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) and target for achieving Adjusted EBITDA profitability, Planet’s expectations regarding future product development and performance, and Planet’s expectations regarding its strategies with respect to its markets and customers, including trends in customer demand. 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 ended April 30, 2024, are not necessarily indicative of its operating results for any future periods.
PLANET CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) |
|||||||
(In thousands) |
April 30, 2024 |
|
January 31, 2024 |
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
107,367 |
|
|
$ |
83,866 |
|
Restricted cash and cash equivalents, current |
|
8,802 |
|
|
|
8,360 |
|
Short-term investments |
|
168,218 |
|
|
|
215,041 |
|
Accounts receivable, net |
|
38,527 |
|
|
|
43,320 |
|
Prepaid expenses and other current assets |
|
23,044 |
|
|
|
19,564 |
|
Total current assets |
|
345,958 |
|
|
|
370,151 |
|
Property and equipment, net |
|
111,338 |
|
|
|
113,429 |
|
Capitalized internal-use software, net |
|
16,066 |
|
|
|
14,973 |
|
Goodwill |
|
137,110 |
|
|
|
136,256 |
|
Intangible assets, net |
|
31,403 |
|
|
|
32,448 |
|
Restricted cash and cash equivalents, non-current |
|
9,564 |
|
|
|
9,972 |
|
Operating lease right-of-use assets |
|
20,966 |
|
|
|
22,339 |
|
Other non-current assets |
|
2,199 |
|
|
|
2,429 |
|
Total assets |
$ |
674,604 |
|
|
$ |
701,997 |
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
3,131 |
|
|
$ |
2,601 |
|
Accrued and other current liabilities |
|
43,361 |
|
|
|
44,779 |
|
Deferred revenue |
|
63,646 |
|
|
|
72,327 |
|
Liability from early exercise of stock options |
|
8,068 |
|
|
|
8,964 |
|
Operating lease liabilities, current |
|
8,175 |
|
|
|
7,978 |
|
Total current liabilities |
|
126,381 |
|
|
|
136,649 |
|
Deferred revenue |
|
13,247 |
|
|
|
5,293 |
|
Deferred hosting costs |
|
9,261 |
|
|
|
7,101 |
|
Public and private placement warrant liabilities |
|
1,431 |
|
|
|
2,961 |
|
Operating lease liabilities, non-current |
|
15,207 |
|
|
|
16,952 |
|
Contingent consideration |
|
2,915 |
|
|
|
5,885 |
|
Other non-current liabilities |
|
5,837 |
|
|
|
9,138 |
|
Total liabilities |
|
174,279 |
|
|
|
183,979 |
|
Stockholders’ equity |
|
|
|
||||
Common stock |
|
28 |
|
|
|
28 |
|
Additional paid-in capital |
|
1,608,847 |
|
|
|
1,596,201 |
|
Accumulated other comprehensive income |
|
548 |
|
|
|
1,594 |
|
Accumulated deficit |
|
(1,109,098 |
) |
|
|
(1,079,805 |
) |
Total stockholders’ equity |
|
500,325 |
|
|
|
518,018 |
|
Total liabilities and stockholders’ equity |
$ |
674,604 |
|
|
$ |
701,997 |
|
PLANET CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
|||||||
|
Three Months Ended April 30, |
||||||
(In thousands, except share and per share amounts) |
|
2024 |
|
|
|
2023 |
|
Revenue |
$ |
60,440 |
|
|
$ |
52,703 |
|
Cost of revenue |
|
28,757 |
|
|
|
24,556 |
|
Gross profit |
|
31,683 |
|
|
|
28,147 |
|
Operating expenses |
|
|
|
||||
Research and development |
|
25,589 |
|
|
|
28,186 |
|
Sales and marketing |
|
21,485 |
|
|
|
23,125 |
|
General and administrative |
|
19,180 |
|
|
|
21,528 |
|
Total operating expenses |
|
66,254 |
|
|
|
72,839 |
|
Loss from operations |
|
(34,571 |
) |
|
|
(44,692 |
) |
Interest income |
|
3,107 |
|
|
|
4,506 |
|
Change in fair value of warrant liabilities |
|
1,530 |
|
|
|
5,945 |
|
Other income, net |
|
1,083 |
|
|
|
104 |
|
Total other income, net |
|
5,720 |
|
|
|
10,555 |
|
Loss before provision for income taxes |
|
(28,851 |
) |
|
|
(34,137 |
) |
Provision for income taxes |
|
442 |
|
|
|
307 |
|
Net loss |
|
(29,293 |
) |
|
|
(34,444 |
) |
Basic and diluted net loss per share attributable to common stockholders |
$ |
(0.10 |
) |
|
$ |
(0.13 |
) |
Basic and diluted weighted-average common shares outstanding used in computing net loss per share attributable to common stockholders |
|
288,268,718 |
|
|
|
272,347,977 |
|
PLANET CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited) |
|||||||
|
Three Months Ended April 30, |
||||||
(in thousands) |
|
2024 |
|
|
|
2023 |
|
Net loss |
$ |
(29,293 |
) |
|
$ |
(34,444 |
) |
Other comprehensive loss, net of tax: |
|
|
|
||||
Foreign currency translation adjustment |
|
(534 |
) |
|
|
(45 |
) |
Change in fair value of available-for-sale securities |
|
(512 |
) |
|
|
(544 |
) |
Other comprehensive loss, net of tax |
|
(1,046 |
) |
|
|
(589 |
) |
Comprehensive loss |
$ |
(30,339 |
) |
|
$ |
(35,033 |
) |
PLANET CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
|||||||
|
Three Months Ended April 30, |
||||||
(In thousands) |
|
2024 |
|
|
|
2023 |
|
Operating activities |
|
|
|
||||
Net loss |
$ |
(29,293 |
) |
|
$ |
(34,444 |
) |
Adjustments to reconcile net loss to net cash used in operating activities |
|
|
|
||||
Depreciation and amortization |
|
13,103 |
|
|
|
10,248 |
|
Stock-based compensation, net of capitalized cost |
|
13,072 |
|
|
|
15,356 |
|
Change in fair value of warrant liabilities |
|
(1,530 |
) |
|
|
(5,945 |
) |
Change in fair value of contingent consideration |
|
(101 |
) |
|
|
(423 |
) |
Other |
|
(547 |
) |
|
|
(1,634 |
) |
Changes in operating assets and liabilities |
|
|
|
||||
Accounts receivable |
|
5,482 |
|
|
|
(121 |
) |
Prepaid expenses and other assets |
|
(731 |
) |
|
|
2,770 |
|
Accounts payable, accrued and other liabilities |
|
(5,237 |
) |
|
|
(10,713 |
) |
Deferred revenue |
|
(721 |
) |
|
|
(7,765 |
) |
Deferred hosting costs |
|
2,206 |
|
|
|
2,070 |
|
Net cash used in operating activities |
|
(4,297 |
) |
|
|
(30,601 |
) |
Investing activities |
|
|
|
||||
Purchases of property and equipment |
|
(9,938 |
) |
|
|
(6,336 |
) |
Capitalized internal-use software |
|
(1,418 |
) |
|
|
(739 |
) |
Maturities of available-for-sale securities |
|
32,158 |
|
|
|
30,000 |
|
Sales of available-for-sale securities |
|
43,116 |
|
|
|
— |
|
Purchases of available-for-sale securities |
|
(28,043 |
) |
|
|
(35,229 |
) |
Business acquisition, net of cash acquired |
|
(1,068 |
) |
|
|
— |
|
Purchases of licensed imagery |
|
(4,024 |
) |
|
|
— |
|
Other |
|
(300 |
) |
|
|
(277 |
) |
Net cash provided by (used in) investing activities |
|
30,483 |
|
|
|
(12,581 |
) |
Financing activities |
|
|
|
||||
Proceeds from the exercise of common stock options |
|
20 |
|
|
|
3,295 |
|
Class A common stock withheld to satisfy employee tax withholding obligations |
|
(2,015 |
) |
|
|
(1,896 |
) |
Other |
|
(380 |
) |
|
|
— |
|
Net cash provided by (used in) financing activities |
|
(2,375 |
) |
|
|
1,399 |
|
Effect of exchange rate changes on cash and cash equivalents, and restricted cash and cash equivalents |
|
(276 |
) |
|
|
177 |
|
Net increase (decrease) in cash and cash equivalents, and restricted cash and cash equivalents |
|
23,535 |
|
|
|
(41,606 |
) |
Cash and cash equivalents, and restricted cash and cash equivalents at the beginning of the period |
|
102,198 |
|
|
|
188,076 |
|
Cash and cash equivalents, and restricted cash and cash equivalents at the end of the period |
$ |
125,733 |
|
|
$ |
146,470 |
|
PLANET RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (unaudited) |
|||||||
|
Three Months Ended April 30, |
||||||
(in thousands) |
|
2024 |
|
|
|
2023 |
|
Net loss |
$ |
(29,293 |
) |
|
$ |
(34,444 |
) |
Interest income |
|
(3,107 |
) |
|
|
(4,506 |
) |
Income tax provision |
|
442 |
|
|
|
307 |
|
Depreciation and amortization |
|
13,103 |
|
|
|
10,248 |
|
Change in fair value of warrant liabilities |
|
(1,530 |
) |
|
|
(5,945 |
) |
Stock-based compensation |
|
13,072 |
|
|
|
15,356 |
|
Other income, net |
|
(1,083 |
) |
|
|
(104 |
) |
Adjusted EBITDA |
$ |
(8,396 |
) |
|
$ |
(19,088 |
) |
PLANET RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited) |
|||||||
|
Three Months Ended April 30, |
||||||
(in thousands) |
|
2024 |
|
|
|
2023 |
|
Reconciliation of cost of revenue: |
|
|
|
||||
GAAP cost of revenue |
$ |
28,757 |
|
|
$ |
24,556 |
|
Less: Stock-based compensation |
|
876 |
|
|
|
917 |
|
Less: Amortization of acquired intangible assets |
|
789 |
|
|
|
439 |
|
Non-GAAP cost of revenue |
$ |
27,092 |
|
|
$ |
23,200 |
|
|
|
|
|
||||
Reconciliation of gross profit: |
|
|
|
||||
GAAP gross profit |
$ |
31,683 |
|
|
$ |
28,147 |
|
Add: Stock-based compensation |
|
876 |
|
|
|
917 |
|
Add: Amortization of acquired intangible assets |
|
789 |
|
|
|
439 |
|
Non-GAAP gross profit |
$ |
33,348 |
|
|
$ |
29,503 |
|
GAAP gross margin |
|
52 |
% |
|
|
53 |
% |
Non-GAAP gross margin |
|
55 |
% |
|
|
56 |
% |
|
|
|
|
||||
Reconciliation of operating expenses: |
|
|
|
||||
GAAP research and development |
$ |
25,589 |
|
|
$ |
28,186 |
|
Less: Stock-based compensation |
|
5,163 |
|
|
|
5,958 |
|
Less: Amortization of acquired intangible assets |
|
— |
|
|
|
— |
|
Non-GAAP research and development |
$ |
20,426 |
|
|
$ |
22,228 |
|
GAAP sales and marketing |
$ |
21,485 |
|
|
$ |
23,125 |
|
Less: Stock-based compensation |
|
2,403 |
|
|
|
3,080 |
|
Less: Amortization of acquired intangible assets |
|
217 |
|
|
|
202 |
|
Non-GAAP sales and marketing |
$ |
18,865 |
|
|
$ |
19,843 |
|
GAAP general and administrative |
$ |
19,180 |
|
|
$ |
21,528 |
|
Less: Stock-based compensation |
|
4,630 |
|
|
|
5,401 |
|
Less: Amortization of acquired intangible assets |
|
79 |
|
|
|
80 |
|
Non-GAAP general and administrative |
$ |
14,471 |
|
|
$ |
16,047 |
|
|
|
|
|
||||
Reconciliation of loss from operations |
|
|
|
||||
GAAP loss from operations |
$ |
(34,571 |
) |
|
$ |
(44,692 |
) |
Add: Stock-based compensation |
|
13,072 |
|
|
|
15,356 |
|
Add: Amortization of acquired intangible assets |
|
1,085 |
|
|
|
721 |
|
Non-GAAP loss from operations |
$ |
(20,414 |
) |
|
$ |
(28,615 |
) |
PLANET RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited) |
|||||||
|
Three Months Ended April 30, |
||||||
(In thousands, except share and per share amounts) |
|
2024 |
|
|
|
2023 |
|
Reconciliation of net loss |
|
|
|
||||
GAAP net loss |
$ |
(29,293 |
) |
|
$ |
(34,444 |
) |
Add: Stock-based compensation |
|
13,072 |
|
|
|
15,356 |
|
Add: Amortization of acquired intangible assets |
|
1,085 |
|
|
|
721 |
|
Income tax effect of non-GAAP adjustments |
|
— |
|
|
|
— |
|
Non-GAAP net loss |
$ |
(15,136 |
) |
|
$ |
(18,367 |
) |
|
|
|
|
||||
Reconciliation of net loss per share, diluted |
|
|
|
||||
GAAP net loss |
$ |
(29,293 |
) |
|
$ |
(34,444 |
) |
Non-GAAP net loss |
$ |
(15,136 |
) |
|
$ |
(18,367 |
) |
|
|
|
|
||||
GAAP net loss per share, basic and diluted (1) |
$ |
(0.10 |
) |
|
$ |
(0.13 |
) |
Add: Stock-based compensation |
|
0.05 |
|
|
|
0.06 |
|
Add: Amortization of acquired intangible assets |
|
— |
|
|
|
— |
|
Income tax effect of non-GAAP adjustments |
|
— |
|
|
|
— |
|
Non-GAAP net loss per share, diluted (2) (3) |
$ |
(0.05 |
) |
|
$ |
(0.07 |
) |
|
|
|
|
||||
Weighted-average shares used in computing GAAP net loss per share, basic and diluted (1) |
|
288,268,718 |
|
|
|
272,347,977 |
|
Weighted-average shares used in computing Non-GAAP net loss per share, diluted (2) |
|
288,268,718 |
|
|
|
272,347,977 |
|
|
|
|
|
||||
(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: |
|||||||
(in thousands) |
April 30, 2024 |
|
January 31, 2024 |
||||
Remaining performance obligations |
$ |
124,942 |
|
$ |
132,571 |
||
Cancellable amount of contract value |
|
94,831 |
|
|
|
109,821 |
|
Backlog |
$ |
219,773 |
|
|
$ |
242,392 |
|