue Strong Revenue Growth ($ in millions) 26% $21.3 YoY Growth Record revenue of $21.3 million, up 26% over the prior year period $16.9 11% year-over-year growth in high-margin $15.3 imagery and analytics revenue $13.7 Strong customer demand and growing momentum from new
Slide 13: Q3 YTD Imagery and Analytics Cost of Sales
BlackSky Proprietary Q3 YTD Imagery and 98% Incremental Contribution Margin Improvement Analytics Cost of Sales Over Prior Year (1) ($ in millions) +$15.2 $46.4 98% incremental contribution margin improvement for imagery and analytics(1) $31.2 98% Increased revenue of high-margin imagery and analyti
Slide 14: Q3 Cash Operating Expenses
BlackSky Proprietary Q3 Cash Operating Expenses Responsible Cost Management ($ in millions) Cash operating expenses(1) of $15.4 million, -4% YoY Growth a 4% decrease over the prior year period $16.1 $15.4 Year-over-year decrease primarily due to reductions in general corporate costs that more than o
Slide 15: Q3 Adjusted EBITDA
BlackSky Proprietary Q3 Adjusted EBITDA Strong Improvement in Adjusted EBITDA(1) ($ in millions) (1) Adjusted EBITDA improved 93% over the prior year period Q3'22 Q3'23 $(0.4) Achieved nearly breakeven performance and on track for positive Adjusted EBITDA in Q4 Strong operating leverage and responsi
Slide 16: 2023 Outlook
BlackSky Proprietary 2023 Outlook Annual Revenue ($ in millions) Adjusted EBITDA(1) • Anticipate achieving positive Adjusted EBITDA in Q4 of 2023 60% 3 Yr. CAGR Growth • Increased revenues, high incremental contribution margins and responsible cost management driving EBITDA improvements $84 - $90 Re
Slide 17: Path to Sustainable Profitable Growth
BlackSky Proprietary Path to Sustainable Profitable Growth Focus on global defense and intelligence market paying dividends with an expanding customer base 2023 Key Objective Grow sales pipeline worldwide converting many opportunities into new sizable multi-year contracts Achieve positive Deliver st
Slide 18: BlackSky Proprietary BlackSky Proprietary
BlackSky Proprietary © BlackSky 2023. All rights reserved. 18 BlackSky Proprietary
Slide 19: Appendix
BlackSky Proprietary APPENDIX © BlackSky 2023. All rights reserved. 19 BlackSky Proprietary
Slide 20: Reconciliation of Net Income (Loss) to Adjusted EBITDA
BlackSky Proprietary BLACKSKY TECHNOLOGY INC. RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (unaudited) (in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Net income (loss) $ 675 $ (13,093) $ (50,071) $ (59,367) Interest income (519) (486) (1
Slide 21: Reconciliation of Imagery and Software Analytical Service Costs
BlackSky Proprietary 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 Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Imagery and software
Slide 22: Reconciliation of Operating Expenses to Cash Operating Expenses
BlackSky Proprietary BLACKSKY TECHNOLOGY INC. RECONCILIATION OF OPERATING EXPENSES TO CASH OPERATING EXPENSES (unaudited) (in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Operating expenses $ 29,009 $ 28,553 $ 88,549 $ 85,656 Stock-based compensatio