Planet Labs PBC

Good afternoon. Thank you for attending the Planet Labs PBC first quarter of fiscal 2026 earnings call. My name is Cameron and I'll 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 one on your telephone keypad. And I would now like to pass the conference over to your host, Cleo Palmer-Peroner. 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 first quarter of fiscal year 2026 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. 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 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 industries. These and other 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, Clea, and hello, everyone. Thanks for joining us today. We're pleased to have delivered an excellent first quarter in fiscal 2026. To briefly summarize the results, we generated $66.3 million in revenue, representing approximately 10% year-over-year growth and exceeding our expectations. Non-GAAP gross margin was 59%, up from 55% a year ago, and adjusted EBITDA profit came in at $1.2 million, representing our second sequential quarter of adjusted EBITDA profitability. We also generated $17.3 million of cash flow from operating activities and achieved our first ever quarter of positive free cash flow at $8 million, a significant milestone for the company and for shareholders. Our backlog grew to over half a billion dollars in the end of the quarter, reinforcing our path to accelerating growth. Before we turn to our first quarter wins, I'd like to share a few takeaways from my recent travels visiting our customers and partners around the globe. In D.C., I met with various leaders at the U.S. government, and the government's demand signal for smarter solutions that leverage the latest innovations from technology providers is ringing loud and clear. Although today's dynamic environment is creating uncertainty, my visit only reinforced our view that the opportunities outweigh the risks for planet. While in Europe, I met with leaders across governments, and it's clear that the changing geopolitical landscape is resulting in heightened need for planet services. This builds on the increased awareness of the significant value of satellites that has grown since the start of the war in Ukraine. Overall, we are seeing unprecedented interest in our solutions. We see Planet as a reliable and trusted partner to our domestic and international customers during such times of global change. So as I turn to sales highlights, I'll start with the defense and intelligence sector, which was once again the key growth driver for the business this quarter. Revenue from the DNI sector grew over 20% year-over-year during Q1, driven by strong performance with our core data and solutions business, as well as our satellite services contract with JSAB. During the quarter, Planet was awarded an eight-figure ACV expansion contract by a European defense and intelligence customer for PlanetScope data and our maritime domain awareness solution. This relationship expanded rapidly, progressing from a pilot last year to an eight-figure operational contract. As a reminder, our maritime solution is a high-frequency board area solution with partner-enabled analytics for vessel identification and classification, enabling customers to monitor large areas of open ocean for mission-critical situation awareness. Similarly, we want a seven-figure ACV expansion to provide MDA to one of our long-term customers, expanding their monitoring capability with Planet from land to sea. More broadly, we continue to see robust demand for downstream products that embed our capabilities into customers' operations, enhance situation awareness, and support informed decision-making. This quarter's wins are two of many proof points supporting the scale of this opportunity. Turning to the civil government sector, where first quarter revenue was down year over year, largely due to the expiration of our NIC fee contract, we continue to see significant growth opportunity here, and to share a few recent highlights, In March, we announced that we've been selected as the primary subcontract for the California Air Resources Board's Satellite Data Purchase Program, SDPP. The $95 million contract was awarded to our partner, CarbonMapper, and is centered on providing the state of California with methane data built upon Tanager hyperspectral collections, as well as other data products. This three-year-plus project program marks the first major purchase of Tanager data by a customer outside of the Carbon Mapper Consortium itself. It demonstrates the market potential within civil government for large-scale automated environmental monitoring. This approach can be expanded to other government customers around the world. Last month, we announced an expansion of our seven-figure countrywide contract with the German government entity BKG, which now includes insights from planetary variables, water monitoring services from Planets partner EOMAP, and access to Planets Insights platform. The data will be used to monitor water, forest, agriculture, socio-economics and land use, as well as to support the federal monitoring campaigns and environmental assessments. During Q1, we also expanded our business with the Welsh Government to help inform agricultural policy and natural resource management. Using our high-cadence satellite imagery, historical archive, and tasking capabilities, the Welsh Government is deriving data-informed management plans for agricultural efficiency, water and land use change, and emergency response. Shifting finally to the commercial sector, where revenue was up slightly year-over-year, where we continue to see signs of more stable performance despite quarter-to-quarter variability. To share a highlight, we recently signed a multi-year expansion with Onex, an outdoor digital navigation company, inform their suite of recreation applications with planet scope products with planet satellite data the apps enable users to stay informed about conditions in remote areas as they plan outdoor pursuits next onto our nascent satellite services offering firstly our team is executing well on the jset contract secondly as mentioned last time we're pursuing a handful of highly strategic deals each significant in scale, and I'm pleased to report that we saw very solid progress with multiple prospects during the quarter. These deals are win-wins, providing sovereign satellite services to our customers and accelerating and funding the development of our new fleets. Furthermore, the California STPP award showcases how a set of satellites initially funded through satellite services can drive incremental data business. Turning to product updates, starting on the platform side. We recently streamlined our self-service purchasing offering for small customers to make it easier to get started with the Planet Insights platform. This supports Planet's strategy to support small customers efficiently with a flexible and scalable model that grows with their operations. For our larger customers, the platform delivers time series solutions and insights that become embedded into their workflows, which is key to expanding our addressable market with customers who haven't traditionally used geospatial data. We also released our new aircraft detection analytic feed, which automates detection of aircraft, including commercial, private, and military, around the world. By combining advancements in artificial intelligence with planets' high-frequency scan of the Earth, we're able to offer this product at a global scale, aiming to help users analyze patterns of life and anomalous geopolitical behavior. This presents a massive and unprecedented capability for analysts, with or without geospatial expertise. On the space system side, Tanager 1, which we launched last year, is servicing a number of early customers across energy, defense, civil government, and agricultural markets. Our space systems team has rapidly progressed the satellite's operational maturity, expanding the satellite's imaging capacity to bring down approximately 300,000 square kilometers per day via hundreds of collections. We're not only extremely pleased with the quality of data and the insights being derived from Tanager 1, but also with early winds showing momentum and indicative of our demand for this new capability in the market. Meanwhile, Pelican 2, which we launched in January, is continuing to perform very well. We've completed our commissioning process, fully validated the payload and optics, and begun providing data to select customers. Between our first two Pelican satellites and our Tanager 1 satellite, we now have over two and a half years of on-orbit experience of our small sat platform, the modular spacecraft architecture which is shared between the two fleets. These on-orbit technology demonstrations have provided us with critical learnings as we develop this technology and prepare to launch operational fleets. As a reminder, we plan to have multiple Pelican launches this year. We're also working on additional Pelicans for our partner JSAB, which are expected to begin launching in calendar 2027. I'd like to take a moment to commend our global sales, product, and space systems organizations on a phenomenal quarter and thank them for their hard work winning and delivering for our customers. Overall, our first quarter performance validates our strategic direction, relentless customer focus, and disciplined execution. Looking ahead, we are going to continue to aggressively execute on our two key initiatives. One, delivering integrated global insights via AI-enabled solutions, and two, rapidly expanding our satellite services offering. Both are seeing strong traction, and our endgame is clear to establish Planet as the undisputed market leader for monitoring the physical world at a global scale. With that, I'll turn it over to Ashley to discuss our financials. Over to you, Ash.