BlackSky (BKSY) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue increased 29% year-over-year to $24.9 million, driven by growth in both imagery/software analytics and professional/engineering services.

• Secured $40 million in new awards and extensions, including a $7 million international government renewal and major U.S. and international government contracts.

• Achieved third consecutive quarter of positive adjusted EBITDA, reaching $2.1 million, a $7.9 million improvement over Q2 2023.

• Net loss for Q2 2024 was $9.4 million, a significant improvement from $33.4 million in Q2 2023.

• Gen-3 satellites are in final assembly, with the first launch on track for late Q4 2024, expected to unlock the next phase of growth and deliver 35cm very-high resolution imagery.

Financial highlights

• Q2 2024 total revenue was $24.9 million, up $5.6 million (29%) year-over-year; H1 2024 revenue was $49.2 million, up 30% year-over-year.

• Imagery and analytics/software revenue grew 14% year-over-year to $17.5 million; professional and engineering services revenue rose 87% to $7.5 million.

• Adjusted EBITDA for Q2 2024 was $2.1 million, compared to $(5.8) million in Q2 2023.

• Cash operating expenses for Q2 2024 were $16.3 million, a 3% decrease year-over-year.

• Ended Q2 2024 with $42.3 million in cash, restricted cash, and short-term investments.

Outlook and guidance

• Maintained full-year 2024 guidance: revenue of $102–$118 million, adjusted EBITDA of $8–$16 million, and capital expenditures of $55–$65 million, mainly for Gen-3 satellites.

• Anticipates a strong second half of 2024, with growth driven by contract renewals, expansions, and new business.

• Management expects continued revenue growth from U.S. and international defense and intelligence markets.

• The company anticipates sufficient liquidity to meet working capital and capital expenditure needs for the foreseeable future.

• Ongoing investments in Gen-3 satellites and the analytics platform are expected to support future growth.