Press Release

DigitalGlobe Reports Second Quarter 2017 Results

By SpaceRef Editor
July 20, 2017
Filed under , ,

DigitalGlobe, Inc. (NYSE: DGI), a leading global provider of commercial high-resolution earth observation and advanced geospatial solutions, today reported financial results for the second quarter ended June 30, 2017.

Second Quarter Financial Summary:

  • Grew total revenue 28.6% driven by our acquisition of The Radiant Group and strong performance in both U.S. government and diversified commercial.
  • Grew U.S. government revenue $37.6 million, or 33.6%, primarily as a result of contracts obtained through our acquisition of The Radiant Group.
  • Grew diversified commercial revenue $12.6 million, or 19.8%, as demand for capacity on WorldView-4 and timing of access minute consumption fueled a 29.1% increase in DAP revenue, while increased deliveries to civil government customers and demand for our Global Basemap product suite contributed to 12.3% growth in our other diversified commercial business.
  • Net income of $2.7 million declined $9.5 million primarily due to incremental depreciation as a result of placing WorldView-4 in service in the first quarter 2017, lower capitalized interest, and merger costs.
  • Net income margin was 1.2%.
  • Adjusted EBITDA was $104.1 million, up 9.2%.
  • Adjusted EBITDA margin declined to 46.1% year over year, primarily due to the growth in lower margin services business and increased costs for operating WorldView-4, while Adjusted EBITDA margin increased 58 bps from the previous quarter.
  • Net cash flows from operations decreased 48.8% to $46.7 million due to timing of payments received on accounts receivable from certain DAP and Services customers, increased costs for WorldView-4, and merger costs.
  • Free cash flow decreased to $31.8 million from $44.0 million.

Recent Highlights:

  • The Company continues to expect the merger with MDA to close in or shortly after the third quarter of 2017.
  • Selected Space Systems Loral to build DigitalGlobe’s next-generation WorldView Legion constellation which will replace WorldView-1, WorldView-2, and GeoEye-1 and double DigitalGlobe’s capacity to collect 30 cm and multi-spectral imagery starting in 2020.
  • Announced that the National Geospatial-Intelligence Agency notified us of their intent to exercise the option for the 8th year of the EnhancedView SLA.
  • Converted an existing LOI with a new DAP customer who is a U.S. mission partner to a multi-million dollar annual subscription contract.

“We are pleased to have delivered another strong quarter with double digit organic growth in DAP, commercial, platform and services,” said Jeffrey R. Tarr, DigitalGlobe CEO. “I am grateful to our teams around the world who continue to serve our customers and execute our strategy as we prepare for a successful combination with MDA.”

Revised 2017 Revenue and Adjusted EBITDA Outlook:

  • Revenue in a range of $850 million to $875 million.
  • Adjusted EBITDA in a range of $385 million to $400 million, with full year contribution from Radiant reducing overall EBITDA margins by approximately 700 basis points.
  • Capital expenditures of approximately $100 million.(1)


(1) Excludes capitalized interest and tenant improvements

We have not provided a reconciliation of our Adjusted EBITDA outlook to forward-looking net income, the comparable U.S. GAAP financial measure, because it is difficult to reasonably provide a forward-looking estimate of the reconciling items between such non-U.S. GAAP forward-looking measure and the comparable forward-looking U.S. GAAP measure. Certain factors that are materially significant to our ability to estimate these items are out of our control and/or cannot be reasonably predicted. The nature of the assets under construction, timing of capital expenditures and uncertainty of timing of placing assets in service impact certain components of net income and our ability to reasonably predict net income. These items include income tax expense, interest expense and depreciation. Accordingly, a reconciliation to the comparable forward-looking U.S. GAAP measure is not available within a reasonable range of predictability.

Supplemental Information:

Supplemental earnings materials, including conference call slides, are available on the Investor Relations section of the company’s website at

About DigitalGlobe

DigitalGlobe is a global leader in Earth imagery and information about our changing planet, with unique capabilities that enable users to analyze and extract information from imagery at global scale. Sourced from its own advanced satellite constellation and third-party providers, DigitalGlobe’s imagery solutions and other services provide customers with accurate and mission-critical information about our changing planet, and support a wide variety of uses, including mission-planning, mapping and analysis, environmental monitoring, oil and gas exploration, and infrastructure management. Additionally, more than one thousand developers are building new applications and machine learning algorithms on DigitalGlobe’s Geospatial Big Data platform and in the Company’s recently expanded Services business. Each day users depend on DigitalGlobe to better understand our changing planet in order to save lives, resources and time.

Full financial details are available at the DigitalGlobe website.

SpaceRef staff editor.