Planet Labs PBC

fiscal fourth quarter and four year 2025 earnings call. My name is Jayla and I'll be your moderator for today. All lines will be muted in the presentation portion of the call with an opportunity for questions and answers at the end. And I'd like to turn the conference over to our host, Cleo Palmer-Peroner from the Investor Relations Team. Cleo, you may proceed.

Thanks, Operator. And hello, everyone. This is Cleo Palmer-Peroner from the Investor Relations Team at Planet Labs PBC. Welcome to Planet's fiscal fourth quarter and full year 2025 earnings call. I'm joined by Will Marshall and Ashley Johnson, who will 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 website. Before we begin, we'd like to remind everyone that we will 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 Planit 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 and 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-GAAP financial measures, please see the reconciliation tables provided in our press release issued earlier this afternoon, which is available on our website at investors.planet.com. 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 point, I'd now like to turn the call over to Will Marshall, Planet's CEO, chairperson, and co-founder. Over to you, Will.

Thanks, Kaleo, and hello, everyone. Thanks for joining us today. Last year was an exciting and transitional year for Planet, and I'm incredibly proud of everything our teams have achieved. We shifted our go-to-market structure to be a vertically focused approach and towards selling solutions. We took a major step up in the satellite services market and closed a $230 million contract with a Marquis customer. We launched 74 satellites into orbit, including our second Pelican and first Tanager spacecraft. We launched the Planet Insights platform and delivered our new global forest carbon monitoring product. And we drove meaningful improvements in our financials throughout the year, including reaching our target of adjusted EBITDA positive in Q4, the first time in the company's history. All of this sets Planet on a sound footing going into this year. To briefly summarize the full year results, we generated a record $244.4 million in revenue, representing an 11% year-over-year growth. Non-GAAP gross margin for the year was a record 60%, up from 54% a year ago, and full-year adjusted EBITDA loss came in at $10.6 million. Q4 was a record quarter for revenue, gross margin, and operating margin, and as I already mentioned, we achieved our goal of delivering a first adjusted EBITDA profitable quarter, a target we set two years ago and a major milestone on our journey to positive cash flow. Backlog increased in the quarter to almost half a billion dollars, up over 100% year-over-year and approximately 115% quarter-over-quarter. We believe this puts us in a strong position with a clear path to at least double our revenue growth rate in FY27 compared with FY26. I'd like to spend a little time on our landmark $230 million commercial agreement we signed with our long-term partner in Japan, JSEP. Last year, we made the strategic decision to take a significant step forward in the satellite services market in response to a strong demand signal, selling to customers who want preferred access to data in a particular region. These partnerships can be very synergistic to our core business. Our JCEP partnership, announced last month, is our first deal in support of this strategic direction. Under this agreement, Planet will build, launch, and operate a constellation of 10 high-resolution Pelican satellites for JCEP. Planet will commercially sell the rest of the world's capacity of these satellites across the vast majority of the Earth's surface, representing a significant upside opportunity. We couldn't be more pleased to have JSAT as our cornerstone partner as we embark on this new chapter. This deal is structured to create a win-win-win. For JSAT, this aims to secure priority access to critical intelligence in their area of interest with a rapid turnaround from program start to operational capabilities. For Planet, we intend to drive scale in our business and monetize some of our most strategic assets and IP. And for all our other current and future Planet customers, we plan to bring more Pelican capacity online faster, substantially increasing global capacity, and revisit rates. We see this as a major step forward for Planet in the satellite services market. The satellite services market is in the tens of billions of dollars globally today, and we believe we can address a meaningful portion with this offering. Bigger picture, the world is in a state of significant transition across geopolitics and technology. Countries are moving with new clarity and speed to ensure that they have access to the technology and information needed to protect their interests. We are stepping up to meet this need around the globe for countries who are rushing to maintain or expand their sovereign access to space and the powerful information gathering and decision-making it enables. We have always been and will continue to be a leading provider of geospatial data and solutions, our core business. Our move to increase efforts into the satellite services expands our portfolio, where we are accelerating our business by leveraging one of our greatest assets, our proven ability to build and operate cutting-edge fleets of remote sensing satellites quickly and cost-effectively. We're actively pursuing a handful of similar such opportunities with other trusted strategic partners across the defense intelligence, civil government, and commercial markets, and across all three of our satellite fleets. We aim to be the go-to scaled space partner for these customers. Turning to sales highlights, starting with the defense and intelligence sector. Revenue from the D&I sector grew more than 20% for the full fiscal year 2025. We're proud to share that we've been awarded a contract to build a prototype for the Defense Innovation Unit, the DoD arm focused on bringing innovation to the DoD. We continue to engage in shorter-term projects with the DoD as we work towards becoming part of operational DoD workflows and we are very excited that DIU has ordered this prototype from us. The order was won by Planet as a prime contractor with a partner subcontractor and is valued in the low seven figures. During the quarter, we were pleased to be selected as one of the primes for the National Geospatial Intelligence Agency's LUNO-B commercial data IDIQ contract. Under this contract, we'll compete against other prime vendors for future delivery orders, the total value of which can be up to $200 million over five years. It was also awarded a seven-figure ACV renewal and expansion by the DoD. The order leverages our maritime domain awareness solution and was one with a partner. It includes planet data and partner enabled AI capabilities. Looking forward, we expect continued strong growth in the defense intelligence sector. In an increasingly complex geopolitical environment, planet solutions can enhance situational awareness for customers, by providing greater transparency about emerging challenges and can provide more confidence in well-informed responses. We see opportunity with the U.S. government as it pursues efficiency and effectiveness across both civil, defense, and intelligence agencies, and internationally as countries require increased access to information in an uncertain world. We are seeing strong and growing opportunities in maritime domain awareness where we offer open water monitoring and analytics to support situation awareness, to thwart piracy, smuggling, and other serious maritime safety and security risks. Additionally, we're investing in the development of our Global Monitoring Service, or GMS, a solution that leverages recent industry advances in artificial intelligence and our broad area data to enable customers to scan entire countries or regions for important changes and threats. Relatedly, we were pleased to welcome former General Jay Raymond to PLANET's Board of Directors. General Raymond was the first chief of the US Space Force and a member of the Joint Chiefs of Staff. His years of experience leading space operations at the highest levels of our government are invaluable as we continue to work closely with the critical government customers both here in the US and abroad. Turning to the civil government sector, where full year revenue grew approximately 15% year-over-year, While we've seen some seasonality due to large customer usage patterns in FY25, overall, the civil sector was strong this last year, and we continue to see healthy demand for this market. Here are a few examples. We were pleased to announce a multi-year contract with the European Space Agency, ESA, in January. Through this contract, Planet continues to serve the Copernicus Contributing Missions providing commercial satellite data alongside ESA's Sentinel satellite data to the Copernicus services. We also signed a new contract during the quarter with the Hellenic Space Center to leverage PlanetScope data to support Greece's development of future downstream services for their national satellite data program. As they look to grow their own satellite capabilities, the Greek government will employ Planets data to complement and inform their data sources. Shifting finally to the commercial sector, which we previously discussed had faced headwinds, particularly in the agriculture sector, but where we've seen revenue stabilize in recent quarters. To share a few recent wins, last month we announced an expansion with a long-term customer buyer through a multi-year enterprise license agreement. This agreement increases buyers' access to planet's satellite imagery and analytics, expanding into commercial operations, and enabling enhanced decision-making across its global agriculture operations. Bayer leverages a wide range of planets, data and products, allowing them to make faster data-driven agronomic decisions and improving efficiency across its operations. We also signed a multi-year expansion with Syngenta during the quarter. Through the expansion, they will gain increased access to planet scope monitoring and SkySat high resolution data, as well as the Planet Insights platform. With these products, Syngenta can enable farmers to remotely monitor crop health, detect pest infestations and identify disease outbreaks with pinpoint accuracy. More broadly, our strategy in the commercial sector remains focused on delivering solutions enabled by the Planet Insights platform for market segments within agriculture, natural resources, energy and insurance verticals. Turning to product updates. During Q4, we successfully launched our Pelican 2 satellite. Pelican 2 is performing well in space and provides us valuable insights and confidence as we continue to build our next-generation high-resolution fleet at pace. We're very proud to share today our first light images from Pelican 2, featured in our Q4 earnings presentation. We have multiple Pelican launches scheduled for this year as we scale towards a fully operational high-resolution fleet. We also want to provide an update to our Tanager satellite. Tanager 1 launched last summer and has since been producing powerful hyperspectral data. We have already begun selling that data to a handful of selected customers under a limited availability program. The team has already delivered a five-fold in improvement in the Tanager 1's tasking capacities since launch. Our partner, Carbon Mapper, has published over 1,000 methane and CO2 plume detections based on insights gleaned from the data. And we're actively preparing to offer commercial data to the broader market, particularly to the energy and civil government verticals within the next few months. On the platform side, in Q4, we released a physics-based resolution sharpening technique that meaningfully improves the usability of our daily scan visual product. We also advanced our low-touch enablement in the Planet Insights platform to expand and automate access to smaller customers. Planet's first fully automated low-touch package on tropical forest observatory data, formerly provided via the NICFI program, was made available for purchase by self-serve users a few weeks ago, a significant milestone. In addition, we continue to leverage advances in AI, both for our solutions such as maritime domain awareness and our global monitoring service, as well as through partnerships such as with AI leaders. A few weeks ago, we announced that we're collaborating with Anthropic to explore opportunities where satellite data and foundation models can be combined to deliver powerful new capabilities to users across government and business. In particular, Anthropic is fine-tuning its CLAWD model on satellite data with the goal of enhancing model accuracy. We believe AI can enhance the extraction of value from satellite data, accelerate delivery of insights, and expand access to a wider range of users. This collaboration with Anthropic is mutually beneficial. AI helps unlock the value of satellite data. Meanwhile, satellite data helps AI models tackle real-world problems. As mentioned before, we believe Planet is uniquely situative for AI, given our unique daily scan and deep archive of over 3,000 images on average for every location on the Earth landmass. The pace of innovation in AI is extraordinary. And if we describe Planet's strategic shift in FY25 as our big step up in the satellite services market, this year our strategic focus will be our big step up in AI and its potential to accelerate the development of solutions and increase accessibility to our powerful data. With that, I'll turn it over to Ashley to discuss our financials. Over to you, Ash.