BlackSky designs, owns and operates one of the industry’s leading low earth orbit small satellite constellations, optimized to capture imagery cost-efficiently where and when our customers need it. BlackSky’s Spectra AI software platform processes data from BlackSky’s constellation and from other third-party sensors to develop the critical insights and analytics that our customers require.
BlackSky is relied upon by U.S. and international government agencies, commercial businesses, and organizations around the world. BlackSky is headquartered in Herndon, VA, and is publicly traded on the New York Stock Exchange as BKSY. To learn more, visit www.blacksky.com and follow us on Twitter.
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, severance, 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 Adjusted EBITDA to Net Loss, the most comparable measure reported in accordance with GAAP and for a discussion of the presentation, comparability, and use of Adjusted EBITDA.
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 September 30, |
|
Nine Months Ended September 30, |
|||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
Revenue |
|
|
|
|
|
|
|
|||||||||
Imagery & software analytical services |
$ |
14,991 |
|
|
$ |
6,529 |
|
|
$ |
38,113 |
|
|
$ |
17,645 |
|
|
Engineering & systems integration |
|
1,944 |
|
|
|
1,408 |
|
|
|
7,820 |
|
|
|
4,951 |
|
|
| Total revenue |
|
16,935 |
|
|
|
7,937 |
|
|
|
45,933 |
|
|
|
22,596 |
|
|
| Imagery & software analytical service costs, excluding depreciation and amortization |
|
5,251 |
|
|
|
7,266 |
|
|
|
16,508 |
|
|
|
15,816 |
|
|
| Engineering & systems integration costs, excluding depreciation and amortization |
|
2,536 |
|
|
|
5,387 |
|
|
|
12,020 |
|
|
|
8,754 |
|
|
| Selling, general and administrative |
|
18,713 |
|
|
|
40,674 |
|
|
|
58,988 |
|
|
|
57,979 |
|
|
| Research and development |
|
197 |
|
|
|
57 |
|
|
|
449 |
|
|
|
85 |
|
|
| Depreciation and amortization |
|
9,598 |
|
|
|
3,503 |
|
|
|
26,166 |
|
|
|
9,804 |
|
|
| Satellite impairment loss |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18,407 |
|
|
| Operating loss |
|
(19,360 |
) |
|
|
(48,950 |
) |
|
|
(68,198 |
) |
|
|
(88,249 |
) |
|
| Gain (loss) on derivatives |
|
7,135 |
|
|
|
3,813 |
|
|
|
10,629 |
|
|
|
(11,162 |
) |
|
| (Loss) income on equity method investment |
|
(776 |
) |
|
|
(170 |
) |
|
|
694 |
|
|
|
793 |
|
|
| Interest income |
|
486 |
|
|
|
— |
|
|
|
664 |
|
|
|
— |
|
|
| Interest expense |
|
(1,226 |
) |
|
|
(1,225 |
) |
|
|
(3,756 |
) |
|
|
(3,663 |
) |
|
| Other expense, net |
|
(14 |
) |
|
|
(365 |
) |
|
|
(54 |
) |
|
|
(147,735 |
) |
|
| Loss before income taxes |
|
(13,755 |
) |
|
|
(46,897 |
) |
|
|
(60,021 |
) |
|
|
(250,016 |
) |
|
| Income tax (expense) benefit |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
| Loss from continuing operations |
|
(13,755 |
) |
|
|
(46,897 |
) |
|
|
(60,021 |
) |
|
|
(250,016 |
) |
|
| Discontinued operations: |
|
|
|
|
|
|
|
|||||||||
| Gain (loss) from discontinued operations (including loss from disposal of Spaceflight Inc. of $707, $0, $707, and $(1,022) for the three and nine months ended September 30, 2022 and 2021, respectively) |
|
707 |
|
|
|
— |
|
|
|
707 |
|
|
|
(1,022 |
) |
|
| Income tax (expense) benefit |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
| Gain (loss) from discontinued operations, net of income taxes |
|
707 |
|
|
|
— |
|
|
|
707 |
|
|
|
(1,022 |
) |
|
| Net loss |
|
(13,048 |
) |
|
|
(46,897 |
) |
|
|
(59,314 |
) |
|
|
(251,038 |
) |
|
| Other comprehensive income |
|
— |
|
|
|
541 |
|
|
|
— |
|
|
|
— |
|
|
| Total comprehensive loss |
$ |
(13,048 |
) |
|
$ |
(46,356 |
) |
|
$ |
(59,314 |
) |
|
$ |
(251,038 |
) |
|
|
|
|
|
|
|
|
|
|
|||||||||
| Basic and diluted loss per share of common stock: |
|
|
|
|
|
|
|
|||||||||
| Loss from continuing operations |
$ |
(0.12 |
) |
|
$ |
(0.67 |
) |
|
$ |
(0.51 |
) |
|
$ |
(4.29 |
) |
|
| Gain (loss) from discontinued operations, net of income taxes |
|
0.01 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
(0.02 |
) |
|
| Net loss per share of common stock |
$ |
(0.11 |
) |
|
$ |
(0.67 |
) |
|
$ |
(0.50 |
) |
|
$ |
(4.31 |
) |
|
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted average common shares outstanding - basic and diluted |
|
118,582 |
|
|
|
69,975 |
|
|
|
117,403 |
|
|
|
58,297 |
|
|
| BLACKSKY TECHNOLOGY INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands, except par value) |
||||||||
|
|
September 30, |
|
December 31, |
|||||
|
|
2022 |
|
2021 |
|||||
| Assets |
|
|
|
|||||
| Current assets: |
|
|
|
|||||
| Cash and cash equivalents |
$ |
37,201 |
|
|
$ |
165,586 |
|
|
| Restricted cash |
|
2,835 |
|
|
|
2,518 |
|
|
| Short-term investments |
|
50,699 |
|
|
|
— |
|
|
| Accounts receivable, net of allowance of $0 and $39, respectively |
|
5,101 |
|
|
|
2,629 |
|
|
| Prepaid expenses and other current assets |
|
5,487 |
|
|
|
6,264 |
|
|
| Contract assets |
|
5,915 |
|
|
|
1,678 |
|
|
| Total current assets |
|
107,238 |
|
|
|
178,675 |
|
|
| Property and equipment - net |
|
78,157 |
|
|
|
70,551 |
|
|
| Goodwill |
|
9,393 |
|
|
|
9,393 |
|
|
| Investment in equity method investees |
|
4,150 |
|
|
|
4,002 |
|
|
| Intangible assets - net |
|
2,058 |
|
|
|
2,480 |
|
|
| Satellite procurement work in process |
|
41,664 |
|
|
|
40,102 |
|
|
| Other assets |
|
1,675 |
|
|
|
560 |
|
|
| Total assets |
$ |
244,335 |
|
|
$ |
305,763 |
|
|
| Liabilities and stockholders’ equity |
|
|
|
|||||
| Current liabilities: |
|
|
|
|||||
| Accounts payable and accrued liabilities |
$ |
14,579 |
|
|
$ |
10,837 |
|
|
| Amounts payable to equity method investees |
|
1,667 |
|
|
|
5,613 |
|
|
| Contract liabilities - current |
|
9,018 |
|
|
|
11,266 |
|
|
| Other current liabilities |
|
1,531 |
|
|
|
2,819 |
|
|
| Total current liabilities |
|
26,795 |
|
|
|
30,535 |
|
|
| Liability for estimated contract losses |
|
1,966 |
|
|
|
6,054 |
|
|
| Long-term contract liabilities |
|
42 |
|
|
|
568 |
|
|
| Derivative liabilities |
|
6,296 |
|
|
|
16,925 |
|
|
| Long-term debt - net of current portion |
|
72,956 |
|
|
|
71,408 |
|
|
| Other liabilities |
|
2,867 |
|
|
|
653 |
|
|
| Total liabilities |
|
110,922 |
|
|
|
126,143 |
|
|
| Commitments and contingencies |
|
|
|
|||||
| Stockholders’ equity: |
|
|
|
|||||
| Class A common stock, $0.0001 par value-authorized, 300,000 shares; issued, 121,357 and 117,160 shares; outstanding, 118,906 shares and 114,452 shares as of September 30, 2022 and December 31, 2021, respectively. |
|
12 |
|
|
|
11 |
|
|
| Additional paid-in capital |
|
663,654 |
|
|
|
650,518 |
|
|
| Accumulated deficit |
|
(530,253 |
) |
|
|
(470,909 |
) |
|
| Total stockholders’ equity |
|
133,413 |
|
|
|
179,620 |
|
|
| Total liabilities and stockholders’ equity |
$ |
244,335 |
|
|
$ |
305,763 |
|
|
|
|
|
|
|
|||||
| BLACKSKY TECHNOLOGY INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands) |
||||||||
|
|
Nine Months Ended September 30, |
|||||||
|
|
2022 |
|
2021 |
|||||
| Cash flows from operating activities: |
|
|
|
|||||
| Net loss |
$ |
(59,314 |
) |
|
$ |
(251,038 |
) |
|
| Gain (loss) from discontinued operations, net of income taxes |
|
707 |
|
|
|
(1,022 |
) |
|
| Loss from continuing operations |
|
(60,021 |
) |
|
|
(250,016 |
) |
|
| Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|||||
| Depreciation and amortization expense |
|
26,166 |
|
|
|
9,804 |
|
|
| Bad debt expense |
|
13 |
|
|
|
4 |
|
|
| Stock-based compensation expense |
|
16,389 |
|
|
|
29,265 |
|
|
| Loss on issuance of 2021 convertible Bridge Notes |
|
— |
|
|
|
96,476 |
|
|
| Loss on issuance of 2021 convertible Bridge Notes Rights Offering |
|
— |
|
|
|
3,193 |
|
|
| Issuance costs for derivative liabilities and debt carried at fair value |
|
— |
|
|
|
48,009 |
|
|
| Amortization of debt discount and issuance costs |
|
1,549 |
|
|
|
1,311 |
|
|
| Gain on equity method investment |
|
(694 |
) |
|
|
(793 |
) |
|
| Loss on disposal of property and equipment |
|
— |
|
|
|
24 |
|
|
| (Gain) loss on derivatives |
|
(10,629 |
) |
|
|
11,162 |
|
|
| Satellite impairment loss |
|
— |
|
|
|
18,407 |
|
|
| Interest income |
|
(373 |
) |
|
|
— |
|
|
| Other, net |
|
106 |
|
|
|
— |
|
|
| Changes in operating assets and liabilities: |
|
|
|
|||||
| Accounts receivable |
|
(2,485 |
) |
|
|
(2,010 |
) |
|
| Contract assets |
|
(4,237 |
) |
|
|
1,487 |
|
|
| Prepaid expenses and other current assets |
|
657 |
|
|
|
(4,428 |
) |
|
| Other assets |
|
(1,335 |
) |
|
|
(423 |
) |
|
| Accounts payable and accrued liabilities |
|
692 |
|
|
|
(15 |
) |
|
| Other current liabilities |
|
(581 |
) |
|
|
(2,195 |
) |
|
| Contract liabilities - current and long-term |
|
(2,774 |
) |
|
|
(1,960 |
) |
|
| Liability for estimated contract losses |
|
(4,088 |
) |
|
|
1,385 |
|
|
| Other liabilities |
|
2,216 |
|
|
|
2,496 |
|
|
| Net cash used in operating activities |
|
(39,429 |
) |
|
|
(38,742 |
) |
|
| Cash flows from investing activities: |
|
|
|
|||||
| Purchase of property and equipment |
|
(8,905 |
) |
|
|
(532 |
) |
|
| Satellite procurement work in process |
|
(25,421 |
) |
|
|
(48,951 |
) |
|
| Purchase of short-term investments |
|
(50,343 |
) |
|
|
— |
|
|
| Purchase of domain name |
|
— |
|
|
|
(7 |
) |
|
| Proceeds from equity method investment |
|
546 |
|
|
|
— |
|
|
| Net cash used in investing activities |
|
(84,123 |
) |
|
|
(49,490 |
) |
|
| Cash flows from financing activities: |
|
|
|
|||||
| Proceeds from issuance of debt |
|
— |
|
|
|
58,573 |
|
|
| Proceeds from options exercised |
|
37 |
|
|
|
100 |
|
|
| Proceeds from warrants exercised |
|
— |
|
|
|
163 |
|
|
| Debt payments |
|
— |
|
|
|
(22,198 |
) |
|
| Payments for deferred offering costs |
|
— |
|
|
|
— |
|
|
| Payments for debt issuance costs |
|
— |
|
|
|
(6,238 |
) |
|
| Withholding tax payments on vesting of restricted stock units |
|
(4,551 |
) |
|
|
— |
|
|
| Net cash (used in) provided by financing activities |
|
(4,516 |
) |
|
|
275,331 |
|
|
| Net (decrease) increase in cash, cash equivalents, and restricted cash |
|
(128,068 |
) |
|
|
187,099 |
|
|
| Cash, cash equivalents, and restricted cash – beginning of year |
|
168,104 |
|
|
|
10,573 |
|
|
| Cash, cash equivalents, and restricted cash – end of period |
$ |
40,036 |
|
|
$ |
197,672 |
|
|
| BLACKSKY TECHNOLOGY INC. RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (unaudited) (in thousands) |
||||||||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
| Net loss |
$ |
(13,048 |
) |
|
$ |
(46,897 |
) |
|
$ |
(59,314 |
) |
|
$ |
(251,038 |
) |
|
| Interest income |
|
(486 |
) |
|
|
— |
|
|
|
(664 |
) |
|
|
— |
|
|
| Interest expense |
|
1,226 |
|
|
|
1,225 |
|
|
|
3,756 |
|
|
|
3,663 |
|
|
| Depreciation and amortization |
|
9,598 |
|
|
|
3,503 |
|
|
|
26,166 |
|
|
|
9,804 |
|
|
| Loss on issuance of Bridge Notes, including debt issuance costs expensed for debt carried at fair value |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
147,387 |
|
|
| Stock-based compensation expense |
|
3,163 |
|
|
|
28,493 |
|
|
|
16,389 |
|
|
|
29,265 |
|
|
| (Gain) loss on derivatives |
|
(7,135 |
) |
|
|
(3,813 |
) |
|
|
(10,629 |
) |
|
|
11,162 |
|
|
| Satellite impairment loss |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18,407 |
|
|
| (Gain) loss from discontinued operations, net of income taxes |
|
(707 |
) |
|
|
— |
|
|
|
(707 |
) |
|
|
1,022 |
|
|
| Severance |
|
56 |
|
|
|
— |
|
|
|
761 |
|
|
|
— |
|
|
| Loss (income) on equity method investment |
|
776 |
|
|
|
170 |
|
|
|
(694 |
) |
|
|
(793 |
) |
|
| Forgiveness of non-trade receivable |
|
31 |
|
|
|
— |
|
|
|
106 |
|
|
|
— |
|
|
| Contingent legal liability |
|
— |
|
|
|
700 |
|
|
|
— |
|
|
|
700 |
|
|
| Transaction costs associated with derivative liabilities |
|
— |
|
|
|
291 |
|
|
|
— |
|
|
|
291 |
|
|
| Loss on debt extinguishment |
|
— |
|
|
|
75 |
|
|
|
— |
|
|
|
75 |
|
|
| Adjusted EBITDA |
$ |
(6,526 |
) |
|
$ |
(16,253 |
) |
|
$ |
(24,830 |
) |
|
$ |
(30,055 |
) |
|
