Non-GAAP Financial Measures
Adjusted EBITDA is defined as net income or loss attributable to BlackSky before interest income, interest expense, income taxes, depreciation and amortization, as well as significant non-cash and/or non-recurring expenses as our management believes these items are not as useful in evaluating the Company’s core operating performance. These items include, but are not limited to, stock-based compensation expense, unrealized (gain) loss on certain warrants/shares classified as derivative liabilities, severance, income on equity method investment, investment loss on short-term investments, and transaction costs associated with debt and equity financings.
Adjusted EBITDA is a non-GAAP financial performance measure. It should not be considered in isolation or as an alternative to measures determined in accordance with GAAP. Please refer to the schedule herein and our filings with the U.S. Securities and Exchange Commission (the “SEC”) for a reconciliation of Adjusted EBITDA to Net Loss, the most comparable measure reported in accordance with GAAP and for a discussion of the presentation, comparability, and use of Adjusted EBITDA.
Forward-Looking Statements
Certain statements and other information included in this press release constitute forward-looking statements under applicable securities laws. Words such as "may", "will", "could", "should", "would", "plan", "potential", "intend", "anticipate", "believe", "estimate", "future", "opportunity", "will likely result", or "expect" and other words, terms, and phrases of similar meaning are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. All statements, other than statements of historical fact contained in this press release, including statements as to future performance, our guidance outlook for the year and expected capital expenditures, our ability to sustain revenue growth, expectations regarding global demand for our products and services, and our expectations related to future profitability on an adjusted basis, are forward-looking statements.
Forward-looking statements are subject to various risks and uncertainties, which could cause actual results to differ materially from the anticipated results or expectations expressed in this press release. As a result, although BlackSky's management believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because BlackSky can give no assurance that they will prove to be correct. The risks that could cause actual results to differ materially from current expectations include, but are not limited to, factors such as long and unpredictable sales cycles, customer demand, and our ability to estimate resources for fixed-price contracts, expenses, and other operational and liquidity needs, as well as the risk factors discussed in our most recent Annual Report on Form 10-K and other disclosures about BlackSky and its business included in BlackSky's disclosure materials filed from time to time with the SEC, which are available on the SEC's website at www.sec.gov or on BlackSky's Investor Relations website at ir.blacksky.com.
The forward-looking statements contained in this press release are expressly qualified in their entirety by the foregoing cautionary statements. All such forward-looking statements are based upon data available as of the date of this press release and speak only as of such date. BlackSky disclaims any intention or obligation to update or revise any forward-looking statements as a result of new information or future events, except as may be required under applicable securities law.
BLACKSKY TECHNOLOGY INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited) (in thousands, except per share amounts) |
|||||||
|
Three Months Ended March 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Revenue |
|
|
|
||||
Imagery & software analytical services |
$ |
17,833 |
|
|
$ |
15,760 |
|
Professional & engineering services |
|
6,403 |
|
|
|
2,637 |
|
Total revenue |
|
24,236 |
|
|
|
18,397 |
|
Costs and expenses |
|
|
|
||||
Imagery & software analytical service costs, excluding depreciation and amortization |
|
3,445 |
|
|
|
3,699 |
|
| Professional & engineering service costs, excluding depreciation and amortization |
|
3,588 |
|
|
|
2,779 |
|
| Selling, general and administrative |
|
18,816 |
|
|
|
18,949 |
|
| Research and development |
|
456 |
|
|
|
216 |
|
| Depreciation and amortization |
|
11,184 |
|
|
|
9,655 |
|
| Total costs and expenses |
|
37,489 |
|
|
|
35,298 |
|
| Operating loss |
|
(13,253 |
) |
|
|
(16,901 |
) |
| (Loss) gain on derivatives |
|
(254 |
) |
|
|
1,531 |
|
| Income on equity method investment |
|
— |
|
|
|
529 |
|
| Interest income |
|
400 |
|
|
|
435 |
|
| Interest expense |
|
(2,634 |
) |
|
|
(1,853 |
) |
| Other income (expense), net |
|
1 |
|
|
|
(943 |
) |
| Loss before income taxes |
|
(15,740 |
) |
|
|
(17,202 |
) |
| Income tax expense |
|
(70 |
) |
|
|
(113 |
) |
| Loss from continuing operations |
|
(15,810 |
) |
|
|
(17,315 |
) |
| Net loss |
|
(15,810 |
) |
|
|
(17,315 |
) |
| Other comprehensive income |
|
— |
|
|
|
— |
|
| Total comprehensive loss |
$ |
(15,810 |
) |
|
$ |
(17,315 |
) |
|
|
|
|
|
||||
| Basic and diluted loss per share of common stock: |
|
|
|
||||
| Net loss per share of common stock |
$ |
(0.11 |
) |
|
$ |
(0.14 |
) |
|
|
|
|
|
||||
| Weighted average common shares outstanding - basic and diluted |
|
143,228 |
|
|
|
124,144 |
|
| BLACKSKY TECHNOLOGY INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands, except par value) |
|||||||
|
|
March 31, 2024 |
|
December 31, 2023 |
||||
| Assets |
|
|
|
||||
| Current assets: |
|
|
|
||||
| Cash and cash equivalents |
$ |
14,965 |
|
|
$ |
32,815 |
|
| Restricted cash |
|
413 |
|
|
|
619 |
|
| Short-term investments |
|
20,428 |
|
|
|
19,697 |
|
| Accounts receivable, net of allowance of $252 and $151, respectively |
|
5,582 |
|
|
|
7,071 |
|
| Prepaid expenses and other current assets |
|
3,836 |
|
|
|
3,916 |
|
| Contract assets |
|
24,134 |
|
|
|
15,213 |
|
| Total current assets |
|
69,358 |
|
|
|
79,331 |
|
| Property and equipment - net |
|
59,883 |
|
|
|
67,116 |
|
| Operating lease right of use assets - net |
|
4,517 |
|
|
|
1,630 |
|
| Goodwill |
|
9,393 |
|
|
|
9,393 |
|
| Intangible assets - net |
|
1,216 |
|
|
|
1,357 |
|
| Satellite procurement work in process |
|
62,106 |
|
|
|
55,976 |
|
| Other assets |
|
3,640 |
|
|
|
9,263 |
|
| Total assets |
$ |
210,113 |
|
|
$ |
224,066 |
|
| Liabilities and stockholders’ equity |
|
|
|
||||
| Current liabilities: |
|
|
|
||||
| Accounts payable and accrued liabilities |
$ |
13,078 |
|
|
$ |
11,573 |
|
| Amounts payable to equity method investees |
|
164 |
|
|
|
10,843 |
|
| Contract liabilities - current |
|
2,157 |
|
|
|
3,670 |
|
| Debt - current portion |
|
304 |
|
|
|
— |
|
| Other current liabilities |
|
1,560 |
|
|
|
1,405 |
|
| Total current liabilities |
|
17,263 |
|
|
|
27,491 |
|
| Operating lease liabilities |
|
6,997 |
|
|
|
3,041 |
|
| Derivative liabilities |
|
15,404 |
|
|
|
15,149 |
|
| Long-term debt |
|
84,695 |
|
|
|
83,502 |
|
| Other liabilities |
|
4,041 |
|
|
|
1,724 |
|
| Total liabilities |
|
128,400 |
|
|
|
130,907 |
|
| Stockholders’ equity: |
|
|
|
||||
| Class A common stock, $0.0001 par value-authorized, 300,000 shares; issued, 146,821 and 145,232 shares; outstanding, 144,434 shares and 142,837 shares as of March 31, 2024 and December 31, 2023, respectively. |
|
14 |
|
|
|
14 |
|
| Additional paid-in capital |
|
696,479 |
|
|
|
692,115 |
|
| Accumulated deficit |
|
(614,780 |
) |
|
|
(598,970 |
) |
| Total stockholders’ equity |
|
81,713 |
|
|
|
93,159 |
|
| Total liabilities and stockholders’ equity |
$ |
210,113 |
|
|
$ |
224,066 |
|
| BLACKSKY TECHNOLOGY INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands) |
|||||||
|
|
Three Months Ended March 31, |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
| Cash flows from operating activities: |
|
|
|
||||
| Net loss |
$ |
(15,810 |
) |
|
$ |
(17,315 |
) |
| Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
| Depreciation and amortization expense |
|
11,184 |
|
|
|
9,655 |
|
| Operating lease right of use assets amortization |
|
191 |
|
|
|
446 |
|
| Bad debt expense |
|
100 |
|
|
|
— |
|
| Stock-based compensation expense |
|
3,363 |
|
|
|
3,012 |
|
| Amortization of debt issuance costs and non-cash interest expense |
|
2,121 |
|
|
|
113 |
|
| Loss (gain) on derivatives |
|
254 |
|
|
|
(1,531 |
) |
| Non-cash interest income |
|
(267 |
) |
|
|
(156 |
) |
| Income on equity method investment |
|
— |
|
|
|
(529 |
) |
| Gain on disposal of property and equipment |
|
— |
|
|
|
(22 |
) |
| Changes in operating assets and liabilities: |
|
|
|
||||
| Accounts receivable |
|
1,388 |
|
|
|
(5,947 |
) |
| Contract assets - current and long-term |
|
(3,328 |
) |
|
|
(591 |
) |
| Prepaid expenses and other current assets |
|
(195 |
) |
|
|
462 |
|
| Other assets |
|
344 |
|
|
|
(8 |
) |
| Accounts payable and accrued liabilities |
|
(2,354 |
) |
|
|
(2,966 |
) |
| Other current liabilities |
|
447 |
|
|
|
1,732 |
|
| Contract liabilities - current and long-term |
|
(1,239 |
) |
|
|
(2,951 |
) |
| Other liabilities |
|
(9 |
) |
|
|
(6 |
) |
| Net cash used in operating activities |
|
(3,810 |
) |
|
|
(16,602 |
) |
| Cash flows from investing activities: |
|
|
|
||||
| Purchase of property and equipment |
|
(3,297 |
) |
|
|
(2,874 |
) |
| Satellite procurement work in process |
|
(11,347 |
) |
|
|
(12,926 |
) |
| Purchases of short-term investments |
|
(9,464 |
) |
|
|
(11,792 |
) |
| Proceeds from maturities of short-term investments |
|
9,000 |
|
|
|
38,110 |
|
| Net cash (used in) provided by investing activities |
|
(15,108 |
) |
|
|
10,518 |
|
| Cash flows from financing activities: |
|
|
|
||||
| Proceeds from equity issuances, net of equity issuance costs |
|
1,298 |
|
|
|
29,432 |
|
| Proceeds from options exercised |
|
1 |
|
|
|
3 |
|
| Withholding tax payments on vesting of restricted stock units |
|
(419 |
) |
|
|
— |
|
| Payments for deferred financing costs |
|
(18 |
) |
|
|
— |
|
| Payments for deferred offering costs |
|
— |
|
|
|
(552 |
) |
| Payments of transaction costs related to derivative liabilities |
|
— |
|
|
|
(16 |
) |
| Net cash provided by financing activities |
|
862 |
|
|
|
28,867 |
|
| Net (decrease) increase in cash, cash equivalents, and restricted cash |
|
(18,056 |
) |
|
|
22,783 |
|
| Cash, cash equivalents, and restricted cash – beginning of year |
|
33,434 |
|
|
|
37,016 |
|
| Cash, cash equivalents, and restricted cash – end of period |
$ |
15,378 |
|
|
$ |
59,799 |
|
| BLACKSKY TECHNOLOGY INC. RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (unaudited) (in thousands) |
|||||||
|
|
Three Months Ended March 31, |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
| Net loss |
$ |
(15,810 |
) |
|
$ |
(17,315 |
) |
| Interest income |
|
(400 |
) |
|
|
(435 |
) |
| Interest expense |
|
2,634 |
|
|
|
1,853 |
|
| Income tax expense |
|
70 |
|
|
|
113 |
|
| Depreciation and amortization |
|
11,184 |
|
|
|
9,655 |
|
| Stock-based compensation expense |
|
3,363 |
|
|
|
3,012 |
|
| Loss (gain) on derivatives |
|
254 |
|
|
|
(1,531 |
) |
| Severance |
|
81 |
|
|
|
88 |
|
| Income on equity method investment |
|
— |
|
|
|
(529 |
) |
| Transaction costs associated with debt and equity financings |
|
— |
|
|
|
905 |
|
| Investment loss on short-term investments |
|
— |
|
|
|
55 |
|
| Adjusted EBITDA |
$ |
1,376 |
|
|
$ |
(4,129 |
) |
| BLACKSKY TECHNOLOGY INC. RECONCILIATION OF OPERATING EXPENSES TO CASH OPERATING EXPENSES (unaudited) (in thousands) |
|||||||
|
|
Three Months Ended March 31, |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
| Operating expenses |
$ |
30,456 |
|
|
$ |
28,820 |
|
| Stock-based compensation for selling, general and administrative costs |
|
(3,148 |
) |
|
|
(2,737 |
) |
| Depreciation and amortization |
|
(11,184 |
) |
|
|
(9,655 |
) |
| Cash operating expenses |
$ |
16,124 |
|
|
$ |
16,428 |
|
