Delivers Record Full Year Revenue of $191.3 Million, up 46% Year-over-Year

Expands Full Year GAAP Gross Margin to 49% from 37% Year-over-Year

Provides Full Year Revenue Guidance for FY’24 of $248-268 million

SAN FRANCISCO — (BUSINESS WIRE) — March 29, 2023 — Planet Labs PBC (NYSE: PL) (“Planet” or the “Company”), a leading provider of daily data and insights about Earth, today announced financial results for its fiscal fourth quarter for the period ended January 31, 2023, that demonstrated continued growth and momentum of its unique data subscription business.

“The fourth quarter capped off an incredible year for Planet. For the full year, we nearly tripled our revenue growth rate and expanded Non-GAAP gross margin by 15 percentage points year-over-year,” said Will Marshall, Planet’s Co-Founder, Chief Executive Officer and Chairperson. “The market for our solutions remains robust, supported by our expanded product capabilities, broad go-to-market reach and the global secular tailwinds underpinning demand. Our solutions are enabling customers to boost efficiencies and address critical global issues at a time when it’s needed most.”

Ashley Johnson, Planet’s Chief Financial and Operating Officer, added, “We are maintaining our market leadership position, driving efficiency across our operations and are focused on our path to profitability. We ended the quarter with $408.8 million of cash, cash equivalents and short-term investments. Our strong finish to the year positions us for a solid Fiscal 2024 ahead.”

Fiscal Fourth Quarter and Full Year 2023 Financial and Key Metric Highlights:

• Fourth quarter revenue increased 43% year-over-year to $53.0 million.
• Full year revenue increased 46% year-over-year to $191.3 million.
• Percent of Recurring Annual Contract Value (ACV) for the fourth quarter was 94%.
• End of Period (EoP) Customer Count increased 15% year-over-year to 882 customers.
• Net dollar retention rate for the full year was 131%, while net dollar retention rate with winbacks was 134%.
• Fourth quarter gross margin expanded to 55%, compared to 37% in the fourth quarter of fiscal year 2022. Fourth quarter Non-GAAP Gross Margin(1) expanded to 58%, compared to 42% in the fourth quarter of fiscal year 2022.
• Full year gross margin expanded to 49%, compared to 37% in fiscal year 2022. Full year Non-GAAP Gross Margin(1) expanded to 53%, compared to 38% in fiscal year 2022.
• Ended the quarter with $408.8 million in cash, cash equivalents and short-term investments.

⁽¹⁾ Please see “Planet’s Use of Non-GAAP Financial Measures” below for a discussion on how Planet calculates the non-GAAP financial measures presented herein. In addition, please find below a reconciliation to the most directly comparable U.S. GAAP financial measure

Recent Business Highlights:

Growing Customer and Partner Relationships:

• International Ministry of Defense: Planet closed a new multi-year contract with an international ministry of defense customer worth greater than $10 million per year. Planet’s data is used to support fact-based and real-time decision making.
• NRO: Planet Federal, our subsidiary, announced that it has been awarded a contract by the National Reconnaissance Office (NRO) for the agency’s Strategic Commercial Enhancements Broad Agency Announcement program, specifically in the Commercial Hyperspectral Capabilities focus area. The multi-phased contract will allow Planet to work directly with the NRO to explore how Planet’s hyperspectral capabilities align with the agency’s national space security architecture.
• NICFI: Norway’s International Climate and Forest Initiative has extended its Satellite Data Program for the calendar year 2024. The NICFI program makes data assets covering all of the world’s tropical forests between 30 degrees north and south available to governments, UN agencies, NGOs, scientists and others. This creates a common standard for monitoring tropical deforestation, and enables powerful programs and policies to reverse it.
• PG&E: Pacific Gas & Electric Company (PG&E) signed a multi-year, seven-figure contract for Planet's new Planetary Variable product, Vegetation Encroachment, which is a new product from Planet's recent acquisition of Salo Sciences. PG&E will use Planet’s Vegetation Encroachment product to monitor their entire distribution and transmission grid totaling over 100,000 line miles.
• UK Space Agency: Planet is working with its partner Skytek, an Irish software and earth observation data analytics company, and the Northern Ireland Space Office to support the “NI Public Sector EO Portal” pilot project. Funded by the UK Space Agency with the goal to export and replicate the model beyond Northern Ireland, the project will provide data to Northern Ireland Government Departments and Universities for a variety of use cases including supporting the Environmental Farming Scheme (EFS), land use, classification and mapping, and infrastructure monitoring.

Bringing New Technologies to Market:

• Sinergise: Planet signed an agreement to acquire the business of Holding Sinergise d.o.o. (Sinergise), including their leading developer platform for earth observation (EO) data. Sinergise’s technology powers the European Union-backed Sentinel Hub, an advanced API-driven, cloud streaming platform that allows customers to access, process, and analyze multi-source EO data to extract valuable insights.
• Salo Sciences: Planet completed its acquisition of Salo Sciences, an innovative, San Francisco-based climate technology company specializing in measuring Earth’s constantly changing ecosystems. With the purchase of Salo Sciences, Planet plans to further develop its offerings to enable customers to quantify carbon stocks globally, monitor forest change, and mitigate climate risks.

Combining Planet Data and Artificial Intelligence (AI):

• Planet is leveraging artificial intelligence to unlock value within its proprietary data set. The depth and consistency of Planet’s data archive makes it uniquely suitable for AI applications. Planet believes that the revolution underway in AI will increase the value of its data, accelerating the speed at which Planet and its partners can turn data into solutions.
• Synthetaic: Artificial intelligence startup Synthetaic backtracked the trajectory of a high-altitude Chinese balloon's travel across North American airspace to its origin location using their rapid AI detection capabilities, together with Planet’s daily scan and data archive.
• Turkey and Syria Earthquake: Planet shared its data in response to the devastating earthquake in Turkey and Syria. Planet worked with Microsoft’s AI for Good Lab, Microsoft Philanthropies, UC Berkeley, and the US DoD Defense Innovation Unit to deploy an AI-based building damage assessment solution to assist in the response efforts of the Turkish government.

Financial Outlook

For the first quarter of fiscal year 2024, Planet expects revenue to be in the range of approximately $51 million to $54 million, representing approximately 31% year-over-year growth at the midpoint. Non-GAAP Gross Margin is expected to be between approximately 53% to 55%. Adjusted EBITDA loss is expected to be between approximately ($21) million and ($18) million. Capital Expenditure as a Percentage of Revenue is expected to be between approximately 20% and 24% of revenue for the first quarter.

For fiscal year 2024, Planet expects revenue to be in the range of approximately $248 million to $268 million, representing approximately 35% year-over-year growth at the midpoint. Non-GAAP Gross Margin is expected to be between approximately 57% to 61%. Adjusted EBITDA loss is expected to be between approximately ($47) million and ($37) million. Capital Expenditure as a Percentage of Revenue is expected to be between approximately 18% to 21% for the full fiscal year 2024.

Planet has not reconciled its Non-GAAP Gross Margin outlook, which is derived from Non-GAAP Gross Profit, or Adjusted EBITDA outlook to their most directly comparable GAAP measures (gross profit and net loss, respectively) because certain items that impact gross profit and net loss, such as stock-based compensation expenses and (in the case of Adjusted EBITDA) depreciation and amortization, are uncertain or out of Planet’s control and cannot be reasonably predicted. The actual amount of these expenses during the first quarter of fiscal year 2024 and fiscal year 2024 will have a significant impact on Planet’s future GAAP financial results. Accordingly, a reconciliation of Non-GAAP Gross Margin outlook and Adjusted EBITDA outlook to gross profit margin and net loss, respectively, is not available without unreasonable efforts.