Planet, a satellite-imagery and data-analysis company, saw its shares fall after it cut its annual revenue guidance following the release of its first-quarter results. The company reduced its forecast for its fiscal-year 2024 revenue to a range of $225 million to $235 million from the previous forecast of $248 million to $268 million, subsequently causing a decrease in its share prices.
Wider Losses Expected
Additionally, Planet revealed that it expected wider losses on an adjusted EBITDA basis, which led to an increase in its forecast to a range between $58 million and $67 million from $37 million and $47 million. The company’s shares fell as much as 20% in after-hours trading following these revelations.
Despite the lowered guidance, Planet’s CEO, Will Marshall, said in a statement that the company continues to see strong demand for its proprietary data solutions, driven by global events and the growing awareness of its capabilities. The company’s CFO and COO, Ashley Johnson, also emphasized the challenging macro environment but stated that the company remains focused on the path to profitability.
For the first quarter, Planet reported revenue of $52.7 million, up 31% from $40.1 million in the same period last year. However, revenue remained flat from the previous quarter. The company’s net loss for the quarter was $34.4 million, or 13 cents a share, which was 22% less than the net loss of $44.4 million, or 17 cents a share, reported in the same period last year.
Planet’s customer base also increased to 903, from 882 at the end of the fourth quarter, with its customer base divided into three parts by revenue: 44% in defense and intelligence, 29% in commercial, and 27% in civil government. The company’s balance sheet remains strong with $375 million in cash and equivalents and no debt.
Planet’s lowered guidance for its revenue and increased forecast for wider losses on an adjusted EBITDA basis caused a decline in its share prices. However, the company remains optimistic about its future prospects and continues to see strong demand for its data solutions.