Key Takeaways:
- Revenue hit a record $94.2M, up 42% YoY and above the $90M consensus.
- Backlog surged 72% to $906M, driven by defense and intelligence wins.
- Full-year revenue outlook raised to $425M-$441M from prior guidance.
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Planet Labs posts record $94.2M revenue as defense demand surges
Planet Labs reported Q1 revenue of $94.2 million, a record that topped estimates and pushed its backlog past $906 million.
"Planet's excellent start to the year is a testament to the mission-critical nature of our data in an increasingly complex world," CEO Will Marshall said.
Revenue rose 42% from a year earlier, beating the $90 million consensus by 4.89%. The non-GAAP loss per share of 3 cents matched analyst expectations. Defense and intelligence revenue climbed more than 65%, helping drive the backlog up 72% from a year ago. Remaining performance obligations reached $816 million, up 81%.
The company raised its full-year revenue forecast to $425 million to $441 million, up from prior guidance, and projected second-quarter revenue of $102 million to $107 million, above the $100.86 million consensus. Shares fell in after-hours trading and were on track for their worst week in over a year, down about 15%.
Non-GAAP gross margin fell to 56% from 59% a year ago, reflecting investments tied to satellite services contracts, new launches and AI-enabled partner solutions. The company expects second-quarter gross margin between 52% and 55%. Adjusted EBITDA loss was $1 million, better than expected, marking the third consecutive quarter Planet achieved its Rule of 40 target. Management kept full-year adjusted EBITDA guidance at breakeven to $10 million and projected fiscal 2027 capital expenditure of $80 million to $95 million.
Growth was geographically broad. Revenue rose about 86% in EMEA, 25% in both North America and Asia Pacific, and 7% in Latin America. Planet ended the quarter with roughly $731 million in cash, cash equivalents and short-term investments.
Planet secured several government wins during the quarter, including a $21.9 million one-year extension from the National Geospatial-Intelligence Agency for maritime surveillance and a $7.5 million U.S. Navy renewal for vessel detection. The company also signed an eight-figure, one-year dedicated-capacity contract with an international defense and intelligence customer and launched three Pelican satellites. Marshall said Europe is the hottest region for demand today, though interest is broadening across Asia and North America.
On the AI front, Marshall said the company began private beta testing of an application that lets users query Planet's satellite archive with natural language. The company also highlighted SuperRes, which uses AI to improve PlanetScope imagery into a 2-meter class visual product. Commercial revenue grew more than 20% year over year, helped by agriculture customers and newer AI-based solutions.
The guidance raise suggests management expects defense demand and AI adoption to sustain momentum. Investors will watch the Q2 earnings call for updates on gross margin trajectory and further defense contract wins.
This article is for informational purposes only and does not constitute investment advice.
