• Exceeded top end of guidance range with record quarterly revenue of $27.3M; 34% year-over-year (YOY) increase
• Increased GAAP gross margins to 65%; 15 pt YOY improvement, and non-GAAP gross margins¹ to 69%; 14 pt YOY improvement
• Improved GAAP operating loss to ($11.0M); 33% YOY improvement, and lowered Non-GAAP operating loss¹ to ($6.2M); 45% YOY improvement
• Improved net loss to ($17.8M); 18% YOY improvement, and lowered adjusted EBITDA¹ loss to ($3.4M); 60% YOY improvement
• Improving full year midpoint guidance for revenue, non-GAAP operating loss, non-GAAP loss per share, and adjusted EBITDA loss

VIENNA, Va. — (BUSINESS WIRE) — November 8, 2023 — Spire Global, Inc. (NYSE: SPIR) (“Spire” or “the Company”), a leading provider of space-based data, analytics and space services, today announced results for its quarter ended September 30, 2023. The Company will hold a webcast at 5:00 pm ET today to discuss the results.

“As more businesses and organizations are leveraging data and insights from space, we are continuing to see this demand translate into profitable growth opportunities for our business,” said Peter Platzer, Spire CEO. “With a drive toward profitability, and recent proof points indicating the power of space-based data to help with global security challenges and improved severe weather forecasting, I am incredibly proud of what Spire has already achieved and will continue to do in the days, weeks and years ahead.”

“Spire is poised for a strong finish to the year,” said Leo Basola, Spire CFO. “After exceeding our revenue expectations for the last three quarters, raising our full year earnings guidance in the last two quarters, and reaffirming our expectations of positive operating cash flow in the fourth quarter of this year, positive adjusted EBITDA in Q1 or Q2 2024 and positive free cash flow in Q2 or Q3 2024, the business is continuing a strong progression toward profitability.”

Third Quarter 2023 Highlights

Financial:

• Third quarter 2023 revenue increased 34% year-over-year to a record $27.3 million, which exceeded the top end of our expectations by $0.3 million. Revenue growth was driven by new customer additions as well as increased milestone-based projects.
• Third quarter 2023 GAAP gross margin increased 15 percentage points year-over-year to 65%, and non-GAAP gross margin¹ increased 14 percentage points to 69%. We believe the gross margin improvement demonstrates our success in leveraging headcount and infrastructure costs across our solutions.
• Third quarter 2023 GAAP operating loss was $11.0 million, an improvement of $5.4 million year-over-year, and non-GAAP operating loss¹ was $6.2 million, a $5.2 million improvement year-over-year. We believe these results reflect strong execution on our path to profitability.
• Third quarter 2023 net loss was $17.8 million, a $4.0 million year-over-year improvement. Adjusted EBITDA loss was $3.4 million, for third quarter 2023, a $5.0 million or 60% improvement year-over-year.
• Third quarter 2023 operating cash flow was negative $5.1 million, a sequential quarter-over-quarter improvement of $6.2 million, or 54%.
• ARR as of September 30, 2023 was $103.1 million, and Spire ended the quarter with 827 ARR solution customers under contract.

¹ Non-GAAP Financial Measure, please see section titled Non-GAAP Financial Measures for the definition of such measures and the reconciliation tables at the end of this release for reconciliation to the most directly comparable GAAP measure.

Business:

• Spire was recently selected for a Multiple-Award, Indefinite Delivery Indefinite Quantity (IDIQ) contract by NASA to provide Earth observation data for the agency’s Commercial Smallsat Data Acquisition (CSDA) Program. The contract will be effective for five years with the opportunity to compete for task orders under a $476 million shared ceiling amongst seven selected companies. Better and more accurate Earth observation data is vital to addressing the increasingly complex climate issues we face today. We believe Spire’s long-standing work with NASA and the CSDA Program uniquely positions us to continue delivering high-quality Earth observation data and innovative solutions that contribute to a more sustainable future.
• During the quarter, Spire announced it was awarded a $2.8 million, 12-month contract by the National Oceanic and Atmospheric Administration (NOAA) for satellite weather data. Spire will provide NOAA with Global Navigation Satellite System Reflectometry (GNSS-R) observation data in near real-time, primarily focusing on ocean surface wind speeds. The initiative directly addresses the agency’s critical need for more precise global sea-surface wind measurements essential for applications like marine weather forecasts, hurricane tracking, ocean current analysis and climate studies.
• Spire announced it was awarded a $4.6 million, 12-month contract by NASA on behalf of NOAA to participate in NOAA’s Sounder for Microwave-Based Applications (SMBA) Phase-A study. Following the completion of the 12-month contract, a single sounder from the finalists may be selected for additional contract phases. The data collected from the final Microwave Sounder will be used towards advancing Earth observation, providing insights into various atmospheric properties such as temperature, humidity, cloud cover and composition.
• Spire announced it will participate in a challenge to advance measurements of the Earth’s magnetic field. As part of the challenge, Spire received multi-million dollar support from the National Geospatial-Intelligence Agency. Spire will design, develop and launch a satellite that will provide a novel approach to geomagnetic data collection for the World Magnetic Model (WMM). The WMM is used every day around the world and is embedded in thousands of systems. More than a billion smartphone users depend on the WMM for mobile navigation apps, and drivers rely on it to align the compasses in their cars.
• During the quarter, Spire announced a Space Services contract from GHGSat, a global leader in high-resolution greenhouse gas monitoring from space. Under the agreement, Spire will build, launch and operate four additional 16U satellites that will carry GHGSat payloads to monitor greenhouse gas emissions. This builds upon Spire’s initial agreement with GHGSat for three 16U satellites that are planned for launch by the end of 2023.

Financial Outlook

Spire is providing the following guidance for the fourth quarter 2023, and is improving certain elements of its guidance for the full year ending December 31, 2023: