Spire Global Announces Strong First Quarter 2023 Results

ARR Customers. We define an ARR Customer as an entity that has a contract with us or through our reseller partners contracts, that is either a binding and renewable agreement for our subscription solutions, or a binding multi-year contract as of the measurement date independent of the number of solutions the entity has under contract. A single organization with separate subsidiaries, segments, or divisions may represent multiple customers, as we treat each entity that is invoiced separately as an individual customer. In cases where customers subscribe to our platform through our reseller partners, each end customer that meets the above definition is counted separately as an ARR Customer. All entities that have contracts for data trials and one-time transactions are excluded from the calculation of ARR Customers.

ARR Solution Customers. We define an ARR Solution Customer similarly to an ARR Customer, but we count every solution the customer has with us separately. As a result, the count of ARR Solution Customers exceeds the count of ARR Customers in each year as some customers contract with us for multiple solutions. Our multiple solutions customers are those that are under contract for at least two of our solutions: Maritime, Aviation, Weather, and Space Services. All entities that have contracts for data trials and one-time transactions are excluded from the calculation of ARR Solution Customers.

Conference Call

Spire will webcast a conference call to discuss the results at 5:00 p.m. Eastern Time today. The webcast will be available on Spire’s Investor Relations website at https://ir.spire.com. A replay of the call will be available on the site for three months.

Safe Harbor Statement

The forward-looking statements included in this press release and in the related conference call, including for example, the quotations of management, the statements under the heading “Financial Outlook” above, the information provided in the “GAAP to Non-GAAP Reconciliations – Q2 2023 and Full Year 2023 Financial Outlook” section of the tables below, statements regarding continued growth, statements regarding Spire’s expected timing to generate positive cash flow, statements regarding increasing its ARR, statements regarding profitability, and statements regarding the benefits of its solutions to its customers and generally, reflect management’s best judgment based on factors currently known and involve risks and uncertainties. These risks and uncertainties include, but are not limited to, potential disruption of customer purchase decisions resulting from global economic conditions including from an economic downturn or recession in the United States or in other countries around the world, relative growth of its ARR and revenue, the failure of the Spire and exactEarth businesses (including personnel) to be integrated successfully, the risk that revenue and adjusted EBITDA accretion or the expansion of Spire’s customer count, ARR, product offerings and solutions will not be realized or realized to the extent anticipated, the ability to maintain the listing of Spire’s securities on the New York Stock Exchange, the ability to address the market opportunity for Space-as-a-Service, the ability to implement business plans, forecasts, and other expectations, and identify and realize additional opportunities, the risk of downturns, new entrants and a changing regulatory landscape in the highly competitive space data analytics industries, developments in and the duration of the COVID-19 pandemic and the resulting impact on Spire’s business and operations, and the business of its customers and partners, Spire’s potential inability to manage effectively any growth it experiences, Spire’s ability or inability to develop new products and services, and other risks detailed in reports Spire has filed with the Securities and Exchange Commission, including Spire’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Significant variation from the assumptions underlying Spire’s forward-looking statements could cause its actual results to vary, and the impact could be significant. All forward-looking statements in this press release are based on information available to Spire as of the date hereof. Spire undertakes no obligation, and does not intend, to update the information contained in this press release or the accompanying conference call, except as required by law.

About Spire Global, Inc.

Spire (NYSE: SPIR) is a global provider of space-based data, analytics and space services, offering unique datasets and powerful insights about Earth so that organizations can make decisions with confidence in a rapidly changing world. Spire builds, owns, and operates a fully deployed satellite constellation that observes the Earth in real time using radio frequency technology. The data acquired by Spire’s satellites provides global weather intelligence, ship and plane movements, and spoofing and jamming detection to better predict how their patterns impact economies, global security, business operations and the environment. Spire also offers Space as a Service solutions that empower customers to leverage its established infrastructure to put their business in space. Spire has eight offices across the U.S., Canada, UK, Luxembourg and Singapore. To learn more, visit www.spire.com.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

Three Months Ended March 31,

(In thousands, except share and per share amounts)

 

2023

 

 

 

2022

 

Revenue

$

24,168

 

$

18,070

 

Cost of revenue

 

10,360

 

 

9,846

 

Gross profit

 

13,808

 

 

8,224

 

Operating expenses:
Research and development

 

9,663

 

 

8,657

 

Sales and marketing

 

6,850

 

 

6,905

 

General and administrative

 

11,770

 

 

12,684

 

Total operating expenses

 

28,283

 

 

28,246

 

Loss from operations

 

(14,475

)

 

(20,022

)

Other income (expense):
Interest income

 

565

 

 

14

 

Interest expense

 

(4,578

)

 

(3,043

)

Change in fair value of contingent earnout liability

 

76

 

 

6,883

 

Change in fair value of warrant liabilities

 

746

 

 

5,835

 

Foreign exchange

 

1,024

 

 

(935

)

Other expense, net

 

(762

)

 

(234

)

Total other (expense) income, net

 

(2,929

)

 

8,520

 

Loss before income taxes

 

(17,404

)

 

(11,502

)

Income tax provision

 

269

 

 

290

 

Net loss

$

(17,673

)

$

(11,792

)

Basic and diluted net loss per share

$

(0.12

)

$

(0.08

)

Weighted-average shares used in computing basic and diluted net loss per share

 

144,770,908

 

 

139,879,423

 

 
 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited)

 

Three Months Ended March 31,

 

2023

 

 

2022

 

(In thousands) (Unaudited) (Unaudited)
Net loss

$

(17,673

)

$

(11,792

)

Other comprehensive (loss) gain:
Foreign currency translation adjustments

 

(1,589

)

 

1,859

 

Net unrealized gain on investments (net of tax)

 

44

 

 

 

Comprehensive loss

$

(19,218

)

$

(9,933

)

 

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

March 31,

December 31,

(In thousands)

 

2023

 

 

2022

 

Assets
Current assets
Cash and cash equivalents

$

46,952

 

$

47,196

 

Marketable securities

 

25,660

 

 

23,084

 

Accounts receivable, net (including allowance of $944 and $395 as of March 31, 2023 and December 31, 2022, respectively)

 

13,855

 

 

13,864

 

Contract assets

 

4,213

 

 

3,353

 

Other current assets

 

8,949

 

 

9,279

 

Total current assets

 

99,629

 

 

96,776

 

Property and equipment, net

 

58,147

 

 

53,752

 

Operating lease right-of-use assets

 

12,549

 

 

11,687

 

Goodwill

 

50,039

 

 

49,954

 

Customer relationships

 

20,373

 

 

20,814

 

Other intangible assets

 

13,590

 

 

13,967

 

Other long-term assets, including restricted cash

 

9,175

 

 

9,562

 

Total assets

$

263,502

 

$

256,512

 

Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable

$

6,517

 

$

4,800

 

Accrued wages and benefits

 

4,861

 

 

4,502

 

Contract liabilities, current portion

 

17,444

 

 

15,856

 

Other accrued expenses

 

7,596

 

 

8,210

 

Total current liabilities

 

36,418

 

 

33,368

 

Long-term debt

 

119,035

 

 

98,475

 

Contingent earnout liability

 

273

 

 

349

 

Deferred income tax liabilities

 

794

 

 

771

 

Warrant liability

 

1,066

 

 

1,831

 

Operating lease liabilities, net of current portion

 

11,523

 

 

10,815

 

Other long-term liabilities

 

556

 

 

780

 

Total liabilities

 

169,665

 

 

146,389

 

Commitments and contingencies
Stockholders’ equity
Common stock

 

16

 

 

16

 

Additional paid-in capital

 

458,683

 

 

455,751

 

Accumulated other comprehensive loss

 

(8,542

)

 

(6,997

)

Accumulated deficit

 

(356,320

)

 

(338,647

)

Total stockholders’ equity

 

93,837

 

 

110,123

 

Total liabilities and stockholders’ equity

$

263,502

 

$

256,512

 

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

Three Months Ended March 31,

(In thousands)

 

2023

 

 

 

2022

 

Cash flows from operating activities
Net loss

$

(17,673

)

$

(11,792

)

Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization

 

3,916

 

 

4,834

 

Stock-based compensation

 

2,646

 

 

2,289

 

Amortization of operating lease right-of-use assets

 

224

 

 

573

 

Accretion on carrying value of convertible notes

 

 

 

 

Amortization of debt issuance costs

 

554

 

 

1,413

 

Change in fair value of warrant liability

 

(746

)

 

(5,835

)

Change in fair value of contingent earnout liability

 

(76

)

 

(6,883

)

Deferred income tax liabilities

 

6

 

 

 

Other, net

 

(110

)

 

 

Changes in operating assets and liabilities:
Accounts receivable, net

 

97

 

 

2,215

 

Contract assets

 

(855

)

 

(1,531

)

Other current assets

 

117

 

 

1,409

 

Other long-term assets

 

410

 

 

469

 

Accounts payable

 

(604

)

 

(828

)

Accrued wages and benefits

 

323

 

 

(1,051

)

Contract liabilities

 

1,259

 

 

(962

)

Other accrued expenses

 

(548

)

 

1,077

 

Operating lease liabilities

 

(230

)

 

(342

)

Other long-term liabilities

 

 

 

(46

)

Net cash used in operating activities

 

(11,290

)

 

(14,991

)

Cash flows from investing activities
Purchases of short-term investments

 

(13,908

)

 

 

Maturities of short-term investments

 

11,600

 

 

 

Purchase of property and equipment

 

(4,649

)

 

(4,243

)

Investment in intangible assets

 

 

 

(19

)

Net cash used in investing activities

 

(6,957

)

 

(4,262

)

Cash flows from financing activities
Proceeds from long-term debt

 

19,886

 

 

95

 

Proceeds from exercise of stock options

 

 

 

638

 

Net cash provided by financing activities

 

19,886

 

 

733

 

Effect of foreign currency translation on cash, cash equivalents and restricted cash

 

(1,846

)

 

850

 

Net decrease in cash, cash equivalents and restricted cash

 

(207

)

 

(17,670

)

Cash, cash equivalents and restricted cash
Beginning balance

 

47,569

 

 

109,645

 

Ending balance

$

47,362

 

$

91,975

 

 

GAAP to Non-GAAP Reconciliations

(Unaudited)

 

Three Months End March 31,

(In thousands, except for share and per share amounts)

 

2023

 

 

 

2022

 

 
Gross profit (GAAP)

$

13,808

 

$

8,224

 

Adjustments:
Exclude stock-based compensation

 

77

 

 

77

 

Exclude amortization of purchased intangibles

 

859

 

 

919

 

Exclude other acquisition accounting amortization

 

166

 

 

183

 

Exclude merger and acquisition related expenses

 

-

 

 

77

 

Gross profit (Non-GAAP)

$

14,910

 

$

9,480

 

 
Research and development (GAAP)

 

9,663

 

 

8,657

 

Adjustments:
Exclude stock-based compensation

 

(651

)

 

(711

)

Exclude merger and acquisition related expenses

 

-

 

 

(168

)

Research and development (Non-GAAP)

 

9,012

 

 

7,778

 

 
Sales and marketing (GAAP)

 

6,850

 

 

6,905

 

Adjustments:
Exclude stock-based compensation

 

(437

)

 

(616

)

Exclude amortization of purchased intangibles

 

-

 

 

(815

)

Exclude merger and acquisition related expenses

 

-

 

 

(168

)

Sales and marketing (Non-GAAP)

 

6,413

 

 

5,306

 

 
General and administrative (GAAP)

 

11,770

 

 

12,684

 

Adjustments:
Exclude stock-based compensation

 

(1,481

)

 

(885

)

Exclude merger and acquisition related expenses

 

(1,015

)

 

(2,601

)

General and administrative (Non-GAAP)

 

9,274

 

 

9,198

 

 
Loss from operations (GAAP)

$

(14,475

)

$

(20,022

)

Adjustments:
Exclude stock-based compensation

 

2,646

 

 

2,289

 

Exclude merger and acquisition related expenses

 

1,015

 

 

3,014

 

Exclude amortization of purchased intangibles

 

859

 

 

1,734

 

Exclude other acquisition accounting amortization

 

166

 

 

183

 

Loss from operations (Non-GAAP)

$

(9,789

)

$

(12,802

)

 
Operating Margin (GAAP)

 

-60

%

 

-111

%

Adjustments:
Exclude stock-based compensation

 

11

%

 

13

%

Exclude merger and acquisition related expenses

 

4

%

 

16

%

Exclude amortization of purchased intangibles

 

3

%

 

10

%

Exclude other acquisition accounting amortization

 

1

%

 

1

%

Operating Margin (Non-GAAP)

 

-41

%

 

-71

%

 
Net loss (GAAP)

$

(17,673

)

$

(11,792

)

Adjustments:
Exclude stock-based compensation

 

2,646

 

 

2,289

 

Exclude merger and acquisition related expenses

 

1,015

 

 

3,014

 

Exclude amortization of purchased intangibles

 

859

 

 

1,734

 

Exclude other acquisition accounting amortization

 

166

 

 

183

 

Exclude change in fair value of contingent earnout liability

 

(76

)

 

(6,883

)

Exclude change in fair value of warrant liabilities

 

(746

)

 

(5,835

)

Exclude foreign exchange

 

(1,024

)

 

935

 

Exclude other expense, net

 

762

 

 

234

 

Net loss (Non-GAAP)

$

(14,071

)

$

(16,121

)

 
Net loss per share (GAAP)

$

(0.12

)

$

(0.08

)

Adjustments:
Exclude stock-based compensation

$

0.02

 

$

0.02

 

Exclude merger and acquisition related expenses, purchased intangibles and other acquisition accounting amortization

$

0.01

 

$

0.03

 

Exclude change in fair value of warrant liabilities and change in value of contingent earnout liability

$

(0.01

)

$

(0.10

)

Exclude foreign exchange

$

(0.01

)

$

0.01

 

Exclude other expense, net

$

0.01

 

$

-

 

Net loss per share (Non-GAAP)

 

(0.10

)

$

(0.12

)

 
Weighted-average shares used in computing basic net loss per share

 

144,770,908

 

 

139,274,538

 

Weighted-average shares used in computing diluted net income per share

 

144,770,908

 

 

139,274,538

 

 
Net loss (GAAP)

$

(17,673

)

$

(11,792

)

Depreciation and amortization

 

3,916

 

 

4,834

 

Net Interest

 

4,013

 

 

3,029

 

Taxes

 

269

 

 

290

 

EBITDA

 

(9,475

)

 

(3,639

)

Change in fair value of contingent earnout liability

 

(76

)

 

(6,883

)

Change in fair value of warrant liabilities

 

(746

)

 

(5,835

)

Foreign exchange

 

(1,024

)

 

935

 

Stock-based compensation

 

2,646

 

 

2,289

 

Mergers and acquisition related expenses

 

1,015

 

 

3,014

 

Other acquisition accounting amortization

 

166

 

 

183

 

Loss on decommissioned satellites

 

-

 

 

-

 

Other expense, net

 

762

 

 

234

 

Adjusted EBITDA

$

(6,732

)

$

(9,702

)

 
Net cash used in operating activities

 

(11,290

)

 

(14,991

)

Purchase of property and equipment

 

(4,649

)

 

(4,243

)

Free Cash Flow

$

(15,939

)

$

(19,234

)

 

GAAP to Non-GAAP Reconciliations – Q2 2023 and Full Year 2023 Financial Outlook

(Unaudited)

 
(In thousands, except for share and per share amounts) Q2'23 Ranges

Low

High

Revenue

$

24,000

 

$

25,000

 

Low

High

Loss from operations (GAAP)

$

(13,949

)

$

(12,949

)

Adjustments:
Exclude stock-based compensation

 

3,097

 

 

3,097

 

Exclude amortization of purchased intangibles

 

872

 

 

872

 

Exclude other acquisition accounting amortization

 

170

 

 

170

 

Loss from operations (Non-GAAP)

$

(9,810

)

$

(8,810

)

 

Low

High

Net loss per share (GAAP)

$

(0.13

)

$

(0.12

)

Adjustments:
Exclude stock-based compensation

 

0.02

 

 

0.02

 

Exclude purch intangibles and other purch acctg amortization

 

0.01

 

 

0.01

 

Exclude other expense, net

 

0.00

 

 

0.00

 

Net loss per share (Non-GAAP)

$

(0.10

)

$

(0.09

)

Weighted-average shares used in computing basic and diluted net loss per share

 

146,726,676

 

 

146,726,676

 

 

Low

High

Net loss (GAAP)

$

(18,897

)

$

(17,897

)

Depreciation and amortization

 

4,331

 

 

4,331

 

Net Interest

 

4,652

 

 

4,652

 

Taxes

 

97

 

 

97

 

EBITDA

$

(9,817

)

$

(8,817

)

Stock-based compensation

 

3,097

 

 

3,097

 

Other expense, net

 

200

 

 

200

 

Other acquisition accounting amortization

 

170

 

 

170

 

Adjusted EBITDA

$

(6,350

)

$

(5,350

)

 
(In thousands, except for share and per share amounts) FY 2023 Ranges

Low

High

Revenue

 

104,000

 

 

109,000

 

 

Low

High

Loss from operations (GAAP)

$

(51,250

)

$

(46,250

)

Adjustments:
Exclude stock-based compensation

 

12,078

 

 

12,078

 

Exclude merger and acquisition related expenses

 

1,015

 

 

1,015

 

Exclude amortization of purchased intangibles

 

3,475

 

 

3,475

 

Exclude other acquisition accounting amortization

 

682

 

 

682

 

Loss from operations (Non-GAAP)

$

(34,000

)

$

(29,000

)

 

Low

High

Net loss per share (GAAP)

$

(0.47

)

$

(0.44

)

Adjustments:
Exclude stock-based compensation

$

0.08

 

$

0.08

 

Exclude merger and acquisition related expenses

$

0.01

 

$

0.01

 

Exclude purch intangibles and other acq acctg amortization

$

0.03

 

$

0.03

 

Exclude change in fair value of contingent earnout liability

$

-

 

$

-

 

Exclude change in fair value of warrant liabilities

$

(0.01

)

$

(0.01

)

Exclude gain on foreign exchange

$

(0.01

)

$

(0.01

)

Exclude other expense, net

$

0.01

 

$

0.01

 

Net loss per share (Non-GAAP)

$

(0.36

)

$

(0.33

)

 
Weighted-average shares used in computing basic and diluted net loss per share

 

148,407,692

 

 

148,407,692

 

 

Low

High

Net loss (GAAP)

$

(69,585

)

$

(64,585

)

Depreciation and amortization

 

18,436

 

 

18,436

 

Net Interest

 

18,006

 

 

18,006

 

Taxes

 

852

 

 

852

 

EBITDA

$

(32,291

)

$

(27,291

)

Change in fair value of contingent earnout liability

$

(76

)

$

(76

)

Change in fair value of warrant liabilities

 

(746

)

 

(746

)

Foreign exchange

 

(1,024

)

 

(1,024

)

Other expense, net

 

1,362

 

 

1,362

 

Stock-based compensation

 

12,078

 

 

12,078

 

Mergers and acquisition related expenses

 

1,015

 

 

1,015

 

Other acquisition accounting amortization

 

682

 

 

682

 

Adjusted EBITDA

$

(19,000

)

$

(14,000

)


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