Planet Labs PBC (PL) 14 Dec 212022 Q3 Earnings call transcript

Good afternoon. Thank you for attending today's Planet Fiscal Q3 2022 Earnings Call. My name is Hannah, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. [Operator Instructions]. to Investor conference Relations. like Genualdi, to now of VP would pass over the Christopher I Please ahead. go

Hello, everyone, and of XXXX welcome to Planet's earnings fiscal call. quarterly third quarter

we like Planet Before current events future plans, as The our financial statements expectations. remind call, historical begin forward-looking our forward-looking inclusion we'd estimates Any based we everyone related and today's or that of our are may outlook. to performance make statements well to to on as by future be Such assumptions regarded and SEC as or found can our such will plans, uncertainties filings, in forward-looking information expectations be representation estimates at should not forward-looking a statements various and that be achieved. www.sec.gov. which detailed are as subject risks

or by which may is those statements undertake of performance to and we to from materially after events. reflect such on the the circumstances responsibility or statements, the results to such indicated no differ date reflect statement Our update forward-looking or unanticipated forward-looking actual made occurrence events

the financial future discuss that non-GAAP will financial comparisons. and and period enhance operational believe results, overall useful about by its in measures. period respect used information management a transparency provide operating to and financial measures means decision financial prospects also decision as operational for with to non-GAAP we measures understanding for performance these to financial We use of greater the allow evaluate past We and and key these metrics During call, making making.

Marshall, afternoon. this you, of and Co-Founder. other Will I'd discussed performance used management indicators call this time, CEO, press we in often measures, now At release. by by For in Chairperson earlier more our Will. the our release reconciliation over throughout Over more see are and competitors to to like to detail tables Planet's the call, and please this in financial number press used key information a in our the provided issued provide performance turn industry. indicators non-GAAP on These Further, key

redemptions for have merger Planet. this into and initiatives. XXX over we've trust call week fantastic ring Group, Exchange of at the everyone last Chris. a saw New to Inc. tuning million the believe Through our PL. completed $XXX SPAC was million our We're from our you million ticker the We for the capitalized on truly PIPE XXX and the proceeds. this huge proceeds It invest X% thrilled investors. York raised Stock today. to Thanks, fully York listed New Thank capital, With in long-term additional under from milestone Stock transaction, with remarkable our and less opening in dMY IV, celebrate we growth gross such the than received to bell Technology we’re just Exchange

our milestone public Going and journey Planet. XX-year for the the a significant marks beginning chapter of in next

to today. dive results today. for team dedicated Planet's I'd we wouldn’t dedication we us and mission, team, the their our hard take getting Without in work into a like is that moment where Before thank to here be world-class to this tremendous we the are so quarter,

sales to growth a team. is additions at by now straight to This results fiscal XX% the to of saw quarter. for XX.X XXX growth. grow record count and million continue third represents the Let's turn year-on-year we delivered sales increased XXXX, of as to away. We From XX% the customers the customer XX% of and the a pipeline quarter our revenue. we year-over-year our year-over-year end We see execution grew period, which our

executing remain outlook for our this reiterating XXXX fiscal from hear on focused you'll full plan. As we're against revenue and Ashley growth momentarily, year

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you committed in the So now our building incredible in investors to you. long business, capital need Ashley Thank group incredibly against all. And After call to on summary, that execute seeing plan. our to commercial forms and in mission of transformation have that with provide I'd the I'm growth And we turn term. the to with forward we're and we be to onto debut us. a plan, And keeps global have will now sustainability of us focused like the to significant and public which, have momentum the company, we we a relationships look the to We the recap supporting economy. a confident over an public made our to in tailwinds digital excited of take questions. financials. our markets

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revenue than came on larger consumption which customers in pacing our we the of anticipated, slightly quarterly Our of higher a recognized is due largely one for to basis. revenue

for therefore execute growth and $XXX to against plan, line top our million the outlook our of year. continue revenue reiterating We full are

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count period we reported the reminder, of count customers a period. contract end As customer the an all active total define Planet with of as with at the end of

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market As in for raised Planet's sales in across investments organization, meet data. our to adding such, up making market top to growth. and earnest the us invest public all one we We critical to accelerate filling infrastructure to teams our These we opportunity primary potential critical our expected that and of of line investments step in of beginning the they to marketing. positions capture ahead us are globally, enabling sales our began investments in the is to these the uses QX, the of sales and capital the supporting in force need going see leadership

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in net retention exceed our winbacks As shared dollar year September, at expect Day rate continue to with XXX% our fiscal for Analyst meeting we to 'XX.

for quarter saw both margins, and fiscal scaling is to the expand third extension gross XX% margins revenue This of to our 'XX fixed, of our fiscal by XX% driven several of Turning of by QX in satellites. gross in life and to 'XX. high the non-GAAP very our is goods subscription useful we of of we compared and resulting data model, Because SkySat sold margins, which XX% relatively cost between direct XX%. estimate our

in amortization our As cost a and reminder, satellites of sold. depreciation goods of we include our

On the one us our for the the we useful satellites, of caused satellite, expense. SkySat which estimate our to failure accelerates some expense, depreciation the on that topic of third in life which quarter, thrusters of depreciation of experienced adjust the

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our expect line model We expand to business and as to gross forward. margins our our continue grow top scale going we

the quarter, investments and began to third sales accelerate marketing. R&D we During our and in

increased R&D, just product, the our with and line on outlined spend a moment strategy Will we software in ago. For

In marketing increased of EBITDA we accelerate QX quarter $XX.X to resolution in in sales resolution investments resulted revisit, and accelerated the investment to we solution. the are adjusted Pelican and our third an very These force we million. high business strong our fleet marketing, programs. those announced our sales began in addition, and in our demand high seeing our investments in for meet investments In loss high new for the

marketing about drive. outcomes and for strategy that investing for and of We're in confident sales investment expect business and it will our software be Planet. areas the our commercial Going excited engineering key forward, in we to

the million, quarter for revenue spend our CapEx was as quarter. a CapEx percentage for X% of third the Our with approximately $X.X

forward expect range be the 'XX, $XX guidance million, to in million of million. the to quarter Looking to approximately spite revenue outlook This to suspension $XXX fiscal with of implying the large this of I fourth million of contract full line year earlier. to in alluded the shared in $XXX we is $XX earlier year, revenue

$XX continue from full expect a between in million. resulting XX% XX%, approximately $XX We marketing million is loss Adjusted sales EBITDA basis R&D, a as and expected $XX to a to million of we year quarter-over-quarter non-GAAP margins million EBITDA be loss to on in expanding XX% and in QX. and gross our of investments $XX

Our CapEx in spend million, is our expected $X.X as XX% to from full million million, million ground with of station CapEx well January. investments $XX This to for be Doves $X replenishment results and $X network million XX% as our super between scheduled early in revenue. $XX of launch or year in up QX to

Finally, of items some models. for housekeeping the your

with including therefore debt our $XX for and of payoff associated forward. that incur interest approximately going of will the loan SVB fees accrued completed we not and First, expense million, interest

notes sheet balance equity. previously on convertible all the converted that have Planet's been were to Additionally,

For equivalents cash and today. and can transaction, concludes questions. the shares please and filed SEC our earlier with cash comments, That following outstanding take detail form forma the on now our our pro we X-K to refer

Instructions]. [Operator Certainly.

proceed. Mike Northland on question the first with The line Latimore you Capital, of may

Congrats Great. the call Thanks here. public Good earnings news. and on lot. a first being

Thanks.

Thank you.

sales rates close on trending? you at pipeline give So how color Can a very cycles little strong are growth was and XX%. the

Can you take that, Ashley?

periods. some in with say geographies, signs of prior they've been showing in line basically And improvement. I'd Yes.

Got some you the you little or little color cases on geography. new vertical further with expansions? you talked it it. specifically -- Are great. such be these what's of cases? on ag the use they products expanded use a several R&D? new new geographic seeing ag expansion about expanding internal in demand into as behind for like around more Can expansions going dynamics give of a for Is where current you on one on highlighted And in the would there. A big kind And color vertical, then

primarily but suppose the it's former. Yes, I

-- to it's as in us with product as So will can the addition, expansion We a ag that do clear signed to capabilities for. then ag also is product there's a was with we Southern market we of hemisphere expansion have opportunities well. add also that exactly for growth and territory. within those this another where they're value-added to Syngenta We've case, territories they as piece. have that just asked actually, Taranis other And really or that see companies we expanding just both partnership in be services, add, we expansion big expand about lot which them wanting pay of significant in talk fit

I you’re guess Can like sounds the Great. as hiring you one, headcount sales confirm hires on expected? just last just are sales track.

continues Yes. the of progress ramp and reps pleased quarter-over-quarter, The reps number to so grow there. with

disclosed that the And fact filled frankly, our I see, mission. candidates leadership As just based strong part the sales we of close is and mentioned, publicly them in and which an team, continue we out on we've strategy. to important pool obviously the ability Planet's to position the

Candy, I'd fantastic add out Officer. doing He's of a have team. building just in confidence Chief Revenue just Charlie we personally great job that that our

Excellent. Thank luck. Good you.

you. Thank

The Thank you, Craig-Hallum. is line of Mr. Jeff next Rhee from with Van the question Latimore.

proceed. may You

Thanks for my and questions. off running taking Great. I'll congrats here. add my

couple for So me. a

ag the terms anything defense norm, particularly pipeline? from the it of for look want on key ESG, a markets, And those develop to what terms in you're a at in within seeing pipeline. if variance any Just the that's second dig in notable of target to were of and you

across actually No. I'd say board. it's the

the I helping awareness think feet to on to about and drive get it and it in. Planet, we've qualify been certainly pipeline having is, street then as one able more bring that's the

in is covers broad and use government, interesting a where areas land use deforestation. growth really including monitoring array a actually amount some applications, the monitoring cases from which to of of interest water seeing of new One civil we're significant and

for will uptick that's we the of be one significant the sector tailwind that's we're one where exciting, a and important area So our it's pipeline seeing sustainability certainly anticipate overall. areas an in where and

well picture, the on I myself questions obviously numbers and One on then the bit Two guide Helpful. could. think I revenue And outperformed below. a as was quarter. the consensus if

the You the at revenue wondering also, I'm you what unpredictability. the was. consensus difference. is wondering on usage respect VanderSat some guide where secondarily, if versus incremental about on just impact color that's I'm expenses QX then And from any about talked And if that that acquisition. QX some with EBITDA, QX had to guide the look the

Okay.

So knowing more got on that exactly at And had wide around thought enough just was that But revenue, really Day, given little was a the our you've right. bit I there Analyst yes, usage. is it range I a a little in bit of unpredictability QX. expectation

that just we'll of on overall more but I've lumpiness QX get this year, so our revenue ratable just that's matter move And some recognition, and of timing pacing. it's haircut and keeps we where as the -- out a more to whole of And that the of of us revenue picture. the out

been So between bit movement and CapEx. And EBITDA, a on little of there's that's you're front. seeing on what then revenue OpEx the primarily

have CapEx guidance, OpEx And in minus so expense where if back were September, the some Pelican with look predominantly you see shifts at fleet. we that for related but we consistent you'll CapEx our between and in had to EBITDA it's

capabilities. our resolution, our So seeing a about fact the in high we're and interest revisit high event of talked marketing in following we that that October, lot

And shifted so as recognized what expense that's OpEx. that, some lean from as of to our would we into CapEx be

of there. same. bit kind But is little the of a variability picture spend the So overall there's

leave it you. Thank Okay, there. I'll great.

Great. Thanks.

Park is from line Roy The Capital. of the question Rhee. Mr. next you, with Thank Ruben West

You may proceed.

we usage. you much congratulations. and start my maybe very talk could my on for guess just taking about made, Thanks Ashley, echo just I last To off comment start, questions the

add fiscal how those subscription next these about areas maybe is and to cases to like think think just new versus guess, some of use start how you you look insurance, these sort about usage we you new to mix year, as the of And think some verticals as of out I'm of are do across going ramp finance, getting trying verticals cetera. et more sales ramp, if figure as 'XX? I some to

lot to do we of Yes, contracts. structure how I think has a just it our with

customers, they're us virtually for, ratable quarter, sell then use to on a revenue that a couple predictability ramping credits which credits passing year. have they gave some would high it of the because lot latitude of of signed that basically and subscribing [ph]. terms the the were It even if becomes example, ago of we us customer use them when so And per still per to credit recognition, revenue we across for basis versus the gives when tasking contracts years it might certain a in we it's month, stream, easier a actually more number to

see whether ratable So move question? that from sense? that tasking or away more revenue address consumption think of a to it's the pure able more and Does in shifting predictability, think it's terms that to contracts. of shift the how about PlanetScope revenue to less Does we I of more subscription-like has subscription a make your SkySat subscription, we're

up quick it very just then follow does. you, That's helpful. And for a Yes, Ashley. Thank Will.

the you going government, -- big a defense cetera. expansions, et with As we about about guys think and on lot again intelligence, obviously these talked

have areas of balance kind to addressing it's next of the these you some exciting about think sheet in capitalized Now steps and emerging kind markets. in some the of growth of

whether invest you there those think to board you markets, we markets two forestry of about So about, or one do it's or as most or finance, some investments of or think accelerate et new that the you're across think you are Will, cetera? need excited insurance, kind it's immediately into, any or

accounts couple for years, most Well, we think in from our existing the where existing firstly, cases use next those come I expansion either the in the of of markets and growth new from know work. accounts that to already is markets going vertical comes or

more more lot companies and ag the government civil the So well. mapping, countries got go side and rest a U.S. -- intelligence to counties government, opportunities and we're a There's traction of where the to lot world. local where on state across governments agricultural, lot We've government civil There's after. having There’s go -- defense as that's civil the world. there's across the after. XXX there's a and then equivalents in X,XXX

And market so we've there. got huge, huge

of I excited of think all ships else very We really new on, that of the -- world I'm alpha go tell because anyone those before in to expressed et For into to stack attack market. output intrinsic think wide stack in the and markets so the value. development of can more et talking finance, the software can go that before before have insurance principal some cetera, sales now value it's finance the the the alike. that work needs our one. massive that other the to right? finance be primary business couple We capital the that and primarily core anyone else, cetera. huge. mines to to soil the those, vertical why about, mode. software anyone enable else, before data markets investments, anyone on you're area and major ports is it for enable I got But That's tell will sort up for that's doing sure to marketing have like two our the we is build just after a else, But for and our the software I about that's and personally using

it's So not now. primetime a thing

billions markets in got in -- a the of in opportunity of opportunity of I huge front us billions is core revenue that really those. said, and As we've just just

Right. Makes Will. sense. Thanks,

worries. No

the pass Roy. would the team to like question-and-answer remarks. session. I now the concludes for call Thank That closing to any back management you, Mr.

continuing go all the I we got we've a today. company. as think We look forward to public that's forward as conversation

for So today. joining thanks

the has Planet with about a business sense is to market. looking you fact the Analyst our market. we you, the that -- relationships a is subscription our enables market beginning the said a which one Day excited in no big and Look, Thank I that building at huge everyone. the differentiation public with really all big what forward scan are and of as Yes. data that else I'm we

that go fourth is thing opportunities. add those I now can right, to to think fully we after we're capitalized, a which

and investing we're and it's where And execution. now execution so execution, we know

So thanks very much.

earnings the participation. concludes you your That for fiscal Planet call. QX Thank XXXX

You disconnect your may now line.