First Very-High Resolution Gen-3 Satellite Delivering Imagery Five Days from Launch
Company Secures Over $150 Million in Recent Contract Awards
2025 Total Revenue Forecasted to Grow 30% Over 2024
HERNDON, Va. — (BUSINESS WIRE) — March 6, 2025 — BlackSky Technology Inc. (“BlackSky” or the “Company”) (NYSE: BKSY) announced the successful Gen-3 launch and imaging performance along with results for the fourth quarter and full year ended December 31, 2024.
“I’m happy to report that within 5 days of launch our new Gen-3 satellite is already exceeding customer expectations for initial very-high resolution image quality,” said Brian E. O’Toole, BlackSky CEO. “The addition of very-high resolution imagery to our high-frequency monitoring constellation enables us to deliver AI-derived insights at the speed of conflict, providing our customers with advanced space-based intelligence solutions. Building on this significant milestone, we are now set to begin a regular cadence of Gen-3 satellite launches to expand our capabilities. With early Gen-3 success and a number of significant recent contract wins, we’re off to a strong start to 2025.”
Full Year Financial Highlights:
- Revenue of $102.1 million
- Imagery & software analytical services revenue grew to $70.1 million
- Imagery & software analytical service cost of sales(1), as a percentage of revenue, improved to 20%
- Net loss(2) of $57.0 million
- Adjusted EBITDA(3) improved to $11.6 million compared to an Adjusted EBITDA loss of $1.0 million in the prior year
(1) Cost of sales is defined as imagery and software analytical services costs and professional and engineering services cost, less depreciation and amortization expense. |
(2) This represents our current estimate of net loss for the period ended December 31, 2024, which is subject to the completion of our financial closing procedures and adjustments that may result from the completion of the audit of our consolidated financial statements. As a result, this net loss estimate may differ from the actual net loss reported in our consolidated financial statements when they are completed and publicly disclosed in our Annual Report on Form 10-K. |
(3) Non-GAAP financial measure. See “Non-GAAP Financial Measures” below and reconciliation table at the end of this press release. |
Recent Highlights
- Successfully launched first Gen-3 satellite and began delivering imagery that is exceeding customer expectations for initial image quality five days after launch
- The National Reconnaissance Office extended its subscription for Gen-2 imagery services under the Electro-Optical Commercial Layer program into 2026
- Awarded a more than $100 million seven-year subscription contract with an existing international customer for Gen-2 and Gen-3 satellite imagery
- Won multi-year contracts totaling approximately $20 million to support India’s commercial earth observation capabilities, including imagery services and a dedicated space asset
- Awarded a multi-year contract valued up to $200 million with the National Geospatial-Intelligence Agency under the Luno B program to provide mission-critical data and analytic services
- Won a multi-million-dollar expansion contract with the Defense Innovation Unit to demonstrate space-based tactical ISR capabilities and provide on orbit operations under the TACGEO program
- Awarded a six-figure contract with a new strategic international customer to provide on-demand Gen-2 imagery, analytic services, and training on BlackSky’s Spectra tasking and analytics platform
- Won a multi-year subscription contract with EMDYN, a geospatial intelligence fusion company, to deliver space-based imagery services to international customers
- Recent 2025 contract awards increases the December 31, 2024 backlog of $261 million to approximately $390 million
Financial Results
Revenues
Total revenue for the fourth quarter of 2024 was $30.4 million, down $5.1 million, or 14%, from the fourth quarter of 2023, which included a $7 million one-time benefit under the Company’s Indonesian contract. Imagery and software analytical services revenue was $17.5 million in the fourth quarter of 2024, down $1.6 million from the prior year period primarily due to the upfront delivery of $2 million of imagery orders for a project received in the fourth quarter of 2023. Professional and engineering services revenue was $12.9 million in the fourth quarter of 2024, compared to $16.5 million in the prior year period, which included approximately $7 million for progress to date activities on capabilities to be delivered under the Indonesian contract. Professional and engineering services contracts are milestone-based contracts that may have quarter-over-quarter revenue variability, in contrast to the imagery and software analytical services, which are typically recurring subscription-based revenues.
For the full year 2024, total revenue was $102.1 million, up $7.6 million, or 8%, from 2023. Imagery and software analytical services revenue was $70.1 million, up $4.7 million, or 7% over the prior year.
Cost of Sales(1)
Total cost of sales as a percentage of revenue improved to 23% for the fourth quarter of 2024, compared to 34% in the fourth quarter of 2023.
For the full year 2024, cost of sales as a percentage of revenue improved to 27%, compared to 36% in 2023.
Operating Expenses
Operating expenses for the fourth quarter of 2024 were $29.6 million, which included $2.8 million of non-cash stock-based compensation expense and $10.0 million in depreciation and amortization expenses. Operating expenses for the fourth quarter of 2023 were $28.1 million, which included $3.0 million in non-cash stock-based compensation expense and $10.7 million in depreciation and amortization expenses. Excluding the non-cash stock-based compensation and depreciation and amortization expenses from both years, cash operating expenses(3) for the fourth quarter of 2024 were $16.9 million, compared to cash operating expenses of $14.5 million for the fourth quarter of 2023. The year-over-year increase of $2.4 million was primarily due to investments in the business, including bringing satellite production capabilities in-house.
For the full year 2024, operating expenses were $119.0 million, which included $10.5 million of non-cash stock-based compensation expense and $43.5 million in depreciation and amortization expenses. For the full year 2023, operating expenses were $116.7 million, which included $10.1 million of non-cash stock-based compensation expense and $43.4 million in depreciation and amortization expenses. Excluding the non-cash stock-based compensation and depreciation and amortization expenses from both years, cash operating expenses in 2024 were $64.9 million, compared to cash operating expenses of $63.1 million in 2023.
Net Loss(2)
Net loss for the fourth quarter of 2024 was $19.2 million, compared to a net loss of $3.8 million in the fourth quarter of 2023. The year-over-year increase in net loss of $15.4 million was primarily due to changes in the (loss)/gain on derivatives, which are driven by fluctuations in the Company’s equity warrants and other equity instruments that are measured at fair value and driven by the Company’s common stock price.
For the full year 2024, net loss was $57.0 million, compared to $53.9 million in 2023.
Adjusted EBITDA(3)
Adjusted EBITDA for the fourth quarter of 2024 was $7.4 million, compared to an adjusted EBITDA of $9.3 million in the fourth quarter of 2023, which included $6.5 million of specific project-based revenue and operating expense savings. Excluding the one-time benefit in the fourth quarter of 2023, adjusted EBITDA improved $4.6 million year-over-year primarily driven by strong operating leverage achieved through higher revenues and improved gross margins.
