BlackSky Technology Reports Positive Adjusted EBITDA for Fourth Consecutive Quarter
TL;DR
BlackSky Technology, Inc. reported positive adjusted EBITDA growth driven by revenue increase and strong operating leverage, outperforming estimates.
BlackSky Technology, Inc. continues progress on Gen 3 satellites for high-resolution imaging and AI services, expecting launches in 1Q25.
BlackSky Technology, Inc. expands its offerings and revenue capacity with new contracts, advancing technology for better Earth monitoring and imaging services.
Stonegate Capital Partners updates coverage on BlackSky Technology, Inc., highlighting revenue growth, new contracts, technological advances, and positive EBITDA growth.
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BlackSky Technology, Inc. (NYSE: BKSY) has reported its third-quarter 2024 financial results, marking the fourth consecutive quarter of positive adjusted EBITDA. The company posted revenue of $22.5 million, adjusted EBITDA of $0.7 million, and earnings per share of ($0.66). While these figures fell short of analyst expectations, they represent significant year-over-year improvements in key areas.
The company's Imagery and Software Analytics segment showed strong performance, growing 13.2% year-over-year to reach $17.3 million. Consolidated gross margins also improved, increasing from 68.2% in Q3 2023 to 70.5% in the current quarter. This growth in revenue and margins underscores BlackSky's strengthening market position in the geospatial intelligence sector.
BlackSky's contract wins during the quarter are particularly noteworthy. The company secured a $290 million contract with the National Geospatial-Intelligence Agency for the Luno A program and a $476 million contract with NASA to support the Commercial Smallsat Data Acquisition Program. These substantial contracts, along with others from new and existing clients, significantly bolster BlackSky's revenue pipeline and market presence.
Technological advancements remain a key focus for BlackSky. The company is progressing with its Gen 3 satellites, with launches expected to begin in Q1 2025. These advanced satellites will combine high-frequency monitoring with very high-resolution imaging, potentially expanding BlackSky's revenue and margin opportunities. Additionally, the company's ongoing work with the U.S. Air Force Research Laboratory on AI-enabled moving target detection, tracking, and identification services demonstrates its commitment to innovation in the geospatial intelligence field.
BlackSky's financial position appears solid, with $64.6 million in liquidity at the end of Q3 2024, bolstered by a successful $45 million capital raise. The company has maintained its full-year 2024 revenue guidance of $102 million to $118 million, projecting 16.4% year-over-year growth at the midpoint.
The positive trajectory in BlackSky's financial performance, coupled with significant contract wins and technological advancements, indicates a strengthening market position in the geospatial intelligence industry. As global demand for real-time earth observation and analytics continues to grow, BlackSky's progress in satellite technology and AI-driven services positions it to capitalize on emerging opportunities in both government and commercial sectors.
Curated from Reportable
