Planet Labs Reports 11 Percent Rise in Revenue in Second Quarter

Planet Labs (NYSE: PL) reported that its second-quarter revenue for fiscal year 2024 rose 11 percent year-over-year, and that its net loss narrowed over the same period.

Revenue for the second quarter, which ended on July 31, was $53.8 million, an increase from $48.5 million during the second quarter of FY 2023. Revenue for the first six months was $106.5 million, an increase from $88.6 million during the same period last year.

Planet Labs Second Quarter Results
At a Glance
(in thousands of dollars)

Planet’s second-quarter net loss shrunk year-over-year from $39.5 million to $38 million. Net loss for the first six months fell from $83.9 million to $72.4 million.

“This quarter was one of increasing focus and operational efficiency. Revenue for the second quarter of fiscal 2024 was in line with our expectations, while gross margin and Adjusted EBITDA outperformed for the quarter,” CEO Will Marshall said in a press release. “We completed the acquisition of Sinergise, aligned our teams and resources behind our top priorities, and made significant progress on the development of our next generation satellite fleets. We continue to feel the market tailwinds and the pull from customers for the insights that our solutions enable.”

In August, the San Francisco-based company laid off 117 employees, which amounted to 10 percent of its workforce. Marshall said the layoffs were due to the expansion of the company that he oversaw.

“We recently announced a restructuring of our teams to align resources behind our high-priority growth opportunities and reinforce our path to profitability,” CFO Ashley Johnson said. “We are sharpening our focus and getting more efficient as a Company, which we believe will support growth in our core markets and healthy bottom line performance going forward. Our balance sheet is strong with $367.8 million of cash, cash equivalents, and short-term investments as of the end of the quarter and no debt.”

The $367.8 million on the balance sheet included $118.8 million in cash and cash equivalents, and $249 million in short-term investments. The company had $408.8 million on its balance sheet when the first quarter ended on January 31, 2023. The amount included $181.9 million in cash and cash equivalents and $226.9 million in short-term investments.

Planet said it expected revenue to continue to grow for the rest of FY 2024.

“For the third quarter of fiscal year 2024, ending October 31, 2023, Planet expects revenue to be in the range of approximately $54 million to $56 million, representing approximately 11% year-over-year growth at the midpoint,” Planet said. “For fiscal year 2024, ending January 31, 2024, Planet expects revenue to be in the range of approximately $216 million to $223 million, representing approximately 15% year-over-year growth at the midpoint.”

Planet Labs’ Financials

Planet Labs’ second-quarter financials, as well as excerpted disclaimers from the company’s press release, are below.

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CONSOLIDATED BALANCE SHEETS (unaudited)

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CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited)

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CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

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RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (unaudited)

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RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited)

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RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited)

(1) Basic and diluted GAAP net loss per share was the same for each period presented as the inclusion of all potential Class A common stock and Class B common stock outstanding would have been anti-dilutive.

(2) Non-GAAP net loss per share, diluted is calculated using weighted-average shares, adjusted for dilutive potential shares assumed outstanding during the period. No adjustment was made to weighted-average shares for each period presented as the inclusion of all potential Class A common stock and Class B common stock outstanding would have been anti-dilutive.

(3) Totals may not sum due to rounding. Figures are calculated based upon the respective underlying non-rounded data.

Planet’s Use of Non-GAAP Financial Measures

This press release includes Non-GAAP Gross Profit, Non-GAAP Gross Margin, certain Non-GAAP Expenses described further below, Non-GAAP Loss from Operations, Non-GAAP Net Loss, Non-GAAP Net Loss per Diluted Share and Adjusted EBITDA which are non-GAAP performance measures that the Company uses to supplement its results presented in accordance with U.S. GAAP. The Company believes these non-GAAP financial measures are useful in evaluating its operating performance, as they are similar to measures reported by the Company’s public competitors and are regularly used by analysts, institutional investors, and other interested parties in analyzing operating performance and prospects. Further, the Company believes such non-GAAP measures are helpful in highlighting trends in the Company’s operating results because they exclude certain items that are not indicative of the Company’s core operating performance. In addition, the Company includes these non-GAAP financial measures because they are used by management to evaluate the Company’s core operating performance and trends and to make strategic decisions regarding the allocation of capital and new investments.

Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, as a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. The non-GAAP financial measures presented are not based on any standardized methodology prescribed by U.S. GAAP and are not necessarily comparable to similarly-titled measures presented by other companies, which may have different definitions from the Company. Further, the non-GAAP financial measures presented exclude stock-based compensation expenses, which has recently been, and will continue to be for the foreseeable future, a significant recurring expense for the Company’s business and an important part of its compensation strategy.

Planet calculates these non-GAAP financial measures as follows:

Non-GAAP Gross Profit and Non-GAAP Gross Margin: The Company defines and calculates Non-GAAP Gross Profit as gross profit adjusted for stock-based compensation, amortization of acquired intangible assets classified as cost of revenue, and other expenses that are considered unrelated to our underlying business performance and Non-GAAP Gross Margin as Non-GAAP Gross Profit divided by revenue.

Non-GAAP Expenses: The Company defines and calculates Non-GAAP cost of revenue, Non-GAAP research and development expenses, Non-GAAP sales and marketing expenses, and Non-GAAP general and administrative expenses as, in each case, the corresponding U.S. GAAP financial measure (cost of revenue, research and development expenses, sales and marketing expenses, and general and administrative expenses) adjusted for stock-based compensation expenses, amortization of acquired intangible assets and other expenses that are considered unrelated to our underlying business performance, that are classified within each of the corresponding U.S. GAAP financial measures.

Non-GAAP Loss from Operations: The Company defines and calculates Non-GAAP Loss from Operations as loss from operations adjusted for stock-based compensation expenses, amortization of acquired intangible assets and other expenses that are considered unrelated to our underlying business performance.

Non-GAAP Net Loss and Non-GAAP Net Loss per Diluted Share: The Company defines and calculates Non-GAAP Net Loss as net loss adjusted for stock-based compensation expenses, amortization of acquired intangible assets, and other expenses that are considered unrelated to our underlying business performance and the tax effects of the adjustments. The Company defines and calculates Non-GAAP Net Loss per Diluted Share as Non-GAAP Net Loss divided by diluted weighted-average common shares outstanding.

Adjusted EBITDA: The Company defines and calculates Adjusted EBITDA as net income (loss) before the impact of interest income and expense, income tax expense and depreciation and amortization, and further adjusted for the following items: stock-based compensation, change in fair value of warrant liabilities, gain or loss on the extinguishment of debt and non-operating income, expenses such as foreign currency exchange gain or loss, and other expenses that are considered unrelated to our underlying business performance.