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Planet Reports Financial Results for First Quarter of Fiscal Year 2023

June 14, 2022

Planet Labs PBC announced financial results for its fiscal first quarter for the period ended April 30, 2022, demonstrating accelerated growth and the momentum of its unique data subscription business.

“Our results for the first quarter are strong across the board and show continued acceleration of growth. Our products are unique to the industry and we see increasing demand across a diverse set of vertical markets,” said Will Marshall, Planet’s Co-Founder, Chief Executive Officer and Chairperson. “Last month, we were proud to receive a landmark award from the NRO for the EOCL contract - Planet’s largest contract to date. This award demonstrates the significant value that Planet’s commercial-first approach and unique data sets can deliver to the government and the sector more broadly. We have long held the conviction that commercial, shareable satellite imagery not only equips the government with differentiated information, but also increases transparency, promoting peace and enhancing security.”

Ashley Johnson, Planet’s Chief Financial and Operating Officer, added, “For the first quarter of fiscal year 2023, we increased our topline growth rate to 26% year-over-year, surpassed the 800 customer count milestone, and ended the quarter with $484 million of cash on the balance sheet. Our visibility for the business has increased and we are therefore tightening our guidance range for the current fiscal year. We expect revenue growth to continue to accelerate, as shown in our guidance for Q2 reflecting 38% year-over-year growth at the midpoint. Planet continues to demonstrate its ability to move quickly to meet growing market demand as it arises, and we’re incredibly pleased with how we’re executing against our plan.”

Fiscal First Quarter 2022 Financial and Key Metric Highlights:

First quarter revenue increased 26% year-over-year to $40.1 million.

Percent of Recurring Annual Contract Value (ACV) for the first quarter was 92%.

End of Period (EoP) Customer Count increased 23% year-over-year to 826 customers.

Net dollar retention rate for the quarter was 105% with and without winbacks.

First quarter gross margin expanded to 41%, compared to 40% in the first quarter of fiscal year 2022. First quarter Non-GAAP Gross Margin(1) expanded to 45%, compared to 41% in the first quarter of fiscal year 2022.

Ended the quarter with $484 million in cash and cash equivalents and no debt.

(1) Please see “Planet’s Use of Non-GAAP Financial Measures” below for a discussion on how Planet calculates the non-GAAP financial measures presented herein. In addition, please find below a reconciliation to the most directly comparable U.S. GAAP financial measure.

Recent Business Highlights:

Growing Customer and Partner Relationships:

EOCL: Planet Labs Federal, Inc., Planet’s wholly owned subsidiary, was selected by the NRO for an award to the Electro-Optical Commercial Layer (EOCL) contract. Planet Federal’s EOCL award will enable the NRO and its partners to access Planet’s high and medium resolution, daily satellite imagery for an initial period of up to five years, with options to extend the contract up to a total contract performance period of 10 years. Through the award, users will also have access to Planet’s unequaled archive dating back to 2009.

Bayer: Planet signed an expansion with Bayer AG, a global company with core competencies in the life science fields of healthcare and nutrition, to develop digital solutions to support sustainable agriculture and drive supply chain efficiency. Using Planet’s Fusion data, along with high resolution SkySat data can help to better understand historical and in-season performance, and empower their data scientists to generate valuable insights that have the potential to support production globally.

Moody’s: Planet entered into an agreement with Moody’s, a leading global integrated risk assessment firm serving financial markets, to explore and address the growing demand for assessing and monitoring solutions on Environmental, Social and Governance (ESG) risks. Planet and Moody’s plan to address how Planet’s high-cadence geospatial data and Moody’s market-leading entity data, methodologies, and products can be leveraged to further refine Moody’s existing offerings spanning ESG, Know-Your-Customer, supply chain and commercial real estate through real-time, on-the ground insights.

Building New Technologies and Missions:

Pelican Next Generation High Resolution Satellites: Planet announced specifications for its next generation of high-resolution satellites. Pelican is expected to meet the evolving needs of customers who want real-time information about global events as they unfold – from floods and wildfires to conflicts and threats to human rights. Pelican is designed to image at up to 30 cm resolution and to task images of the same location 12 times per day, and up to 30 opportunities in mid-latitudes.

Supporting Ukraine Response:

Planet remains committed to transparency and accountability and will continue to help others to leverage its services in timely and responsible ways, including across governments, NGOs, and media.

Planet is working with and supplying data to nearly 30 NGOs and intergovernmental bodies who are leveraging Planet’s data to support a number of humanitarian operations in the Ukraine, such as: civilian evacuation and planned de-mining operations; conducting building damage assessments; tracking alleged human rights abuses; and trying to mitigate and measure impacts to global food security.

Impact and Education:

Planet’s robust Education and Research (E&R) program has led to its satellite data being used in over 2,000 publications. Planet’s E&R program often leads to new use cases of Planet’s data and better forecasts of resultant economic and geopolitical effects.

Planet announced that Planet’s PlanetScope and SkySat data have officially joined the European Space Agency (ESA) Third Party Mission Programme. Through the ESA Earthnet Programme, researchers, scientists and companies from around the world can apply to access Planet’s high-frequency, high-resolution satellite data for non-commercial use.

Financial Outlook

For the second quarter of fiscal year 2023, Planet expects revenue to be in the range of approximately $41 million to $43 million, representing 38% year-over-year growth at the midpoint. Non-GAAP Gross Margin is expected to be between approximately 44% to 46%. Adjusted EBITDA is expected to be between approximately ($18) million and ($16) million. Capital Expenditure as a Percentage of Revenue is expected to be between approximately 12% and 14% of revenue for the second quarter.

For fiscal year 2023, Planet has updated its revenue outlook and expects it to be in the range of approximately $177 million to $187 million. Non-GAAP Gross Margin is expected to be between approximately 47% to 49%. Adjusted EBITDA is expected to be between approximately ($70) million and ($60) million. Capital Expenditure as a Percentage of Revenue is expected to be between approximately 11% to 13% for the full fiscal year 2023.

Planet has not reconciled its Non-GAAP Gross Margin outlook, which is derived from Non-GAAP Gross Profit, and Adjusted EBITDA outlook to their most directly comparable GAAP measures (gross profit and net loss, respectively) because certain items that impact gross profit and net loss, such as stock-based compensation expenses and (in the case of Adjusted EBITDA) depreciation and amortization, are uncertain or out of Planet’s control and cannot be reasonably predicted. The actual amount of these expenses during the second quarter of fiscal year 2023 and fiscal year 2023 will have a significant impact on Planet’s future GAAP financial results. Accordingly, a reconciliation of Non-GAAP Gross Margin outlook and Adjusted EBITDA outlook to gross profit margin and net loss, respectively, is not available without unreasonable efforts.

The foregoing forward-looking statements reflect Planet’s expectations as of today's date. Given the number of risk factors, uncertainties and assumptions discussed below, actual results may differ materially.