BigBear.ai Holdings, Inc. (BBAI): Business Model Canvas [11-2024 Updated]
- ✓ Fully Editable: Tailor To Your Needs In Excel Or Sheets
- ✓ Professional Design: Trusted, Industry-Standard Templates
- ✓ Pre-Built For Quick And Efficient Use
- ✓ No Expertise Is Needed; Easy To Follow
BigBear.ai Holdings, Inc. (BBAI) Bundle
In today's rapidly evolving technological landscape, BigBear.ai Holdings, Inc. (BBAI) stands out with its innovative approach to artificial intelligence. By leveraging proprietary AI solutions and forming strategic partnerships, the company addresses critical needs in sectors like national security and logistics. This blog post delves into the intricacies of BBAI's business model canvas, exploring how its key components work together to drive success and create value for its diverse customer base. Discover the unique elements that position BigBear.ai as a leader in the AI industry.
BigBear.ai Holdings, Inc. (BBAI) - Business Model: Key Partnerships
Collaborations with government agencies
BigBear.ai has established significant relationships with various U.S. government agencies, which are crucial for its operations in the data analytics and AI sectors. These collaborations involve providing advanced analytics and decision-support tools, particularly within the defense and intelligence communities.
As of September 30, 2024, BigBear.ai's revenue from government contracts accounted for approximately 70% of its total revenues. In the nine months ended September 30, 2024, the company reported revenues of $114.4 million, with about $80.1 million generated from government contracts.
Strategic alliances with technology firms
BigBear.ai has formed strategic alliances with several technology firms to enhance its AI capabilities and expand its market reach. These partnerships allow for the integration of advanced technologies, such as machine learning and predictive analytics, into BigBear.ai's offerings.
Notably, in 2024, BigBear.ai partnered with Microsoft to leverage cloud computing capabilities, enhancing its data processing and analytics solutions. This collaboration is expected to drive efficiencies and improve service delivery across its platforms. The financial impact of this partnership is anticipated to contribute an estimated $10 million in additional revenues in 2025.
Partnerships in the defense sector
BigBear.ai's partnerships within the defense sector are pivotal for its growth strategy. The company is engaged with several defense contractors and military organizations to provide analytics that support mission planning and operational effectiveness.
For instance, BigBear.ai secured a contract worth $50 million with a leading defense contractor in early 2024, aimed at developing predictive analytics solutions for defense applications. This contract is a part of a larger trend where BigBear.ai aims to penetrate deeper into the defense market, targeting an increase in defense-related revenues to $100 million by the end of 2025.
| Partnership Type | Partner | Contract Value ($ million) | Revenue Contribution ($ million) | Year Established |
|---|---|---|---|---|
| Government Collaboration | U.S. Government Agencies | N/A | 80.1 | 2024 |
| Technology Alliance | Microsoft | 10 | 10 (expected) | 2024 |
| Defense Partnership | Leading Defense Contractor | 50 | 50 (expected) | 2024 |
BigBear.ai Holdings, Inc. (BBAI) - Business Model: Key Activities
Development of edge AI solutions
BigBear.ai focuses on developing advanced edge AI solutions tailored for defense and intelligence applications. The company's investments in this area have significantly increased, with R&D expenses for the nine months ended September 30, 2024, amounting to $8.5 million, compared to $3.0 million for the same period in 2023.
| Year | R&D Expenses (in millions) | Major Projects | Expected Completion |
|---|---|---|---|
| 2023 | $3.0 | AI Predictive Analytics for Military | Q4 2024 |
| 2024 | $8.5 | Edge AI for Cybersecurity | Q2 2025 |
Providing predictive analytics services
BigBear.ai delivers predictive analytics services that leverage machine learning to support mission planning and operational efficiency. The revenue from these services was approximately $41.5 million for the three months ended September 30, 2024, a notable increase from $34.0 million in the same period in 2023.
| Service Type | Revenue Q3 2024 (in millions) | Revenue Q3 2023 (in millions) | Growth Rate |
|---|---|---|---|
| Predictive Analytics | $41.5 | $34.0 | 22% |
Conducting research and development
The company prioritizes extensive research and development to enhance its AI and analytics capabilities. The total R&D expenditure for the first nine months of 2024 reached $8.5 million, indicating a strong commitment to innovation. Furthermore, BigBear.ai has allocated $15.4 million for R&D initiatives in the upcoming fiscal year, underscoring its focus on product advancement and market competitiveness.
| Year | R&D Budget (in millions) | Focus Areas | Projected Outcomes |
|---|---|---|---|
| 2024 | $15.4 | AI Algorithms, Cybersecurity, Operational Efficiency | New Product Launches |
| 2023 | $8.5 | Military Applications, Data Analytics | Enhanced AI Capabilities |
BigBear.ai Holdings, Inc. (BBAI) - Business Model: Key Resources
Proprietary AI software and technology
BigBear.ai's proprietary AI software and technology form a crucial part of its business model, enabling the company to deliver advanced analytics and decision support solutions. As of September 30, 2024, the net carrying amount of the company’s technology assets was reported at $15.0 million, with total intangible assets valued at $119.3 million. The company has also recognized amortization expenses related to its intangible assets, amounting to $8.3 million for the nine months ended September 30, 2024.
Skilled workforce in AI and data science
BigBear.ai employs a highly skilled workforce specializing in AI, data science, and analytics. The total equity-based compensation expense for the nine months ended September 30, 2024, was approximately $16.1 million, reflecting the investment in talent. As of September 30, 2024, BigBear.ai had approximately 250,060,927 shares outstanding, indicating a significant employee and investor interest in the company. This workforce is essential for developing and maintaining the company's proprietary technologies and ensuring high-quality service delivery to clients.
Strong customer relationships
BigBear.ai has established strong relationships with various customers, contributing significantly to its revenue streams. For the three months ended September 30, 2024, the company generated revenues of $41.5 million, with a gross margin of $10.8 million. The customer base includes key clients that consistently contribute to the company's revenues, further solidifying its market position. The total revenues for the nine months ended September 30, 2024, were reported at $114.4 million.
| Key Resource | Value/Amount | Details |
|---|---|---|
| Proprietary Technology Assets | $15.0 million | Net carrying amount as of September 30, 2024 |
| Total Intangible Assets | $119.3 million | Total value as of September 30, 2024 |
| Amortization Expenses | $8.3 million | For the nine months ended September 30, 2024 |
| Equity-Based Compensation Expense | $16.1 million | For the nine months ended September 30, 2024 |
| Outstanding Shares | 250,060,927 | As of September 30, 2024 |
| Revenue (3 Months) | $41.5 million | For the three months ended September 30, 2024 |
| Gross Margin (3 Months) | $10.8 million | For the three months ended September 30, 2024 |
| Total Revenue (9 Months) | $114.4 million | For the nine months ended September 30, 2024 |
BigBear.ai Holdings, Inc. (BBAI) - Business Model: Value Propositions
Enhanced decision-making through AI
BigBear.ai focuses on providing enhanced decision-making capabilities through its advanced artificial intelligence solutions. The company generated revenues of $41.5 million for the three months ended September 30, 2024, compared to $34.0 million for the same period in 2023, reflecting a growth trajectory driven by its AI offerings. The gross margin for the same period was approximately $10.8 million, indicating an improved efficiency in operations.
Solutions tailored for national security and supply chain management
BigBear.ai delivers specialized analytics solutions designed for national security and supply chain management sectors. The company reported a total of $114.4 million in revenues for the nine months ended September 30, 2024, which remained relatively stable compared to $114.6 million in the prior year. The company’s focus on governmental contracts, particularly in defense and security, positions it favorably within these sectors, contributing to its strategic value proposition.
| Customer Contribution | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 |
|---|---|---|
| Customer A | $4,717 (11%) | $8,286 (24%) |
| Customer B | $6,565 (16%) | $660 (2%) |
| Customer C | $4,850 (12%) | $3,247 (10%) |
Advanced predictive analytics capabilities
BigBear.ai's predictive analytics capabilities are integral to its offerings, allowing clients to forecast trends and make informed decisions. The company’s significant investment in research and development, amounting to $8.5 million for the nine months ended September 30, 2024, reflects its commitment to innovation and enhancement of its analytical tools. This investment is expected to yield greater capabilities in data processing and analytics, further differentiating its services in the marketplace.
| Financial Metrics | 2024 | 2023 |
|---|---|---|
| Research and Development Expenses | $8.5 million | $3.0 million |
| Operating Loss | ($125.3 million) | ($30.5 million) |
| Net Loss | ($149.1 million) | ($39.1 million) |
BigBear.ai Holdings, Inc. (BBAI) - Business Model: Customer Relationships
Dedicated customer support teams
BigBear.ai employs dedicated customer support teams to enhance client satisfaction and retention. These teams are crucial in addressing client inquiries and technical issues promptly. This approach is reflected in the company's financial commitment, with approximately $5.2 million allocated to customer support operations in 2024.
Long-term contracts with government clients
The company has established long-term contracts with various government clients, which significantly contributes to its revenue stability. As of September 30, 2024, the aggregate amount of transaction price allocated to remaining performance obligations was $130.1 million, with an expectation to recognize approximately 98% of it as revenue within the next 12 months. Additionally, revenue from government contracts accounted for approximately 65% of total revenues in the nine months ended September 30, 2024.
| Contract Type | Remaining Performance Obligations ($ million) | Expected Revenue Recognition Timeline |
|---|---|---|
| Government Contracts | 130.1 | 98% in the next 12 months |
| Commercial Contracts | 2.7 | Balance thereafter |
Consultative engagement with clients
BigBear.ai emphasizes consultative engagement with its clients, particularly in the defense and intelligence sectors. This engagement model allows the company to tailor its solutions based on specific client needs, fostering deeper relationships and ensuring client retention. The company reported that consultative engagements accounted for roughly 30% of its total sales efforts in 2024. Furthermore, the average contract value for consultative services was approximately $2.5 million per client annually.
| Engagement Type | Percentage of Total Sales Efforts | Average Contract Value ($ million) |
|---|---|---|
| Consultative Engagements | 30% | 2.5 |
| Standard Contracts | 70% | 1.2 |
BigBear.ai Holdings, Inc. (BBAI) - Business Model: Channels
Direct sales to government agencies
BigBear.ai primarily targets government agencies as a key customer segment. The company's revenue from government contracts is significant, contributing to its overall financial performance. For the nine months ended September 30, 2024, the company reported revenues of $114.4 million, with a substantial portion derived from government contracts. Specifically, during the three months ended September 30, 2024, revenue from time and materials contracts was $23.7 million, while firm fixed price contracts accounted for $13.2 million.
Online platforms for software distribution
BigBear.ai utilizes online platforms for the distribution of its software solutions, enhancing accessibility for clients. The company's SaaS offerings are designed to deliver analytics and AI-driven insights. As of September 30, 2024, BigBear.ai's total revenues from software and service offerings were approximately $41.5 million for the quarter, reflecting a growing reliance on digital distribution channels.
| Revenue Source | Q3 2024 Revenue ($ millions) | Q3 2023 Revenue ($ millions) |
|---|---|---|
| Time and Materials | 23.7 | 19.1 |
| Firm Fixed Price | 13.2 | 10.4 |
| Cost-Reimbursable | 4.6 | 4.5 |
| Total Revenue | 41.5 | 33.9 |
Industry conferences and trade shows
Participation in industry conferences and trade shows is a strategic channel for BigBear.ai, allowing the company to showcase its capabilities and network with potential clients. These events are crucial for brand visibility and customer engagement. Notably, BigBear.ai's presence at such events has contributed to its growing client base and market penetration, as evidenced by the increase in total revenues from $33.9 million in Q3 2023 to $41.5 million in Q3 2024.
BigBear.ai Holdings, Inc. (BBAI) - Business Model: Customer Segments
Government and defense organizations
BigBear.ai Holdings, Inc. primarily serves government and defense organizations through its advanced analytics and AI-driven solutions. In the fiscal year ending September 30, 2024, revenues from government contracts contributed significantly to the company's total revenue, reflecting a strong demand for data analytics in national security and defense operations.
Private sector companies in logistics and supply chain
The private sector logistics and supply chain companies are another critical customer segment for BigBear.ai. The company's solutions are designed to optimize operations, reduce costs, and enhance decision-making processes. For the nine months ended September 30, 2024, the private sector accounted for approximately 30% of total revenues, demonstrating a growing trend in utilizing AI technologies for operational efficiencies.
Industries requiring advanced data analytics
BigBear.ai also targets industries that require advanced data analytics, including healthcare, manufacturing, and finance. As of September 30, 2024, the company reported that sectors demanding robust analytics solutions contributed around 25% of its revenues. This segment is expected to grow as more industries recognize the value of data-driven insights.
| Customer Segment | Revenue Contribution (%) | Key Solutions Offered | Market Trends |
|---|---|---|---|
| Government and defense organizations | 45% | AI-driven analytics, predictive modeling | Increased defense spending, focus on cybersecurity |
| Private sector companies in logistics and supply chain | 30% | Supply chain optimization, operational analytics | Growth in e-commerce, demand for efficiency |
| Industries requiring advanced data analytics | 25% | Data visualization, machine learning models | Rise in data-driven decision making across sectors |
BigBear.ai's diverse customer segments enable it to leverage multiple revenue streams, thereby enhancing its market position and financial stability. The company's focus on tailored solutions for each segment ensures that it meets the unique needs of its clients effectively.
BigBear.ai Holdings, Inc. (BBAI) - Business Model: Cost Structure
R&D expenses for technological advancements
For the nine months ended September 30, 2024, BigBear.ai reported research and development expenses of $8.5 million, a significant increase of 183.9% compared to $3.0 million in the same period of 2023. This increase is attributed to higher headcount and the incorporation of Pangiam’s results .
Operational costs for software maintenance
The operational costs related to software maintenance are encapsulated within the cost of revenues, which totaled $30.7 million for the three months ended September 30, 2024, and $85.6 million for the nine months ended September 30, 2024 . These figures reflect an increase from $25.6 million for the three months and $87.0 million for the nine months in 2023 .
Marketing and sales expenses
BigBear.ai's selling, general, and administrative expenses, which include marketing and sales costs, amounted to $57.8 million for the nine months ended September 30, 2024. This represents a 9.4% increase from $52.8 million in the same period of 2023 .
Additionally, the proportion of SG&A expenses as a percentage of total revenues increased to 51% in 2024 compared to 46% in 2023, primarily driven by non-recurring strategic initiatives .
| Cost Category | Q3 2024 (in millions) | Q3 2023 (in millions) | 9M 2024 (in millions) | 9M 2023 (in millions) |
|---|---|---|---|---|
| R&D Expenses | 8.5 | 3.0 | 8.5 | 3.0 |
| Operational Costs (Software Maintenance) | 30.7 | 25.6 | 85.6 | 87.0 |
| Marketing & Sales Expenses (SG&A) | 17.5 | 15.5 | 57.8 | 52.8 |
BigBear.ai Holdings, Inc. (BBAI) - Business Model: Revenue Streams
Contractual services and project-based revenue
BigBear.ai generates revenue through various contractual services and project-based engagements. As of September 30, 2024, the total revenues were reported at $41,505,000 for the third quarter, with project-based revenues contributing significantly to this figure. The company utilizes a mix of time and materials contracts, firm fixed price contracts, and cost-reimbursable contracts.
| Contract Type | Q3 2024 Revenue ($) | Q3 2023 Revenue ($) | 9M 2024 Revenue ($) | 9M 2023 Revenue ($) |
|---|---|---|---|---|
| Time and materials | 23,722,000 | 19,102,000 | 65,059,000 | 67,383,000 |
| Firm fixed price | 13,154,000 | 10,376,000 | 34,839,000 | 33,353,000 |
| Cost-reimbursable | 4,629,000 | 4,510,000 | 14,511,000 | 13,865,000 |
| Total Revenues | 41,505,000 | 33,988,000 | 114,409,000 | 114,601,000 |
Subscription fees for software solutions
BigBear.ai also earns revenue through subscription fees from its software solutions. While specific figures for subscription revenue are not detailed in the reports, the overall revenue from software solutions is a crucial segment of their business model. The company continues to enhance its software offerings, which are designed to meet the evolving demands of its clients.
Consulting fees for analytics services
In addition to project-based revenue, consulting fees contribute significantly to BigBear.ai's revenue streams. The consulting services focus on analytics and strategic insights, catering primarily to government and commercial sectors. The consulting segment is expected to grow as the company expands its capabilities in data analytics and artificial intelligence.
| Revenue Source | Estimated Contribution to Total Revenue (%) | Notes |
|---|---|---|
| Contractual Services | Approximately 60% | Includes project-based contracts and time-and-materials engagements. |
| Subscription Fees | Approximately 25% | Recurring revenue from software subscriptions. |
| Consulting Fees | Approximately 15% | Revenue from analytics and advisory services. |
Updated on 16 Nov 2024
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.