Planet Labs beats on Q2 earnings, revenue but guides Q3 below views

Planet Labs PBC (NYSE: PL ) stock traded volatile Friday after the company reported second-quarter results.

The company reported non-GAAP earnings of 2 cents per share, compared with the consensus estimate of a loss of 2 cents per share.

Revenue surged 58% year over year to $116.05 million, topping the $104.12 million Street estimate.

Needham analyst Ryan Koontz said revenue benefited from earlier-than-expected recognition tied to Sweden's first sovereign satellite.

Combined fiscal second-quarter actual and third-quarter estimated revenue growth remained strong at 42% year over year.

Remaining performance obligations rose 9% to about $753 million, while backlog increased 11% to roughly $815 million.

Based on its existing backlog alone, Planet Labs could recognize more than $400 million in revenue over the next four quarters.

Planet Labs Earnings Snapshot Adjusted gross margin fell to 59% from 61% a year earlier, mainly due to investments in satellite services contracts and AI-enabled partner solutions.

Adjusted EBITDA reached $13.9 million, supported by stronger revenue and higher gross margins.

Year to date, Planet Labs generated about $68 million in operating cash flow.

Free cash flow totaled $21 million, while adjusted free cash flow reached $29 million.

The company ended the quarter with about $865 million in cash, cash equivalents and short-term investments.

It also raised about $120 million through its at-the-market stock offering at an average net price of $31.95 per share.

See More: Top Value Stocks Defense Demand Drives Growth Defense and intelligence revenue surged more than 90% year over year, while commercial revenue grew more than 15%.

Civil government revenue increased more than 5%.

Revenue jumped more than 130% in Europe, the Middle East and Africa.

North American revenue rose about 25%, while Asia-Pacific revenue increased more than 15%.

Latin American revenue grew about 3%.

Planet Labs also secured an $8 million contract with the National Geospatial-Intelligence Agency for its Global Monitoring Service.

In addition, the company landed a seven-figure European defense deal and a German government satellite-services tender worth up to 25 million euros over five years.

The company has identified more than $4 billion in satellite-services opportunities.

Planet Labs Outlook For the third quarter, Planet Labs expects revenue of $101 million to $105 million, below the $114.33 million consensus estimate.

The company raised the low end of its fiscal 2027 revenue outlook to $430 million from $425 million while maintaining the high end at $441 million.

Analysts expect $435.67 million.

Planet Labs also aims to achieve the Rule of 40 in fiscal 2027, based on revenue growth plus adjusted EBITDA margin.

Full-year capital expenditures are expected to range from about $100 million to $115 million, mainly for manufacturing facilities and next-generation satellites.

PL Price Action: Planet Labs shares were down 1.25% at $18.12 at the time of publication Friday, according to Pro data.

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