Planet Labs inventory tumbles on income miss and weak steering

SAN FRANCISCO – Planet Labs PBC reported third-quarter earnings that beat analyst expectations, however income fell quick and the corporate supplied weaker-than-expected steering, sending shares tumbling 15% in after-hours buying and selling.

The Earth imaging firm posted adjusted earnings per share of -$0.02 for the quarter ended October 31, beating the analyst consensus estimate of -$0.06. Nonetheless, income got here in at $61.3 million, lacking expectations of $63.26 million regardless of rising 11% YoY.

For the fourth quarter, Planet Labs forecast income between $61-63 million, nicely under the $66.1 million analysts have been anticipating. The weak outlook overshadowed the corporate’s improved profitability metrics in Q3.

“We’re happy with the a number of giant contracts secured with authorities clients globally this quarter, which we anticipate to ramp up into the yr forward,” stated CEO Will Marshall.

“The third quarter represented Planet’s largest ever quarter of ACV bookings, serving to lay the inspiration for future development.”

Planet Labs reported report GAAP gross margin of 61% in Q3, up over 1,400 foundation factors YoY. Non-GAAP gross margin hit a report 64%, enhancing over 1,200 foundation factors from the prior yr.

The corporate ended the quarter with $242 million in money and short-term investments and no debt. Planet Labs stated it stays on observe to attain adjusted EBITDA profitability subsequent quarter.

“We noticed important enchancment within the fundamentals of the enterprise through the quarter, as evident within the year-over-year and sequential enchancment in margins, in addition to the continued progress on our path to profitability,” stated President and CFO Ashley Johnson.

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