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Planet Reports Financial Results for Third Quarter of Fiscal Year 2025

December 9, 2024 4:08 PM

Awarded Contracts with NASA, US Department of Defense and Multiple International Governments

Delivers Record GAAP Gross Margin of 61%, Up Over 1,400 bps YoY, and Record Non-GAAP Gross Margin of 64%, Up Over 1,200 bps YoY

Achieves First Light with Tanager Hyperspectral Satellite; Delivers Data on Over 300 Methane and CO2 Emissions Sites; Enables First Mitigation Success

Pelican-2 with NVIDIA Jetson Platform is Shipped and Ready to Launch

SAN FRANCISCO--(BUSINESS WIRE)-- Planet Labs PBC (NYSE: PL) (“Planet” or the “Company”), a leading provider of daily data and insights about Earth, today announced financial results for the period ended October 31, 2024.

"We are pleased with the multiple large contracts secured with government customers globally this quarter, which we expect to ramp up into the year ahead. The third quarter represented Planet’s largest ever quarter of ACV bookings, helping lay the foundation for future growth," said Will Marshall, Planet’s Co-Founder, Chief Executive Officer and Chairperson. "We continue to see strong demand for our data, particularly where enhanced with AI-enabled solutions. We also saw first light from our Tanager satellite, released the first set of over 300 CO2 and methane detections, and are progressing towards commercializing its hyperspectral data. The success of this program has led us to actively pursue other opportunities that similarly advance our technology roadmap while enhancing our financial position. Ultimately, we believe Planet is well positioned for growth going forward."

Ashley Johnson, Planet’s President and Chief Financial Officer, added, “We saw significant improvement in the fundamentals of the business during the quarter, as evident in the year-over-year and sequential improvement in margins, as well as the continued progress on our path to profitability. I’m pleased to confirm that we’re on track to achieve our target of Adjusted EBITDA profitability next quarter. Meanwhile, we’re reducing our cash burn and our balance sheet remains strong with approximately $242 million of cash, cash equivalents, and short-term investments as of the end of the quarter, and we continue to have no debt.”

Third Quarter of Fiscal 2025 Financial and Key Metric Highlights:

Recent Business Highlights:

Growing Customer and Partner Relationships

New Technologies and Products

Impact and ESG

Fourth Quarter Financial Outlook

For the fourth quarter of fiscal year 2025, ending January 31, 2025, Planet expects revenue to be in the range of approximately $61 million to $63 million. Non-GAAP Gross Margin is expected to be in the range of approximately 63% to 65%. Adjusted EBITDA is expected to be in the range of approximately $0 to $2 million for the quarter. Capital Expenditures are expected to be in the range of approximately $8 million and $11 million for the quarter.

Planet has not reconciled its Non-GAAP financial outlook to the most directly comparable GAAP measures because certain reconciling items, such as stock-based compensation expenses and depreciation and amortization are uncertain or out of Planet’s control and cannot be reasonably predicted. The actual amount of these expenses during the fourth quarter of fiscal year 2025 will have a significant impact on Planet’s future GAAP financial results. Accordingly, a reconciliation of Planet’s Non-GAAP outlook to the most comparable GAAP measures is not available without unreasonable efforts.

The foregoing forward-looking statements reflect Planet’s expectations as of today’s date. Given the number of risk factors, uncertainties and assumptions discussed below, actual results may differ materially.

Webcast and Conference Call Information

Planet will host a conference call at 5:00 p.m. ET / 2:00 p.m. PT today, December 9, 2024. The webcast can be accessed at www.planet.com/investors/. A replay will be available approximately 2 hours following the event. If you would prefer to register for the conference call, please go to the following link: https://www.netroadshow.com/events/login?show=00196caf&confId=74075. You will then receive your access details via email.

Additionally, a supplemental presentation has been provided on Planet’s investor relations page.

About Planet Labs PBC

Planet is a leading provider of global, daily satellite imagery and geospatial solutions. Planet is driven by a mission to image the world every day, and make change visible, accessible and actionable. Founded in 2010 by three NASA scientists, Planet designs, builds, and operates the largest Earth observation fleet of imaging satellites. Planet provides mission-critical data, advanced insights, and software solutions to over 1,000 customers, comprising the world’s leading agriculture, forestry, intelligence, education and finance companies and government agencies, enabling users to simply and effectively derive unique value from satellite imagery. Planet is a public benefit corporation listed on the New York Stock Exchange as PL. To learn more visit www.planet.com and follow us on X (formerly Twitter) or tune in to HBO’s ‘Wild Wild Space’.

Channels for Disclosure of Information

Planet intends to announce material information to the public through a variety of means, including filings with the Securities and Exchange Commission, press releases, public conference calls, webcasts, the investor relations section of its website (investors.planet.com) and its blog (planet.com/pulse) in order to achieve broad, non-exclusionary distribution of information to the public and for complying with its disclosure obligations under Regulation FD. It is possible that the information Planet posts on its blog could be deemed to be material information. As such, Planet encourages investors, the media, and others to follow the channels listed above and to review the information disclosed through such channels.

Planet’s Use of Non-GAAP Financial Measures

This press release includes Non-GAAP Gross Profit, Non-GAAP Gross Margin, certain Non-GAAP Expenses described further below, Non-GAAP Loss from Operations, Non-GAAP Net Loss, Non-GAAP Net Loss per Diluted Share, Adjusted EBITDA and Backlog, which are non-GAAP measures the Company uses to supplement its results presented in accordance with U.S. GAAP. The Company includes these non-GAAP financial measures because they are used by management to evaluate the Company’s core operating performance and trends and to make strategic decisions regarding the allocation of capital and new investments.

Non-GAAP Gross Profit and Non-GAAP Gross Margin: The Company defines and calculates Non-GAAP Gross Profit as gross profit adjusted for stock-based compensation, amortization of acquired intangible assets classified as cost of revenue, restructuring costs, and employee transaction bonuses in connection with the Sinergise business combination. The Company defines Non-GAAP Gross Margin as Non-GAAP Gross Profit divided by revenue.

Non-GAAP Expenses: The Company defines and calculates Non-GAAP cost of revenue, Non-GAAP research and development expenses, Non-GAAP sales and marketing expenses, and Non-GAAP general and administrative expenses as, in each case, the corresponding U.S. GAAP financial measure (cost of revenue, research and development expenses, sales and marketing expenses, and general and administrative expenses) adjusted for stock-based compensation, amortization of acquired intangible assets, restructuring costs, certain litigation expenses, and employee transaction bonuses in connection with the Sinergise business combination, that are classified within each of the corresponding U.S. GAAP financial measures.

Non-GAAP Loss from Operations: The Company defines and calculates Non-GAAP Loss from Operations as loss from operations adjusted for stock-based compensation, amortization of acquired intangible assets, restructuring costs, certain litigation expenses, and employee transaction bonuses in connection with the Sinergise business combination.

Non-GAAP Net Loss and Non-GAAP Net Loss per Diluted Share: The Company defines and calculates Non-GAAP Net Loss as net loss adjusted for stock-based compensation, amortization of acquired intangible assets, restructuring costs, certain litigation expenses, and employee transaction bonuses in connection with the Sinergise business combination, and the income tax effects of the non-GAAP adjustments. The Company defines and calculates Non-GAAP Net Loss per Diluted Share as Non-GAAP Net Loss divided by diluted weighted-average common shares outstanding.

Adjusted EBITDA: The Company defines and calculates Adjusted EBITDA as net income (loss) before the impact of interest income and expense, income tax expense and depreciation and amortization, and further adjusted for the following items: stock-based compensation, change in fair value of warrant liabilities, non-operating income and expenses such as foreign currency exchange gain or loss, restructuring costs, certain litigation expenses, and employee transaction bonuses in connection with the Sinergise business combination.

The Company presents Non-GAAP Gross Profit, Non-GAAP Gross Margin, certain Non-GAAP Expenses described above, Non-GAAP Loss from Operations, Non-GAAP Net Loss, Non-GAAP Net Loss per Diluted Share and Adjusted EBITDA because the Company believes these measures are frequently used by analysts, investors and other interested parties to evaluate companies in Planet’s industry and facilitates comparisons on a consistent basis across reporting periods. Further, the Company believes these measures are helpful in highlighting trends in its operating results because they exclude items that are not indicative of the Company’s core operating performance.

Backlog: The Company defines and calculates Backlog as remaining performance obligations plus the cancellable portion of the contract value for contracts that provide the customer with a right to terminate for convenience without incurring a substantive termination penalty and written orders where funding has not been appropriated. Backlog does not include unexercised contract options. Remaining performance obligations represent the amount of contracted future revenue that has not yet been recognized, which includes both deferred revenue and non-cancelable contracted revenue that will be invoiced and recognized in revenue in future periods. Remaining performance obligations do not include contracts which provide the customer with a right to terminate for convenience without incurring a substantive termination penalty, written orders where funding has not been appropriated and unexercised contract options.

An increasing and meaningful portion of the Company’s revenue is generated from contracts with the U.S. government and other government customers. Cancellation provisions, such as termination for convenience clauses, are common in contracts with the U.S. government and certain other government customers. The Company presents Backlog because the portion of its customer contracts with such cancellation provisions represents a meaningful amount of the Company’s expected future revenues. Management uses backlog to more effectively forecast the Company’s future business and results, which supports decisions around capital allocation. It also helps the Company identify future growth or operating trends that may not otherwise be apparent. The Company also believes Backlog is useful for investors in forecasting the Company’s future results and understanding the growth of its business. Customer cancellation provisions relating to termination for convenience clauses and funding appropriation requirements are outside of the Company’s control, and as a result, the Company may fail to realize the full value of such contracts.

Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, as a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. The non-GAAP financial measures presented are not based on any standardized methodology prescribed by U.S. GAAP and are not necessarily comparable to similarly-titled measures presented by other companies, which may have different definitions from the Company’s. Further, certain of the non-GAAP financial measures presented exclude stock-based compensation expenses, which has recently been, and will continue to be for the foreseeable future, a significant recurring expense for the Company and an important part of its compensation strategy.

Other Key Metrics

ACV and EoP ACV Book of Business: In connection with the calculation of several of the key operational and business metrics we utilize, the Company calculates Annual Contract Value (“ACV”) for contracts of one year or greater as the total amount of value that a customer has contracted to pay for the most recent 12 month period for the contract, excluding customers that are exclusively Sentinel Hub self-service paying users. For short-term contracts (contracts less than 12 months), ACV is equal to total contract value.

The Company also calculates EoP ACV Book of Business in connection with the calculation of several of the key operational and business metrics we utilize. The Company defines EoP ACV Book of Business as the sum of the ACV of all contracts that are active on the last day of the period pursuant to the effective dates and end dates of such contracts, excluding customers that are exclusively Sentinel Hub self-service paying users. Active contracts exclude any contract that has been canceled, expired prior to the last day of the period without renewing, or for any other reason is not expected to generate revenue in the subsequent period. For contracts ending on the last day of the period, the ACV is either updated to reflect the ACV of the renewed contract or, if the contract has not yet renewed or extended, the ACV is excluded from the EoP ACV Book of Business. The Company does not annualize short-term contracts in calculating its EoP ACV Book of Business. The Company calculates the ACV of usage-based contracts based on the committed contracted revenue or the revenue achieved on the usage-based contract in the prior 12-month period.

Percent of Recurring ACV: Percent of Recurring ACV is the portion of the total EoP ACV Book of Business that is recurring in nature. The Company defines EoP ACV Book of Business as the sum of the ACV of all contracts that are active on the last day of the period pursuant to the effective dates and end dates of such contracts, excluding customers that are exclusively Sentinel Hub self-service paying users. The Company defines Percent of Recurring ACV as the dollar value of all data subscription contracts and the committed portion of usage-based contracts (excluding customers that are exclusively Sentinel Hub self-service paying users) divided by the total dollar value of all contracts in our EoP ACV Book of Business. The Company believes Percent of Recurring ACV is useful to investors to better understand how much of the Company’s revenue is from customers that have the potential to renew their contracts over multiple years rather than being one-time in nature. The Company tracks Percent of Recurring ACV to inform estimates for the future revenue growth potential of our business and improve the predictability of our financial results. There are no significant estimates underlying management’s calculation of Percent of Recurring ACV, but management applies judgment as to which customers have an active contract at a period end for the purpose of determining EoP ACV Book of Business, which is used as part of the calculation of Percent of Recurring ACV.

EoP Customer Count: The Company defines EoP Customer Count as the total count of all existing customers at the end of the period excluding customers that are exclusively Sentinel Hub self-service paying users. For EoP Customer Count, the Company defines existing customers as customers with an active contract with the Company at the end of the reported period. For the purpose of this metric, the Company defines a customer as a distinct entity that uses the Company’s data or services. The Company sells directly to customers, as well as indirectly through its partner network. If a partner does not provide the end customer’s name, then the partner is reported as the customer. Each customer, regardless of the number of active opportunities with the Company, is counted only once. For example, if a customer utilizes multiple products of Planet, the Company only counts that customer once for purposes of EoP Customer Count. A customer with multiple divisions, segments, or subsidiaries are also counted as a single unique customer based on the parent organization or parent account. For EoP Customer Count, the Company does not include users that only utilize the Company’s self-service Sentinel Hub web based ordering system, which the Company acquired in August 2023, and which offers standard starter packages on a monthly or annual basis. The Company believes excluding these users from EoP Customer Count creates a more useful metric, as the Company views the Sentinel Hub starter packages as entry points for smaller accounts, leading to broader awareness of the Company’s solutions throughout their networks and organizations. The Company believes EoP Customer Count is a useful metric for investors and management to track as it is an important indicator of the broader adoption of the Company’s platform and is a measure of the Company’s success in growing its market presence and penetration. Management applies judgment as to which customers are deemed to have an active contract in a period, as well as whether a customer is a distinct entity that uses the Company’s data or services.

Capital Expenditures as a Percentage of Revenue: The Company defines capital expenditures as purchases of property and equipment plus capitalized internally developed software development costs, which are included in our statements of cash flows from investing activities. The Company defines Capital Expenditures as a Percentage of Revenue as the total amount of capital expenditures divided by total revenue in the reported period. Capital Expenditures as a Percentage of Revenue is a performance measure that we use to evaluate the appropriate level of capital expenditures needed to support demand for the Company’s data services and related revenue, and to provide a comparable view of the Company’s performance relative to other earth observation companies, which may invest significantly greater amounts in their satellites to deliver their data to customers. The Company uses an agile space systems strategy, which means we invest in a larger number of significantly lower cost satellites and software infrastructure to automate the management of the satellites and to deliver the Company’s data to clients. As a result of the Company’s strategy and business model, the Company’s capital expenditures may be more similar to software companies with large data center infrastructure costs. Therefore, the Company believes it is important to look at the level of capital expenditure investments relative to revenue when evaluating the Company’s performance relative to other earth observation companies or to other software and data companies with significant data center infrastructure investment requirements. The Company believes Capital Expenditures as a Percentage of Revenue is a useful metric for investors because it provides visibility to the level of capital expenditures required to operate the Company and the Company’s relative capital efficiency.

Forward-looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or Planet’s future financial or operating performance. In some cases, you can identify forward looking statements because they contain words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “target,” “anticipate,” “intend,” “develop,” “evolve,” “plan,” “seek,” “may,” “will,” “could,” “can,” “should,” “would,” “believes,” “predicts,” “potential,” “strategy,” “opportunity,” “aim,” “conviction,” “continue,” “positioned” or the negative of these words or other similar terms or expressions that concern Planet’s expectations, strategy, priorities, plans or intentions. Forward-looking statements in this release include, but are not limited to, statements regarding Planet’s financial guidance and outlook, Planet’s path to profitability (including on an Adjusted EBITDA basis) and target for achieving Adjusted EBITDA profitability, Planet’s growth opportunities, Planet’s expectations regarding future product development and performance, and Planet’s expectations regarding its strategies with respect to its markets and customers, including trends in customer demand. Planet’s expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including risks related to the macroeconomic environment and risks regarding Planet’s ability to forecast Planet’s performance due to Planet’s limited operating history. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in Planet’s filings with the Securities and Exchange Commission (“SEC”), including Planet’s Annual Report on Form 10-K for the fiscal year ended January 31, 2024, Quarterly Report on Form 10-Q for the fiscal quarter ended October 31, 2024, and any subsequent filings with the SEC Planet may make. All forward-looking statements reflect Planet’s beliefs and assumptions only as of the date of this press release. Planet undertakes no obligation to update forward-looking statements to reflect future events or circumstances, except as may be required by law. Planet’s results for the quarter ended October 31, 2024, are not necessarily indicative of its operating results for any future periods.

PLANET

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(In thousands)

October 31, 2024

January 31, 2024

Assets

Current assets

Cash and cash equivalents

$

138,969

$

83,866

Restricted cash and cash equivalents, current

6,525

8,360

Short-term investments

103,255

215,041

Accounts receivable, net

38,853

43,320

Prepaid expenses and other current assets

13,992

19,564

Total current assets

301,594

370,151

Property and equipment, net

116,920

113,429

Capitalized internal-use software, net

18,259

14,973

Goodwill

137,411

136,256

Intangible assets, net

29,231

32,448

Restricted cash and cash equivalents, non-current

4,437

9,972

Operating lease right-of-use assets

20,829

22,339

Other non-current assets

2,083

2,429

Total assets

$

630,764

$

701,997

Liabilities and Stockholders’ Equity

Current liabilities

Accounts payable

$

3,572

$

2,601

Accrued and other current liabilities

43,670

44,779

Deferred revenue

66,462

72,327

Liability from early exercise of stock options

6,275

8,964

Operating lease liabilities, current

9,105

7,978

Total current liabilities

129,084

136,649

Deferred revenue

11,230

5,293

Deferred hosting costs

6,665

7,101

Public and private placement warrant liabilities

1,835

2,961

Operating lease liabilities, non-current

13,819

16,952

Contingent consideration

2,871

5,885

Other non-current liabilities

655

9,138

Total liabilities

166,159

183,979

Stockholders’ equity

Common stock

28

28

Additional paid-in capital

1,631,077

1,596,201

Accumulated other comprehensive income

1,347

1,594

Accumulated deficit

(1,167,847

)

(1,079,805

)

Total stockholders’ equity

464,605

518,018

Total liabilities and stockholders’ equity

$

630,764

$

701,997

PLANET

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

Three Months Ended October 31,

Nine Months Ended October 31,

(In thousands, except share and per share amounts)

2024

2023

2024

2023

Revenue

$

61,266

$

55,380

$

182,798

$

161,844

Cost of revenue

23,749

29,350

81,288

81,375

Gross profit

37,517

26,030

101,510

80,469

Operating expenses

Research and development

25,216

33,002

78,055

87,929

Sales and marketing

16,795

20,774

62,013

66,209

General and administrative

18,114

20,112

58,198

62,161

Total operating expenses

60,125

73,888

198,266

216,299

Loss from operations

(22,608

)

(47,858

)

(96,756

)

(135,830

)

Interest income

2,414

3,445

8,292

11,753

Change in fair value of warrant liabilities

198

6,833

1,126

14,004

Other income (expense), net

(60

)

(69

)

660

894

Total other income, net

2,552

10,209

10,078

26,651

Loss before provision for income taxes

(20,056

)

(37,649

)

(86,678

)

(109,179

)

Provision for income taxes

25

355

1,364

1,244

Net loss

$

(20,081

)

$

(38,004

)

$

(88,042

)

$

(110,423

)

Basic and diluted net loss per share attributable to common stockholders

$

(0.07

)

$

(0.13

)

$

(0.30

)

$

(0.40

)

Basic and diluted weighted-average common shares outstanding used in computing net loss per share attributable to common stockholders

293,338,324

284,197,733

290,674,554

277,252,951

PLANET

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited)

Three Months Ended October 31,

Nine Months Ended October 31,

(In thousands)

2024

2023

2024

2023

Net loss

$

(20,081

)

$

(38,004

)

$

(88,042

)

$

(110,423

)

Other comprehensive income (loss), net of tax:

Foreign currency translation adjustment

52

(1,667

)

(159

)

(1,543

)

Change in fair value of available-for-sale securities

48

89

(88

)

(970

)

Other comprehensive income (loss), net of tax

100

(1,578

)

(247

)

(2,513

)

Comprehensive loss

$

(19,981

)

$

(39,582

)

$

(88,289

)

$

(112,936

)

PLANET

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

Nine Months Ended October 31,

(In thousands)

2024

2023

Operating activities

Net loss

$

(88,042

)

$

(110,423

)

Adjustments to reconcile net loss to net cash used in operating activities

Depreciation and amortization

36,365

36,033

Stock-based compensation, net of capitalized cost

36,467

44,611

Change in fair value of warrant liabilities

(1,126

)

(14,004

)

Change in fair value of contingent consideration

3,161

(923

)

Other

(932

)

(3,538

)

Changes in operating assets and liabilities

Accounts receivable

5,487

(3,872

)

Prepaid expenses and other assets

8,499

9,483

Accounts payable, accrued and other liabilities

(7,731

)

(20,706

)

Deferred revenue

71

19,557

Deferred hosting costs

(298

)

(92

)

Net cash used in operating activities

(8,079

)

(43,874

)

Investing activities

Purchases of property and equipment

(32,694

)

(29,086

)

Capitalized internal-use software

(4,145

)

(3,266

)

Maturities of available-for-sale securities

57,046

142,903

Sales of available-for-sale securities

162,341

40,072

Purchases of available-for-sale securities

(105,582

)

(166,169

)

Business acquisition, net of cash acquired

(1,068

)

(7,542

)

Purchases of licensed imagery intangible assets

(4,558

)

—

Other

(300

)

(944

)

Net cash provided by (used in) investing activities

71,040

(24,032

)

Financing activities

Proceeds from the exercise of common stock options

332

6,770

Payments for withholding taxes related to the net share settlement of equity awards

(7,328

)

(7,112

)

Proceeds from employee stock purchase program

1,083

—

Payments of contingent consideration for business acquisitions

(8,783

)

—

Other

(606

)

(15

)

Net cash used in financing activities

(15,302

)

(357

)

Effect of exchange rate changes on cash and cash equivalents, and restricted cash and cash equivalents

74

(65

)

Net increase (decrease) in cash and cash equivalents, and restricted cash and cash equivalents

47,733

(68,328

)

Cash and cash equivalents, and restricted cash and cash equivalents at the beginning of the period

102,198

188,076

Cash and cash equivalents, and restricted cash and cash equivalents at the end of the period

$

149,931

$

119,748

PLANET

RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (unaudited)

Three Months Ended October 31,

Nine Months Ended October 31,

(in thousands)

2024

2023

2024

2023

Net loss

$

(20,081

)

$

(38,004

)

$

(88,042

)

$

(110,423

)

Interest income

(2,414

)

(3,445

)

(8,292

)

(11,753

)

Income tax provision

25

355

1,364

1,244

Depreciation and amortization

10,117

13,625

36,365

36,033

Change in fair value of warrant liabilities

(198

)

(6,833

)

(1,126

)

(14,004

)

Stock-based compensation

11,829

12,598

36,467

44,611

Restructuring costs(1)

25

7,341

10,524

7,341

Employee transaction bonuses in connection with the Sinergise business combination(2)

—

2,317

—

2,317

Certain litigation expenses(3)

395

—

395

—

Other (income) expense, net

60

69

(660

)

(894

)

Adjusted EBITDA

$

(242

)

$

(11,977

)

$

(13,005

)

$

(45,528

)

(1) As part of the 2024 headcount reduction, we recognized immaterial severance and other employee costs for the three months ended October 31, 2024 and $10.5 million of severance and other employee costs for the nine months ended October 31, 2024. For the three and nine months ended October 31, 2024, the restructuring related stock-based compensation benefit of $1.4 million is included on its respective line item. As part of the 2023 headcount reduction, we recognized $7.3 million of severance and other employee costs for the three and nine months ended October 31, 2023. For the three and nine months ended October 31, 2023, the restructuring related stock-based compensation benefit of $1.5 million is included on its respective line item.

(2) Certain employees of Sinergise, which became employees of Planet, were paid cash transaction bonuses in connection with the closing of the Sinergise acquisition. The cost of the transaction bonuses was allocated from the purchase consideration we paid for the acquisition.

(3) Expenses relating to the Delaware class action lawsuit.

PLANET

RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited)

Three Months Ended October 31,

Nine Months Ended October 31,

(In thousands)

2024

2023

2024

2023

Reconciliation of cost of revenue:

GAAP cost of revenue

$

23,749

$

29,350

$

81,288

$

81,375

Less: Stock-based compensation

745

888

2,563

2,855

Less: Amortization of acquired intangible assets

759

796

2,298

1,674

Less: Restructuring costs

128

563

1,312

563

Less: Employee transaction bonuses in connection with the Sinergise business combination

—

267

—

267

Non-GAAP cost of revenue

$

22,117

$

26,836

$

75,115

$

76,016

Reconciliation of gross profit:

GAAP gross profit

$

37,517

$

26,030

$

101,510

$

80,469

Add: Stock-based compensation

745

888

2,563

2,855

Add: Amortization of acquired intangible assets

759

796

2,298

1,674

Add: Restructuring costs

128

563

1,312

563

Add: Employee transaction bonuses in connection with the Sinergise business combination

—

267

—

267

Non-GAAP gross profit

$

39,149

$

28,544

$

107,683

$

85,828

GAAP gross margin

61

%

47

%

56

%

50

%

Non-GAAP gross margin

64

%

52

%

59

%

53

%

PLANET

RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited)

Three Months Ended October 31,

Nine Months Ended October 31,

(In thousands)

2024

2023

2024

2023

Reconciliation of operating expenses:

GAAP research and development

$

25,216

$

33,002

$

78,055

$

87,929

Less: Stock-based compensation

4,294

5,655

12,120

18,555

Less: Restructuring costs

(76

)

3,297

3,464

3,297

Less: Employee transaction bonuses in connection with the Sinergise business combination

—

1,891

—

1,891

Non-GAAP research and development

$

20,998

$

22,159

$

62,471

$

64,186

GAAP sales and marketing

$

16,795

$

20,774

$

62,013

$

66,209

Less: Stock-based compensation

1,655

1,626

6,863

7,827

Less: Amortization of acquired intangible assets

129

261

473

665

Less: Restructuring costs

24

1,943

4,457

1,943

Less: Employee transaction bonuses in connection with the Sinergise business combination

—

41

—

41

Non-GAAP sales and marketing

$

14,987

$

16,903

$

50,220

$

55,733

GAAP general and administrative

$

18,114

$

20,112

$

58,198

$

62,161

Less: Stock-based compensation

5,135

4,429

14,921

15,374

Less: Amortization of acquired intangible assets

36

93

151

254

Less: Restructuring costs

(51

)

1,538

1,291

1,538

Less: Employee transaction bonuses in connection with the Sinergise business combination

—

118

—

118

Less: Certain litigation expenses

395

—

395

—

Non-GAAP general and administrative

$

12,599

$

13,934

$

41,440

$

44,877

Reconciliation of loss from operations

GAAP loss from operations

$

(22,608

)

$

(47,858

)

$

(96,756

)

$

(135,830

)

Add: Stock-based compensation

11,829

12,598

36,467

44,611

Add: Amortization of acquired intangible assets

924

1,150

2,922

2,593

Add: Restructuring costs

25

7,341

10,524

7,341

Add: Employee transaction bonuses in connection with the Sinergise business combination

—

2,317

—

2,317

Add: Certain litigation expenses

395

—

395

—

Non-GAAP loss from operations

$

(9,435

)

$

(24,452

)

$

(46,448

)

$

(78,968

)

PLANET

RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited)

Three Months Ended October 31,

Nine Months Ended October 31,

(In thousands, except share and per share amounts)

2024

2023

2024

2023

Reconciliation of net loss

GAAP net loss

$

(20,081

)

$

(38,004

)

$

(88,042

)

$

(110,423

)

Add: Stock-based compensation

11,829

12,598

36,467

44,611

Add: Amortization of acquired intangible assets

924

1,150

2,922

2,593

Add: Restructuring costs

25

7,341

10,524

7,341

Add: Employee transaction bonuses in connection with the Sinergise business combination

—

2,317

—

2,317

Add: Certain litigation expenses

395

—

395

—

Income tax effect of non-GAAP adjustments

914

—

1,326

—

Non-GAAP net loss

$

(5,994

)

$

(14,598

)

$

(36,408

)

$

(53,561

)

Reconciliation of net loss per share, diluted

GAAP net loss

$

(20,081

)

$

(38,004

)

$

(88,042

)

$

(110,423

)

Non-GAAP net loss

$

(5,994

)

$

(14,598

)

$

(36,408

)

$

(53,561

)

GAAP net loss per share, basic and diluted (1)

$

(0.07

)

$

(0.13

)

$

(0.30

)

$

(0.40

)

Add: Stock-based compensation

0.04

0.04

0.13

0.16

Add: Amortization of acquired intangible assets

—

—

0.01

0.01

Add: Restructuring costs

—

0.03

0.04

0.03

Add: Employee transaction bonuses in connection with the Sinergise business combination

—

0.01

—

0.01

Add: Certain litigation expenses

—

—

—

—

Income tax effect of non-GAAP adjustments

—

—

—

—

Non-GAAP net loss per share, diluted (2) (3)

$

(0.02

)

$

(0.05

)

$

(0.13

)

$

(0.19

)

Weighted-average shares used in computing GAAP net loss per share, basic and diluted (1)

293,338,324

284,197,733

290,674,554

277,252,951

Weighted-average shares used in computing Non-GAAP net loss per share, diluted (1)

293,338,324

284,197,733

290,674,554

277,252,951

(1) Basic and diluted GAAP net loss per share was the same for each period presented as the inclusion of all potential Class A common stock and Class B common stock outstanding would have been anti-dilutive.

(2) Non-GAAP net loss per share, diluted is calculated using weighted-average shares, adjusted for dilutive potential shares assumed outstanding during the period. No adjustment was made to weighted-average shares for each period presented as the inclusion of all potential Class A common stock and Class B common stock outstanding would have been anti-dilutive.

(3) Totals may not sum due to rounding. Figures are calculated based upon the respective underlying non-rounded data.

PLANET

RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited)

The table below reconciles Backlog to remaining performance obligations for the periods indicated:

(in thousands)

October 31, 2024

January 31, 2024

Remaining performance obligations

$

145,890

$

132,571

Cancellable amount of contract value

86,250

109,821

Backlog

$

232,140

$

242,392

For remaining performance obligations as of October 31, 2024, the Company expects to recognize approximately 82% over the next 12 months, approximately 98% over the next 24 months, and the remainder thereafter. For Backlog as of October 31, 2024, the Company expects to recognize approximately 70% over the next 12 months, approximately 91% over the next 24 months, and the remainder thereafter.

Investor Contact

Chris Genualdi / Cleo Palmer-Poroner

Planet Labs PBC

[email protected]

Press Contact

Claire Bentley Dale

Planet Labs PBC

[email protected]

Source: Planet

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