- Exceeded top end of guidance range with record quarterly
revenue of $27.3M; 34% year-over-year (YOY) increase
- Increased GAAP gross margins to 65%; 15 pt YOY improvement, and
non-GAAP gross margins1 to 69%; 14 pt YOY improvement
- Improved GAAP operating loss to ($11.0M); 33% YOY improvement,
and lowered Non-GAAP operating loss1 to ($6.2M); 45% YOY
improvement
- Improved net loss to ($17.8M); 18% YOY improvement, and lowered
adjusted EBITDA1 loss to ($3.4M); 60% YOY improvement
- Improving full year midpoint guidance for revenue, non-GAAP
operating loss, non-GAAP loss per share, and adjusted EBITDA
loss
Spire Global, Inc. (NYSE: SPIR) (“Spire” or “the Company”), a
leading provider of space-based data, analytics and space services,
today announced results for its quarter ended September 30, 2023.
The Company will hold a webcast at 5:00 pm ET today to discuss the
results.
“As more businesses and organizations are leveraging data and
insights from space, we are continuing to see this demand translate
into profitable growth opportunities for our business,” said Peter
Platzer, Spire CEO. “With a drive toward profitability, and recent
proof points indicating the power of space-based data to help with
global security challenges and improved severe weather forecasting,
I am incredibly proud of what Spire has already achieved and will
continue to do in the days, weeks and years ahead.”
“Spire is poised for a strong finish to the year,” said Leo
Basola, Spire CFO. “After exceeding our revenue expectations for
the last three quarters, raising our full year earnings guidance in
the last two quarters, and reaffirming our expectations of positive
operating cash flow in the fourth quarter of this year, positive
adjusted EBITDA in Q1 or Q2 2024 and positive free cash flow in Q2
or Q3 2024, the business is continuing a strong progression toward
profitability.”
Third Quarter 2023
Highlights
Financial:
- Third quarter 2023 revenue increased 34% year-over-year to a
record $27.3 million, which exceeded the top end of our
expectations by $0.3 million. Revenue growth was driven by new
customer additions as well as increased milestone-based
projects.
- Third quarter 2023 GAAP gross margin increased 15 percentage
points year-over-year to 65%, and non-GAAP gross margin1 increased
14 percentage points to 69%. We believe the gross margin
improvement demonstrates our success in leveraging headcount and
infrastructure costs across our solutions.
- Third quarter 2023 GAAP operating loss was $11.0 million, an
improvement of $5.4 million year-over-year, and non-GAAP operating
loss1 was $6.2 million, a $5.2 million improvement year-over-year.
We believe these results reflect strong execution on our path to
profitability.
- Third quarter 2023 net loss was $17.8 million, a $4.0 million
year-over-year improvement. Adjusted EBITDA loss was $3.4 million,
for third quarter 2023, a $5.0 million or 60% improvement
year-over-year.
- Third quarter 2023 operating cash flow was negative $5.1
million, a sequential quarter-over-quarter improvement of $6.2
million, or 54%.
- ARR as of September 30, 2023 was $103.1 million, and Spire
ended the quarter with 827 ARR solution customers under
contract.
1 Non-GAAP Financial Measure, please see section titled Non-GAAP
Financial Measures for the definition of such measures and the
reconciliation tables at the end of this release for reconciliation
to the most directly comparable GAAP measure.
Business:
- Spire was recently selected for a Multiple-Award, Indefinite
Delivery Indefinite Quantity (IDIQ) contract by NASA to provide
Earth observation data for the agency’s Commercial Smallsat Data
Acquisition (CSDA) Program. The contract will be effective for five
years with the opportunity to compete for task orders under a $476
million shared ceiling amongst seven selected companies. Better and
more accurate Earth observation data is vital to addressing the
increasingly complex climate issues we face today. We believe
Spire’s long-standing work with NASA and the CSDA Program uniquely
positions us to continue delivering high-quality Earth observation
data and innovative solutions that contribute to a more sustainable
future.
- During the quarter, Spire announced it was awarded a $2.8
million, 12-month contract by the National Oceanic and Atmospheric
Administration (NOAA) for satellite weather data. Spire will
provide NOAA with Global Navigation Satellite System Reflectometry
(GNSS-R) observation data in near real-time, primarily focusing on
ocean surface wind speeds. The initiative directly addresses the
agency’s critical need for more precise global sea-surface wind
measurements essential for applications like marine weather
forecasts, hurricane tracking, ocean current analysis and climate
studies.
- Spire announced it was awarded a $4.6 million, 12-month
contract by NASA on behalf of NOAA to participate in NOAA’s Sounder
for Microwave-Based Applications (SMBA) Phase-A study. Following
the completion of the 12-month contract, a single sounder from the
finalists may be selected for additional contract phases. The data
collected from the final Microwave Sounder will be used towards
advancing Earth observation, providing insights into various
atmospheric properties such as temperature, humidity, cloud cover
and composition.
- Spire announced it will participate in a challenge to advance
measurements of the Earth’s magnetic field. As part of the
challenge, Spire received multi-million dollar support from the
National Geospatial-Intelligence Agency. Spire will design, develop
and launch a satellite that will provide a novel approach to
geomagnetic data collection for the World Magnetic Model (WMM). The
WMM is used every day around the world and is embedded in thousands
of systems. More than a billion smartphone users depend on the WMM
for mobile navigation apps, and drivers rely on it to align the
compasses in their cars.
- During the quarter, Spire announced a Space Services contract
from GHGSat, a global leader in high-resolution greenhouse gas
monitoring from space. Under the agreement, Spire will build,
launch and operate four additional 16U satellites that will carry
GHGSat payloads to monitor greenhouse gas emissions. This builds
upon Spire’s initial agreement with GHGSat for three 16U satellites
that are planned for launch by the end of 2023.
Financial Outlook
Spire is providing the following guidance for the fourth quarter
2023, and is improving certain elements of its guidance for the
full year ending December 31, 2023:
Q4 FY'23 Guidance
Previous Full Year
FY'23 Guidance
Revised Full Year
FY'23 Guidance
Low High Low
High Low High
Revenue (millions)
$27.0
$31.0
$104.0
$109.0
$105.0
$109.0
Y/Y Growth
21
%
38
%
30
%
36
%
31
%
36
%
ARR (millions)
$125.0
$135.0
$129.0
$135.0
$125.0
$135.0
Y/Y Growth
26
%
36
%
30
%
36
%
26
%
36
%
ARR Solution Customers
800
830
855
875
800
830
Non-GAAP Operating Loss (millions)
($7.5
)
($3.8
)
($32.0
)
($27.0
)
($29.7
)
($26.0
)
Adjusted EBITDA (millions)
($3.0
)
$1.0
($18.0
)
($13.0
)
($16.1
)
($12.1
)
Non-GAAP Loss Per Share
($0.62
)
($0.42
)
($2.56
)
($2.32
)
($2.45
)
($2.24
)
Basic Weighted Average Shares (millions)
20.8
20.8
19.7
19.7
19.6
19.6
The amounts in the Previous Full Year FY’23 Guidance columns for
Non-GAAP Loss Per Share and Basic Weighted Average Shares have been
adjusted to reflect the 1-for-8 reverse stock split effected on
August 31, 2023.
The non-U.S. generally accepted accounting principles (“GAAP”)
operating loss, adjusted EBITDA and non-GAAP loss per share
included in the table above are non-GAAP measures. Please see the
section titled “Non-GAAP Financial Measures” for the definition of
such measures. Spire has provided a reconciliation of GAAP to
non-GAAP financial measures in the financial statement tables
included in this press release for its third quarter 2022 and 2023
results, as well as its outlook for such measures for the fourth
quarter and full year 2023.
Non-GAAP Financial
Measures
In addition to financial measures prepared in accordance with
GAAP, this press release and the accompanying tables contain, and
the conference call will contain, non-GAAP financial measures,
including free cash flow, non-GAAP gross profit, non-GAAP gross
margins, non-GAAP research and development, non-GAAP sales and
marketing, non-GAAP general and administrative expenses, non-GAAP
operating loss, EBITDA, Adjusted EBITDA, non-GAAP net loss, and
non-GAAP net loss per share. Spire’s management uses these non-GAAP
financial measures internally in analyzing its financial results
and believes they are useful to investors, as a supplement to the
corresponding GAAP financial measures, in evaluating its ongoing
operational performance and trends and in comparing its financial
measures with other companies in the same industry, many of which
present similar non-GAAP financial measures to help investors
understand the operational performance of their businesses.
However, it is important to note that the particular items Spire
excludes from, or includes in, its non-GAAP financial measures may
differ from the items excluded from, or included in, similar
non-GAAP financial measures used by other companies in the same
industry. In addition, other companies may utilize metrics that are
not similar to Spire’s. The non-GAAP financial information is
presented for supplemental informational purposes only and is not
intended to be considered in isolation or as a substitute for, or
superior to, financial information prepared and presented in
accordance with GAAP. There are material limitations associated
with the use of non-GAAP financial measures since they exclude
significant expenses and income that are required by GAAP to be
recorded in Spire’s financial statements. Investors should note
that the excluded items may have had, and may in the future have, a
material impact on our reported financial results. Please see the
reconciliation tables at the end of this release for the
reconciliation of GAAP and non-GAAP results. Management encourages
investors and others to review Spire’s financial information in its
entirety and not rely on a single financial measure.
Spire adjusts the following items from one or more of its
non-GAAP financial measures:
Loss on satellite deorbit, launch failure and decommissioning.
Spire excludes loss on satellite deorbit, launch failure and
decommissioning because if there was no loss, the expense would be
accounted for as depreciation and would also be excluded as part of
its EBITDA calculation.
Change in fair value of warrant liabilities and contingent
earnout liability. Spire excludes these items as they do not
reflect the underlying cash flows or operational results of the
business.
Other (expense) income, net. Spire excludes other (expense)
income, net because it includes unusual items that do not reflect
the underlying operational results of its business. Examples of
such expenses include prepayment penalties on outstanding debt and
vendor dispute legal settlements.
Stock-based compensation. Spire excludes stock-based
compensation expenses primarily because they are non-cash expenses
that it excludes from its internal management reporting processes.
Spire also finds it useful to exclude these expenses when
management assesses the appropriate level of various operating
expenses and resource allocations when budgeting, planning, and
forecasting future periods. Moreover, because of varying available
valuation methodologies, subjective assumptions and the variety of
award types that companies can use under FASB ASC Topic 718, Stock
Compensation, Spire believes excluding stock-based compensation
expenses allows investors to make meaningful comparisons between
its recurring core business operating results and those of other
companies.
Amortization of purchased intangibles. Spire incurs amortization
expense for purchased intangible assets in connection with
acquisitions of certain businesses and technologies. Amortization
of intangible assets is a non-cash expense and is inconsistent in
amount and frequency because it is significantly affected by the
timing, size of acquisitions and the inherent subjective nature of
purchase price allocations. Because these costs have already been
incurred and cannot be recovered, and are non-cash expenses, Spire
excludes these expenses for its internal management reporting
processes. Spire's management also finds it useful to exclude these
charges when assessing the appropriate level of various operating
expenses and resource allocations when budgeting, planning and
forecasting future periods. It is important to note that while this
amortization expense is excluded for purposes of non-GAAP
presentation, the revenue of the acquired businesses is reflected
in the non-GAAP measures and that the assets contribute to revenue
generation.
Other acquisition accounting amortization. Spire incurs
amortization expense for purchased data rights in connection with
the acquisition of exactEarth and certain technologies.
Amortization of this asset is a non-cash expense that can be
significantly affected by the inherent subjective nature of the
assigned value and useful life. Because this cost has already been
incurred and cannot be recovered, and is a non-cash expense, Spire
excludes this expense for its internal management reporting
processes. Spire's management also finds it useful to exclude this
charge when assessing the appropriate level of various operating
expenses and resource allocations when budgeting, planning and
forecasting future periods. It is important to note that while this
expense is excluded for purposes of non-GAAP presentation, the
revenue of the acquired companies is reflected in the non-GAAP
measures and that the assets contribute to revenue generation.
Mergers and acquisition related expenses. Spire excludes these
expenses as they are transaction costs and expenses associated with
the transaction that are generally infrequent in nature and not
reflective of the underlying operational results of Spire’s
business. Examples of these types of expenses include legal,
accounting, regulatory, other consulting services, severance, and
other employee costs.
Loss on extinguishment of debt. Spire excludes this as it does
not reflect the underlying cash flows or operational results of the
business.
Foreign exchange gain/loss. Spire is exposed to foreign currency
gains or losses on outstanding foreign currency denominated
receivables and payables related to certain customer sales
agreements, product costs and other operating expenses. As Spire
does not actively hedge these currency exposures, changes in the
underlying currency rates relative to the U.S. dollar may result in
realized and unrealized foreign currency gains and losses between
the time these receivables and payables arise and the time that
they are settled in cash. Since such realized and unrealized
foreign currency gains and losses are the result of macro-economic
factors and can vary significantly from one period to the next,
Spire believes that exclusion of such realized and unrealized gains
and losses is useful to management and investors in evaluating the
performance of its ongoing operations on a period-to-period
basis.
Other unusual and infrequent costs. Spire excludes these as they
are unusual items that do not reflect the ongoing operational
results of its business. Examples of these types of expenses
include accounting, legal and other professional fees associated
with the preparation and filing of Spire’s September 2022 Form S-3
shelf registration statement and “at-the-market” offering
prospectus supplement, and the December 2022 warrant exchange.
Our additional non-GAAP measures include:
Free Cash Flow. Spire defines free cash flow as net cash used in
operating activities reduced by purchases of property and
equipment.
EBITDA. Spire defines EBITDA as net income (loss), plus
depreciation and amortization expense, plus interest expense, and
plus the provision for (or minus benefit from) income taxes.
Adjusted EBITDA. Spire defines Adjusted EBITDA as earnings
before interest, taxes, depreciation and amortization, further
adjusted for loss on satellite deorbit, launch failure and
decommissioning, change in fair value of warrant liabilities,
change in fair value of contingent earnout liability, other
(expense) income, net, stock-based compensation, loss on
extinguishment of debt, foreign exchange gain/loss, other
acquisition accounting amortization, mergers and acquisition
related expenses, and other unusual costs. Spire believes Adjusted
EBITDA can be useful in providing an understanding of the
underlying results of operations and trends and an enhanced overall
understanding of its financial performance and prospects for the
future. While Adjusted EBITDA is not a recognized measure under
GAAP, management uses this financial measure to evaluate and
forecast business performance. Adjusted EBITDA is not intended to
be a measure of liquidity or cash flows from operations or a
measure comparable to net income as it does not take into account
certain requirements, such as capital expenditures and related
depreciation, principal and interest payments, and tax payments.
Adjusted EBITDA is not a presentation made in accordance with GAAP,
and Spire’s use of the term Adjusted EBITDA may vary from the use
of similarly titled measures by others in its industry due to the
potential inconsistencies in the method of calculation and
differences due to items subject to interpretation.
Other Definitions
Annual Recurring Revenue (ARR). Spire defines ARR as expected
annualized revenue from customers that are under contracts at the
end of the reporting period with a binding and renewable agreement
for subscription solutions or customers that are under a binding
multi-year contract that can range from components of Space
Services solutions to a project-based customer solution. Customers
with project-based contracts are considered recurring when there is
a multi-year binding agreement that has a renewable component in
the contract. Customers are also considered recurring when they
have multiple contracts over multiple years. Customer contracts for
data trials and one-time transactions are excluded from the
calculation of ARR.
ARR Customers. Spire defines an ARR Customer as an entity that
has a contract with Spire or through its reseller partners
contracts, that is either a binding and renewable agreement for
subscription solutions, or a binding multi-year contract as of the
measurement date independent of the number of solutions the entity
has under contract. A single organization with separate
subsidiaries, segments, or divisions may represent multiple
customers, as Spire treats each entity that is invoiced separately
as an individual customer. In cases where customers subscribe to
Spire’s platform through its reseller partners, each end customer
that meets the above definition is counted separately as an ARR
Customer. All entities that have contracts for data trials and
one-time transactions are excluded from the calculation of ARR
Customers.
ARR Solution Customers. Spire defines an ARR Solution Customer
similarly to an ARR Customer, but Spire counts every solution the
customer has separately. As a result, the count of ARR Solution
Customers exceeds the count of ARR Customers at each period end, as
some customers contract with Spire for multiple solutions. Spire’s
multiple solution customers are those that are under contract for
at least two solutions: Maritime, Aviation, Weather, and Space
Services. All entities that have contracts for data trials and
one-time transactions are excluded from the calculation of ARR
Solution Customers.
Conference Call
Spire will webcast a conference call to discuss the results at
5:00 p.m. Eastern Time today. The webcast will be available on
Spire’s Investor Relations website at ir.spire.com. A replay of the
call will be available on the site for three months.
Safe Harbor Statement
The forward-looking statements included in this press release
and in the related conference call, including for example, the
quotations of management, the statements under the heading
“Financial Outlook” above, the information provided in the “GAAP to
Non-GAAP Reconciliations – Q4 2023 and Full Year 2023 Financial
Outlook” section of the tables below, statements regarding
continued growth, statements regarding Spire’s expected timing to
generate positive cash from operations, non-GAAP operating margins,
adjusted EBITDA and free cash flow, statements regarding increasing
its ARR, statements regarding profitability, and statements
regarding the benefits of its solutions to its customers and
generally, reflect management’s best judgment based on factors
currently known and involve risks and uncertainties. These risks
and uncertainties include, but are not limited to, potential
disruption of customer purchase decisions resulting from global
economic conditions including from an economic downturn or
recession in the United States or in other countries around the
world, relative growth of its ARR and revenue, the failure of the
Spire and exactEarth businesses (including personnel) to be
integrated successfully, the risk that revenue and adjusted EBITDA
accretion or the expansion of Spire’s customer count, ARR, product
offerings and solutions will not be realized or realized to the
extent anticipated, the ability to address the market opportunity
for Space-as-a-Service, the ability to implement business plans,
forecasts, and other expectations, and identify and realize
additional opportunities, the risk of downturns, new entrants and a
changing regulatory landscape in the highly competitive space data
analytics industries, developments in and the duration of the
COVID-19 pandemic and the resulting impact on Spire’s business and
operations, and the business of its customers and partners, Spire’s
potential inability to manage effectively any growth it
experiences, Spire’s ability or inability to develop new products
and services, and other risks detailed in reports Spire has filed
with the Securities and Exchange Commission, including Spire’s
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K. Significant variation from the
assumptions underlying Spire’s forward-looking statements could
cause its actual results to vary, and the impact could be
significant. All forward-looking statements in this press release
are based on information available to Spire as of the date hereof.
Spire undertakes no obligation, and does not intend, to update the
information contained in this press release or the accompanying
conference call, except as required by law.
About Spire Global, Inc.
Spire (NYSE: SPIR) is a global provider of space-based data,
analytics and space services, offering unique datasets and powerful
insights about Earth so that organizations can make decisions with
confidence in a rapidly changing world. Spire builds, owns, and
operates a fully deployed satellite constellation that observes the
Earth in real time using radio frequency technology. The data
acquired by Spire’s satellites provides global weather
intelligence, ship and plane movements, and spoofing and jamming
detection to better predict how their patterns impact economies,
global security, business operations and the environment. Spire
also offers Space as a Service solutions that empower customers to
leverage its established infrastructure to put their business in
space. Spire has nine offices across the U.S., Canada, UK,
Luxembourg, Germany and Singapore. To learn more, visit
spire.com.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
Three Months Ended September 30, Nine Months Ended
September 30, (In thousands, except share and per share
amounts)
2023
2022
2023
2022
Revenue
$
27,317
$
20,418
$
77,978
$
57,883
Cost of revenue
9,555
10,198
29,548
29,617
Gross profit
17,762
10,220
48,430
28,266
Operating expenses: Research and development
10,538
8,879
29,953
25,761
Sales and marketing
6,993
7,794
20,572
21,427
General and administrative
11,049
9,903
33,718
33,861
Loss on decommissioned satellites
156
—
628
—
Total operating expenses
28,736
26,576
84,871
81,049
Loss from operations
(10,974
)
(16,356
)
(36,441
)
(52,783
)
Other income (expense): Interest income
540
336
1,741
456
Interest expense
(4,728
)
(3,897
)
(14,015
)
(9,725
)
Change in fair value of contingent earnout liability
13
344
217
9,597
Change in fair value of warrant liabilities
(119
)
1,282
984
11,014
Foreign exchange
(1,829
)
(2,806
)
(1,240
)
(6,346
)
Loss on extinguishment of debt
—
—
—
(22,510
)
Other expense, net
(620
)
(660
)
(2,420
)
(1,165
)
Total other expense, net
(6,743
)
(5,401
)
(14,733
)
(18,679
)
Loss before income taxes
(17,717
)
(21,757
)
(51,174
)
(71,462
)
Income tax provision
78
54
560
406
Net loss
$
(17,795
)
$
(21,811
)
$
(51,734
)
$
(71,868
)
Basic and diluted net loss per share(1)
$
(0.86
)
$
(1.25
)
$
(2.71
)
$
(4.12
)
Weighted-average shares used in computing basic and diluted net
loss per share(1)
20,756,394
17,492,871
19,117,078
17,454,680
(1) The shares of the Company's common stock and the per share
amounts have been retroactively adjusted to reflect the 1-for-8
reverse stock split
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE LOSS
(Unaudited)
Three Months Ended September 30, Nine Months Ended
September 30, (In thousands)
2023
2022
2023
2022
Net loss
$
(17,795
)
$
(21,811
)
$
(51,734
)
$
(71,868
)
Other comprehensive gain (loss): Foreign currency translation
adjustments
(1,779
)
(4,969
)
973
(5,322
)
Net unrealized (loss) gain on investments (net of tax)
(2
)
(3
)
35
(86
)
Comprehensive loss
$
(19,576
)
$
(26,783
)
$
(50,726
)
$
(77,276
)
CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30, December 31, (In thousands)
2023
2022
Assets Current assets Cash and cash equivalents
$
29,936
$
47,196
Marketable securities
20,157
23,084
Accounts receivable, net (including allowance of $1,137 and $395 as
of September 30, 2023 and December 31, 2022, respectively)
18,660
13,864
Contract assets
4,489
3,353
Other current assets
8,401
9,279
Total current assets
81,643
96,776
Property and equipment, net
69,610
53,752
Operating lease right-of-use assets
14,317
11,687
Goodwill
49,913
49,954
Customer relationships
19,369
20,814
Other intangible assets
12,758
13,967
Other long-term assets, including restricted cash
8,399
9,562
Total assets
$
256,009
$
256,512
Liabilities and Stockholders’ Equity Current liabilities
Accounts payable
$
4,620
$
4,800
Accrued wages and benefits
5,726
4,502
Contract liabilities, current portion
22,763
15,856
Other accrued expenses
9,650
8,210
Total current liabilities
42,759
33,368
Long-term debt
117,635
98,475
Contingent earnout liability
132
349
Deferred income tax liabilities
780
771
Warrant liability
3,407
1,831
Operating lease liabilities, net of current portion
13,049
10,815
Other long-term liabilities
761
780
Total liabilities
178,523
146,389
Commitments and contingencies Stockholders’ equity Common stock
2
16
Additional paid-in capital
473,854
455,751
Accumulated other comprehensive loss
(5,989
)
(6,997
)
Accumulated deficit
(390,381
)
(338,647
)
Total stockholders’ equity
77,486
110,123
Total liabilities and stockholders’ equity
$
256,009
$
256,512
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited)
Nine Months Ended September 30, (In thousands)
2023
2022
Cash flows from operating activities Net loss
$
(51,734
)
$
(71,868
)
Adjustments to reconcile net loss to net cash used in operating
activities: Depreciation and amortization
11,642
14,056
Stock-based compensation
9,516
8,323
Amortization of operating lease right-of-use assets
2,185
1,657
Amortization of debt issuance costs
1,595
3,233
Change in fair value of warrant liability
(984
)
(11,014
)
Change in fair value of contingent earnout liability
(217
)
(9,597
)
Loss on decommissioned satellites and impairment of assets
630
—
Loss on extinguishment of debt
—
22,271
Other, net
(448
)
79
Changes in operating assets and liabilities: Accounts receivable,
net
(4,834
)
(7,078
)
Contract assets
(1,146
)
(1,445
)
Other current assets
(177
)
1,316
Other long-term assets
1,261
1,352
Accounts payable
(767
)
(816
)
Accrued wages and benefits
1,249
(185
)
Contract liabilities
6,977
6,423
Other accrued expenses
(536
)
1,636
Operating lease liabilities
(1,945
)
(1,006
)
Other long-term liabilities
—
(45
)
Net cash used in operating activities
(27,733
)
(42,708
)
Cash flows from investing activities Purchases of short-term
investments
(37,752
)
(29,796
)
Maturities of short-term investments
41,500
7,400
Purchase of property and equipment
(23,694
)
(15,946
)
Net cash used in investing activities
(19,946
)
(38,342
)
Cash flows from financing activities Proceeds from long-term
debt
19,886
100,360
Proceeds from issuance of common stock under the Equity
Distribution Agreement, net
7,866
—
Payments on long-term debt
—
(71,512
)
Payments of debt issuance costs
—
(4,611
)
Proceeds from exercise of stock options
—
797
Proceeds from employee stock purchase plan
422
335
Net cash provided by financing activities
28,174
25,369
Effect of foreign currency translation on cash, cash equivalents
and restricted cash
2,343
5,826
Net decrease in cash, cash equivalents and restricted cash
(17,162
)
(49,855
)
Cash, cash equivalents and restricted cash Beginning balance
47,569
109,645
Ending balance
$
30,407
$
59,790
GAAP to Non-GAAP
Reconciliations
(Unaudited)
Three Months Ended September 30, Nine
Months Ended September 30, (In thousands, except for share and
per share amounts)
2023
2022
2023
2022
Gross profit (GAAP)
$
17,762
$
10,220
$
48,430
$
28,266
Adjustments: Exclude stock-based compensation
48
60
173
180
Exclude amortization of purchased intangibles
873
879
2,606
2,693
Exclude other acquisition accounting amortization
172
173
508
530
Exclude merger and acquisition related expenses
-
-
-
127
Gross profit (Non-GAAP)
$
18,855
$
11,332
$
51,717
$
31,796
Research and development (GAAP)
10,538
8,879
29,953
25,761
Adjustments: Exclude stock-based compensation
(957
)
(845
)
(2,510
)
(2,370
)
Exclude merger and acquisition related expenses
-
-
-
(277
)
Research and development (Non-GAAP)
9,581
8,034
27,443
23,114
Sales and marketing (GAAP)
6,993
7,794
20,572
21,427
Adjustments: Exclude stock-based compensation
(673
)
(766
)
(1,729
)
(2,117
)
Exclude amortization of purchased intangibles
-
(782
)
-
(2,390
)
Exclude merger and acquisition related expenses
-
-
-
(277
)
Sales and marketing (Non-GAAP)
6,320
6,246
18,843
16,643
General and administrative (GAAP)
11,049
9,903
33,718
33,861
Adjustments: Exclude stock-based compensation
(1,852
)
(1,454
)
(5,104
)
(3,656
)
Exclude merger and acquisition related expenses
-
-
(1,015
)
(3,846
)
Exclude other unusual one-time costs
-
-
-
-
General and administrative (Non-GAAP)
9,197
8,449
27,599
26,359
Loss on decommissioned satellites (GAAP)
156
-
628
-
Adjustments: Exclude loss on decommissioned satellites
(156
)
-
(628
)
-
General and administrative (Non-GAAP)
-
-
-
-
Loss from operations (GAAP)
$
(10,974
)
$
(16,356
)
$
(36,441
)
$
(52,783
)
Adjustments: Exclude stock-based compensation
3,530
3,125
9,516
8,323
Exclude merger and acquisition related expenses
-
-
1,015
4,527
Exclude amortization of purchased intangibles
873
1,661
2,606
5,083
Exclude other acquisition accounting amortization
172
173
508
530
Exclude loss on decommissioned satellites
156
-
628
-
Exclude other unusual one-time costs
-
-
-
-
Loss from operations (Non-GAAP)
$
(6,243
)
$
(11,397
)
$
(22,168
)
$
(34,320
)
Gross Margin (GAAP)
65
%
50
%
62
%
49.0
%
Adjustments: Exclude stock-based compensation and merger and
acquisition related expenses
0
%
0
%
0
%
1
%
Exclude amortization of purchased intangibles
3
%
4
%
3
%
4
%
Exclude other acquisition accounting amortization
1
%
1
%
1
%
1
%
Gross Margin (Non-GAAP)
69
%
55
%
66
%
55
%
Operating Margin (GAAP)
-40
%
-80
%
-47
%
-91
%
Adjustments: Exclude stock-based compensation
12
%
15
%
13
%
13
%
Exclude merger and acquisition related expenses
0
%
0
%
1
%
8
%
Exclude amortization of purchased intangibles
3
%
8
%
3
%
9
%
Exclude other acquisition accounting amortization
1
%
1
%
1
%
1
%
Exclude loss on decommissioned satellites
1
%
0
%
1
%
0
%
Exclude other unusual one-time costs
0
%
0
%
0
%
0
%
Operating Margin (Non-GAAP)
-23
%
-56
%
-28
%
-59
%
Net loss (GAAP)
$
(17,795
)
$
(21,811
)
$
(51,734
)
$
(71,868
)
Adjustments: Exclude stock-based compensation
3,530
3,125
9,516
8,323
Exclude merger and acquisition related expenses
-
-
1,015
4,527
Exclude amortization of purchased intangibles
873
1,661
2,606
5,083
Exclude other acquisition accounting amortization
172
173
508
530
Exclude change in fair value of contingent earnout liability
(13
)
(344
)
(217
)
(9,597
)
Exclude change in fair value of warrant liabilities
119
(1,282
)
(984
)
(11,014
)
Exclude foreign exchange
1,829
2,806
1,240
6,346
Exclude loss on extinguishment of debt
-
-
-
22,510
Exclude other expense, net
620
660
2,420
1,165
Exclude loss on decommissioned satellites
156
-
628
-
Net loss (Non-GAAP)
$
(10,509
)
$
(15,012
)
$
(35,002
)
$
(43,995
)
Net loss per share (GAAP)
$
(0.86
)
$
(1.25
)
$
(2.71
)
$
(4.12
)
Adjustments: Exclude stock-based compensation
$
0.17
0.18
0.50
0.48
Exclude merger and acquisition related expenses, purchased
intangibles and other acquisition accounting amortization
$
0.05
0.10
0.21
0.58
Exclude change in fair value of warrant liabilities and change in
value of contingent earnout liability
$
0.01
(0.09
)
(0.06
)
(1.18
)
Exclude foreign exchange
$
0.08
0.16
0.05
0.36
Exclude loss on extinguishment of debt
$
-
-
-
1.29
Exclude other expense, net
$
0.03
0.04
0.13
0.07
Exclude loss on decommissioned satellites
$
0.01
-
0.03
-
Net loss per share (Non-GAAP)
$
(0.51
)
$
(0.86
)
(1.85
)
$
(2.52
)
Weighted-average shares used in computing basic net loss
per share
20,756,394
17,492,871
19,117,078
17,454,680
Weighted-average shares used in computing diluted net income per
share
20,756,394
17,492,871
19,117,078
17,454,680
Net loss (GAAP)
$
(17,795
)
$
(21,811
)
$
(51,734
)
$
(71,868
)
Depreciation and amortization
3,759
4,715
11,642
14,056
Net Interest
4,188
3,561
12,274
9,269
Taxes
78
54
560
406
EBITDA
(9,770
)
(13,481
)
(27,258
)
(48,137
)
Change in fair value of contingent earnout liability
(13
)
(344
)
(217
)
(9,597
)
Change in fair value of warrant liabilities
119
(1,282
)
(984
)
(11,014
)
Foreign exchange
1,829
2,806
1,240
6,346
Loss on extinguishment of debt
-
-
-
22,510
Stock-based compensation
3,530
3,125
9,516
8,323
Mergers and acquisition related expenses
-
-
1,015
4,527
Other acquisition accounting amortization
172
173
508
530
Loss on decommissioned satellites
156
-
628
-
Other expense, net
620
660
2,420
1,165
Adjusted EBITDA
$
(3,357
)
$
(8,343
)
$
(13,132
)
$
(25,347
)
Net cash used in operating activities
(5,142
)
(10,215
)
(27,733
)
(42,708
)
Purchase of property and equipment
(11,017
)
(3,461
)
(23,694
)
(15,946
)
Free Cash Flow
$
(16,159
)
$
(13,676
)
$
(51,427
)
$
(58,654
)
GAAP to Non-GAAP Reconciliations – Q4
2023 and Full Year 2023 Financial Outlook
(Unaudited)
(In thousands, except for share and per share amounts)
Q4'23
Ranges Low High Revenue
$
27,000
$
31,000
Low High Loss from operations (GAAP)
$
(12,128
)
$
(8,428
)
Adjustments: Exclude stock-based compensation
$
3,583
$
3,583
Exclude amortization of purchased intangibles
$
873
$
873
Exclude other acquisition accounting amortization
$
172
$
172
Loss from operations (Non-GAAP)
$
(7,500
)
$
(3,800
)
Low High Net loss per share (GAAP)
$
(0.85
)
$
(0.65
)
Adjustments: Exclude stock-based compensation
0.17
0.17
Exclude purch intangibles and other purch acctg amortization
0.05
0.05
Exclude other expense, net
0.01
0.01
Net loss per share (Non-GAAP)
$
(0.62
)
$
(0.42
)
Weighted-average shares used in computing basic and diluted net
loss per share
20,797,133
20,797,133
Low High Net loss (GAAP)
$
(16,075
)
$
(12,075
)
Depreciation and amortization
3,739
3,739
Net Interest
5,019
5,019
Taxes
362
362
EBITDA
$
(6,955
)
$
(2,955
)
Stock-based compensation
3,583
3,583
Other expense, net
200
200
Other acquisition accounting amortization
172
172
Adjusted EBITDA
$
(3,000
)
$
1,000
(In thousands, except for share and per share amounts)
FY
2023 Ranges Low High Revenue
105,000
109,000
Low High Loss from operations (GAAP)
$
(48,601
)
$
(44,901
)
Adjustments: Exclude stock-based compensation
13,099
13,099
Exclude merger and acquisition related expenses
1,015
1,015
Exclude amortization of purchased intangibles
3,479
3,479
Exclude other acquisition accounting amortization
680
680
Exclude loss on decommissioned satellites
628
628
Loss from operations (Non-GAAP)
$
(29,700
)
$
(26,000
)
Low High Net loss per share (GAAP)
$
(3.54
)
$
(3.33
)
Adjustments: Exclude stock-based compensation
$
0.67
$
0.67
Exclude merger and acquisition related expenses
$
0.05
$
0.05
Exclude purch intangibles and other acq acctg amortization
$
0.21
$
0.21
Exclude change in fair value of contingent earnout liability
$
(0.01
)
$
(0.01
)
Exclude change in fair value of warrant liabilities
$
(0.05
)
$
(0.05
)
Exclude foreign exchange
$
0.06
$
0.06
Exclude other expense, net
$
0.13
$
0.13
Exclude loss on decommissioned satellites
$
0.03
$
0.03
Net loss per share (Non-GAAP)
$
(2.45
)
$
(2.24
)
Weighted-average shares used in computing basic and diluted net
loss per share
19,583,319
19,583,319
Low High Net loss (GAAP)
$
(67,777
)
$
(63,777
)
Depreciation and amortization
15,381
15,381
Net Interest
17,293
17,293
Taxes
922
922
EBITDA
$
(34,181
)
$
(30,181
)
Change in fair value of contingent earnout liability
$
(217
)
$
(217
)
Change in fair value of warrant liabilities
(984
)
(984
)
Foreign exchange
1,240
1,240
Other expense, net
2,620
2,620
Stock-based compensation
13,099
13,099
Mergers and acquisition related expenses
1,015
1,015
Other acquisition accounting amortization
680
680
Loss on decommissioned satellites
628
628
Adjusted EBITDA
$
(16,100
)
$
(12,100
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231108078486/en/
For Media: Kristina Spychalski Head of Communications
Kristina.Spychalski@spire.com
For Investors: Benjamin Hackman Head of Investor
Relations Benjamin.Hackman@spire.com
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