{"id":785628,"date":"2023-09-21T18:29:36","date_gmt":"2023-09-21T22:29:36","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/satellogic-reports-first-half-2023-financial-results-and-provides-business-update\/"},"modified":"2023-09-21T18:29:36","modified_gmt":"2023-09-21T22:29:36","slug":"satellogic-reports-first-half-2023-financial-results-and-provides-business-update","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/satellogic-reports-first-half-2023-financial-results-and-provides-business-update\/","title":{"rendered":"Satellogic Reports First Half 2023 Financial Results and Provides Business Update"},"content":{"rendered":"

<\/p>\n

Satellogic Reports First Half 2023 Financial Results and Provides Business Update<\/b><\/p>\n

Plans to Redomicile to US; NOAA License Application Filed<\/i><\/p>\n

Revenue up 33% in 1H 2023<\/i><\/p>\n

Launched 12 Satellites; Expanded Fleet Capacity and Daily Revisit Rate<\/i><\/p>\n

Focus on High Growth Opportunities in the US Market and Improving Operational Efficiencies<\/i><\/p>\n

Announces First Space Systems Customer<\/i><\/p>\n

NEW YORK–(BUSINESS WIRE<\/a>)–Satellogic<\/a> Inc. (NASDAQ: SATL), a leader in sub-meter resolution Earth Observation (\u201cEO\u201d) data collection, today provided first half 2023 financial results and a business update.<\/p>\n

\n\u201cThe first half of 2023 was highlighted by continued revenue growth supported by additional satellites in orbit, and the first steps to implement a strategic realignment of our business to capitalize on our highest growth opportunities in the US,\u201d said Satellogic CEO, Emiliano Kargieman. \u201cWe are highly focused on leveraging the largest commercial fleet of sub-meter resolution satellites in the world with an aggressive plan to meet the developing needs of our customers and the broader EO market making our organization more streamlined and efficient.<\/p>\n

\n\u201cDuring the first half of 2023, revenue grew 33% year-over-year as both our Asset Monitoring and our Constellation-as-a-Service businesses gained momentum. We also celebrated our 15th consecutive successful launch and the continued expansion of our constellation, adding 12 new spacecraft to our fleet in orbit to support our partners and growth. We are consistently delivering more capacity, more reliability, and next-gen capabilities for our customers, and advancing on our goal of bi-weekly global remapping. We have proven that it’s 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. To moderate capital expenditures, we do not expect to launch any additional satellites until the first quarter of 2024, with our next scheduled launch in Q1-2024 on SpaceX\u2019s Transporter 10 mission.<\/p>\n

\n\u201cAs the EO market and macroeconomic environment have evolved, we are strategically realigning our business to capture high value opportunities in the US.<\/p>\n

\n\u201cTo support this strategy, Matt Tirman was appointed President and will be primarily responsible for the operational execution of our strategy and business plan, as well as our focus on the US market. Matt joined the Company in 2021 as President of Satellogic North America to lay the groundwork for Satellogic\u2019s entry into the US market and then served as the company\u2019s Chief Commercial Officer. Matt brings more than 20 years of experience scaling technology and aerospace companies across the US government and international markets. In this new role he will further our efforts in the US market and accelerate our mission to democratize access to geospatial data. He will be assisted by recent appointments Caitlin Kontgis, Senior Vice President of Commercial Growth, and Lorri Kohler, Senior Vice President of Operations.<\/p>\n

\n\u201cWith our focus on the US, we are taking two important steps as follows: First, we plan to commence 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, we recently filed an application to license our constellation with the National Oceanic & Atmospheric Administration (NOAA). These actions are crucial in terms of satisfying requirements for expanding business in the US market, better positioning Satellogic to compete for US government and allied contracts.<\/p>\n

\n\u201cLooking ahead, we are committed to offering exceptional high-resolution EO capture capability while delivering the best geospatial data quality, all at the lowest cost,\u201d concluded Kargieman.<\/p>\n

\nRick Dunn, Satellogic CFO, commented, \u201cWe ended the first half of 2022 with $42 million of cash on hand. Our revenue grew 33% to $3.2 million for the half year 2023. As we move through 2023, we have seen positive momentum in terms of revenue, backlog and pipeline with three signed strategic contracts in the third quarter. Our updated guidance is as follows:<\/p>\n\n\n\n\n\n
\n

(in Millions of U.S. dollars, except number of satellites)<\/i><\/p>\n<\/td>\n

\n

2023<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

2024<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

2025<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nSatellites Launched into Constellation<\/p>\n<\/td>\n

\n

\n12<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n8 – 12<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n5 – 9<\/p>\n<\/td>\n<\/tr>\n

\n

\nRevenues<\/p>\n<\/td>\n

\n

\n$10 – $20<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$38 – $58<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$60 – $90<\/p>\n<\/td>\n<\/tr>\n

\n

\nAdjusted EBITDA<\/p>\n<\/td>\n

\n

\n($45) – ($35)<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n($15) – $5<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$5 – 25<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

\n\u201cAs previously indicated in the Company\u2019s annual 20-F filing on April 27, 2023, our 2023 revenue continues to be heavily weighted to the second half of the year and reaching our revenue guidance for 2023 will largely be dependent on closing opportunities within our Space Systems line of business.<\/p>\n

\n\u201cAs a result of slower than anticipated revenue growth, 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 in both the first and third quarter of 2023 which totaled approximately 110 employees and 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 beginning in Q4 2023, which when combined with other streamlining and cost savings programs, are expected to result in meaningful reductions to cash burn as we end 2023 and look forward to 2024.<\/p>\n

\n\u201cAs we look to 2024 and beyond, revenue will be driven by our continued growth in Asset Monitoring, Constellation-as-a-Service, and Space Systems. We anticipate that Space Systems will contribute considerable per unit cash flow and strong gross margin. We are evaluating a range of strategic alternatives, including opportunities to raise additional capital, to best position our Company to deliver on its value proposition,\u201d concluded Dunn.<\/p>\n

Key First Half and Subsequent Highlights<\/b><\/p>\n