Delivers Record Quarterly Revenue of $53.8 Million

Announced Completion of Acquisition of Sinergise

SAN FRANCISCO — (BUSINESS WIRE) — September 7, 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 second quarter for the period ended July 31, 2023 that demonstrated continued growth and momentum of its unique data subscription business.

“This quarter was one of increasing focus and operational efficiency. Revenue for the second quarter of fiscal 2024 was in line with our expectations, while gross margin and Adjusted EBITDA outperformed for the quarter,” said Will Marshall, Planet’s Co-Founder, Chief Executive Officer and Chairperson. “We completed the acquisition of Sinergise, aligned our teams and resources behind our top priorities, and made significant progress on the development of our next generation satellite fleets. We continue to feel the market tailwinds and the pull from customers for the insights that our solutions enable.”

Ashley Johnson, Planet’s Chief Financial and Operating Officer, added, “We recently announced a restructuring of our teams to align resources behind our high priority growth opportunities and reinforce our path to profitability. We are sharpening our focus and getting more efficient as a Company, which we believe will support growth in our core markets and healthy bottom line performance going forward. Our balance sheet is strong with $367.8 million of cash, cash equivalents, and short-term investments as of the end of the quarter and no debt.”

Fiscal Second Quarter 2024 Financial and Key Metric Highlights:

• Second quarter revenue increased 11% year-over-year to $53.8 million.
• Percent of Recurring Annual Contract Value (ACV) for the second quarter was 92%.
• End of Period (EoP) Customer Count increased 10% year-over-year to 944 customers.
• Second quarter gross margin was 49%, compared to 48% in the second quarter of fiscal year 2023. Second quarter Non-GAAP Gross Margin⁽¹⁾ was 52%, compared to 52% in the second quarter of fiscal year 2023.
• Ended the quarter with $367.8 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, reconciliations to the most directly comparable U.S. GAAP financial measures are provided in the tables at the end of this release.

Recent Business Highlights:

Growing Customer and Partner Relationships

• United States Space Force (USSF): Planet closed an expansion opportunity with the United States Space Force's AFRL to support their MicroSatellite Military Utility Program (MSMU). This 12-month extension will enable support of Coalition partner military training exercises around the globe utilizing responsive commercial space capabilities. AFRL has been leveraging SkySat, SkySat Video, and AI-based Vessel Detection to supplement the U.S. Department of Defense’s commercial satellite capabilities.
• US Government Agency: Planet recently received a new seven-figure annual contract value (“ACV”) award from a US Government agency for high-resolution SkySat tasking capabilities. The award was won through one of Planet's partners.
• Ministry of Foreign Affairs in Asia: Planet recently won a new contract with a Ministry of Foreign Affairs in Asia. The contract has a seven-figure ACV. The Ministry of Foreign Affairs is a new customer for Planet and the contract was won through one of Planet’s partners in the region.
• UK Rural Payments Agency: Planet and Earth-i announced that they have been awarded a seven-figure ACV, multi-year contract to deliver environmental monitoring for the UK’s Rural Payments Agency. The UK Government will use Planet’s data to support its Environmental Land Management Scheme. The data allows for country-wide detection of a wider range of biophysical parameters than ever before in support of increasing the UK’s natural capital.
• Multiple Canadian Provincial Governments: Planet expanded contracts with existing customers across multiple Canadian provincial governments. Planet’s data and solutions will be used to support critical disaster response efforts during the Canadian fire season, to monitor impacts of climate change on ecosystems, and to support land rights across the region.

New Technologies and Products

• Sinergise Acquisition: In August, Planet completed its previously announced acquisition of the business of Holding Sinergise d.o.o. (“Sinergise”), a leading developer platform for Earth observation (EO) data. The purchase of the Sinergise business, based in Ljubljana, Slovenia, accelerates the advancement of Planet’s Earth Data Platform and ability to efficiently deliver EO data to customers, which Planet expects will support accelerated time to value for customers.
• Global Forest Carbon Dataset: Planet announced plans to release its global Forest Carbon Planetary Variable. This groundbreaking dataset aims to provide insights into forest change and carbon capture at nearly the individual tree level. By leveraging advanced deep learning models, Planet’s Forest Carbon product is designed to provide exceptional resolution, accuracy, and frequency to a variety of stakeholders in forested ecosystems - from voluntary carbon market participants and service providers to entities dependent on forests in their supply chains to jurisdictions and regulators needing quality global insights into changes in forest area and carbon stocks.

Global Sustainability and Impact

• Maui Fire Response: Planet contributed its data to a publicly available damage assessment solution as part of its collaboration with Microsoft’s AI for Good Lab and the Red Cross. Additionally, Planet’s data was leveraged by the United States Air Force Civil Air Patrol Geospatial Team as part of their damage assessment conducted at the request of the Federal Emergency Management Agency (“FEMA”).
• NICFI Program: Planet’s NICFI Satellite Data Program continues to make available data of all the world’s equatorial tropical forests to governments, UN agencies, NGOs, scientists, and others. For instance, The Nature Conservancy and Wageningen University have recently been leveraging Planet’s high spatial and temporal resolution Basemaps to map roads, selective logging, and woody vines for improved carbon sequestration strategies. More examples from the quarterly update can be found at planet.com/pulse.

Financial Outlook

For the third quarter of fiscal year 2024, ending October 31, 2023, Planet expects revenue to be in the range of approximately $54 million to $56 million, representing approximately 11% year-over-year growth at the midpoint. Non-GAAP Gross Margin is expected to be in the range of approximately 50% to 52%. Adjusted EBITDA loss is expected to be in the range of approximately ($15) million and ($13) million. Capital Expenditures as a Percentage of Revenue is expected to be in the range of approximately 22% to 25% for the quarter.

For fiscal year 2024, ending January 31, 2024, Planet expects revenue to be in the range of approximately $216 million to $223 million, representing approximately 15% year-over-year growth at the midpoint. Non-GAAP Gross Margin is expected to be in the range of approximately 52% to 54%. Adjusted EBITDA loss is expected to be in the range of approximately ($63) million and ($55) million. Capital Expenditures as a Percentage of Revenue is expected to be in the range of approximately 22% to 23% for the full fiscal year 2024.

Planet intends to exclude the charges associated with its recent headcount reduction from its non-GAAP financial metrics, including Adjusted EBITDA, and the outlook above reflects such exclusion.

Planet has not reconciled its Non-GAAP financial outlook to the most directly comparable GAAP measures because certain reconciling items, such as stock-based compensation expenses and depreciation and amortization are uncertain or out of Planet’s control and cannot be reasonably predicted. The actual amount of these expenses during the third 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 Planet’s Non-GAAP outlook to the most comparable GAAP measures is not available without unreasonable efforts.