Planet Labs PBC Q2 Earnings Call Highlights

Planet Labs PBC reported record second-quarter revenue of $116 million, up approximately 58% from a year earlier, as satellite services execution and demand from defense and intelligence customers drove growth.

The company also raised the low end of its full-year fiscal 2027 outlook for revenue and adjusted EBITDA.

Chief Executive Officer, Chairperson and Co-Founder Will Marshall said the company’s non-GAAP gross margin reached 59% during the quarter, exceeding expectations, while adjusted EBITDA was profitable. Planet also exceeded the “Rule of 40” metric for a fourth consecutive quarter, combining its revenue growth rate with adjusted EBITDA margin.

President and Chief Financial Officer Ashley Johnson said the company’s quarterly outperformance was primarily related to execution on satellite services contracts, including the handover of its first Pelican satellite for the Swedish Armed Forces. Planet launched the satellite in May, four months after signing the contract, and completed commissioning quickly enough for the handover to contribute point-in-time revenue in the second quarter.

Defense and intelligence revenue increased more than 90% year over year, including satellite services revenue. Commercial-sector revenue rose more than 15%, while civil government revenue grew more than 5%.

Regionally, Planet reported year-over-year revenue growth of approximately 3% in Latin America, more than 15% in Asia-Pacific, about 25% in North America and more than 130% in Europe, the Middle East and Africa. Johnson said the growth in international and defense revenue reflected the company’s delivery against satellite services backlog.

Point-in-time revenue represented 12% of second-quarter revenue, compared with 1% in the prior-year period. Johnson said this measure may vary from quarter to quarter as the company expands satellite services, because certain contracts are recognized when delivery milestones are completed.

Planet ended the quarter with approximately $753 million in remaining performance obligations, up about 9% year over year, and estimated backlog of roughly $815 million, up approximately 11%. About half of backlog applies to the next 12 months, according to the company.

Planet announced an $8 million contract with the National Geospatial-Intelligence Agency to deploy its Global Monitoring Service in support of national-defense priorities. Marshall said the award followed a Defense Innovation Unit pilot supporting INDOPACOM and includes options to expand and ex...