BKSY - NYSE
BlackSky Technology Inc.
BKSY·NYSE
$39.67
+5.8%TechnologyHardware, Equipment & Parts
BlackSky Technology Inc. provides geospatial intelligence, imagery and related data analytic products and services, and mission systems that include the development, integration, and operations of satellite and ground systems to commercial and government customers worldwide. The company processes a range of observations from its constellation, as well as various space, internet-of-things, and terrestrial based sensors and data feeds. Its products are used in government defense and intelligence; commercial, construction, and industrial; and catastrophe, climate, and environment applications. The company was incorporated in 2014 and is headquartered in Herndon, Virginia.
At a Glance
Live SnapshotMarket Cap$1.47B
EPS-2.0900
P/E Ratio-18.98
Earnings Date08/06/2026
Earnings Call Transcript
BKSY • 2023 • Q4
Operator
Good morning, ladies and gentlemen and welcome to BlackSky Technologies Fourth Quarter 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions] Please note that this conference call is being recorded. I would now like to turn the call over to Aly Bonilla, BlackSky’s Vice President of Investor Relations. Please go ahead, Aly.
Operator
Thank you. We will now begin the question-and-answer session. [Operator Instructions] Thank you. Our first question comes from the line of Jaeson Schmidt with Lake Street. Please proceed with your question.
Operator
Our next question comes on the line of Edison Yu with Deutsche Bank. Please proceed with your question.
Edison Yu
Great. Thank you.
Operator
Our next question comes from the line of Josh Sullivan with Benchmark Company. Please proceed with your question.
Josh Sullivan
Got it. Thank you for the time.
Operator
Our next question comes from the line of Greg Burns with Sidoti. Please proceed with your question.
Greg Burns
Good morning. With your guidance, revenue guidance for next year, what level of Imagery and Analytics growth are you baking into that projection?
Henry Dubois
Greg, this is Henry talking. As you know, we’re targeting between $102 million to $118 million. When we look at the overall growth in the marketplace or from this prior year, as I said in my remarks, and you kind of normalize what we were expecting for full year this past year, absent the final Ts and Cs on the Indonesian contract, overall it’s about a 25% growth rate. We’d expect kind of the Professional and Engineering services to kind of be kind of chug along at its current level. So most of that growth would be showing up in the Imagery and Analytics.
Greg Burns
All right, thank you.
Operator
Thank you. Our next question comes from the line of Jeff Van Rhee with Craig-Hallum Capital Group. Please proceed with your question.
Jeff Van Rhee
Great. Thanks for taking the questions. Congrats on the positive EBITDA. A lot of progress here. Maybe if you could touch on the CapEx, last several quarters, we’ve gone from, I think, a guide midpoint of $43 million to $51 million it’s now $60 million. Can you put a little finer point on the expansion from $43 million a few quarters ago to $60 million now? What exactly, the incremental, call it, $17 million gets you? What are you pulling forward? Are you seeing more expensive units? Just talk about what you’re doing there.
Henry Dubois
Sure, Jeff. This is Henry. I mean, what you’re looking at on that CapEx as we’re kind of ramping up, and you’re right over the last two years, we’ve been roughly kind of around that $44 million a year or so. As we start ramping up and start getting our Gen-3 satellites closer to launch and then getting them up there, you’re going to have timing as you get into that launch time period, final payments, et cetera. So it’s more about getting closer to when we start getting our Gen-3 satellites up.
Operator
Thank you. Our next question comes from the line of Chris Quilty with Quilty Space. Please proceed with your question.
Henry Dubois
That’s what we’ve recognized.
Chris Quilty
Right. And, Henry, it sounds like you had $7 million that you booked early on that contract that wasn’t expected. If it had landed in ‘24, you’ve got 25% growth rate. What was it about it that caused that? And I don’t want to get too much into accounting, but what caused that chunk of revenue to get booked? What activity? And can you give us a sense of what the mix might be between Imagery and ground, because those obviously have different margin potential.
Henry Dubois
Chris, yeah when you take a look at the Indonesian contract, it really is based on the final terms and conditions and the progress we’d already made into kind of getting to that point. And we were able to recognize – we had to recognize the progress to-date on work we’d been doing that we’re able to transfer over to that contract. And margins are similar across the contract, because it’s one of these things where we look at as the total value-add to the customer.
Chris Quilty
Got you. And just a clarification on EOCL. Should we expect that to be sort of flattish with what was done in 2023? Or is it contingent on what the renewal looks like? Because it sounds like it’s mostly the uptick is tied to Gen-3 coming online.
Henry Dubois
Well, I think, yeah, as I said, we’re expecting renewal in the second quarter on the products, on the services we’re providing today. And then we do expect a further expansion as Gen-3 comes online.
Chris Quilty
Great. And, Henry, can you remind us what – I mean, as you take in both multi-end Imagery and other EO data sources from other partners into the platform, how is that accounted for from a revenue and margin impact? And can you give us a sense of, are you seeing growth in that sort of multi-end capability, either at or faster or slower than the core Imagery?
Henry Dubois
Well Chris, as Brian said, our capabilities allow us to take multisource and we do get that from certain customers that’s usually delivered to us by the customer. So our margins on our AI deliveries, our Imagery and Analytics are very similar to the imageries. I mean, incremental contribution margins are in the 90%-plus.
Chris Quilty
All right, very good that –
Henry Dubois
Yeah, Chris, that’s an important – just [foot stop] [ph] that, right. What you’re seeing in these announcements of these larger deals is the building of a long-term anchor customer base. These new customers were winning, are in their initial phases and we expect to transition into these long-term multiyear subscription agreements over time. So that’s another strong development coming out of ‘23, as we expected.
Chris Quilty
Great, congrats on the quarter and the win.
Henry Dubois
Thanks, Chris.
Transcript from February 28, 2024
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