Revenue up 68% to $10.1 million in FY 2023

Received $30 Million Strategic Investment from Tether Investments Limited

Planned Redomicile to U.S. to Position the Company to Compete for U.S. Government and Allied Contracts

NEW YORK — (BUSINESS WIRE) — April 15, 2024 — Satellogic Inc. (NASDAQ: SATL), a leader in sub-meter resolution Earth Observation (“EO”) data collection, today provided financial results for the year ended December 31, 2023, and a business update.

“The second half of 2023 was highlighted by new partnerships, continued revenue growth, and milestone accomplishments in our strategy to capitalize on high-value opportunities in the U.S.,” said Satellogic CEO, Emiliano Kargieman. “As the EO market and macroeconomic environment continue to evolve, we are strategically realigning our business to capture high value opportunities in the U.S. With our focus on the U.S., we have taken two important steps. First, we commenced the process of redomiciling to Delaware from the British Virgin Islands, with an aim to completing the conversion in the first half of 2024. As a result, once this process is complete, we will report results on a quarterly basis consistent with being a domestic filer. Second, in late 2023, we were granted approval for a remote sensing license for our constellation with the National Oceanic & Atmospheric Administration (NOAA). The license results in Satellogic being subject to NOAA’s oversight as we pivot operational control of our satellite constellation to U.S. personnel and expand the Satellogic ground station network to include U.S. based ground stations. These actions are crucial in terms of satisfying requirements for expanding business in the U.S. market and better positioning us to compete for U.S. government and allied contracts. With these two steps, we anticipate targeting new U.S. government contract opportunities in 2024, in addition to our current pipeline of international government and commercial opportunities.

“To support our new strategy, we recently announced a $30 million strategic investment from Tether Investments Limited, the company behind the world's leading stablecoin. With this transaction now completed, we are excited to continue advancing our U.S. strategy, including our redomiciliation to Delaware.”

Matt Tirman, Satellogic President, added, “During the second half of 2023 we had several compelling wins for our pipeline. With Tata Advanced Systems Limited (“TASL”), we are establishing and developing local space technology capabilities in India. Together we developed a new satellite design and worked together to integrate multiple payloads on a single satellite that will generate a diverse range of data over India. This collaboration is a first step in TASL’s satellite strategy and a significant milestone as we enter the fast-growing Indian defense and commercial markets. We also partnered with Uzma, a leading energy and technology company, to evolve the landscape of satellite imagery capabilities and geospatial services in Southeast Asia. The agreement includes leveraging a state-of-the-art EO satellite designed and manufactured by Satellogic that is planned to be launched in the second half of 2024 as “UzmaSAT-1” aboard a SpaceX Falcon 9 rocket, and extensive tasking access to the Satellogic constellation.

“The results of our efforts were revenue growth of 68% year-over-year primarily as a result of our Space Systems and Asset Monitoring businesses gaining momentum. We have proven that it is possible to provide high-quality satellite imagery through a constellation of small, low-orbit satellites at what we believe to be the lowest price, while retaining strong margins. We also recently celebrated our 16th consecutive successful launch and the continued expansion of our constellation, adding a NewSat Mark-V satellite to our fleet in orbit on board SpaceX’s Transporter-10 mission to support our partners and growth. We are consistently delivering more capacity, more reliability, and next-gen capabilities for our customers.

“Looking ahead, we are highly focused on a plan to meet the developing needs of our customers and the broader EO market, while making our organization more streamlined and efficient. We are closing in on the strategic realignment of our business to capitalize on what we believe to be our highest growth opportunities in the U.S.,” concluded Tirman.

Rick Dunn, Satellogic CFO, commented, “We ended 2023 with $23.5 million of cash on hand and significantly reduced our cash used in operations by $18.9 million, or 28%. Our revenue grew 68% to $10.1 million and gross profit excluding depreciation increased 84% to $5.0 million, with a corresponding 500 bps increase in gross margin to 50%, for the full year 2023. As we move into 2024, we have seen positive momentum in terms of revenue, backlog and pipeline with over $12 million signed strategic contracts in the second half of 2023.

“While we are encouraged by our positive momentum, we experienced slower than anticipated revenue growth. As a result, we undertook cost and spending control measures in 2023. These actions primarily related to the moderation of capital expenditures, a reduction of certain discretionary spending, as well as a headcount reduction, which represented approximately 25% of the total headcount at the beginning of 2023. Cumulative reductions in headcount are expected to result in approximately $7.5 million of annual savings in 2024.

“We continue to expect that our revenue for 2024 will largely be dependent on closing opportunities within our Space Systems line of business, which we anticipate will contribute considerable per unit cash flow and strong gross margin, although that revenue may be heavily weighted to the second half of the year. As we look to 2024 and beyond, we are focused on executing on our strategic realignment and growth opportunities in the U.S. market. We continue to expect our revenue will be driven by our further growth in Space Systems, Asset Monitoring, and Constellation-as-a-Service.

“Lastly, our ability to accurately forecast annual revenue and profitability relies on the speed and decision-making of our large commercial partners. This sales cycle is often long and subject to many variables beyond our control. For these reasons, the Company is withdrawing its previously communicated guidance. We have no current plans to publish guidance in the near term, but look forward to providing periodic updates as we achieve strategic and commercial milestones,” concluded Dunn.

Financial Results for the Year Ended December 31, 2023

• Revenue for the year ended December 31, 2023, increased 68% to $10.1 million, as compared to revenue of $6.0 million for the year ended December 31, 2022. The increase was driven primarily by Space Systems and Asset Monitoring lines of business.
• Gross profit, excluding depreciation expense, for the year ended December 31, 2023, totalled $5.0 million, an 84% increase, as compared to $2.7 million for the year ended December 31, 2022. Gross margin was 50% in the full year 2023, as compared to 45% for the prior year period, due primarily to the year over year increase in revenue.
• General and administrative expenses were $23.5 million for the year ended December 31, 2023, as compared to $37.2 million for the year ended December 31, 2022. The decrease was primarily due to cost savings initiatives in 2023, lower professional fees related to elevated merger activity during 2022, and lower insurance and other administrative expenses.
• Research & Development expenses decreased to $10.7 million for the year ended December 31, 2023, as compared to $13.1 million for the year ended December 31, 2022. The decrease was driven primarily by a decrease in other research and development expenses and professional fees, as a result of cost control measures implemented in 2023. Additionally, employee related expenses decreased due to lower average headcount in 2023 as compared to 2022.
• Net loss for the year ended December 31, 2023, increased to $61.0 million, as compared to a net loss of $36.6 million for the year ended December 31, 2022. The increase was primarily driven by a decrease in the change in fair value of financial instruments.
• Non-GAAP Adjusted EBITDA loss for the year ended December 31, 2023, decreased to $44.1 million from an Adjusted EBITDA loss of $56.0 million for the year ended December 31, 2022, primarily due to an increase in revenue, as well as a decrease in non-merger related costs and expenses and as a result of cost control measures implemented in 2023.
• Cash was $23.5 million at December 31, 2023, as compared to $76.5 million at December 31, 2022.
• Net cash used in operating activities decreased to $49.6 million for the year ended December 31, 2023, as compared to $68.5 million for the year ended December 31, 2022, primarily due to a reduction in headcount, research and development expenses, and professional fees.