Planet Reports Financial Results for Fourth Quarter and Full

Planet Reports Financial Results for Fourth Quarter and Full Fiscal Year 2024

EoP Customer Count: The Company defines EoP Customer Count as the total count of all existing customers at the end of the period excluding customers that are exclusively Sentinel Hub self-service paying users. For EoP Customer Count, the Company defines existing customers as customers with an active contract with the Company at the end of the reported period. For the purpose of this metric, the Company defines a customer as a distinct entity that uses the Company’s data or services. The Company sells directly to customers, as well as indirectly through its partner network. If a partner does not provide the end customer’s name, then the partner is reported as the customer. Each customer, regardless of the number of active opportunities with the Company, is counted only once. For example, if a customer utilizes multiple products of Planet, the Company only counts that customer once for purposes of EoP Customer Count. A customer with multiple divisions, segments, or subsidiaries are also counted as a single unique customer based on the parent organization or parent account. For EoP Customer Count, the Company does not include users that only utilize the Company’s self-service Sentinel Hub web based ordering system, which the Company acquired in August 2023, and which offers standard starter packages on a monthly or annual basis. The Company believes excluding these users from EoP Customer Count creates a more useful metric, as the Company views the Sentinel Hub starter packages as entry points for smaller accounts, leading to broader awareness of the Company’s solutions throughout their networks and organizations. The Company believes EoP Customer Count is a useful metric for investors and management to track as it is an important indicator of the broader adoption of the Company’s platform and is a measure of the Company’s success in growing its market presence and penetration. Management applies judgment as to which customers are deemed to have an active contract in a period, as well as whether a customer is a distinct entity that uses the Company’s data or services.

Capital Expenditures as a Percentage of Revenue: The Company defines capital expenditures as purchases of property and equipment plus capitalized internally developed software development costs, which are included in our statements of cash flows from investing activities. The Company defines Capital Expenditures as a Percentage of Revenue as the total amount of capital expenditures divided by total revenue in the reported period. Capital Expenditures as a Percentage of Revenue is a performance measure that we use to evaluate the appropriate level of capital expenditures needed to support demand for the Company’s data services and related revenue, and to provide a comparable view of the Company’s performance relative to other earth observation companies, which may invest significantly greater amounts in their satellites to deliver their data to customers. The Company uses an agile space systems strategy, which means we invest in a larger number of significantly lower cost satellites and software infrastructure to automate the management of the satellites and to deliver the Company’s data to clients. As a result of the Company’s strategy and business model, the Company’s capital expenditures may be more similar to software companies with large data center infrastructure costs. Therefore, the Company believes it is important to look at the level of capital expenditure investments relative to revenue when evaluating the Company’s performance relative to other earth observation companies or to other software and data companies with significant data center infrastructure investment requirements. The Company believes Capital Expenditures as a Percentage of Revenue is a useful metric for investors because it provides visibility to the level of capital expenditures required to operate the Company and the Company’s relative capital efficiency.

Forward-looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or Planet's future financial or operating performance. In some cases, you can identify forward looking statements because they contain words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “target,” “anticipate,” “intend,” “develop,” “evolve,” “plan,” “seek,” “may,” “will,” “could,” “can,” “should,” “would,” “believes,” “predicts,” “potential,” “strategy,” “opportunity,” “aim,” “conviction,” “continue,” “positioned” or the negative of these words or other similar terms or expressions that concern Planet's expectations, strategy, priorities, plans or intentions. Forward-looking statements in this release include, but are not limited to, statements regarding Planet’s financial guidance and outlook, Planet’s path to profitability (including on an Adjusted EBITDA basis), Planet’s expectations regarding future product development and performance, Planet’s expectations regarding its strategies with respect to its markets and customers, Planet’s expectations regarding its ability to close deals in its pipeline, and the expected benefits of such deals to its results of operations. Planet’s expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including risks related to the macroeconomic environment and risks regarding Planet’s ability to forecast Planet’s performance due to Planet’s limited operating history. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in Planet's filings with the Securities and Exchange Commission (“SEC”), including Planet’s Annual Report on Form 10-K and any subsequent filings with the SEC Planet may make. All forward-looking statements reflect Planet’s beliefs and assumptions only as of the date of this press release. Planet undertakes no obligation to update forward-looking statements to reflect future events or circumstances, except as may be required by law. Planet’s results for the quarter and full year ended January 31, 2024, are not necessarily indicative of its operating results for any future periods.

PLANET CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

	January 31,
(in thousands)		2024			2023
Assets
Current assets
Cash and cash equivalents	$	83,866		$	181,892
Restricted cash and cash equivalents, current		8,360			527
Short-term investments		215,041			226,868
Accounts receivable, net		43,320			38,952
Prepaid expenses and other current assets		19,564			27,416
Total current assets		370,151			475,655
Property and equipment, net		113,429			108,091
Capitalized internal-use software, net		14,973			11,417
Goodwill		136,256			112,748
Intangible assets, net		32,448			14,831
Restricted cash and cash equivalents, non-current		9,972			5,657
Operating lease right-of-use assets		22,339			20,403
Other non-current assets		2,429			3,921
Total assets	$	701,997		$	752,723
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	2,601		$	6,900
Accrued and other current liabilities		44,779			46,022
Deferred revenue		72,327			51,900
Liability from early exercise of stock options		8,964			12,550
Operating lease liabilities, current		7,978			4,885
Total current liabilities		136,649			122,257
Deferred revenue		5,293			2,882
Deferred hosting costs		7,101			8,679
Public and private placement warrant liabilities		2,961			16,670
Operating lease liabilities, non-current		16,952			17,145
Contingent consideration		5,885			7,499
Other non-current liabilities		9,138			1,487
Total liabilities		183,979			176,619
Stockholders’ equity
Common stock		28			27
Additional paid-in capital		1,596,201			1,513,102
Accumulated other comprehensive income		1,594			2,271
Accumulated deficit		(1,079,805	)		(939,296	)
Total stockholders’ equity		518,018			576,104
Total liabilities and stockholders’ equity	$	701,997		$	752,723

PLANET CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

	Three Months Ended January 31,						Year Ended January 31,
(in thousands, except share and per share amounts)		2024			2023			2024			2023
Revenue	$	58,852		$	52,975		$	220,696		$	191,256
Cost of revenue		26,371			23,915			107,746			97,248
Gross profit		32,481			29,060			112,950			94,008
Operating expenses
Research and development		28,410			31,831			116,339			110,916
Sales and marketing		20,095			20,299			86,304			78,020
General and administrative		17,894			19,619			80,055			80,747
Total operating expenses		66,399			71,749			282,698			269,683
Loss from operations		(33,918	)		(42,689	)		(169,748	)		(175,675	)
Interest income		3,661			3,396			15,414			7,672
Change in fair value of warrant liabilities		(295	)		1,185			13,709			6,554
Other income, net		37			207			931			330
Total other income, net		3,403			4,788			30,054			14,556
Loss before provision for income taxes		(30,515	)		(37,901	)		(139,694	)		(161,119	)
Provision for income taxes		(429	)		(60	)		815			847
Net loss	$	(30,086	)	$	(37,841	)	$	(140,509	)	$	(161,966	)
Basic and diluted net loss per share attributable to common stockholders	$	(0.11	)	$	(0.14	)	$	(0.50	)	$	(0.61	)
Basic and diluted weighted-average common shares outstanding used in computing net loss per share attributable to common stockholders		286,507,870			270,159,456			279,585,698			267,126,918

PLANET CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited)

	Three Months Ended January 31,						Year Ended January 31,
(In thousands)		2024			2023			2024			2023
Net loss	$	(30,086	)	$	(37,841	)	$	(140,509	)	$	(161,966	)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment		777			(69	)		(766	)		13
Change in fair value of available-for-sale securities		1,059			1,397			89			162
Other comprehensive income (loss), net of tax		1,836			1,328			(677	)		175
Comprehensive loss	$	(28,250	)	$	(36,513	)	$	(141,186	)	$	(161,791	)

PLANET CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

	Year Ended January 31,
(in thousands)		2024			2023
Operating activities
Net loss	$	(140,509	)	$	(161,966	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization		47,639			43,330
Stock-based compensation, net of capitalized cost		57,132			75,544
Change in fair value of warrant liabilities		(13,709	)		(6,554	)
Change in fair value of contingent consideration		(741	)		—
Other		(4,321	)		(404	)
Changes in operating assets and liabilities
Accounts receivable		(2,658	)		6,313
Prepaid expenses and other assets		10,498			(10,080	)
Accounts payable, accrued and other liabilities		(25,014	)		(2,986	)
Deferred revenue		22,237			(14,387	)
Deferred hosting costs		(1,265	)		(2,743	)
Net cash used in operating activities		(50,711	)		(73,933	)
Investing activities
Purchases of property and equipment		(37,991	)		(10,440	)
Capitalized internal-use software		(4,419	)		(2,320	)
Maturities of available-for-sale securities		161,317			55,172
Sales of available-for-sale securities		45,580			—
Purchases of available-for-sale securities		(189,142	)		(280,297	)
Business acquisition, net of cash acquired		(7,542	)		(3,821	)
Other		(1,389	)		(557	)
Net cash used in investing activities		(33,586	)		(242,263	)
Financing activities
Proceeds from the exercise of common stock options		7,388			14,701
Class A common stock withheld to satisfy employee tax withholding obligations		(8,971	)		(6,337	)
Other		(15	)		(504	)
Net cash provided by (used in) financing activities		(1,598	)		7,860
Effect of exchange rate changes on cash and cash equivalents, and restricted cash and cash equivalents		17			(402	)
Net decrease in cash and cash equivalents, and restricted cash and cash equivalents		(85,878	)		(308,738	)
Cash and cash equivalents, and restricted cash and cash equivalents at the beginning of the period		188,076			496,814
Cash and cash equivalents, and restricted cash and cash equivalents at the end of the period	$	102,198		$	188,076

PLANET RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS (unaudited)

	Three Months Ended January 31,						Year Ended January 31,
(in thousands)		2024			2023			2024			2023
Net loss	$	(30,086	)	$	(37,841	)	$	(140,509	)	$	(161,966	)
Interest income		(3,661	)		(3,396	)		(15,414	)		(7,672	)
Income tax provision		(429	)		(60	)		815			847
Depreciation and amortization		11,606			9,333			47,639			43,330
Change in fair value of warrant liabilities		295			(1,185	)		(13,709	)		(6,554	)
Stock-based compensation		12,521			15,703			57,132			75,544
Restructuring costs ⁽¹⁾		35			—			7,376			—
Employee transaction bonuses in connection with the Sinergise business combination ⁽²⁾		—			—			2,317			—
Other (income) expense, net		(37	)		(207	)		(931	)		(330	)
Adjusted EBITDA	$	(9,756	)	$	(17,653	)	$	(55,284	)	$	(56,801	)

⁽¹⁾ As part of the headcount reduction plan announced in August 2023, we recognized $7.4 million of severance and other employee-related costs for the fiscal year ended January 31, 2024. For the fiscal year ended January 31, 2024, the restructuring related stock-based compensation benefit of $1.5 million is included on its respective line item.
⁽²⁾ Certain employees of Sinergise, which became employees of Planet, were paid cash transaction bonuses in connection with the closing of the Sinergise acquisition. The cost of the transaction bonuses was allocated from the purchase consideration we paid for the acquisition.

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

	Three Months Ended January 31,						Year Ended January 31,
(In thousands)		2024			2023			2024			2023
Reconciliation of cost of revenue:
GAAP cost of revenue	$	26,371		$	23,915		$	107,746		$	97,248
Less: Stock-based compensation		781			1,127			3,636			5,119
Less: Amortization of acquired intangible assets		786			390			2,460			1,553
Less: Restructuring costs		1			—			564			—
Less: Employee transaction bonuses in connection with the Sinergise business combination		—			—			267			—
Non-GAAP cost of revenue	$	24,803		$	22,398		$	100,819		$	90,576

Reconciliation of gross profit:
GAAP gross profit	$	32,481		$	29,060		$	112,950		$	94,008
Add: Stock-based compensation		781			1,127			3,636			5,119
Add: Amortization of acquired intangible assets		786			390			2,460			1,553
Add: Restructuring costs		1			—			564			—
Add: Employee transaction bonuses in connection with the Sinergise business combination		—			—			267			—
Non-GAAP gross profit	$	34,049		$	30,577		$	119,877		$	100,680
GAAP gross margin		55	%		55	%		51	%		49	%
Non-GAAP gross margin		58	%		58	%		54	%		53	%

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

	Three Months Ended January 31,						Year Ended January 31,
(In thousands)		2024			2023			2024			2023
Reconciliation of operating expenses:
GAAP research and development	$	28,410		$	31,831		$	116,339		$	110,916
Less: Stock-based compensation		5,263			7,383			23,818			32,025
Less: Amortization of acquired intangible assets		—			—			—			—
Less: Restructuring costs		9			—			3,306			—
Less: Employee transaction bonuses in connection with the Sinergise business combination		—			—			1,891			—
Non-GAAP research and development	$	23,138		$	24,448		$	87,324		$	78,891
GAAP sales and marketing	$	20,095		$	20,299		$	86,304		$	78,020
Less: Stock-based compensation		2,393			3,114			10,220			13,729
Less: Amortization of acquired intangible assets		268			169			933			627
Less: Restructuring costs		—			—			1,943			—
Less: Employee transaction bonuses in connection with the Sinergise business combination		—			—			41			—
Non-GAAP sales and marketing	$	17,434		$	17,016		$	73,167		$	63,664
GAAP general and administrative	$	17,894		$	19,619		$	80,055		$	80,747
Less: Stock-based compensation		4,084			4,079			19,458			24,671
Less: Amortization of acquired intangible assets		95			79			349			319
Less: Restructuring costs		25			—			1,563			—
Less: Employee transaction bonuses in connection with the Sinergise business combination		—			—			118			—
Non-GAAP general and administrative	$	13,690		$	15,461		$	58,567		$	55,757

Reconciliation of loss from operations
GAAP loss from operations	$	(33,918	)	$	(42,689	)	$	(169,748	)	$	(175,675	)
Add: Stock-based compensation		12,521			15,703			57,132			75,544
Add: Amortization of acquired intangible assets		1,149			638			3,742			2,499
Add: Restructuring costs		35			—			7,376			—
Add: Employee transaction bonuses in connection with the Sinergise business combination		—			—			2,317			—
Non-GAAP loss from operations	$	(20,213	)	$	(26,348	)	$	(99,181	)	$	(97,632	)

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

	Three Months Ended January 31,						Year Ended January 31,
(In thousands, except share and per share amounts)		2024			2023			2024			2023
Reconciliation of net loss
GAAP net loss	$	(30,086	)	$	(37,841	)	$	(140,509	)	$	(161,966	)
Add: Stock-based compensation		12,521			15,703			57,132			75,544
Add: Amortization of acquired intangible assets		1,149			638			3,742			2,499
Add: Restructuring costs		35			—			7,376			—
Add: Employee transaction bonuses in connection with the Sinergise business combination		—			—			2,317			—
Income tax effect of non-GAAP adjustments		—			—			—			—
Non-GAAP net loss	$	(16,381	)	$	(21,500	)	$	(69,942	)	$	(83,923	)

Reconciliation of net loss per share, diluted
GAAP net loss	$	(30,086	)	$	(37,841	)	$	(140,509	)	$	(161,966	)
Non-GAAP net loss	$	(16,381	)	$	(21,500	)	$	(69,942	)	$	(83,923	)

GAAP net loss per share, basic and diluted ⁽¹⁾	$	(0.11	)	$	(0.14	)	$	(0.50	)	$	(0.61	)
Add: Stock-based compensation		0.04			0.06			0.20			0.28
Add: Amortization of acquired intangible assets		—			—			0.01			0.01
Add: Restructuring costs		—			—			0.03			—
Add: Employee transaction bonuses in connection with the Sinergise business combination		—			—			0.01			—
Income tax effect of non-GAAP adjustments		—			—			—			—
Non-GAAP net loss per share, diluted ^{(2) (3)}	$	(0.06	)	$	(0.08	)	$	(0.25	)	$	(0.31	)

Weighted-average shares used in computing GAAP net loss per share, basic and diluted ⁽¹⁾		286,507,870			270,159,456			279,585,698			267,126,918
Weighted-average shares used in computing Non-GAAP net loss per share, diluted ⁽²⁾		286,507,870			270,159,456			279,585,698			267,126,918

⁽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 RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited) The table below reconciles Backlog to remaining performance obligations for the periods indicated:

	Year Ended January 31,
(in thousands)		2024		2023
Remaining performance obligations	$	132,571	$	151,976
Cancellable amount of contract value		109,821		127,667
Backlog	$	242,392	$	279,643

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