Spire Global, Inc.

Greetings. Welcome to the Aspire Global third quarter 2022 call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Ben Hackman, head of IR. You may begin.

Thank you. Hello, everyone, and thank you for joining us for our third quarter 2022 earnings conference call. Our results press release and SEC filings can be found on our IR website at ir.spire.com. A replay of today's call will also be made available. With me on the call today is Peter Platzer, CEO, and Tom Crywee, CFO. As a reminder, our commentary today will include non-GAAP items. Reconciliations between our GAAP and non-GAAP results, as well as our guidance, can be found on our earnings press release. Some of our comments today may contain forward-looking statements that are subject to risks, uncertainties, and assumptions. In particular, our expectations around our results of operations and financial conditions are uncertain and subject to change. Should any of these fail to materialize or should our assumptions prove to be incorrect, actual company results could differ materially from these forward-looking statements. A description of these risks, uncertainty and assumptions, and other factors that could affect our financial results is included in our SEC filings. With that, let me hand the call over to Peter.

Thank you, Ben. And thank you, everyone, joining us on the call today. I know there are a lot of things going on. Spire continued to gain momentum in Q3, and the results truly speak for themselves. We had record revenue generation, achieved almost $100 million of ARR, and met our objectives for non-GAAP operating margin and EBITDA margin. These proof points showcase our continued trajectory to its positive free cash flow. Being on the cusp of achieving $100 million of ARR just five years since we had our first million of ARR, puts us among the fastest-growing subscription businesses to reach such a level and speaks to the exceptional value that our data and solutions bring to our customers. Driven by rising demand and the growing recognition of the value of space-based data to help with climate change and global security, Spire is poised to execute within these expanding markets and continue along our growth trajectory. There was no shortage of attention-grabbing weather and global security events during the third quarter. Florida saw one of the strongest hurricanes ever to hit its state, the same hurricane that wreaked havoc and knocked out Cuba's power grid a few days before. Pakistan saw record rainfall and subsequent flooding, where a third of the country was underwater. While Pakistan was flooding, major rivers in Europe and the United States were at such low levels that commercial barge traffic was impeded, adding to the supply chain challenges the world is facing. King crab and snow crab harvests in Alaskan waters were canceled due to declining crab populations, most likely from stresses of warmer water. The drinking water supply in parts of the United States is threatened as saltwater from the Gulf of Mexico is overwhelming the low flow of water from the Mississippi River. Asia and New Zealand saw their fourth warmest and second warmest August respectively, while the Antarctic sea ice extent reached a record low for the month. And when the world wasn't witnessing and or reading about climate change, geopolitics captured the headlines. Shipments of grain out of Ukraine, food that feeds the world, We are closely being watched and continue to be so. Oil and natural gas supplies are closely being monitored as sanctions remain in place, winter draws near, and demand for heating fuels increases. Sabre wrestling regarding nuclear weapons caught the world's attention. Authoritarian regimes around the world continue to impose their will on populations that are fighting for their lands, rights, and freedoms. While this is not the world we desire, it is the world in which we find ourselves. At SPIRE, we strive not simply to provide insights on the world as it exists today, but to provide insight to make the world a safer place for ourselves and future generations. Diving more into climate change, the world is seeing a higher number of weather-related events that are causing significant damage and cost. that pace has only quickened in recent years. According to the National Oceanic and Atmospheric Administration and EMDAT, the International Disaster Database, between 1980 and 1990, the world saw three mega disasters, each causing over $20 billion in damages. In the 10 years from 2010 to 2020, that number increased nearly five times to 14. Yet in 2021, in a single year, the world saw five mega disasters causing over $20 billion in damages. And in addition, 2021 had 47 weather disasters that each caused over a billion dollars of damage. Or stated in another way, the world saw on average a $1 billion weather disaster once every eight days. It is against this backdrop of increasingly severe weather that the SPIRE team is working tirelessly to provide data and solutions to meaningfully change the current trajectory. We reject the idea of standing idle by as climate change occurs, and the demand from our customers proves that we are not alone in that notion. Since the inception of the company, our goal has been to utilize space to positively impact life on Earth. Our team of talented engineers has been innovating for more than 10 years, pushing the boundaries of what was once thought possible. It's with this mindset that we do our part to tackle climate change, empowering both our government and commercial customers by offering data and solutions that are increasingly being utilized to reduce the economic impact while helping humanity measure and learn, adapt to, and mitigate the impacts of climate change. During the quarter, we continued to position our weather product infrastructure to allow for enhanced functionality, efficiency, and scalability. We heard from the International Radio Occultation Working Group a group of scientists co-sponsored by the World Meteorological Organization, that SPIRE's radio occultation data was having a definitively positive impact on numerical weather prediction. We announced a nearly $10 million award from NOAA to provide six months of weather data. This is data that will be utilized not solely by NOAA, but data that is open to the world scientists as they collaborate to find new and meaningful weather and climate insights. What's notable is that this was the third multimillion-dollar award from NOAA in 2022, highlighting the diversity of use cases we can solve and the execution of our land and expand strategy. Shortly after announcing this award, we announced a separate $4 million two-year contract with NOAA for hyperspectral microwave sensor payload development, integration test, and demonstration. Noel was assuming that a prototype such as this would need to be developed on an airborne or balloon platform first. However, because of SPIRE's proven space capabilities and our partnership with RAL Space, SPIRE offered to develop the prototype in the actual environment it will be utilized, space. This was a significant differentiator along with our demonstrated track record of providing high-quality commercial data that led NOAA to select us for this competitive and challenging mission. The HIMSS instrument, as it is called, is a next-generation technology that delivers microwave-sounding information to measure atmospheric moisture at critical measurement for more accurate and numerical weather predictions. Also, during the quarter, we announced an award from NASA, which is focused on demonstrating a new remote sensing technique for measuring soil moisture. As part of the mission, SPIRE performed a custom collection of signals enabled through a software upgrade to our on-orbit satellites. The lower frequency of some of the signals allows the radio emissions to penetrate farther into the soil, enabling the team to obtain measurements deeper below the surface when compared to other techniques. These deeper measurements provide better data for applications like agricultural production forecasting and flood prediction. As we continue to enhance our data set, we are seeing customers utilize our solution to adapt to climate change. Our dynamic ERS product collects real-time data from hundreds of thousands of vessels on the open oceans. We provide highly relevant attributes, including position, speed, course, destination, and ETA. Given our differentiated product offerings, we can also overlay weather. With increasing frequency of severe weather events, the ability to know where a vessel is, where it is going, and the expected weather along its course can be a life-saving combination And that's exactly what we recently heard from one of our customers. With tropical storms in the vicinity of their vessels, this customer was utilizing our dynamic ARS data to track their vessels and keep their employees out of harm's way and their cargo safe. This is a powerful example of ARS and weather being augmented into a 24-7 fleet monitoring and advisory tool. Another example, SPIRE weather data is used by a power and light company for an around-the-clock weather support center. Meteorologists advise the customer regarding upcoming significant weather events and help to evaluate threats to life and property. Based on SPIRE's weather data, meteorologists will alert site leads when impending weather conditions might affect operations to discuss risks, trade-offs, and make operational recommendations. With $29 billion-plus weather disasters through September, 2022 is continuing the trend of an increasing number of devastating weather events that we have seen over the past few years. This trend highlights the need for actionable data and insights from space, data that SPIRE can provide to affected organizations, large and small, so they can understand, adapt to, and act with confidence and speed to mitigate the impacts of climate change on the business results and operations. During the quarter, we announced that THTSAT selected SPIRE to build, deploy, and operate a constellation of three space-based sensors to monitor greenhouse gas emissions. According to the Intergovernmental Panel on Climate Change, greenhouse gases from human activities are the most significant driver of observed climate change since the mid-20th century. Therefore, greenhouse gas monitoring and reduction could be a game changer for severe weather. Companies like GHGSat are experts on greenhouse gas monitoring, and Spire is an expert on building and running a large constellation. Working together, we can both excel at what we do best. Spire enables great companies like GHGSat to further their mission and vision through our space service offering. Another one of our customers is utilizing our weather data to generate electricity demand analytics. Taking weather like temperature, radiation, and wind into account, this customer can forecast the demand for electricity at the regional or state level. With the demand side understood, energy utilities can supply the appropriate amount of power with an optimal mix of renewable and traditional energy. SPIRE's weather forecasts also help on the supply side of the equation by accurately predicting the regional production of green energy from renewable sources such as wind and solar power. Turning now to global security, the events of February 24th brought into stark reality the fragility of freedom and the importance of global security. the world witnessed the unprovoked attack of Ukraine, an attack that has killed thousands and displaced millions of people. The world indeed can and did change overnight. In dynamic times, truth and transparency have never been more important. At Spire, we have about 40 geolocation-capable satellites in orbit that can detect jamming, spoofing, or the location of objects such as sanctioned vessels or aircraft, through the use of radio frequency. Our satellites work day and night, in good weather or bad, and observe the entirety of the Earth's surface area a hundred times a day, providing valuable insights in a rapidly changing environment. Given the investments and technological advancements the private sector has made over the last several years, there is a growing recognition of the necessity of public-private partnerships to tackle complex global challenges. Governmental agencies have noted that the relationship with the commercial satellite sector is vital. A diversified architecture encompassing both governmental and commercial satellites in varying constellation sizes and orbits provides a resilience to the space-based ecosystem. With over 100 satellites, Spire is a meaningful member of that ecosystem. We have seen the way in which data is being utilized changing. What we're hearing today is that our customers are looking for actionable data faster. More and more often, customers are looking for data from commercial satellites that can collect information in the dark of night and under the cover of clouds many times per day. This demand is tailor-made for SPIRE. We are also seeing the emergence of new markets that simply did not exist even a few years ago. With the growing signals intelligence market and the tens of billions of dollars and the growing space-based sector within that market, SPIRE stands ready to support the market needs with our constellation of satellites that is ready to serve today. As a testament to the new market dynamics and SPIOS capabilities, we were recently awarded a contract by the National Reconnaissance Office, or NRO. We are thrilled to have been selected by the NRO to demonstrate commercial radio frequency remote sensing, and we look forward to this partnership for years to come as we partner to create a safer world. The invasion of Ukraine has also provided a backdrop and which other nefarious activities have arisen. Beyond the tragic reports of activities that have occurred within the region, the conflict has impacted populations outside the region as well. Ukraine is known as Europe's breadbasket, a name that highlights the amount of grain produced. As a global agricultural commodity player, Ukraine produces an estimated 10% of the world's wheat, 15% of the world's corn, and 50% of the world's sunflower oil. Buyers of these grains include countries in the Middle East and North Africa, such as Egypt, Lebanon, and Tunisia. As a result of invasion of Ukraine, the UN World Food Program estimates that the cost of buying food will rise by $23 per month per person. While this may not seem like a significant increase to wealthy nations, it is a catastrophic increase to nearly 10% of the global population that lives on less than $2 per day or roughly $60 per month and could contribute to political and social unrest. Recently, a number of investigative journalists have tracked the seaborne transportation of Ukrainian exports. The Associated Press estimates that at least $530 million of Ukrainian grain has been stolen. The Financial Times, using data from Spire and others, documented how Russia secretly takes grain from occupied Ukraine. All vessels that enter and leave a port must have their Automatic Identification System, or ARS, on. This is a system that was designed to help avoid collisions at sea. SPIRE satellites track these signals from space. Vessels involved in illicit activities can manipulate the system by turning off the transponder to go dark or spoofing the EIS to report false positions. SPIRE's near real-time global geolocation position validation service can uncover suspicious activity and pinpoint a vessel without the need for an approximate location. This insight can be coupled with other SPIRE products that can tell how low a vessel is sitting in the water. This is a data point that indicates whether the vessel is loaded with cargo or not. These data sets are critical to governments, intelligence and security agencies, and nonprofit organizations' efforts to identify and locate vessels that are breaking international law. For a long time, having the tools to accurately identify and track ships that are attempting to hide their activities or location has been the missing key to preventing sanctions evasion and many other societal issues such as illegal fishing or human trafficking. SPIRE has recently launched a product aimed specifically at providing insight into these activities. Our DARPShip detection builds on our breadth of maritime tracking solutions and underscores SPIA's mission to use data that can only be collected from space to improve life on Earth. SPIA's future remains as promising as ever. Awareness and interest in SPIA solutions continue to rise, fueled by the global trends of fighting climate change and increasing global security demands. During the quarter, we added 25 new ARR solution customers, taking our account to well over 700. We delivered record revenue during the quarter, our fifth quarter of quarter-on-quarter revenue growth since becoming public. We executed on our bottom line as we continue this strong trend towards positive free cash flow. We added teammates and now have over 400 talented individuals representing 46 nationalities. With deployed technology, bright and passionate individuals on our team, an addressable market of nearly $100 billion and 200,000 potential customers over the next several years, we are well positioned to have built a better future thanks to our substantial scale, competitive advantage, diverse solutions, and market leadership in our core verticals. And with that, I'll turn it over to Tom.