BlackSky Records 69% Increase In Q4 Revenues; Expects Positive Adjusted EBITDA In 4Q23

BlackSky Technology Inc BKSY reported fourth-quarter revenue growth of 69% year-over-year to $19.42 million, missing the consensus of $19.62 million.
Imagery & software analytical services revenue improved 196% Y/Y, and Professional & engineering services revenue was $3.25 million (-46.1% Y/Y).
EPS loss was $(0.13, beating the consensus of $(0.16).
Cost of sales as a percent of revenue was ~40% compared to ~89% in 4Q21.
Operating loss for Q4 totaled $(18.3) million versus $(31.9) million in 4Q21.
Adjusted EBITDA loss was $(4.6) million compared to $(14.4) million in the prior year.
As of Dec. 31, 2022, BKSY held cash and equivalents of $75 million. Net cash used in operating activities for the fiscal totaled $(44.46) million, compared to $(53.87) million a year ago.
BlackSky bagged a multi-year subscription contract award of $150+ million from a major international ministry of defense. BlackSky will provide this customer with next-generation space-based tactical geospatial intelligence services. The company's multi-year backlog increased to over $250 million.
Additionally, BlackSky announced a private placement of $29.5 million from a syndicate of new and existing institutional investors. The company intends to use the net proceeds from the transaction for general corporate purposes and investments in its space and software platforms.
FY23 Outlook: BlackSky expects FY23 revenue to be $90 million-$96 million (consensus $105.89 million), representing 42% growth Y/Y at the mid-point.
It expects capital expenditures for FY23 of $40 million - $45 million.
With strong revenue growth, high incremental contribution margins, and prudent cost management, the company anticipates achieving positive Adjusted EBITDA in the fourth quarter of 2023.
Price Action: BKSY shares are trading lower by 10.10% at $1.74 on the last check Tuesday.
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