Delivers Record Third Quarter Revenue of $49.7 Million, up 57% Year-over-Year
Expands YoY Third Quarter GAAP Gross Margin Expansion to 50% from 34%
Increases Full Year Revenue Guidance for FY’23 to $188-192 million, or 45% YoY Growth at the Midpoint

SAN FRANCISCO — (BUSINESS WIRE) — December 14, 2022 — 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 third quarter for the period ended October 31, 2022, demonstrating continued growth and momentum of its unique data subscription business.

“We delivered another quarter of great results, which we believe is a testament to the strong execution across the company and the mission-critical nature of our data,” said Will Marshall, Planet’s Co-Founder, Chief Executive Officer and Chairperson. “We saw great momentum in the government segment and announced multiple exciting new strategic partnerships in the commercial sector. Planet’s growth continues to be underpinned by global, secular tailwinds that are driving demand for our solutions. Our data helps enable customers and partners to address today’s most complex issues, ranging from climate risk and adaptation to geopolitical security.”

Ashley Johnson, Planet’s Chief Financial and Operating Officer, added, “For the third quarter of fiscal year 2023, we delivered $49.7 million in revenue, a growth rate of 57% year-over-year, expanded Non-GAAP Gross Margin to 54%, and ended the quarter with $425 million of cash, cash equivalents and short-term investments. Q3 marked another great quarter for Planet and we expect to close out the year strong with the quarter ahead.”

Fiscal Third Quarter 2022 Financial and Key Metric Highlights:

• Third quarter revenue increased 57% year-over-year to $49.7 million.
• Percent of Recurring Annual Contract Value (ACV) for the third quarter was 94%.
• End of Period (EoP) Customer Count increased 16% year-over-year to 864 customers.
• Net dollar retention rate for the quarter was 123%, while net dollar retention rate with winbacks was 125%.
• Third quarter gross margin expanded to 50%, compared to 34% in the third quarter of fiscal year 2022.
• Third quarter Non-GAAP Gross Margin⁽¹⁾ expanded to 54%, compared to 35% in the third quarter of fiscal year 2022.
• Ended the quarter with $425 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, please find below a reconciliation to the most directly comparable U.S. GAAP financial measure

Recent Business Highlights:

Growing Customer and Partner Relationships:

• Accenture: Planet announced a collaboration agreement with Accenture, through its Accenture Ventures Project Spotlight initiative, to combine Planet’s high frequency satellite data with Accenture’s industry and technology expertise. Planet and Accenture plan to collaborate on an array of sustainability and impact initiatives, including traceable supply chain strategy and data-based climate risk assessments to mitigate disruption across global value chains.
• Amazon Web Services (AWS): Planet data can now be directly embedded into AWS SageMaker, enabling data scientists and machine learning (ML) engineers to acquire global, daily satellite data to build, train, and deploy ML models using geospatial data with greater efficiency. This new collaboration with AWS enables a go-to-market strategy to accelerate data access within geospatial tools and cloud platforms.
• Microsoft: Planet expanded its work with Microsoft's AI for Good Lab. Planet will be supplying satellite data to support African climate adaptation projects developed out of the first global expansion of AI for Good Labs into Nairobi, Kenya and Cairo, Egypt. This work builds on prior projects including a collaboration with Microsoft and The Nature Conservancy on the Global Renewables Watch, which is mapping the world's utility-scale solar and wind installations, and the creation of a building damage assessment tool of Ukraine used by the United Nations.
• International Ministry of Defense Customer: During the quarter, Planet closed a renewal and expansion contract with an international ministry of defense customer worth greater than $10 million over the next 12 months. Planet has partnered with this customer for over 3 years and is proud to continue supporting their geospatial needs.
• ZEP-RE: Planet signed a new deal with ZEP-RE, a reinsurance provider based in Nairobi, Kenya. ZEP-RE is leveraging Planet’s Basemaps products to enhance drought risk protection in the Horn of Africa. Working with Planet, they aim to expand their insurance program from supporting 150,000 to over 250,000 pastoralists. In the process, ZEP-RE is seeking to generate a drought index that can be customized to locations to determine payout amounts, generate premium rates, and enable faster claims.
• Ukraine: Planet continued to support the critical response efforts in Ukraine by providing imagery to governments, aid and relief organizations, think tanks and the media.

Bringing New Technologies to Market:

• Salo Sciences: Planet signed an agreement to acquire Salo Sciences, Inc., an innovative, San Francisco-based climate technology company specializing in measuring Earth’s constantly changing ecosystems. Salo Sciences’ current products include a Planet-powered forest carbon measurement tool that can help enable climate, sustainable land use solutions, and much more. With this acquisition, and using PlanetScope data as a foundational layer, Planet plans to further develop its offerings to help customers monitor forest change, quantify carbon stocks, track carbon offsets and mitigate climate risks. The acquisition is expected to close early next year and is subject to customary closing conditions.
• Enhanced Analytics: Planet is now offering an improved vessel detection algorithm that increases the company’s ability to support Maritime Domain Awareness activities and missions. The new algorithm brings enhanced performance enabling Planet to better monitor millions of km2 of open ocean including the South China Sea, Gulf of Mexico and other high traffic areas. This renewed investment in its ship detection capabilities will allow Planet’s customers to track the movement of vessels across the globe, from ports to strategic waterways, empowering them to make more strategic decisions.

Impact and Education:

• Nonprofit and NGO Program: Planet launched an offering that provides access to Planet imagery and support services specifically for nonprofits and non-governmental organizations (NGOs) to help users better extract information, create applications that power decisions and enable action, and potentially incubate powerful new use cases relevant to commercial market segments.
• COP27 and COP15: Planet presented at both the United Nations climate change conference (COP27) and its convention on biological diversity (COP15), announcing a string of partnerships at each. This ranged from using satellites to monitor key biodiversity areas to the intent to create a location dataset for global supply chains that aims to increase resilience. These types of collaborations can bring critical data to support measurement to accelerate humanity’s critical environmental ambitions.

Financial Outlook

For the fourth quarter of fiscal year 2023, Planet expects revenue to be in the range of approximately $50 million to $54 million, representing approximately 40% year-over-year growth at the midpoint. Non-GAAP Gross Margin is expected to be between approximately 56% to 59%. Adjusted EBITDA is expected to be between approximately ($21) million and ($16) million. Capital Expenditure as a Percentage of Revenue is expected to be between approximately 8% and 11% of revenue for the fourth quarter.

For fiscal year 2023, Planet has increased its revenue outlook and expects it to be in the range of approximately $188 million to $192 million, representing approximately 45% growth at the midpoint. Non-GAAP Gross Margin is expected to be between approximately 52% to 53%. Adjusted EBITDA is expected to be between approximately ($60) million and ($56) million. Capital Expenditure as a Percentage of Revenue is expected to be between approximately 8% to 9% for the full fiscal year 2023.