Revenue up 42% in 2022 to $6.0 million
Primarily from Asset Monitoring with Constellation-as-a-Service
Business Gaining Momentum
$76.5 million in Cash at Year End 2022
Largest Sub-Meter Resolution Commercial Capture
Capability (7MM+ sq km daily) in the World; Expanded Fleet to 34
Satellites in Orbit
Satellogic Inc. (NASDAQ: SATL), a leader in sub-meter resolution
Earth Observation (“EO”) data collection, today provided full year
2022 financial results and a business update.
“2022 was a transformational year for Satellogic, beginning with
successfully going public and continuing through a series of
milestone achievements that has led us to our position today, with
34 satellites in orbit,” said Satellogic CEO, Emiliano Kargieman.
“With the largest commercial fleet of sub-meter resolution
satellites in the world, we are well positioned to capitalize
on the growing demand for Earth Observation data and
satellites.
“During 2022, our revenue grew 42% year-over-year as both our
Asset Monitoring and our Constellation-as-a-Service businesses
gained momentum. Our three-year agreement with the Republic of
Albania to access a dedicated satellite constellation deployed its
first two satellites dedicated to task and monitor its sovereign
territory for a range of applications including border security,
agriculture management, and environmental monitoring.
“Our new Space Systems (satellite sales) business creates
a satellite purchase program that aims to lower the financial
barrier to Earth Observation spacecraft ownership. Purchase options
begin at less than $10 million for a 70cm resolution satellite,
offering flexibility as well as time-to-operation in as fast as 3
months. Space Systems is designed to offer governments asset
ownership to enhance national geospatial intelligence (GEOINT) with
global tasking autonomy.
“We have proven that it's possible to provide high-quality
satellite imagery through a constellation of small, low-orbit
satellites at what we believe to be the lowest price while
retaining strong margins. We expect to build and launch 14
additional satellites, which will give us the capability of
remapping the Earth every two weeks by the end of 2023.”
Rick Dunn, Satellogic CFO, commented, “We ended 2022 with
$76.5 million of cash on hand. Our revenue grew 42%
to $6.0 million for the full year of 2022 and we reduced our net
loss from $96.3 million in 2021 to $36.6 million in 2022. As we
move through 2023, we have seen increased momentum in terms of
revenue, backlog and pipeline. We expect 2023 to be
considerably stronger, particularly in the second half. As
previously guided, we are targeting revenue for the full year
2023 to be between $30 to $50 million.
“Going forward, revenue will be driven by our continued growth
in Asset Monitoring, Constellation-as-a-Service, and sales of Space
Systems. We anticipate that Space Systems will contribute
considerable per unit cash flow and strong gross margin,”
concluded Dunn.
Financial Results for the Year Ended December 31,
2022
- Revenue during the year ended December 31, 2022
increased 42% to $6.0 million, as compared to revenue of $4.3
million for the year ended December 31, 2021. The increase was
driven primarily by Asset Monitoring, with
Constellation-as-a-Service gaining momentum following a
multi-million-dollar agreement awarded from the Republic of
Albania.
- Gross margin during the year ended December 31, 2022
increased 15% to $2.7 million, as compared to a gross margin of
$2.4 million for the year ended December 31, 2021. Gross margin was
45% during the year ended December 31, 2022, as compared to 56% for
the year ended December 31, 2021, due to higher ground station and
cloud services costs associated with our larger constellation.
- General and administrative expenses were $37.2 million
during the year ended December 31, 2022, as compared to $36.6
million for the year ended December 31, 2021. The slight increase
was due to increased costs associated with being a public company,
primarily insurance, partially offset by lower professional fees
related to elevated going public costs in 2021, and lower
stock-based compensation.
- Research & Development expenses increased to $13.1
million for the year ended December 31, 2022 as compared to $9.6
million for the year ended December 31, 2021. The increase was
driven primarily by a higher average headcount in 2022 as compared
to 2021, which contributed to an increase in stock-based
compensation, salaries and wages, and other R&D expenses, such
as software costs and laboratory supplies.
- Net loss for the year ended December 31, 2022 decreased
to $36.6 million, as compared to a net loss of $96.3 million for
the year ended December 31, 2021. The decrease was primarily driven
by a change in fair value of financial instruments related to net
gains of $58.3 million for the year ended December 31, 2022,
compared to net gains of $18.0 million for the year ended December
31, 2021. The change was primarily driven by the remeasurement to
fair value of our warrant and earnout liabilities issued in
conjunction with the Merger.
- Adjusted EBITDA loss for the year ended December 31,
2022 increased to $56.0 million from an Adjusted EBITDA loss of
$31.8 million for the year ended December 31, 2021 due to increased
costs associated with being a public company and higher average
headcount in anticipation of business growth.
- Cash was $76.5 million at December 31, 2022, as compared
to $8.5 million at December 31, 2021. The increase in cash is due
to the Merger, which resulted in the addition of approximately $168
million in cash.
- Net cash used in operating activities increased to $68.5
million for the year ended December 31, 2022, as compared to $28.4
million the year ended December 31, 2021, primarily due to costs
and expenses related to development of our products, payroll,
fluctuations in accounts payable and other current assets and
liabilities.
Key Second Half and Subsequent Highlights
- Established new Space Systems business line to sell satellites
directly to select customers, with unmatched build-to-launch cycles
as fast as three months.
- Announced partnership and integration with SkyFi, a leading
provider of EO data. This partnership will allow SkyFi’s customers
to submit tasking orders to Satellogic satellites directly through
the platform either at https://app.skyfi.com or on the SkyFi app
for both businesses and individuals.
- Executed a three-year agreement with the Government of Albania
to develop a dedicated satellite constellation with a
Constellation-as-a-Service model to accelerate Albania’s
participation in the New Space Economy and provide unprecedented,
country-wide situational awareness.
- Deployed the “Albania-1” and “Albania-2” satellites that will
support the Republic of Albania pursuant to a recent 3-year
Constellation-as-a-Service agreement entered into with Satellogic.
The dedicated satellites will enable Albania to task and monitor
its sovereign territory for a range of applications including
agriculture management, border security, and environmental
monitoring.
- Signed a letter of intent with Agencia Espacial Mexicana to
develop a fully-featured and operational Constellation-as-a-Service
program to monitor approximately 2 million square kilometers of the
nation.
- Completed a ~5% investment in Officina Stellare, a leader in
the design and production of optomechanical instrumentation,
driving strategic focus on vertical integration.
For additional information regarding our long-term outlook and
risks and assumptions related thereto, see Item 5.B (Liquidity and
Capital Resources) of Satellogic’s recent Form 20-F filing.
Use of Non-GAAP Financial Measures
To supplement our Consolidated Financial Statements, which are
prepared and presented in accordance with U.S. GAAP, we use the
following Non-GAAP measures: EBITDA; Adjusted EBITDA; and Free Cash
Flow. The presentation of this financial information is not
intended to be considered in isolation or as a substitute for, or
superior to, the financial information prepared and presented in
accordance with U.S. GAAP.
We define Non-GAAP EBITDA as net income (loss) excluding
interest, income taxes, depreciation and amortization. We did not
incur amortization expense during the years ended December 31,
2022, 2021 and 2020.
We define Non-GAAP Adjusted EBITDA as Non-GAAP EBITDA further
adjusted for merger-related transaction costs and other income
(expense). Other income (expense) consists of foreign currency
gains and losses, changes in the fair value of financial
instruments and stock-based compensation.
We use these Non-GAAP financial measures for financial and
operational decision-making and as a means to evaluate
period-to-period comparisons. We believe these measures provide
analysts, investors and management with helpful information
regarding the underlying operating performance of our business, as
they provide meaningful supplemental information regarding our
performance and liquidity by removing the impact of items that we
believe are not reflective of our underlying operating performance.
The Non-GAAP measures are used by us to evaluate our core operating
performance and liquidity on a comparable basis and to make
strategic decisions. The Non-GAAP measures also facilitate
company-to-company operating performance comparisons by backing out
potential differences caused by variations such as capital
structures, taxation, depreciation, capital expenditures and other
non-cash items (i.e., embedded derivatives, debt extinguishment and
stock-based compensation) which may vary for different companies
for reasons unrelated to operating performance. However, different
companies may define these terms differently and accordingly
comparisons might not be accurate. There are a number of
limitations related to the use of Non-GAAP financial measures. We
compensate for these limitations by providing specific information
regarding the U.S. GAAP amounts excluded from these Non-GAAP
financial measures, and evaluating these Non-GAAP financial
measures together with their relevant financial measures in
accordance with U.S. GAAP. Non-GAAP measures such as EBITDA,
Adjusted EBITDA and Free Cash Flow are not intended to be a
substitute for any U.S. GAAP financial measure.
We have included reconciliations from the most directly
comparable GAAP metric to Non-GAAP EBITDA and Non-GAAP Adjusted
EBITDA for the years ended December 31, 2022, 2021 and 2020
below.
The following table presents a
reconciliation of Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA to
our net loss for the periods indicated.
Year Ended December
31,
(in thousands of U.S. dollars)
2022
2021
2020
Net loss
$
(36,641
)
$
(96,305
)
$
(21,529
)
Plus interest expense
1,596
8,729
43
Plus income tax expense (benefit)
4,573
(232
)
148
Plus depreciation
14,326
10,728
3,031
Non-GAAP EBITDA
$
(16,146
)
$
(77,080
)
$
(18,307
)
Plus Merger transaction costs
11,188
16,236
—
Less other income, net
(1,140
)
(1,069
)
(594
)
Less change in fair value of financial
instruments
(58,311
)
(17,983
)
(9,637
)
Plus loss on extinguishment of debt
—
37,216
9,240
Plus stock-based compensation
8,368
10,881
1,732
Non-GAAP Adjusted EBITDA
$
(56,041
)
$
(31,799
)
$
(17,566
)
About Satellogic
Founded in 2010 by Emiliano Kargieman and Gerardo Richarte,
Satellogic (NASDAQ: SATL) is the first vertically integrated
geospatial company, driving real outcomes with planetary-scale
insights. Satellogic is creating and continuously enhancing the
first scalable, fully automated EO platform with the ability to
remap the entire planet at both high-frequency and high-resolution,
providing accessible and affordable solutions for customers.
Satellogic’s mission is to democratize access to geospatial data
through its information platform of high-resolution images to help
solve the world’s most pressing problems including climate change,
energy supply, and food security. Using its patented Earth imaging
technology, Satellogic unlocks the power of EO to deliver
high-quality, planetary insights at the lowest cost in the
industry.
With more than a decade of experience in space, Satellogic has
proven technology and a strong track record of delivering
satellites to orbit and high-resolution data to customers at the
right price point.
To learn more, please visit: http://www.satellogic.com
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the U.S. federal securities laws. The words
“anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”,
“intend”, “may”, “might”, “plan”, “possible”, “potential”,
“predict”, “project”, “should”, “would” and similar expressions may
identify forward-looking statements, but the absence of these words
does not mean that a statement is not forward-looking. These
forward-looking statements are based on Satellogic’s current
expectations and beliefs concerning future developments and their
potential effects on Satellogic and include statements concerning
Satellogic’s strategies, Satellogic’s future opportunities, and the
commercial and governmental applications for Satellogic’s
technology. Forward-looking statements are predictions, projections
and other statements about future events that are based on current
expectations and assumptions and, as a result, are subject to risks
and uncertainties. These statements are based on various
assumptions, whether or not identified in this press release. These
forward-looking statements are provided for illustrative purposes
only and are not intended to serve as, and must not be relied on
by, an investor as, a guarantee, an assurance, a prediction or a
definitive statement of fact or probability. Actual events and
circumstances are difficult or impossible to predict and will
differ from assumptions. Many actual events and circumstances are
beyond the control of Satellogic. Many factors could cause actual
future events to differ materially from the forward-looking
statements in this press release, including but not limited to: (i)
Satellogic’s ability to scale its constellation of satellites and
to do so on Satellogic’s projected timeframe and in accordance with
projected costs, (ii) Satellogic’s ability to continue to meet
image quality expectations, to continue to enhance the capability
of its network of satellites and to continue to offer superior unit
economics, (iii) Satellogic’s ability to become or remain an
industry leader, (iv) the number of commercial applications for
Satellogic’s products and services, (v) Satellogic’s ability to
address all commercial applications for satellite imagery, changes
in the competitive and highly regulated industries in which
Satellogic operates, variations in operating performance across
competitors and changes in laws and regulations affecting
Satellogic’s business, (vi) the ability to implement business
plans, forecasts and other expectations, and to identify and
realize additional opportunities, (vii) the risk of downturns in
the commercial launch services, satellite and spacecraft industry,
(viii) the risk that the market for Satellogic’s products and
services does not develop as anticipated, (ix) the risk that
Satellogic and its current and future collaborators are unable to
successfully develop and commercialize Satellogic’s products or
services, or experience significant delays in doing so, (x) the
risk that third-party suppliers and manufacturers are not able to
fully and timely meet their obligations, (xi) the risk of product
liability or regulatory lawsuits or proceedings relating to
Satellogic’s products and services, and (xii) the risk that
Satellogic is unable to secure or protect its intellectual
property. The foregoing list of factors is not exhaustive. You
should carefully consider the foregoing factors and the other risks
and uncertainties described in the “Risk Factors” section of
Satellogic’s Annual Report on Form 20-F and other documents filed
or to be filed by Satellogic from time to time with the Securities
and Exchange Commission. These filings identify and address other
important risks and uncertainties that could cause actual events
and results to differ materially from those contained in the
forward-looking statements. Forward-looking statements speak only
as of the date they are made. Readers are cautioned not to put
undue reliance on forward-looking statements, and Satellogic
assumes no obligation and does not intend to update or revise these
forward-looking statements, whether as a result of new information,
future events, or otherwise. Satellogic can give no assurance that
it will achieve its expectations.
SATELLOGIC INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS
Year Ended December
31,
(in thousands of U.S. dollars, except
share and per share amounts)
2022
2021
2020
Revenue
$
6,012
$
4,247
$
—
Costs and expenses
Cost of sales, exclusive of depreciation
shown separately below
3,284
1,876
—
General and administrative expenses
37,191
36,640
8,003
Research and development
13,055
9,636
5,924
Depreciation expense
14,326
10,728
3,031
Other operating expenses
29,023
14,002
5,449
Total costs and expenses
96,879
72,882
22,407
Operating loss
(90,867
)
(68,635
)
(22,407
)
Other income (expense), net
Finance costs, net
(652
)
(9,738
)
35
Change in fair value of financial
instruments
58,311
17,983
9,637
Loss on extinguishment of debt
—
(37,216
)
(9,240
)
Other income, net
1,140
1,069
594
Total other income (expense), net
58,799
(27,902
)
1,026
Loss before income tax
(32,068
)
(96,537
)
(21,381
)
Income tax (expense) benefit
(4,573
)
232
(148
)
Net loss available to common
stockholders
$
(36,641
)
$
(96,305
)
$
(21,529
)
Other comprehensive loss
Foreign currency translation loss, net of
tax
(226
)
(86
)
—
Comprehensive loss
$
(36,867
)
$
(96,391
)
$
(21,529
)
Basic loss per share for the period
attributable to common stockholders
$
(0.44
)
$
(5.78
)
$
(1.34
)
Basic weighted-average common shares
outstanding
83,188,276
16,655,634
16,029,826
Diluted loss per share for the period
attributable to common stockholders
$
(0.66
)
$
(5.78
)
$
(1.34
)
Diluted weighted-average common shares
outstanding
83,798,149
16,655,634
16,029,826
SATELLOGIC INC.
CONSOLIDATED BALANCE
SHEETS
December 31,
(in thousands of U.S. dollars, except
per share amounts)
2022
2021
ASSETS
Current assets
Cash and cash equivalents
$
76,528
$
8,533
Restricted cash
126
—
Accounts receivable, net of allowance of
$3,237 and $1,794, respectively
1,388
1,196
Prepaid expenses and other current
assets
3,198
2,695
Total current assets
81,240
12,424
Property and equipment, net
47,981
32,530
Operating lease right-of-use assets
8,171
2,955
Deferred income tax assets
—
1,640
Other non-current assets
6,463
369
Total assets
$
143,855
$
49,918
LIABILITIES, REDEEMABLE PREFERRED STOCK
AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities
Accounts payable
$
9,850
$
6,650
Debt
—
108,473
Warrant liabilities
8,335
143,237
Earnout liabilities
1,353
—
Operating lease liabilities
2,176
985
Contract liabilities
1,941
935
Accrued expenses and other liabilities
6,417
23,435
Total current liabilities
30,072
283,715
Operating lease liabilities
6,063
2,083
Contract liabilities
1,000
1,000
Other non-current liabilities
522
2,552
Total liabilities
37,657
289,350
Commitments and contingencies (Note
20)
Redeemable preferred stock, $0.0001 par
value
—
21,306
Stockholders' equity (deficit)
Preferred stock, $0.0001 par value
—
—
Common stock, $0.0001 par value
—
—
Treasury stock, at cost
(8,603
)
(170,949
)
Additional paid-in capital
337,928
96,471
Accumulated other comprehensive loss
(312
)
(86
)
Accumulated deficit
(222,815
)
(186,174
)
Total stockholders’ equity
(deficit)
106,198
(260,738
)
Total liabilities, redeemable preferred
stock and stockholders' equity (deficit)
$
143,855
$
49,918
SATELLOGIC INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
Year Ended December
31,
(in thousands of U.S. dollars)
2022
2021
2020
Cash flows from operating
activities:
Net loss
$
(36,641
)
$
(96,305
)
$
(21,529
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation expense
14,326
10,728
3,031
Operating lease expense
2,015
548
298
Deferred tax expense (benefit)
1,601
(1,619
)
(38
)
Stock-based compensation
8,368
10,881
1,732
Interest expense
1,693
9,703
43
Change in fair value of financial
instruments
(58,311
)
(17,983
)
(9,637
)
Loss on debt extinguishment
—
37,216
9,240
Expenses related to Merger
9,859
—
—
Foreign exchange differences
(4,578
)
(2,385
)
(1,507
)
Loss on disposal of property and equipment
and right of use assets
996
579
372
Bad debt expense
1,736
1,794
—
Changes in operating assets and
liabilities:
Accounts receivable
(1,928
)
(4,691
)
(221
)
Prepaid expenses and other current
assets
(1,855
)
21
(14
)
Accounts payable
(3,202
)
1,421
6,474
Contract liabilities
1,006
480
455
Accrued expenses and other liabilities
(1,562
)
21,622
497
Operating lease liabilities
(1,985
)
(449
)
(370
)
Net cash used in operating
activities
(68,462
)
(28,439
)
(11,174
)
Cash flows from investing
activities:
Acquisitions of property and equipment
(27,252
)
(11,233
)
(15,787
)
Equity investment in OS
(3,653
)
—
—
Other
53
3
14
Net cash used in investing
activities
(30,852
)
(11,230
)
(15,773
)
Cash flows from financing
activities:
Proceeds from issuance of redeemable
Series X preferred stock
—
20,332
—
Proceeds from issuance of debt
—
7,513
17,348
Repurchase of stock
(8,603
)
—
—
Proceeds from exercise of Public
Warrants
5,291
—
—
Proceeds from sale of common stock
167,504
—
—
Proceeds from exercise of stock
options
144
791
802
Net cash provided by financing
activities
164,336
28,636
18,150
Net increase in cash, cash equivalents and
restricted cash
65,022
(11,033
)
(8,797
)
Effect of foreign exchange rate
changes
4,237
2,299
1,507
Cash, cash equivalents and restricted cash
- beginning of period
8,533
17,267
24,557
Cash, cash equivalents and restricted
cash - end of period
$
77,792
$
8,533
$
17,267
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230427005951/en/
Investor Relations:
MZ Group Chris Tyson/Larry Holub (949) 491-8235
SATL@mzgroup.us
Media Relations:
Satellogic pr@satellogic.com
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