Slowdown in casualties, new military treaty

BlackSky on the New York Stock Exchange, September 13, 2021.

Source: New York SE

Specialist in satellite imagery Black sky announced fourth-quarter results Tuesday, showing the company continued to cut losses and secure an additional military contract.

“2022 was a founding year for BlackSky,” CEO Brian O’Toole said in a statement, adding that “this high level of execution has placed us on track to achieve positive Adjusted EBITDA in the fourth quarter of 2023.”

The company has 14 operational satellites in orbit and plans to launch two more on one rocket lab mission this month.

BlackSky posted an Adjusted EBITDA loss of $4.6 million for the fourth quarter, down 68% from the year-ago period and less than the $6.5 million loss it posted for the third quarter had reported. Revenue rose 69% year over year to $19.4 million.

The company had $75 million in cash at the end of the fourth quarter and announced plans to raise additional funds through the sale of 16.4 million common shares to “a consortium of new and existing institutional investors.” BlackSky expects the private placement to close on Wednesday for gross proceeds of approximately $29.5 million.

BlackSky shares are down about 4% from their previous close of $1.93 in early trade Tuesday. The stock is up nearly 20% this year, but remains well below its September 2021 public debut of nearly $11 per share.

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BlackSky expects annual sales of nearly $100 million in 2023 and forecasts a range of between $90 million and $96 million for the coming year.

It announced a multi-year defense contract worth over $150 million for an unnamed international government client. Last year, BlackSky was one of three satellite imagery companies awarded part of a major contract from the National Reconnaissance Office – valued at up to $1.02 billion over 10 years.