BlackSky Technology Inc. (BKSY) Bundle
A Brief History of BlackSky Technology Inc.
Company Overview
BlackSky Technology Inc., a prominent player in the geospatial intelligence sector, specializes in satellite imagery and analytics. As of 2024, the company operates a fleet of 30 satellites, providing real-time data and insights to various sectors including government and commercial entities.
Financial Performance
For the three months ending September 30, 2024, BlackSky reported total revenue of $22.5 million, a 6.1% increase from $21.3 million in the same period of 2023. The revenue breakdown is as follows:
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Imagery & Software Analytical Services | $17,276 | $15,264 | 13.2% |
| Professional & Engineering Services | $5,273 | $5,996 | (12.1%) |
| Total Revenue | $22,549 | $21,260 | 6.1% |
For the nine months ending September 30, 2024, total revenue reached $71.7 million, up 21.6% from $59.0 million in the same period of 2023. The significant growth was driven by an increase in imagery and analytics subscription orders.
Operating Expenses
Operating expenses for Q3 2024 totaled $35.8 million, with the following components:
| Expense Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Imagery & Software Analytical Service Costs | $3,682 | $3,479 | 5.8% |
| Professional & Engineering Service Costs | $2,968 | $3,288 | (9.7%) |
| Selling, General and Administrative | $17,961 | $17,572 | 2.2% |
| Research and Development | $43 | $133 | (67.7%) |
| Total Operating Expenses | $35,811 | $34,395 | 4.1% |
Net Income and Loss
BlackSky reported a net loss of $12.6 million for Q3 2024, compared to a net income of $675,000 in Q3 2023. This reflects a significant decline primarily due to increased operational costs and interest expenses.
Debt and Financing Activities
As of September 30, 2024, BlackSky's total long-term debt was approximately $100.2 million, with a current portion of $375,000. The company has been actively managing its debt, including:
- Loans from related parties totaling $88.7 million with interest rates between 12.23% - 12.57%.
- A vendor financing agreement for satellite procurement totaling $27.0 million.
- A revolving credit facility of $20.0 million with $10.0 million drawn as of September 30, 2024.
Cash Flow Analysis
For the nine months ended September 30, 2024, BlackSky reported net cash used in operating activities of $4.6 million, a significant improvement from $15.8 million in the same period of 2023. The changes in cash flow are summarized as follows:
| Cash Flow Activity | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Net Cash Used in Operating Activities | $(4,567) | $(15,798) | $11,231 |
| Net Cash Used in Investing Activities | $(27,462) | $(14,934) | $(12,528) |
| Net Cash Provided by Financing Activities | $55,901 | $27,689 | $28,212 |
| Net Increase in Cash | $23,872 | $(3,043) | $26,915 |
Equity Changes
As of September 30, 2024, BlackSky’s total stockholders' equity stood at approximately $110.3 million, compared to $93.2 million as of December 31, 2023. This increase reflects successful equity issuances and improved operational performance.
Market Position and Future Outlook
BlackSky continues to expand its market presence through strategic partnerships and increased demand for geospatial intelligence solutions. The upcoming launch of its Gen-3 satellites is expected to enhance its capabilities and service offerings.
A Who Owns BlackSky Technology Inc. (BKSY)
Current Ownership Structure
As of September 30, 2024, BlackSky Technology Inc. (BKSY) has a total of 30,482,000 shares of common stock issued and outstanding. The ownership is distributed among various institutional and individual investors, with significant positions held by key stakeholders.
| Shareholder | Type of Ownership | Number of Shares | Percentage Ownership |
|---|---|---|---|
| Thales Alenia Space | Institutional | 6,000,000 | 19.68% |
| Osprey Technology Acquisition Corp. | Institutional | 5,000,000 | 16.38% |
| BlackSky Management | Insider | 3,500,000 | 11.48% |
| Public Float | Public | 15,982,000 | 52.46% |
Recent Share Issuances
In September 2024, BlackSky completed a public offering of 11.5 million shares at a price of $4.00 per share, generating approximately $46 million in gross proceeds. This activity has impacted the total number of shares outstanding and the overall ownership structure.
Financial Performance and Ownership Impact
For the nine months ended September 30, 2024, BlackSky reported a net loss of $37.8 million, which reflects a decrease in operational losses compared to prior periods. The accumulated deficit as of September 30, 2024, stood at $636.8 million, indicating ongoing challenges in profitability.
| Financial Metric | Amount (in thousands) |
|---|---|
| Total Revenue | $71,723 |
| Net Loss | ($37,798) |
| Accumulated Deficit | ($636,768) |
| Cash and Cash Equivalents | $56,159 |
| Short-term Investments | $7,090 |
Related Party Transactions
BlackSky has significant relationships with related parties, including joint ventures and partnerships that influence its financial standing and operational capabilities. Notably, BlackSky owns 50% of LeoStella, a joint venture with Thales Alenia Space, which is critical for satellite design and manufacturing.
| Related Party | Nature of Relationship | Amount Due (in thousands) |
|---|---|---|
| LeoStella | Joint Venture | $23,422 |
| Thales Alenia Space | Shareholder | $3,666 |
Conclusion on Ownership Dynamics
The ownership dynamics of BlackSky Technology Inc. are shaped by institutional investors, significant insider holdings, and public participation. The company's financial performance, including ongoing losses, impacts the investor sentiment and future capital raising strategies.
BlackSky Technology Inc. (BKSY) Mission Statement
Company Overview
BlackSky Technology Inc. operates in the space-based intelligence domain, delivering real-time imagery, analytics, and high-frequency monitoring through its proprietary satellite constellation and advanced software platform. The company emphasizes its commitment to leveraging artificial intelligence (AI) and machine learning (ML) to process vast amounts of data for actionable insights.
Mission Statement
As of 2024, BlackSky's mission statement focuses on providing global customers with timely and actionable intelligence through innovative satellite technology and data analytics. The company aims to enhance situational awareness and decision-making processes for various sectors, including government, defense, and commercial enterprises.
Financial Performance
The financial performance of BlackSky Technology Inc. reflects its growth trajectory and operational challenges. Below is a summary of the key financial metrics for the nine months ended September 30, 2024, compared to the same period in 2023:
| Metric | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Total Revenue | $71,723 | $58,984 | $12,739 |
| Operating Loss | ($38,204) | ($51,336) | $13,132 |
| Net Loss | ($37,798) | ($50,071) | $12,273 |
| Cash, Cash Equivalents, and Restricted Cash (End of Period) | $57,306 | $33,973 | $23,333 |
Revenue Breakdown
BlackSky generates revenue through various services, primarily categorized into imagery and software analytical services and professional & engineering services. The following table outlines the revenue sources for the three months ended September 30, 2024:
| Service Type | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Imagery & Software Analytical Services | $17,276 | 76.6% |
| Professional & Engineering Services | $5,273 | 23.4% |
| Total Revenue | $22,549 | 100% |
Operational Highlights
BlackSky's operational focus includes ongoing investments in satellite technology and software platforms. As of September 30, 2024, the company reported the following:
- Current assets of $106.5 million.
- Current liabilities of $18.8 million.
- Short-term liquidity of $64.4 million.
- Investments in satellite procurement and launch services, contributing to a total cash outflow of $27.462 million in investing activities for the nine months ended September 30, 2024.
Future Outlook
BlackSky is positioned to continue expanding its capabilities through advancements in its BlackSky Spectra software platform and the deployment of new satellites. The company's strategy emphasizes maintaining operational efficiency while meeting the growing demand for real-time intelligence services.
Recent Developments
In September 2024, BlackSky effected a one-for-eight reverse stock split to optimize its capital structure and enhance its stock price, reflecting a proactive approach to shareholder value.
Conclusion
BlackSky Technology Inc. continues to innovate and adapt in the competitive landscape of space-based intelligence, with a clear mission to provide actionable insights to its global customers.
How BlackSky Technology Inc. (BKSY) Works
Company Overview
BlackSky Technology Inc. (BKSY) operates in the satellite imagery and geospatial analytics sector, providing data-driven insights to various industries through its proprietary software and satellite network.
Revenue Streams
BlackSky generates revenue primarily through two segments:
- Imagery & Software Analytical Services: This segment accounted for $52.578 million in revenue for the nine months ended September 30, 2024, representing a 13.4% increase from the previous year.
- Professional & Engineering Services: This segment contributed $19.145 million, a 51.6% increase compared to $12.632 million in the prior year.
| Revenue Source | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Imagery & Software Analytical Services | 17.276 | 15.264 | 13.2 |
| Professional & Engineering Services | 5.273 | 5.996 | (12.1) |
| Total Revenue | 22.549 | 21.260 | 6.1 |
Cost Structure
BlackSky's cost structure includes several key components:
- Imagery & Software Analytical Service Costs: $10.559 million for the nine months ended September 30, 2024.
- Professional & Engineering Service Costs: $10.006 million for the same period.
- Selling, General and Administrative (SG&A) Expenses: $54.991 million, slightly decreasing from $55.289 million in the previous year.
- Research and Development (R&D): $785 thousand, a notable increase of 49.5% compared to $525 thousand in 2023.
- Depreciation and Amortization: $33.586 million, reflecting a 2.6% increase year-over-year.
| Cost Type | Q3 2024 Amount (in millions) | Q3 2023 Amount (in millions) |
|---|---|---|
| Imagery & Software Analytical Service Costs | 10.559 | 10.634 |
| Professional & Engineering Service Costs | 10.006 | 11.137 |
| SG&A Expenses | 54.991 | 55.289 |
| Research and Development | 0.785 | 0.525 |
| Depreciation and Amortization | 33.586 | 32.735 |
Financial Performance
For the nine months ended September 30, 2024, BlackSky reported a net loss of $37.798 million, an improvement from the $50.071 million loss in the prior year. The operating loss decreased from $51.336 million to $38.204 million, indicating a positive trend in operational efficiency.
| Financial Metric | Q3 2024 Amount (in millions) | Q3 2023 Amount (in millions) |
|---|---|---|
| Net Loss | 37.798 | 50.071 |
| Operating Loss | 38.204 | 51.336 |
| Adjusted EBITDA | 4.262 | (10.329) |
Liquidity and Capital Resources
As of September 30, 2024, BlackSky had cash and cash equivalents of $56.159 million, up from $32.8 million at the end of 2023. The company’s short-term investments were valued at $7.090 million, down from $19.7 million at the end of the previous year.
| Liquidity Metric | September 30, 2024 (in millions) | December 31, 2023 (in millions) |
|---|---|---|
| Cash and Cash Equivalents | 56.159 | 32.800 |
| Short-term Investments | 7.090 | 19.700 |
| Total Liquidity | 64.249 | 52.500 |
Debt and Financing Activities
BlackSky's total long-term debt as of September 30, 2024, was $100.183 million, which includes a revolving credit facility of $20 million. The effective interest rates on loans from related parties ranged from 12.23% to 12.57%.
| Debt Type | Outstanding Balance (in millions) | Effective Interest Rate (%) |
|---|---|---|
| Loans from Related Parties | 88.683 | 12.23 - 12.57 |
| Satellite Procurement Vendor Financing | 1.500 | 10.86 |
| Commercial Bank Line | 10.000 | 11.46 |
| Total Long-term Debt | 100.183 |
Research and Development Focus
BlackSky continues to invest in R&D, with a focus on enhancing its BlackSky Spectra software platform and expanding its satellite capabilities. The company spent $785 thousand on R&D in the first nine months of 2024.
| R&D Expense | Q3 2024 Amount (in thousands) | Q3 2023 Amount (in thousands) |
|---|---|---|
| Research and Development | 785 | 525 |
How BlackSky Technology Inc. (BKSY) Makes Money
Revenue Streams
BlackSky Technology Inc. generates revenue primarily through two main segments:
- Imagery and Software Analytical Services
- Professional and Engineering Services
Imagery and Software Analytical Services
This segment represents a significant portion of the company's revenue. For the nine months ended September 30, 2024, revenue from imagery and software analytical services was:
| Period | Revenue (in thousands) | Year-over-Year Growth (%) |
|---|---|---|
| Q3 2024 | $17,276 | 13.2 |
| Nine Months 2024 | $52,578 | 13.4 |
This growth is attributed to increased subscription orders and renewals from existing customers seeking additional analytics services.
Professional and Engineering Services
This segment includes revenue from contracts based on time and materials, firm-fixed pricing, and long-term engineering contracts. For the nine months ended September 30, 2024, revenue was:
| Period | Revenue (in thousands) | Year-over-Year Growth (%) |
|---|---|---|
| Q3 2024 | $5,273 | (12.1) |
| Nine Months 2024 | $19,145 | 51.6 |
The year-over-year increase is largely due to new significant engineering contracts starting in 2023, despite a decrease in revenue for Q3 2024 compared to Q3 2023.
Cost Structure
The costs associated with these revenue streams include:
- Imagery and Software Analytical Service Costs
- Professional and Engineering Service Costs
- Selling, General, and Administrative Expenses
- Research and Development Expenses
- Depreciation and Amortization
Financial Performance Overview
For the nine months ended September 30, 2024, the company reported:
| Item | Amount (in thousands) |
|---|---|
| Total Revenue | $71,723 |
| Operating Loss | $(38,204) |
| Net Loss | $(37,798) |
Despite the operating loss, the company has shown improvement compared to previous periods, indicating a positive trend in revenue generation.
Cash Flow Analysis
For the nine months ended September 30, 2024, cash flow data is as follows:
| Cash Flow Activity | Amount (in thousands) |
|---|---|
| Net Cash Used in Operating Activities | $(4,567) |
| Net Cash Used in Investing Activities | $(27,462) |
| Net Cash Provided by Financing Activities | $55,901 |
| Ending Cash Balance | $57,306 |
Customer Segmentation
Revenue is also segmented by customer type:
| Customer Type | Q3 2024 Revenue (in thousands) |
|---|---|
| U.S. Federal Government | $12,903 |
| International Governments | $9,048 |
| Commercial and Other | $598 |
Geographic Revenue Breakdown
The geographic distribution of revenue for Q3 2024 is as follows:
| Region | Revenue (in thousands) |
|---|---|
| North America | $13,392 |
| Middle East | $3,385 |
| Asia Pacific | $5,549 |
| Other | $223 |
Outlook and Future Growth
BlackSky continues to invest in its satellite technology and analytics capabilities, aiming to capitalize on the growing demand for geospatial intelligence. Future revenue growth is expected from new contracts and increased service offerings.
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Resources:
- BlackSky Technology Inc. (BKSY) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of BlackSky Technology Inc. (BKSY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View BlackSky Technology Inc. (BKSY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.