Planet Labs PBC reported its financial results for the three and six months ended July 31, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended July 31, 2024, Planet Labs generated revenue of $61.1 million, a 14% increase from $53.8 million in the same period of 2023. Gross profit also rose to $32.3 million, up 23% from $26.3 million year-over-year. However, the company reported a net loss of $38.7 million, slightly higher than the $38.0 million loss in the prior year. The loss from operations decreased to $39.6 million from $43.3 million, indicating improved operational efficiency.

For the six months ended July 31, 2024, revenue reached $121.5 million, a 14% increase from $106.5 million in the same period of 2023. Gross profit for this period was $64.0 million, up 18% from $54.4 million. The net loss narrowed to $68.0 million from $72.4 million, while the loss from operations decreased significantly to $74.1 million from $88.0 million.

The company’s cash and cash equivalents increased to $148.3 million as of July 31, 2024, compared to $83.9 million at the end of January 2024. However, total assets decreased to $658.4 million from $702.0 million during the same period. The accumulated deficit grew to $1.15 billion, reflecting ongoing challenges in achieving profitability.

Strategically, Planet Labs announced a plan in June 2024 to reduce its global headcount by approximately 17%, resulting in $10.5 million in restructuring costs recognized in the second quarter. This decision aims to enhance operational efficiency and support long-term growth. The company also reported a decrease in sales and marketing expenses, attributed to reduced headcount and lower stock-based compensation.

The end-of-period customer count increased by 7% to 1,012 as of July 31, 2024, driven by heightened demand for the company's data services. The company continues to focus on expanding its market presence, particularly in civil government, agriculture, and defense sectors, while also targeting new verticals such as energy and finance.

Overall, while Planet Labs has shown growth in revenue and gross profit, it continues to face challenges in achieving profitability, as reflected in its net losses and restructuring efforts.