Delivers Record Second Quarter Revenue of $48.5 Million, up 59% Year-over-Year

Expands YoY Second Quarter GAAP Gross Margin Expansion to 48% from 35%

Increases Full Year Revenue Guidance for FY’23 to 42% YoY Growth at the Midpoint

SAN FRANCISCO — (BUSINESS WIRE) — September 12, 2022 — Planet Labs PBC (NYSE: PL) (“Planet” or the “Company”), a leading provider of daily data and insights about Earth, today announced financial results for its fiscal second quarter for the period ended July 31, 2022, demonstrating accelerated growth and momentum of its unique data subscription business.

“Planet’s results for the second quarter exceeded expectations across the board and demonstrate the continued acceleration of our growth rate and robust demand for our unique Earth data solutions,” said Will Marshall, Planet’s Co-Founder, Chief Executive Officer and Chairperson. “In addition to the strength of our revenue and gross margin expansion during Q2, we’re also pleased with the meaningful increase in net dollar retention rate, which we believe demonstrates that our investments in product and customer success are yielding results.”

Ashley Johnson, Planet’s Chief Financial and Operating Officer, added, “For the second quarter of fiscal year 2023, we delivered $48.5 million in revenue, a growth rate of 59% year-over-year, expanded Non-GAAP Gross Margin to 52%, and ended the quarter with $458 million of cash, cash equivalents and short-term investments. Q2 was an excellent quarter for Planet, and we’re pleased with the continued momentum that we’re seeing in the business.”

Fiscal Second Quarter 2022 Financial and Key Metric Highlights:

• Second quarter revenue increased 59% year-over-year to $48.5 million.
• Percent of Recurring Annual Contract Value (ACV) for the second quarter was 93%.
• End of Period (EoP) Customer Count increased 17% year-over-year to 855 customers.
• Net dollar retention rate for the quarter was 125%, while net dollar retention rate with winbacks was 127%.
• Second quarter gross margin expanded to 48%, compared to 35% in the second quarter of fiscal year 2022. Second quarter Non-GAAP Gross Margin⁽¹⁾ expanded to 52%, compared to 36% in the second quarter of fiscal year 2022.
• Ended the quarter with $458 million in cash, cash equivalents and short-term investments.

⁽¹⁾ Please see “Planet’s Use of Non-GAAP Financial Measures” below for a discussion on how Planet calculates the non-GAAP financial measures presented herein. In addition, please find below a reconciliation to the most directly comparable U.S. GAAP financial measure

Recent Business Highlights:

Growing Customer and Partner Relationships:

• German Federal Government: Planet announced that it is providing the German Federal Agency for Cartography and Geodesy (BKG) with daily, high-resolution satellite data for a huge variety of use cases, including crisis response, environmental management and nature conservation, as well as forest and agricultural monitoring. This is a pioneering contract – a country-wide partnership through which employees of more than 400 German federal institutions can gain access to Planet’s data to help promote public and civil safety throughout the entire Federal Republic of Germany. This engagement follows an assessment by the central government that determined that Planet’s data can help address the needs of the entire German Federal government.
• Organic Valley: Planet announced that it has completed a successful pilot program with Organic Valley, the organic food brand and independent cooperative of organic farmers. The program utilized satellite technology to efficiently measure pasture health on dairy farms. By using Planet’s satellite data, participating Organic Valley farmers accessed reports created by the cooperative regarding their pastures which helped them assess pasture quality, thereby supporting herd nutrition, and contributing to sustainable agricultural practices like regenerative rotational grazing.
• NMSLO: The New Mexico State Land Office further expanded their relationship with Planet. Using Planet’s road change detection analytics, the NMSLO has been able to detect roads that were created on protected land and has identified trespass violations resulting in up to $1 million in fines thus far. After the devastating beginning of the 2022 wildfire season, the New Mexico State Land Office has now begun using SkySat to monitor burn scars and severity, allowing the state to plan for potential flooding and debris flows along with mitigation efforts to restore the land.

Supporting Ukraine Response:

• Planet is supporting critical efforts in multiple areas by providing imagery to governments, aid and relief organizations, think tanks and the media. Planet continued that important work in Q2.
• NASA Harvest: The team at NASA Harvest, NASA’s food security and agriculture program, used Planet data to complete a country-wide assessment of the health of grain in Ukraine and its effect on global grain supplies. As of August 2022, the Harvest team found that more cropland than was initially expected has been harvested and planted along both the Russian-occupied and Ukrainian-held territories. The team is also currently estimating a higher production out of the region than other publicly-sourced estimates.
• Windward: Maritime AI company Windward, when combining their AI-powered behavioral analytics models with Planet’s daily imagery, found vessels engaging in dark activities and ship-to-ship (STS) operations in the Kerch Strait in June 2022 as part of what appeared to be a coordinated effort to launder grain allegedly stolen from Ukraine. The report found a 160% increase in dark activity in the Black Sea YoY, with 73% of those cases occurring after the war started.

Building New Technologies and Missions:

• NASA CSP: Planet announced that it is supporting NASA’s Communication Services Project, or "CSP", alongside two partners, SES Government Solutions and Telesat Government Solutions, to demonstrate real-time space-to-space connectivity solutions from Planet’s LEO satellites to other in-space communication satellites operated by SES and Telesat. Planet will work to demonstrate its state-of-the art communication technology stack involving real-time satellite connectivity for NASA’s CSP, with the goal of further building its relationship with the agency and accelerating the deployment of low latency solutions for Planet customers.

Impact and Education:

• Planet’s robust Education and Research (E&R) program continues to enable new use cases of Planet’s data and better forecasts of resultant environmental, economic and geopolitical effects. For example, researchers at Duke University and the California Air Resource Board recently used Planetscope data combined with novel AI analytical techniques to identify dangerous levels of fine particulate air pollution in Delhi and Beijing so that in the future such methods could be used to more efficiently mitigate the effects of poor air quality in cities around the world.

Financial Outlook

For the third quarter of fiscal year 2023, Planet expects revenue to be in the range of approximately $45 million to $48 million, representing approximately 47% year-over-year growth at the midpoint. Non-GAAP Gross Margin is expected to be between approximately 47% to 49%. Adjusted EBITDA is expected to be between approximately ($22) million and ($20) million. Capital Expenditure as a Percentage of Revenue is expected to be between approximately 16% and 19% of revenue for the third quarter.

For fiscal year 2023, Planet has increased its revenue outlook and expects it to be in the range of approximately $182 million to $190 million, representing approximately 42% growth at the midpoint. Non-GAAP Gross Margin is expected to be between approximately 49% to 51%. Adjusted EBITDA is expected to be between approximately ($68) million and ($60) million. Capital Expenditure as a Percentage of Revenue is expected to be between approximately 13% to 15% for the full fiscal year 2023.