BlackSky: BlackSky Technology Inc (BKSY) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and ...

In This Article: Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript . Positive Points BlackSky Technology Inc ( NYSE:BKSY ) reported strong performance of its new Gen 3 satellite, exceeding expectations in image quality and analytics capabilities. The company secured over $130 million in new contracts and renewal agreements, demonstrating strong demand for its space-based intelligence solutions. Backlog grew by 50% year-over-year, providing strong revenue visibility for future periods. Revenue increased by 22% year-over-year, driven by new contract awards and strong bookings. BlackSky Technology Inc ( NYSE:BKSY ) improved its liquidity position, ending the quarter with $77 million in cash and short-term investments, and a total liquidity position of over $136 million. Negative Points Adjusted EBITDA for the first quarter was a loss of $600,000, compared to a positive $1.4 million in the prior year quarter, primarily due to higher SG&A expenses. The company faces potential risks from a fluid geopolitical and economic environment, which could impact contract awards and budget allocations. There is quarter-to-quarter variability in revenue recognition due to milestone-based contracts, which may affect financial performance. The integration of Leo Stella has led to increased overhead costs, impacting short-term financial results. The imagery and analytics revenue was down sequentially, reflecting timing issues and slower-than-expected orders from certain customers. Q & A Highlights Warning! GuruFocus has detected 2 Warning Sign with BKSY. Q : How are geopolitical uncertainties affecting discussions with international customers? A : Brian O'Toole, CEO, mentioned that despite geopolitical dynamics, there is strong worldwide demand for space-based intelligence solutions. Governments are accelerating investments in sovereign capabilities, and BlackSky is well-positioned to address national security needs. Q : How significant is AI in attracting new customers, and is it a deal-breaker for them? A : Brian O'Toole explained that AI is becoming critical as customers need to manage the high volume and speed of information. The integration of AI is essential for speeding up insights, and this capability is increasingly important for customers expanding their operations. Q : What is the timeline for recognizing the backlog, and how much relates to Gen 3 capacity? A : Brian O'Toole stated that the backlog, which grew to $366 million, includes near-term revenue from imagery and analytics. Significant backlog is expected to be recognized post-2026, with Gen 3 capacity playing a crucial role in future revenue. Q : Can you provide more details on the $130 million increase in backlog, particularly the proportion from new versus existing customers? A : Brian O'Toole noted that a large portion of the backlog increase came from an existing international customer, with about 20 new customers contributing, including a deal in India. Q : How critical are onboard computing and optical interlinks in your future roadmap? A : Brian O'Toole highlighted that onboard computing is a useful tool, but optical cross-links are being developed to improve latency in satellite tasking and information delivery, which are part of BlackSky's roadmap. For the complete transcript of the earnings call, please refer to the full earnings call transcript . This article first appeared on GuruFocus .