BlackSky Reports Q1 Results

Image: BlackSky

BlackSky ($BKSY) is predicting a boom in 2023, partially driven by growing government demand for its Earth observation imagery and geospatial intelligence. 

By the numbers:

  • Overall revenue: $18.4M, up 32% YoY 
  • Imagery and software analytical services revenue: $15.8M, a 114% increase YoY
  • Adjusted EBITDA: -$4.1M, up from -$9.5M in Q1 2022
  • Net Income: -$17.3M, up from -$20.0M in Q1 2022
  • Cash and cash equivalents: $71.6M

2023 outlook: BlackSky remains bullish on its projections for the rest of the year, including annual revenue between $90M-$96M, which would be a 42% increase from 2022. The company’s top priority for the year is a positive adjusted EBITDA in Q4, which it remains on track to achieve. 

The company is also working to expand its sales pipeline and customer base, win new multi-year subscription contracts, and will continue to invest in space and AI capabilities.

“With the traction we’re experiencing, we believe the company is well-positioned to capitalize on the growing demand for geospatial intelligence and are re-affirming our guidance for the year,” said CEO Brian O’Toole.

The highlights

The majority of BlackSky’s business for the quarter came from over a dozen new contracts and renewals, primarily with government agencies including the US Air Force, US Space Force, and National Reconnaissance Office. 

But the company also deployed two new Gen-2 satellites during the quarter, demonstrating the growing commercial potential of BlackSky’s technology. While commercial contracts still make up only a small portion of BlackSky’s revenue, O’Toole said the company is starting to see some traction with major industrial opportunities, particularly in supply chain monitoring.