Non-GAAP Financial Measures
Adjusted EBITDA is defined as net income or loss attributable to BlackSky before interest expense, income taxes, depreciation and amortization, as well as significant non-cash and/or non-recurring expenses as management believes these items are not as useful in evaluating the Company’s core operating performance. These items include, but are not limited to, realized loss on conversion of bridge notes, stock-based compensation expense, unrealized (gain)/loss on certain warrants/shares classified as derivatives, satellite impairment loss, (gain)/loss on debt extinguishment, (gain)/loss from discontinued operations, loss/(gain) on equity method investment, transaction related legal settlements, and transaction costs associated with derivative liabilities.
Adjusted EBITDA is a non-GAAP financial performance measure. It should not be considered in isolation or as an alternative to measures determined in accordance with GAAP. Please refer to the schedule herein and our SEC filings for a reconciliation of these non-GAAP financial performance measures to the most comparable measures reported in accordance with GAAP and for a discussion of the presentation, comparability, and use of such financial performance measures.
Forward-Looking Statements
Certain statements and other information included in this release constitute forward-looking statements under applicable securities laws. Words such as "may", "will", "could", "should", "would", "plan", "potential", "intend", "anticipate", "believe", "estimate", "future", "opportunity", "will likely result", or "expect" and other words, terms, and phrases of similar meaning are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements involve estimates, expectations, projections, goals, forecasts, assumptions, risks, and uncertainties, as well as other statements referring to or including forward-looking information included in this release.
Forward-looking statements are subject to various risks and uncertainties, which could cause actual results to differ materially from the anticipated results or expectations expressed in this release. As a result, although BlackSky's management believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because BlackSky can give no assurance that they will prove to be correct. The risks that could cause actual results to differ materially from current expectations include, but are not limited to, the risk factors and other disclosures about BlackSky and its business included in BlackSky's disclosure materials filed from time to time with the U.S. Securities and Exchange Commission ("SEC"), which are available on the SEC's website at www.sec.gov or on BlackSky's Investor Relations website at ir.blacksky.com.
The forward-looking statements contained in this release are expressly qualified in their entirety by the foregoing cautionary statements. All such forward-looking statements are based upon data available as of the date of this release or other specified date and speak only as of such date. BlackSky disclaims any intention or obligation to update or revise any forward-looking statements in this release as a result of new information or future events, except as may be required under applicable securities law.
BLACKSKY TECHNOLOGY INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited) (in thousands) |
|||||||
|
Three Months Ended March 31, |
||||||
|
|
2022 |
|
|
|
2021 |
|
Revenue |
|
|
|
||||
Imagery & software analytical services |
$ |
9,772 |
|
|
$ |
5,998 |
|
Engineering & systems integration |
|
4,124 |
|
|
|
1,296 |
|
Total revenue |
|
13,896 |
|
|
|
7,294 |
|
Costs and expenses |
|
|
|
||||
Imagery & software analytical service costs, excluding depreciation and amortization |
|
5,907 |
|
|
|
4,379 |
|
Engineering & systems integration costs, excluding depreciation and amortization |
|
5,048 |
|
|
|
1,130 |
|
| Selling, general and administrative |
|
22,536 |
|
|
|
8,478 |
|
| Research and development |
|
146 |
|
|
|
28 |
|
| Depreciation and amortization |
|
7,391 |
|
|
|
2,764 |
|
| Operating loss |
|
(27,132 |
) |
|
|
(9,485 |
) |
| Gain (loss) on derivatives |
|
8,140 |
|
|
|
(14,008 |
) |
| Income on equity method investment |
|
257 |
|
|
|
196 |
|
| Interest expense |
|
(1,255 |
) |
|
|
(1,168 |
) |
| Other income (expense), net |
|
2 |
|
|
|
(144,091 |
) |
| Loss before income taxes |
|
(19,988 |
) |
|
|
(168,556 |
) |
| Income tax (expense) benefit |
|
— |
|
|
|
— |
|
| Net loss |
|
(19,988 |
) |
|
|
(168,556 |
) |
| Other comprehensive income |
|
— |
|
|
|
1,389 |
|
| Total comprehensive loss |
$ |
(19,988 |
) |
|
$ |
(167,167 |
) |
|
|
|
|
|
||||
| Basic and diluted loss per share of common stock: |
|
|
|
||||
| Net loss per share of common stock |
$ |
(0.17 |
) |
|
$ |
(0.70 |
) |
|
|
|
|
|
||||
| Weighted average common shares outstanding - basic and diluted |
|
115,479 |
|
|
|
242,289 |
|
| BLACKSKY TECHNOLOGY INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands, except par value) |
|||||||
|
|
March 31, |
|
December 31, |
||||
|
|
|
2022 |
|
|
|
2021 |
|
| Assets |
|
|
|
||||
| Current assets: |
|
|
|
||||
| Cash and cash equivalents |
$ |
135,886 |
|
|
$ |
165,586 |
|
| Restricted cash |
|
2,518 |
|
|
|
2,518 |
|
| Accounts receivable, net of allowance of $8 and $39, respectively |
|
5,491 |
|
|
|
2,629 |
|
| Prepaid expenses and other current assets |
|
5,044 |
|
|
|
6,264 |
|
| Contract assets |
|
2,865 |
|
|
|
1,678 |
|
| Total current assets |
|
151,804 |
|
|
|
178,675 |
|
| Property and equipment - net |
|
67,102 |
|
|
|
70,551 |
|
| Goodwill |
|
9,393 |
|
|
|
9,393 |
|
| Investment in equity method investees |
|
4,259 |
|
|
|
4,002 |
|
| Intangible assets - net |
|
2,339 |
|
|
|
2,480 |
|
| Satellite procurement work in process |
|
51,846 |
|
|
|
40,102 |
|
| Other assets |
|
565 |
|
|
|
560 |
|
| Total assets |
$ |
287,308 |
|
|
$ |
305,763 |
|
| Liabilities and stockholders’ equity |
|
|
|
||||
| Current liabilities: |
|
|
|
||||
| Accounts payable and accrued liabilities |
$ |
15,530 |
|
|
$ |
10,837 |
|
| Amounts payable to equity method investees |
|
3,951 |
|
|
|
5,613 |
|
| Contract liabilities - current |
|
9,528 |
|
|
|
11,266 |
|
| Other current liabilities |
|
2,619 |
|
|
|
2,819 |
|
| Total current liabilities |
|
31,628 |
|
|
|
30,535 |
|
| Liability for estimated contract losses |
|
3,626 |
|
|
|
6,054 |
|
| Long-term contract liabilities |
|
3,000 |
|
|
|
568 |
|
| Derivative liabilities |
|
8,786 |
|
|
|
16,925 |
|
| Long-term debt - net of current portion |
|
71,909 |
|
|
|
71,408 |
|
| Other liabilities |
|
1,463 |
|
|
|
653 |
|
| Total liabilities |
|
120,412 |
|
|
|
126,143 |
|
| Commitments and contingencies (Note 16) |
|
|
|
||||
| Stockholders’ equity: |
|
|
|
||||
| Class A common stock, $0.0001 par value-authorized, 300,000 shares; issued, 120,506 and 117,160 shares; outstanding, 117,927 shares and 114,452 shares as of March 31, 2022 and December 31, 2021, respectively. |
|
12 |
|
|
|
11 |
|
| Additional paid-in capital |
|
657,781 |
|
|
|
650,518 |
|
| Accumulated deficit |
|
(490,897 |
) |
|
|
(470,909 |
) |
| Total stockholders’ equity |
|
166,896 |
|
|
|
179,620 |
|
| Total liabilities and stockholders’ equity |
$ |
287,308 |
|
|
$ |
305,763 |
|
| BLACKSKY TECHNOLOGY INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands) |
|||||||
|
|
Three Months Ended March 31, |
||||||
|
|
|
2022 |
|
|
|
2021 |
|
| Cash flows from operating activities: |
|
|
|
||||
| Net loss |
$ |
(19,988 |
) |
|
$ |
(168,556 |
) |
| Depreciation and amortization expense |
|
7,391 |
|
|
|
2,764 |
|
| Bad debt expense |
|
6 |
|
|
|
— |
|
| Stock-based compensation expense |
|
10,240 |
|
|
|
508 |
|
| Loss on issuance of Bridge Notes |
|
— |
|
|
|
96,476 |
|
| Issuance costs for derivative liabilities and debt carried at fair value |
|
— |
|
|
|
47,623 |
|
| Amortization of debt discount and issuance costs |
|
502 |
|
|
|
348 |
|
| Gain on equity method investment |
|
(257 |
) |
|
|
(196 |
) |
| Loss on disposal of property and equipment |
|
— |
|
|
|
24 |
|
| (Gain) loss on derivatives |
|
(8,140 |
) |
|
|
14,008 |
|
| Changes in operating assets and liabilities: |
|
|
|
||||
| Accounts receivable |
|
(2,868 |
) |
|
|
(1,651 |
) |
| Contract assets |
|
(1,187 |
) |
|
|
(66 |
) |
| Prepaid expenses and other current assets |
|
1,220 |
|
|
|
(158 |
) |
| Other assets |
|
(5 |
) |
|
|
96 |
|
| Accounts payable and accrued liabilities |
|
1,533 |
|
|
|
(3,753 |
) |
| Other current liabilities |
|
(200 |
) |
|
|
(11 |
) |
| Contract liabilities - current and long-term |
|
694 |
|
|
|
1,258 |
|
| Liability for estimated contract losses |
|
(2,428 |
) |
|
|
(171 |
) |
| Other liabilities |
|
811 |
|
|
|
874 |
|
| Net cash used in operating activities |
|
(12,676 |
) |
|
|
(10,583 |
) |
| Cash flows from investing activities: |
|
|
|
||||
| Purchase of property and equipment |
|
(1,926 |
) |
|
|
(17 |
) |
| Satellite procurement work in process |
|
(11,499 |
) |
|
|
(7,502 |
) |
| Net cash used in investing activities |
|
(13,425 |
) |
|
|
(7,519 |
) |
| Cash flows from financing activities: |
|
|
|
||||
| Proceeds from issuance of debt |
|
— |
|
|
|
58,082 |
|
| Proceeds from options exercised |
|
17 |
|
|
|
1 |
|
| Proceeds from warrants exercised |
|
— |
|
|
|
120 |
|
| Payments for deferred offering costs |
|
— |
|
|
|
(321 |
) |
| Payments for debt issuance costs |
|
— |
|
|
|
(91 |
) |
| Withholding tax payment on vesting of restricted stock awards |
|
(3,616 |
) |
|
|
— |
|
| Net cash (used in) provided by financing activities |
|
(3,599 |
) |
|
|
57,791 |
|
| Net (decrease) increase in cash, cash equivalents, and restricted cash |
|
(29,700 |
) |
|
|
39,689 |
|
| Cash, cash equivalents, and restricted cash – beginning of year |
|
168,104 |
|
|
|
10,573 |
|
| Cash, cash equivalents, and restricted cash – end of period |
$ |
138,404 |
|
|
$ |
50,262 |
|
| BLACKSKY TECHNOLOGY INC. RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (unaudited) (in thousands) |
|||||||
|
|
Three Months Ended March 31, |
||||||
|
|
|
2022 |
|
|
|
2021 |
|
| Net loss |
$ |
(19,988 |
) |
|
$ |
(168,556 |
) |
| Loss on issuance of Bridge Notes, including debt issuance costs expensed for debt carried at fair value |
|
— |
|
|
|
144,099 |
|
| Stock-based compensation expense |
|
10,240 |
|
|
|
508 |
|
| (Gain) loss on derivatives |
|
(8,140 |
) |
|
|
14,008 |
|
| Depreciation and amortization |
|
7,391 |
|
|
|
2,764 |
|
| Interest expense |
|
1,255 |
|
|
|
1,168 |
|
| Income on equity method investment |
|
(257 |
) |
|
|
(196 |
) |
| Adjusted EBITDA |
$ |
(9,499 |
) |
|
$ |
(6,205 |
) |
