Planet Labs Reports 11% Revenue Growth to $61.3 Million for Quarter Ending October 31, 2024

Planet Labs PBC reported its financial results for the quarter ending October 31, 2024, revealing a revenue increase of 11% to $61.3 million, compared to $55.4 million in the same period last year. The growth was primarily driven by a $6.2 million increase from new customer acquisitions, although this was partially offset by a $0.3 million reduction in existing customer contracts. The company’s end-of-period customer count rose to 1,015, marking a 4% year-over-year increase. Gross profit for the quarter surged 44% to $37.5 million, reflecting a decrease in cost of revenue, which fell 19% to $23.7 million, largely due to reduced depreciation expenses.

In terms of operational efficiency, Planet Labs has made significant strides, reducing total operating expenses by 19% to $60.1 million. This reduction was attributed to lower research and development costs, which decreased by 24% to $25.2 million, and a 19% decline in sales and marketing expenses to $16.8 million. The company reported a loss from operations of $22.6 million, a substantial improvement from the $47.9 million loss recorded in the same quarter of the previous year. The net loss for the quarter was $20.1 million, down from $38.0 million a year earlier.

Strategically, Planet Labs has focused on enhancing its product offerings and expanding its customer base. The company completed the acquisition of Sinergise in August 2023, which contributed to its customer growth and revenue expansion. The company’s average contract length remains approximately two years, with over 90% of its annual contract value derived from annual or multi-year contracts. The firm is also investing in new satellite technologies and machine learning capabilities to improve its data offerings.

As of October 31, 2024, Planet Labs had $139.0 million in cash and cash equivalents, a significant increase from $83.9 million at the beginning of the fiscal year. The company’s short-term investments totaled $103.3 million, down from $215.0 million, reflecting a strategic shift in its investment portfolio. The company anticipates continued growth in capital expenditures and working capital requirements as it seeks to expand its operations and product offerings.

Looking ahead, Planet Labs aims to leverage its existing customer relationships while pursuing new market opportunities. The company plans to invest in sales and marketing to enhance customer retention and expand its product offerings. Despite the challenges posed by market conditions and operational adjustments, Planet Labs remains optimistic about its growth trajectory, emphasizing its commitment to delivering actionable geospatial data and insights to its diverse customer base.