On February 28, 2024, BlackSky Technology Inc (BKSY, Financial) released its 8-K filing, announcing its financial results for the fourth quarter and full year ended December 31, 2023. The company, a leading provider of real-time geospatial intelligence and high-frequency monitoring services, reported record revenue growth for both the quarter and the full year, driven by increased demand for its space-based intelligence solutions.
Financial Performance and Operational Highlights
BlackSky's Q4 revenue of $35.5 million represented an 83% increase from the prior year quarter, while full-year revenue rose by 45% to $94.5 million. The growth was attributed to an 18% increase in imagery & software analytical services revenue over the prior year quarter and a 407% surge in professional and engineering services revenue, primarily due to progress on the new Indonesian contract.
The company's cost of sales as a percent of revenue improved significantly, with imagery and software analytical service costs dropping to 17% in Q4 from 24% in the prior year quarter. This improvement reflects BlackSky's ability to leverage higher volumes of revenue with a low fixed-cost structure.
Operating expenses for Q4 were $28.2 million, including non-cash stock-based compensation expense and depreciation and amortization expenses. This represents a decrease from the $30.4 million reported in the same period last year. The reduction in operating expenses was primarily due to lower general corporate costs, which offset investments in go-to-market initiatives.
BlackSky's net loss for Q4 narrowed to $3.8 million, compared to a net loss of $14.8 million in the fourth quarter of 2022. The company ended the year with approximately $262 million in backlog, positioning it well for future revenue recognition.
Balance Sheet and Capital Expenditures
As of December 31, 2023, BlackSky had cash and cash equivalents, restricted cash, and short-term investments totaling $53.1 million. Capital expenditures for Q4 were $7.8 million, with full-year expenditures totaling $43.7 million, primarily driven by investments in the Gen-3 satellites.
Looking Forward
For the full year 2024, BlackSky anticipates revenue to be between $102 million and $118 million, with Adjusted EBITDA expected to be between $8 million and $16 million. The company also expects capital expenditures for the full year 2024 to be between $55 million and $65 million, excluding vendor financed launch costs.
"2023 was an exceptional year for BlackSky; we delivered record revenues, our total bookings exceeded a quarter billion dollars, and we achieved positive Adjusted EBITDA of over 9 million dollars in Q4," said Brian E. O’Toole, BlackSky CEO. "Our success is the result of increasing global demand for our space-based intelligence solutions, strong operating leverage, and disciplined execution."
BlackSky's achievements in 2023, including the landmark contract wins and the positive Adjusted EBITDA, underscore the company's growing market presence and operational efficiency. These results are particularly noteworthy for a company in the hardware and geospatial intelligence industry, where the integration of AI and advanced analytics is becoming increasingly critical.
The company's financial and operational milestones in 2023 set a solid foundation for continued growth and profitability, making BlackSky an intriguing prospect for value investors and those interested in the high-tech space sector.
For more detailed information on BlackSky's financial results, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from BlackSky Technology Inc for further details.
