BlackSky Technology Inc (BKSY) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and ...

GuruFocus News

Fri, May 9, 2025, 12:19 AM 3 min read

Release Date: May 08, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• BlackSky Technology Inc (NYSE:BKSY) reported beardown show of its caller Gen 3 satellite, exceeding expectations successful representation prime and analytics capabilities.

• The institution secured implicit $130 cardinal successful caller contracts and renewal agreements, demonstrating beardown request for its space-based quality solutions.

• Backlog grew by 50% year-over-year, providing beardown gross visibility for aboriginal periods.

• Revenue accrued by 22% year-over-year, driven by caller declaration awards and beardown bookings.

• BlackSky Technology Inc (NYSE:BKSY) improved its liquidity position, ending the 4th with $77 cardinal successful currency and short-term investments, and a full liquidity presumption of implicit $136 million.

• Adjusted EBITDA for the archetypal 4th was a nonaccomplishment of $600,000, compared to a affirmative $1.4 cardinal successful the anterior twelvemonth quarter, chiefly owed to higher SG&A expenses.

• The institution faces imaginable risks from a fluid geopolitical and economical environment, which could interaction declaration awards and fund allocations.

• There is quarter-to-quarter variability successful gross designation owed to milestone-based contracts, which whitethorn impact fiscal performance.

• The integration of Leo Stella has led to accrued overhead costs, impacting short-term fiscal results.

• The imagery and analytics gross was down sequentially, reflecting timing issues and slower-than-expected orders from definite customers.

• Warning! GuruFocus has detected 2 Warning Sign with BKSY.

Q: How are geopolitical uncertainties affecting discussions with planetary customers? A: Brian O'Toole, CEO, mentioned that contempt geopolitical dynamics, determination is beardown worldwide request for space-based quality solutions. Governments are accelerating investments successful sovereign capabilities, and BlackSky is well-positioned to code nationalist information needs.

Q: How important is AI successful attracting caller customers, and is it a deal-breaker for them? A: Brian O'Toole explained that AI is becoming captious arsenic customers request to negociate the precocious measurement and velocity of information. The integration of AI is indispensable for speeding up insights, and this capableness is progressively important for customers expanding their operations.

Q: What is the timeline for recognizing the backlog, and however overmuch relates to Gen 3 capacity? A: Brian O'Toole stated that the backlog, which grew to $366 million, includes near-term gross from imagery and analytics. Significant backlog is expected to beryllium recognized post-2026, with Gen 3 capableness playing a important relation successful aboriginal revenue.