Planet Labs PBC

Thank you for joining us and welcome to the Planet Labs PBC second quarter of fiscal year 2027 earnings call. After today's prepared remarks. We will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Cleo Palmer Peroner, Director of Investor Relations.

Thanks, operator. And hello, everyone. 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. Thank you for watching. During the call, we will also discuss historic and forward-looking non-gap financial measures. We use these non-gap 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-gap financial measures please see the reconciliation tables provided in our press release issued earlier today which is available on our website at investors.planet.com further throughout this call we will provide a number of key performance indicators used by management often used by competitors in our industry these and other key performance indicators are discussed in more detail in our press release in 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, Cleo, and welcome everyone joining us today. Planet had another outstanding quarter, delivering a record $116 million in revenue, representing approximately 58% year-over-year growth. Non-gap gross margin was 59% for the quarter, better than expected, demonstrating the ongoing scalability of our business model. For the fourth sequential quarter, we achieved and in fact, well exceeded rule of 40, which is our revenue growth rate plus adjusted EBITDA margin. Our revenue growth rate was driven by strong execution across our satellite services deals, as well as continued momentum in our data and solutions business. We completed commissioning and handed over the first sovereign Earth observation satellite for the Swedish Armed Forces and successfully launched our next generation Pelican tech demo. And this week, we shipped our second Tanager and 18 Super Dove satellites for launch. Both at home and abroad, planet's data, AI-enabled solutions and sovereign satellite capabilities are proving critical to the challenges and opportunities governments and companies across all industries face every day, from disaster response to resource management to national security. Defence and intelligence was once again an area of strength for us, with over 90% revenue growth year on year. I want to highlight two recent wins in this sector for our data and solutions business, both of which landed in August and therefore are not included in our financial metrics for the quarter. We were awarded a new $8 million contract with the National Geospatial Intelligence Agency, NGA, to deploy Planet's Global Monitoring Service, GMS, in support of national defence priorities, with options to expand and extend this work. Planet was the only vendor considered, as our solutions are truly unique. We've created a deep archive of thousands of images for every point on Earth's landmass, enabling a peripheral vision which, with AI-powered pattern recognition on top, provides customers with the strategic indication and warning capability to proactively recognize patterns and identify emerging threats. This program grew out of a successful pilot with the Defense Innovation Unit in support of IndoPACON, and we're incredibly proud to see GMS graduate to an operational program. We were also awarded a seven-figure, one-year agreement with a European Defence and Intelligence customer to supply high-resolution global mosaics and support operational planning. Turning to satellite services, our team's execution against our backlog for our satellite services customers contributed to the strength in our defence and intelligence results. As we discussed last quarter, in May we launched our first satellite for the Swedish Armed Forces just four months after the satellite services contract with them was signed. The Space Systems team's rapid commissioning of that satellite enabled us to officially hand over to the customer which contributed to the Q2 revenue outperformance. In August, the German government announced that we were awarded a tender for dedicated capacity satellite services. The tender award includes options and has a maximum possible value of 25 million euros over five years. Overall, our satellite services pipeline progress has been extraordinary. In particular, we're very pleased with the maturation of this pipeline. Today, we have over $4 billion of identified opportunities for satellite services, over 25% of which is qualified as near-term pipeline. Planet is extremely differentiated here due to the strength of our operational history as we've launched more Earth imaging satellites than any other company in the globe and due to our speed of delivery. For our two most recent satellite services partnerships, we've delivered a first satellite in orbit within two and four months of the contract award, respectively, compared to many years for the space industry historically. We are also increasingly finding that our customers and prospects want both AI-enabled solutions and satellite services. This bundling creates synergies and is even more differentiated. Governments are articulating an urgent imperative to secure sovereign access to space, understand threats in and around their region, modernize their defense capabilities, prepare their infrastructure for natural disasters and other catastrophic events, and maintain their strategic edge. More broadly across the civil government sector, second quarter revenue grew over 5% year over year, and we continue to see encouraging momentum both in the US and abroad. To share some recent highlights, during the quarter, Planet signed a new contract with the Rwanda Space Agency to provide national high-resolution data and analytics for government ministries, departments, and agencies, as well as public universities. This deal marks the planet's first national program of its kind in Africa. Also in the quarter, Planet signed a renewal with the New Mexico State Land Office. Since 2019, this longstanding partnership has evolved into a sophisticated, multi-product strategy that enables that land office to monitor, protect, and manage over 9 million acres of public trust land. Shifting to the commercial sector, revenue grew over 15% year-on-year, reflecting the continued focus from our teams on landing and expanding in larger opportunities and leveraging AI-enabled solutions. To highlight a few interesting use cases in the sector, last month we signed a six-figure expanded renewal with a hyperscaler AI developer for global monitoring of data centers and semiconductor manufacturing facility construction. Planet's Pelican high-resolution data is used to track construction milestones for those facilities, which are strong indicators of supply chain health and computing capacity. We're currently seeing meaningful demand from our customers in the AI and financial services industries to use Planet's data to track the pace of infrastructure expansion across the AI value chain. Planet partnered with FarmQA to develop and commercialize AI-powered agronomic intelligence tools for enterprise agriculture. The first application of the collaboration is already in the field, an AI-driven sugar beet yield estimation model currently being piloted with multiple sugar beet cooperatives during the 2026 growing season. Finally, Planet partnered with Braga Technologies to integrate Planet's high-frequency satellite data into their spatial intelligence platform, enabling automated change detection and near real-time analytics for natural resource management and civil government applications. Stepping back, AI is enabling us to move up the market into high value, higher growth segment. We believe we currently have under 5% market share of today's overall Earth observation market, which excludes satellite services. And with the innovations we are making across solutions, real-time insights, and next generation monitoring, we believe we are poised to rapidly expand our market share. Perhaps more importantly, we believe that AI is expanding the potential market for these capabilities by enabling users without geospatial expertise to leverage this critical data into their daily operations and expand to further applications and segments. Planet is uniquely positioned to capture this expansion as our daily scan mission is core to those expanded applications and most ready and relevant for AI utilization. Turning to technology and operational updates. In July, we successfully launched our next generation Pelican tech demo, which included several technology advancements across payload, on-orbit compute, and satellite-to-satellite communications. This satellite forged our path towards delivering 30 centimeter class resolution imagery. As a reminder, this satellite is a tech demo and is not expected to serve customers. Just this week, we shipped our second Tanager hyperspectral satellite to the launch site, along with 18 superdoves. They're slated for launch this fall aboard SpaceX's Transporter 18 mission. We're very excited to be growing our fleet in support of our partner, Carbon Mapper, and doubling our capacity for methane and CO2 detections and enabling higher revisit rates. Overall, we're investing in launch, both to diversify our supply chain and in response to synergies with our key satellite services government partners. To that end, in July, we announced a launch partnership with ISAR Aerospace. Under this agreement, ISAR is scheduled to launch a Pelican next year, which we plan to build in our new German satellite manufacturing facility. With both the satellite and the ISAR launch vehicle spectrum being built in Germany, this would be a national first for the country demonstrated the value of commercial space in rapid advancements in German sovereign space capabilities. Relatedly, I wanted to provide an update on the German manufacturing facility, which is expected to roughly double our manufacturing capacity. This project is progressing at pace, with the facility set up and clean room fit out scheduled for September and plans to begin building in the facility this year. There has been considerable interest from the German and European governments in this new facility, and we believe it positions us well to serve critical needs of customers and prospects in the region. Over the summer, we also opened a new office in London as we scale our European presence and establish a hub for our customers and partner relationships in the region. Finally, our AI app has progressed to the open beta phase. This pioneering tool is focused on making planets' massive global data archive queryable through natural language. Thank you very much. We are already seeing significant traction with GMS and MDA among our most critical partners and customers and feedback indicates that our program will unlock massive value for them. They would like to see us accelerate that program which we are beginning to do. Thank you very much. We expect OWL to reinforce our leadership position in broad area monitoring and analytics with greater resolution and lower latency, which puts us in a position to capture market share from the high resolution market and power downstream solutions with higher fidelity insights. In closing then, our strong performance this quarter demonstrates clear execution across the business. We delivered robust revenue growth, disciplined execution, and major strategic wins with our large government customers while growing our pipeline across all of our offerings. By expanding our international footprint, advancing our next generation constellations, and lowering technical barriers with AI, we are positioning Planet to capture a rapidly expanding Earth observation market and building a foundation for sustained long-term growth. With that, I'll turn it over to Ashley to discuss our financials. Over to you, Ash.