BigBear.ai Holdings, Inc. (BBAI) Bundle
A Brief History of BIGBEAR.AI Holdings, Inc.
BIGBEAR.AI Holdings, Inc. has undergone significant transformations and faced various challenges as of 2024. Established with a focus on data analytics and artificial intelligence, the company has made strategic acquisitions and investments aimed at expanding its capabilities and market reach.
Acquisition of Pangiam
In 2024, BIGBEAR.AI completed the acquisition of Pangiam, enhancing its service offerings in the AI domain. This acquisition contributed to a revenue increase, with revenues reaching $41.5 million for the three months ended September 30, 2024, compared to $34.0 million in the same period in 2023, marking a 22.1% increase.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenues | $41,505,000 | $33,988,000 | 22.1% |
| Cost of Revenues | $30,739,000 | $25,579,000 | 20.2% |
| Gross Margin | $10,766,000 | $8,409,000 | 28.0% |
| Net Loss | $(12,176,000) | $3,999,000 | - |
Financial Performance
For the nine months ended September 30, 2024, BIGBEAR.AI reported total revenues of $114.4 million, a slight decrease of 0.2% from $114.6 million in the same period of 2023. The company faced challenges in maintaining revenue levels, attributed to decreased volumes in certain contracts, particularly the Air Force EPASS program.
Operating Expenses and Losses
The operating loss for the nine months ended September 30, 2024, was $(125.3) million, compared to $(30.5) million in the previous year. This substantial increase in losses was influenced by a non-cash goodwill impairment charge of $85 million recognized during the period.
| Operating Metrics | 9M 2024 | 9M 2023 |
|---|---|---|
| Operating Loss | $(125,278,000) | $(30,461,000) |
| Research and Development Expenses | $8,529,000 | $3,004,000 |
| SG&A Expenses | $57,797,000 | $52,825,000 |
Cash Flow and Liquidity
As of September 30, 2024, BIGBEAR.AI reported cash and cash equivalents amounting to $65.6 million, up from $32.6 million at the end of 2023. The net cash used in operating activities for the nine months was $(23.3) million, indicating ongoing liquidity challenges despite increased cash reserves.
Future Outlook
Looking forward, BIGBEAR.AI aims to enhance its operational efficiency and profitability through strategic initiatives and continued investment in technology. The company's focus on AI and data analytics positions it well for future growth amidst a competitive landscape.
A Who Owns BigBear.ai Holdings, Inc. (BBAI)
Shareholder Composition
As of September 30, 2024, BigBear.ai Holdings, Inc. has a total of 250,060,927 shares of common stock issued and outstanding.
Major Shareholders
Below is a table summarizing the ownership distribution among major shareholders:
| Shareholder | Shares Owned | Percentage Ownership |
|---|---|---|
| Armistice Capital Master Fund Ltd | 13,888,889 | 5.55% |
| Other Institutional Investors | Various | Approx. 15% |
| Public Float | Approximately 79% | Approx. 79% |
Equity-Based Compensation
As of September 30, 2024, the following equity-based compensation was outstanding:
| Type | Outstanding Units | Value Per Unit |
|---|---|---|
| Stock Options | 4,160,068 | $2.09 |
| Restricted Stock Units (RSUs) | 14,671,767 | $1.97 |
| Performance Stock Units (PSUs) | 138,182 | N/A |
Recent Financial Performance
BigBear.ai reported the following financial performance metrics for the nine months ended September 30, 2024:
| Metric | Value |
|---|---|
| Total Revenues | $114,409,000 |
| Operating Loss | $(125,278,000) |
| Net Loss | $(149,060,000) |
| Basic Net Loss Per Share | $(0.65) |
Debt Structure
As of September 30, 2024, BigBear.ai's debt structure includes:
| Debt Type | Amount |
|---|---|
| Convertible Notes | $200,000,000 |
| Long-Term Debt | $195,738,000 |
| Total Liabilities | $255,650,000 |
Warrants and Derivative Liabilities
As of September 30, 2024, the company had the following warrants and derivative liabilities:
| Warrant Type | Issued and Outstanding | Exercise Price |
|---|---|---|
| 2024 PIPE Warrants | 9,000,000 | $4.75 |
| IPO Public Warrants | 12,168,378 | $11.50 |
| IPO Private Warrants | 157,394 | $11.50 |
BigBear.ai Holdings, Inc. (BBAI) Mission Statement
Overview of Mission Statement
BigBear.ai Holdings, Inc. focuses on providing advanced analytics and artificial intelligence solutions to empower decision-making across various sectors, particularly in defense, intelligence, and commercial markets. The mission emphasizes innovation, operational excellence, and delivering actionable insights through data-driven technologies.
Strategic Objectives
- Innovation: Continuously evolve their AI and analytics capabilities to meet the changing demands of clients.
- Customer Focus: Deliver tailored solutions that drive efficiency and effectiveness for clients.
- Growth: Expand market presence through strategic partnerships and acquisitions.
- Integrity: Uphold ethical standards in data usage and analytics.
Financial Performance Indicators
As of September 30, 2024, BigBear.ai reported total revenues of $41.5 million for the third quarter, an increase of 22.1% compared to the prior year. The net loss for the same period was $(12.2) million, compared to a net income of $4.0 million in 2023.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenues | $41.5 million | $34.0 million |
| Net Loss | $(12.2) million | $3.999 million |
| Basic Net Loss per Share | $(0.05) | $0.03 |
| Total Assets | $354.1 million | $199.9 million |
| Accumulated Deficit | $(462.5) million | $(313.4) million |
Acquisitions and Growth Strategy
In 2024, BigBear.ai completed the acquisition of Pangiam, which contributed significantly to revenue growth. The acquisition was valued at approximately $156.1 million, including goodwill of $85 million recognized due to the expected synergies.
Market Position and Competitiveness
BigBear.ai operates in a competitive landscape dominated by firms specializing in defense and technology solutions. The company aims to leverage its AI capabilities to differentiate itself and capture market share in both government and commercial sectors.
Key Partnerships
- Collaboration with the U.S. Department of Defense for advanced analytics projects.
- Partnerships with leading technology firms to enhance AI capabilities.
Future Outlook
Looking ahead, BigBear.ai is positioned to capitalize on the increasing demand for AI and analytics solutions across various industries. The company aims to achieve a revenue target of $80 million for the fiscal year 2024, driven by ongoing projects and new client acquisitions.
| Projected Financial Metrics | 2024 Target |
|---|---|
| Total Revenue | $80 million |
| Expected Net Loss | $(150 million) |
How BigBear.ai Holdings, Inc. (BBAI) Works
Company Overview
BigBear.ai Holdings, Inc. (BBAI) operates in the artificial intelligence and data analytics sector, focusing on providing advanced analytics and machine learning solutions for defense, intelligence, and commercial sectors. The company utilizes its proprietary technology to deliver data-driven insights that support decision-making processes.
Financial Performance
As of September 30, 2024, BigBear.ai reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenues | $41.5 million | $34.0 million | $114.4 million | $114.6 million |
| Cost of Revenues | $30.7 million | $25.6 million | $85.6 million | $87.0 million |
| Gross Margin | $10.8 million | $8.4 million | $28.8 million | $27.6 million |
| Operating Expenses | $21.3 million | $15.2 million | $68.3 million | $54.2 million |
| Net Loss | $(12.2 million) | $4.0 million | $(149.1 million) | $(39.1 million) |
Balance Sheet Highlights
As of September 30, 2024, BigBear.ai's balance sheet reported the following key figures:
| Asset Category | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $65,584 |
| Accounts Receivable | $32,464 |
| Contract Assets | $1,914 |
| Total Assets | $354,083 |
Debt and Liabilities
The company maintained the following debt and liabilities as of September 30, 2024:
| Liability Category | Amount (in thousands) |
|---|---|
| Convertible Notes | $200,000 |
| Total Current Liabilities | $50,585 |
| Total Non-Current Liabilities | $205,065 |
| Total Liabilities | $255,650 |
Equity Structure
As of September 30, 2024, BigBear.ai's equity structure was as follows:
| Equity Item | Amount (in thousands) |
|---|---|
| Common Stock (250,060,927 shares issued) | $25 |
| Additional Paid-in Capital | $618,256 |
| Treasury Stock | $(57,350) |
| Accumulated Deficit | $(462,490) |
| Total Stockholders' Equity | $98,433 |
Operational Highlights
BigBear.ai's operational performance included:
- Customer Concentration: The top customers contributed significantly to revenues, with Customer A contributing 11% and Customer B 16% of total revenues in Q3 2024.
- Contract Balances: As of September 30, 2024, contract assets were $1.9 million and contract liabilities were $2.1 million.
- Warrants: As of September 30, 2024, the company had 9,000,000 2024 PIPE warrants outstanding with a fair value of $9.5 million.
Cash Flow Analysis
For the nine months ended September 30, 2024, BigBear.ai reported:
| Cash Flow Category | Amount (in thousands) |
|---|---|
| Net Cash Used in Operating Activities | $(23,313) |
| Net Cash Provided by Investing Activities | $6,235 |
| Net Cash Provided by Financing Activities | $50,163 |
| Net Increase in Cash and Cash Equivalents | $33,027 |
Recent Developments
BigBear.ai has recently engaged in significant transactions, including:
- Acquisition of Pangiam: The acquisition was finalized on February 29, 2024, enhancing BigBear.ai's capabilities and market reach.
- Warrant Exercises: The company executed warrants resulting in total gross proceeds of approximately $53.8 million in 2024.
How BigBear.ai Holdings, Inc. (BBAI) Makes Money
Overview of Revenue Streams
BigBear.ai Holdings, Inc. (BBAI) generates revenue primarily through contracts related to artificial intelligence and data analytics services. The company’s revenue consists of three main types of contracts:
- Time and materials contracts
- Firm fixed price contracts
- Cost-reimbursable contracts
Financial Performance
As of September 30, 2024, BBAI reported total revenues of $41.5 million for the third quarter, compared to $34.0 million in Q3 2023. For the nine months ended September 30, 2024, total revenues were $114.4 million, slightly decreasing from $114.6 million in the same period of 2023.
| Period | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 |
|---|---|---|---|---|
| Total Revenues | $41.5 million | $34.0 million | $114.4 million | $114.6 million |
Revenue Breakdown by Contract Type
The following table summarizes the revenue breakdown by contract type for the three and nine months ended September 30, 2024:
| Contract Type | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 |
|---|---|---|---|---|
| Time and Materials | $23.7 million | $19.1 million | $65.1 million | $67.4 million |
| Firm Fixed Price | $13.2 million | $10.4 million | $34.8 million | $33.4 million |
| Cost-Reimbursable | $4.6 million | $4.5 million | $14.5 million | $13.9 million |
Customer Concentration
As of September 30, 2024, the company had several key customers contributing significantly to its revenue:
| Customer | Q3 2024 Revenue | Percentage of Total Revenue |
|---|---|---|
| Customer A | $4.7 million | 11% |
| Customer B | $6.6 million | 16% |
| Customer C | $4.9 million | 12% |
| Customer E | $5.2 million | 12% |
| All Others | $20.2 million | 49% |
Operating Expenses and Profitability
BBAI's operating expenses for Q3 2024 were $28.3 million, up from $26.6 million in Q3 2023. The operating loss for Q3 2024 was $(10.5 million), compared to $(8.2 million) in Q3 2023. The net loss for the third quarter was $(12.2 million).
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Operating Expenses | $28.3 million | $26.6 million |
| Operating Loss | $(10.5 million) | $(8.2 million) |
| Net Loss | $(12.2 million) | $(4.0 million) |
Goodwill and Intangible Assets
As of September 30, 2024, BBAI reported intangible assets totaling $119.3 million, with a significant portion attributed to goodwill from acquisitions. The company recognized $85.0 million in goodwill impairment during the nine months ended September 30, 2024.
Debt and Financing
As of September 30, 2024, BBAI had total debt of $200 million in convertible notes. The company is actively managing its capital structure to support growth initiatives.
| Debt Category | Amount |
|---|---|
| Convertible Notes | $200 million |
Future Prospects
As of September 30, 2024, BBAI had remaining performance obligations valued at $130.1 million, with an expectation to recognize approximately 98% of this as revenue within the next 12 months.
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Resources:
- BigBear.ai Holdings, Inc. (BBAI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of BigBear.ai Holdings, Inc. (BBAI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View BigBear.ai Holdings, Inc. (BBAI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.