Planet Labs PBC Reports $123.2 Million Net Loss and 11% Revenue Growth for Fiscal Year Ended January 31, 2025

Planet Labs PBC reported a net loss of $123.2 million for the fiscal year ended January 31, 2025, compared to a net loss of $140.5 million in the prior fiscal year. Revenue increased by 11% to $244.4 million, driven by new customer growth and expansion of existing customer contracts, primarily in the Civil Government and Defense and Intelligence sectors. The company's cost of revenue decreased by 3% to $104.6 million, primarily due to lower depreciation expense and reduced employee-related costs, partially offset by increased costs paid to partners and subcontractors.

Operating expenses decreased by 9% to $255.8 million, reflecting reductions in research and development, sales and marketing, and general and administrative expenses. These decreases were largely attributed to a headcount reduction implemented in June 2024, resulting in $10.6 million in one-time employee termination benefits. The headcount reduction was substantially complete by January 31, 2025. The company also noted a $1.4 million stock-based compensation benefit related to the reversal of previously recognized expenses.

A significant development was a $230 million commercial agreement with SKY Perfect JSAT (JSAT) in January 2025. Under this agreement, Planet will build and operate a constellation of ten high-resolution Pelican satellites for JSAT, with revenue recognition expected over time as work progresses. Planet also highlighted its continued focus on acquiring new customers, expanding relationships with existing customers, and investing in new sensors and data sets to capture additional valuable data. The company's Net Dollar Retention Rate increased to 106% for the fiscal year ended January 31, 2025, from 101% in the prior year, primarily due to large government contract expansions. The end-of-period customer count decreased to 976 from 1,018, reflecting a shift towards larger customers.

Key operational metrics included a 97% recurring ACV, and capital expenditures as a percentage of revenue increased to 20% from 19% in the prior year, primarily due to increased investment in next-generation satellites. The company emphasized its "land-and-expand" go-to-market strategy, aiming to increase customer value and revenue over time. Planet Labs PBC also detailed various risks and uncertainties, including those related to competition, satellite operations, regulatory compliance, and macroeconomic conditions, in its 10-K filing. The company stated that it does not intend to pay cash dividends in the foreseeable future.