Planet Labs PBC

physical 2025 earnings call. My name is Sierra, and I will be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star followed by one on your telephone keypad. I would now like to pass the conference over to our host, Chris Genualdi, VP of Investor Relations. Please proceed.

Thanks, Operator, and hello, everyone. This is Chris Genualdi, Vice President of Investor Relations at Planet Labs, PBC. Welcome to Planet's first quarter of fiscal 2025 earnings call. I'm joined today by Will Marshall and Ashley Johnson, who provide a recap of our results and discuss our current outlook. We encourage everyone to please reference the earnings press release and earnings update presentation for today's call, which are available on our investor relations websites. Before we begin, we'd like to remind everyone that we may make forward-looking statements related to future events or our financial outlook. We also may reference qualified pipeline, which represents potential sales leads that have not yet executed contracts. Any forward-looking statements are based on management's current outlook, plans, estimates, expectations, and projections. The inclusion of such forward-looking information should not be regarded as a representation by Planet that future plans, estimates, or expectations will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions as detailed in our SEC filings, which can be found at www.sec.gov. Our actual results or performance may differ materially from those indicated by such forward-looking statements, and we undertake no responsibility to update such forward-looking statements to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. During the call, we will also discuss historic and forward-looking non-GAAP financial measures. We use these non-GAAP financial measures for financial and operational decision making as a means to evaluate period-to-period comparisons. We believe that these measures provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. For more information on the non gap financial measures, please see the reconciliation tables provided in our press release issued earlier this afternoon. Further, throughout this call, we provide a number of key performance indicators used by management and often used by competitors in our industry. These and other key performance indicators are discussed in more detail in our press release and our earnings update presentation, which are intended to accompany our prepared remarks. At this time, I'd now like to turn the call over to Will Marshall, Planet's CEO, chairperson, and co-founder. Over to you, Will.

Thanks, Chris, and hello, everyone. Thanks for joining the call today. Planet delivered a solid quarter to start the year. For the first quarter of fiscal year 2025, we generated a record $60.4 million in revenue, representing 15% year-on-year growth, driven by the strength in the government sector. Non-GAAP gross margin for the quarter was 55%, and adjusted EBITDA loss was $8.4 million. These results were all in line with, or better than, the guidance provided on our last earnings call. Q1 marked our fourth sequential quarter of quarter-over-quarter improvement in adjusted EBITDA as we progressed towards our target of achieving adjusted EBITDA profitability by Q4 of this fiscal year. We also launched the Planet Insights platform in April, which extends our market reach and empowers our customers and partners to easily access and build solutions with our data. Let's go into more detail in Q1, starting with the continued strength that we're seeing in the government sector. Heightened security needs, increased sustainability requirements and global climate risks are fueling government customer demand for our broad area monitoring capabilities and solutions. In the defense and intelligence sector specifically, revenue grew approximately 25% year-over-year. We're pleased to share that the National Reconnaissance Office, NRO, has exercised a priced option of their EOCL contract with Planet, which includes Planet Scope Monitoring, SkySat high-resolution tasking, and access to our data archive. As a reminder, a portion of our five-year base period contract with the NRO had priced options that could be exercised by them at the two-year anniversary of the award. We're pleased to have secured this important renewal and are proud to continue serving the U.S. government's needs. We see meaningful opportunity to expand our relationship with the U.S. government as the EEOC contract continues and we bring new solutions and capabilities online. You'll also recall from our Q4 earnings that we had multiple seven-figure pilot programs in flight or in procurement with the U.S. Department of Defense for our PlanetScope data enhanced with AI-based partner solutions. We're pleased to share that we've successfully completed two of these seven-figure pilots and anticipate additional follow-on pilots from these programs. These pilots require broad area monitoring, detecting and reporting, and reflect a growing trend towards acquiring focused insights from our global data. We're also pursuing additional larger pilots with other government agencies and believe our unique daily scan positions us favorably to win. We believe all of these pilots have the potential to convert into very large operational contracts over time. During Q1, we also signed a contract with Rhombus to provide SkySat high-resolution data for their AI platform, which assists the strategic, operational, and tactical decisions of the U.S. national defense and security customers. And we recently expanded our contract with the Royal United Services Institute, RUSI, to provide the leading defense and security think tank with access to our PlanetScope monitoring, SkySat high-resolution tasking, and archive data to conduct rapid and relevant analysis for policymakers. All in all, we're pleased with the strong results and trends that we're seeing in the defense and intelligence market and remain confident in our opportunity to win new accounts, gain share, and expand with customers over time. We're especially encouraged by the growing demand with some of our largest customers for our PlanetScope daily scanning capabilities enhanced by AI-based partner solutions. Going to the civil government sector, where we continue to see strong growth during Q1. Demand for our broad area management solutions remains solid, and we continue to win our new customers for applications such as compliance monitoring, regulatory enforcement, risk management, and disaster response. During Q1, we signed a contract for UK EO Data Hub through our partner, EarthEye, who offer Earth observation consultancy and program management services. UK EO Data Hub will have access to Planet's data platform and training services to support the development and operation of a new centralized EO platform infrastructure for the UK's public institutions and commercial organizations looking to leverage Earth observation data. During the quarter, we also won a new contract with the Kenyan Space Agency to provide PlanetScope data for policy and decision support in agriculture, urban development, spatial planning, disaster response, amongst other applications. Under the contract, the agency will also have access to daily data that can help with situational awareness in the event of disasters, like the recent flooding in that country. We also recently won a new contract with Sabah Forestry to provide data for forest carbon monitoring in North Borneo, Malaysia. Sabah Forestry is the state's forestry department whose aim is to efficiently plan and implement the management of state resources according to the principles of sustainable forest management. Taking a step back, we continue to see regulatory-driven tailwind supporting civil government customer adoption globally. We also see an opportunity to win new customers in the civil government sector by providing solutions and platform capabilities which support faster customer time to value and enhance customer ability to efficiently manage broad areas of land and water. Shifting to the commercial sector, where headwinds have continued and we are refocusing our go-to-market strategy to align more closely with where we see the opportunity, particularly in the agricultural vertical. For example, we see promising growth potential with our large ag customers, particularly where our data is being used for precision ag applications like variable rate application and crop protection. There's an opportunity we're focused on. We've also seen softness with certain customers that provide digital agriculture apps, which in many cases represent lost leaders for those customers. We see potential for improvement as some of those digital ag apps shift towards new business models with better aligned incentives. These are the digital agriculture customers that we're focused on. More broadly, our go-to-market strategy for the commercial sector is centered around serving customers via our platform, both directly to end customers as well as through third-party solution partners. We believe this strategy can support durable revenue growth and higher ROI on customer acquisition costs over time. And as an example of a recent partner-led win, during Q1, we signed a three-year contract with a Brazilian utilities company, Electrobras. Electrobras will leverage planet data and alert systems from our partner, SCCon, to monitor reservoirs and transmission lines impacted by environmental change and irregular occupations. As you may recall, we also partnered with SECON to serve the needs of the Brazilian Federal Police, particularly for identifying illegal deforestation and mining in the Amazon rainforest. This brings us to our product updates. As I mentioned, an important part of our strategy for the commercial sector is the Planet Insights platform that we launched in April. The Planet Insights platform is designed as the destination for Earth data analytics and geospatial tools. It's built to enable an ecosystem, serving as the home for both direct customers and partners to train and run models, build solutions, and turn data into insights. We believe the platform will support a more effective and efficient go-to-market strategy, leading to higher customer usage, retention, expansion, and ultimately higher revenue growth. We're also pleased to share today that our first hyperspectral satellite, Tanager 1, is ready for launch. The spacecraft arrived at Vandenberg Space Force Base on June 3rd in preparation for the liftoff scheduled for July. It will be joined by 36 Super Dove satellites on board a SpaceX Falcon 9 rocket. Tanager 1 will be the second of our next generation satellites to take flight following the successful Pelican tech demo launch last November. These two satellites share a common bus, and Tanager 1 has benefited from the many learnings gained on orbit from the Pelican tech demo. Tanager 1 will be our first of our hyperspectral fleet. This will expand our capabilities by adding more than 400 spectral bands of data, capturing phenomena that are visible to the human eye. We expect Tanager's imagery will be analyzed by expert scientists around the world, including our partner, Carbon Mapper, who plan to use Tanager's data to pinpoint methane and carbon dioxide super emitters globally. Tanager's hyperspectral data will also be commercially available to Planet customers for a variety of other applications, like defense and intelligence monitoring, biodiversity assessments, mineral mapping, and water quality assessments. The TANJA program, which was funded through our partner Carbon Mapper, represents a great example of the opportunity we see to provide customer or partner-funded missions, leveraging our space systems capabilities and IP to scale the business efficiently. We view this as an attractive model we can use with our government relationships going forward. Finally, we continue to prioritize resources behind core high ROI areas that support our ability to capture the market opportunity unfolding in front of us while streamlining where necessary to support organizational efficiency and our profitability objectives. We remain committed to reaching our target of adjusted EBITDA profitability in the fourth quarter of this year, an important milestone on our journey to building a high margin, sustainable cash flow generating business. In summary, we're pleased with our results for Q1. We are succeeding in the government sector and seeing increased demand for our data enhanced by AI-enabled partner solutions, which has opened up new use cases. We have a strong, qualified pipeline of large opportunities, and we're confident in our position to compete and win. The Planet Insights platform is launched, which enables us to serve a larger addressable market with a low touch model, empowering customers and partners to access insights and build solutions. We're doing all of this while driving operational efficiency and aligning resources to our core opportunities. I'm proud of our teams across the company for their hard work and dedication to building a great business. I'll now turn it over to Ashley to review the financials and our outlook. Over to you, Ash.