Planet Labs (PL) Q3 2024 Earnings Breakdown

Key Highlights:

• Revenue Growth: Revenue increased by 11% year-over-year, reaching $61.3 million for Q3 2024. This growth was driven primarily by new customer acquisition in the Civil Government and Defense & Intelligence verticals.
• "Revenue increased $5.9 million, or 11%, to $61.3 million for the three months ended October 31, 2024 from $55.4 million for the three months ended October 31, 2023."
• Customer Base Expansion: Planet Labs reported an End of Period (EoP) Customer Count of 1,015, representing a 4% increase compared to the same period last year. This demonstrates continued market adoption of their platform.
• Strong Recurring Revenue: 97% of their ACV Book of Business consists of recurring revenue from annual or multi-year contracts. This indicates a stable and predictable revenue stream.
• Focus on Agile Space Systems: Planet Labs utilizes a strategy of deploying numerous low-cost satellites rather than investing in a few expensive ones. This approach has resulted in lower capital expenditures compared to competitors.
• Investing in New Verticals: The company is actively expanding its offerings to cater to emerging markets like energy, finance, insurance, and consumer packaged goods. They are also leveraging AI to make their data more accessible and actionable.
• Related Party Transactions with Google: Google, holding over 10% of Planet Labs' Class A common stock, is both a customer and a service provider. Planet Labs licenses content to Google and utilizes Google Cloud Platform for hosting and other services.
• Legal Proceedings: A stockholder class action lawsuit has been filed against former officers and directors of dMY IV (Planet Labs' SPAC predecessor) and the company itself, alleging breaches of fiduciary duties.