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
Except for the historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, the Company’s ability to capture market opportunity; whether and when the Company will be able to execute on its growth initiatives; whether the Company will realize any of the potential benefits from strategic acquisitions; whether the Company will be able to successfully build or deploy its satellites, including new satellites that are in development; whether the Company will be able to continue to invest in scaling its sales organization and expanding its software engineering capabilities; and the Company’s financial outlook. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “seek,” “may,” “will,” “could,” “can,” “should,” “would,” “believes,” “predicts,” “potential,” “strategy,” “opportunity,” “aim,” “continue” and similar expressions or the negative thereof, or discussions of strategy, plans, objectives, intentions, estimates, forecasts, outlook, assumptions, or goals, are intended to identify such forward-looking statements. Forward-looking statements are based on the Company’s management’s beliefs, as well as assumptions made by, and information currently available to them. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. Factors which may cause actual results to differ materially from current expectations include, but are not limited to: the Company’s limited operating history making it difficult to predict its future operating results; the Company’s expectations that its operating expenses will increase substantially for the foreseeable future; whether the market for the Company’s products and services that is built upon its data set, which has not existed before, will grow as expected; the Company’s ability to manage its growth effectively; whether current customers or prospective customers adopt the Company’s platform; whether the Company will be able to compete effectively with the increasing competition in its market from commercial entities and governments; the Company’s ability to continue to capture certain high-value government procurement contracts; whether the Company is subject to any risks as a result of its global operations, including, but not limited to, being subject to any hostile actions by a government or other state actor; the Company’s international operations creating business and economic risks that could impact its operations and financial results; the interruption or failure of the Company’s satellite operations, information technology infrastructure or loss of its data storage, whether by cyber-attacks or other adverse events that limit its ability to perform its daily operations effectively and provide its products and services; whether the Company experiences any adverse events, such as delayed launches, launch failures, its satellites failing to reach their planned orbital locations, its satellites failing to operate as intended, being destroyed or otherwise becoming inoperable, the cost of satellite launches significantly increasing and/or satellite launch providers not having sufficient capacity; the Company’s satellites not being able to capture Earth images due to weather, natural disasters or other external factors, or as a result of its constellation of satellites having restrained capacity; if the Company is unable to develop and release product and service enhancements to respond to rapid technological change, or to develop new designs and technologies for its satellites, in a timely and cost-effective manner; downturns or volatility in general economic conditions, including as a result of the current COVID-19 pandemic, including any variants thereof, or any other outbreak of an infectious disease; the effects of acts of terrorism, war or political instability, both domestically and internationally, including the current events involving Russia and Ukraine, changes in laws and regulations, or the imposition of economic or trade sanctions affecting international commercial transactions; the loss of one or more of the Company’s key personnel, or its failure to attract, hire, retain and train other highly qualified personnel in the future; the Company’s ability to raise adequate capital, including on acceptable terms, to finance its business strategies; how rules and regulations in the Company’s highly regulated industry may impact its business; if the Company fails to maintain effective internal controls over financial reporting at a reasonable assurance level; and the other factors described under the heading “Risk Factors” in the Registration Statement on Form S-1 filed by the Company with the Securities and Exchange Commission (SEC) and any subsequent filings with the SEC the Company may make. Copies of each filing may be obtained from the Company or the SEC. All forward-looking statements reflect the Company’s beliefs and assumptions only as of the date of this press release. The Company undertakes no obligation to update forward-looking statements to reflect future events or circumstances. The Company’s results for the quarter and year ended January 31, 2022 are not necessarily indicative of its operating results for any future periods.
PLANET CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited) |
|||||||||||||||
|
Three Months Ended January 31, |
|
Year Ended January 31, |
||||||||||||
(in thousands, except share and per share amounts) |
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Revenue |
$ |
37,146 |
|
|
$ |
30,281 |
|
|
$ |
131,209 |
|
|
$ |
113,168 |
|
Cost of revenue |
|
23,230 |
|
|
|
22,825 |
|
|
|
82,987 |
|
|
|
87,383 |
|
Gross profit |
|
13,916 |
|
|
|
7,456 |
|
|
|
48,222 |
|
|
|
25,785 |
|
Operating expenses |
|
|
|
|
|
|
|
||||||||
Research and development |
|
27,163 |
|
|
|
11,384 |
|
|
|
66,684 |
|
|
|
43,825 |
|
Sales and marketing |
|
19,226 |
|
|
|
10,047 |
|
|
|
52,917 |
|
|
|
37,268 |
|
General and administrative |
|
24,733 |
|
|
|
6,586 |
|
|
|
56,672 |
|
|
|
32,134 |
|
Total operating expenses |
|
71,122 |
|
|
|
28,017 |
|
|
|
176,273 |
|
|
|
113,227 |
|
Loss from operations |
|
(57,206 |
) |
|
|
(20,561 |
) |
|
|
(128,051 |
) |
|
|
(87,442 |
) |
Debt extinguishment gain (loss) |
|
(1,690 |
) |
|
|
— |
|
|
|
(1,690 |
) |
|
|
673 |
|
Interest expense |
|
(1,022 |
) |
|
|
(2,612 |
) |
|
|
(8,772 |
) |
|
|
(9,447 |
) |
Change in fair value of convertible notes and warrant liabilities |
|
17,155 |
|
|
|
(13,540 |
) |
|
|
5,726 |
|
|
|
(30,053 |
) |
Other income (expense), net |
|
(1,914 |
) |
|
|
(281 |
) |
|
|
(2,227 |
) |
|
|
239 |
|
Total other expense, net |
|
12,529 |
|
|
|
(16,433 |
) |
|
|
(6,963 |
) |
|
|
(38,588 |
) |
Loss before provision for income taxes |
|
(44,677 |
) |
|
|
(36,994 |
) |
|
|
(135,014 |
) |
|
|
(126,030 |
) |
Provision for income taxes |
|
1,288 |
|
|
|
504 |
|
|
|
2,110 |
|
|
|
1,073 |
|
Net loss |
$ |
(45,965 |
) |
|
$ |
(37,498 |
) |
|
$ |
(137,124 |
) |
|
$ |
(127,103 |
) |
Other comprehensive loss |
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment, net of tax |
|
(8 |
) |
|
|
239 |
|
|
|
327 |
|
|
|
276 |
|
Comprehensive loss |
$ |
(45,973 |
) |
|
$ |
(37,259 |
) |
|
$ |
(136,797 |
) |
|
$ |
(126,827 |
) |
Basic and diluted net loss per share attributable to common stockholders |
$ |
(0.26 |
) |
|
$ |
(0.83 |
) |
|
$ |
(1.72 |
) |
|
$ |
(2.87 |
) |
Basic and diluted weighted-average common shares outstanding used in computing net loss per share attributable to common stockholders |
|
178,278,954 |
|
|
|
45,230,840 |
|
|
|
79,610,970 |
|
|
|
44,214,426 |
|
PLANET CONSOLIDATED BALANCE SHEETS (unaudited) |
|||||||
|
January 31, |
||||||
(in thousands, except share and par value amounts) |
2022 |
|
2021 |
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
490,762 |
|
|
$ |
71,183 |
|
Accounts receivable, net |
|
44,373 |
|
|
|
47,110 |
|
Prepaid expenses and other current assets |
|
16,385 |
|
|
|
7,134 |
|
Total current assets |
|
551,520 |
|
|
|
125,427 |
|
Property and equipment, net |
|
133,280 |
|
|
|
159,855 |
|
Capitalized internal-use software, net |
|
10,768 |
|
|
|
11,994 |
|
Goodwill |
|
103,219 |
|
|
|
88,393 |
|
Intangible assets, net |
|
14,197 |
|
|
|
5,673 |
|
Restricted cash, non-current |
|
5,743 |
|
|
|
4,982 |
|
Other non-current assets |
|
2,714 |
|
|
|
2,984 |
|
Total assets |
$ |
821,441 |
|
|
$ |
399,308 |
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
2,850 |
|
|
$ |
1,446 |
|
Accrued and other current liabilities |
|
48,823 |
|
|
|
30,195 |
|
Deferred revenue |
|
64,233 |
|
|
|
57,570 |
|
Liability from early exercise of stock options |
|
16,135 |
|
|
|
— |
|
Convertible notes, at fair value |
|
— |
|
|
|
8,244 |
|
Preferred stock warrant liability |
|
— |
|
|
|
11,359 |
|
Total current liabilities |
|
132,041 |
|
|
|
108,814 |
|
Debt, net of discount |
|
— |
|
|
|
62,644 |
|
Convertible notes, at fair value |
|
— |
|
|
|
92,968 |
|
Deferred revenue |
|
3,579 |
|
|
|
15,122 |
|
Deferred hosting costs |
|
12,149 |
|
|
|
7,971 |
|
Public and private placement warrant liabilities |
|
23,224 |
|
|
|
— |
|
Deferred rent |
|
798 |
|
|
|
2,991 |
|
Other non-current liabilities |
|
1,405 |
|
|
|
1,287 |
|
Total liabilities |
|
173,196 |
|
|
|
291,797 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ equity |
|
|
|
||||
Convertible preferred stock |
|
— |
|
|
|
13 |
|
Common stock |
|
27 |
|
|
|
4 |
|
Additional paid-in capital |
|
1,423,151 |
|
|
|
745,630 |
|
Accumulated other comprehensive income |
|
2,096 |
|
|
|
1,769 |
|
Accumulated deficit |
|
(777,029 |
) |
|
|
(639,905 |
) |
Total stockholders’ equity |
|
648,245 |
|
|
|
107,511 |
|
Total liabilities and stockholders’ equity |
$ |
821,441 |
|
|
$ |
399,308 |
|
PLANET CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
|||||||
|
Year Ended January 31, |
||||||
(in thousands) |
2022 |
|
2021 |
||||
Operating activities |
|
|
|
||||
Net loss |
$ |
(137,124 |
) |
|
$ |
(127,103 |
) |
Adjustments to reconcile net loss to net cash used in operating activities |
|
|
|
||||
Depreciation and amortization |
|
45,043 |
|
|
|
62,212 |
|
Stock-based compensation, net of capitalized costs |
|
41,956 |
|
|
|
14,012 |
|
Provision for doubtful accounts |
|
45 |
|
|
|
823 |
|
Change in fair value of convertible notes and warrant liabilities |
|
(5,726 |
) |
|
|
30,053 |
|
Debt extinguishment (gain) loss |
|
1,671 |
|
|
|
(673 |
) |
Deferred income taxes |
|
(1,393 |
) |
|
|
— |
|
Amortization of debt discount and issuance costs |
|
2,635 |
|
|
|
2,750 |
|
Impairment of capitalized internal-use software |
|
1,143 |
|
|
|
— |
|
Changes in operating assets and liabilities |
|
|
|
||||
Accounts receivable |
|
3,263 |
|
|
|
(19,932 |
) |
Prepaid expenses and other assets |
|
(8,680 |
) |
|
|
2,617 |
|
Accounts payable, accrued and other liabilities |
|
16,072 |
|
|
|
11,033 |
|
Deferred revenue |
|
(4,898 |
) |
|
|
14,433 |
|
Deferred hosting costs |
|
5,844 |
|
|
|
7,971 |
|
Deferred rent |
|
(2,062 |
) |
|
|
(2,223 |
) |
Net cash used in operating activities |
|
(42,211 |
) |
|
|
(4,027 |
) |
Investing activities |
|
|
|
||||
Purchases of property and equipment |
|
(10,313 |
) |
|
|
(26,096 |
) |
Capitalized internal-use software |
|
(4,618 |
) |
|
|
(4,030 |
) |
Business acquisition, net of cash acquired |
|
(9,620 |
) |
|
|
— |
|
Other |
|
(598 |
) |
|
|
(674 |
) |
Net cash used in investing activities |
|
(25,149 |
) |
|
|
(30,800 |
) |
Financing activities |
|
|
|
||||
Proceeds from the exercise of common stock options |
|
10,640 |
|
|
|
539 |
|
Proceeds from the early exercise of common stock options |
|
17,928 |
|
|
|
— |
|
Class A common stock withheld to satisfy employee tax withholding obligations |
|
(5,598 |
) |
|
|
— |
|
Proceeds from Business Combination and PIPE Investment, net of transaction costs |
|
533,164 |
|
|
|
— |
|
Principal payment of debt |
|
(66,950 |
) |
|
|
— |
|
Proceeds from issuance of debt and common stock warrants, net of issuance costs |
|
— |
|
|
|
14,862 |
|
Principal payment of convertible notes |
|
— |
|
|
|
(2,586 |
) |
Proceeds from issuance of convertible notes and preferred stock warrant |
|
— |
|
|
|
71,125 |
|
Net cash provided by financing activities |
|
489,184 |
|
|
|
83,940 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(1,550 |
) |
|
|
(312 |
) |
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
420,274 |
|
|
|
48,801 |
|
Cash, cash equivalents and restricted cash at the beginning of the period |
|
76,540 |
|
|
|
27,739 |
|
Cash, cash equivalents and restricted cash at the end of the period |
$ |
496,814 |
|
|
$ |
76,540 |
|
PLANET RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
January 31,
|
|
January 31,
|
|
January 31,
|
|
January 31,
|
||||||||
(in thousands) |
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(45,965 |
) |
|
$ |
(37,498 |
) |
|
$ |
(137,124 |
) |
|
$ |
(127,103 |
) |
Interest expense |
|
1,022 |
|
|
|
2,612 |
|
|
|
8,772 |
|
|
|
9,447 |
|
Interest income |
|
(9 |
) |
|
|
(4 |
) |
|
|
(21 |
) |
|
|
(53 |
) |
Income tax provision |
|
1,288 |
|
|
|
504 |
|
|
|
2,110 |
|
|
|
1,073 |
|
Depreciation and amortization |
|
11,178 |
|
|
|
15,912 |
|
|
|
45,043 |
|
|
|
62,212 |
|
Debt extinguishment (gain) loss |
|
1,690 |
|
|
|
— |
|
|
|
1,690 |
|
|
|
(673 |
) |
Change in fair value of convertible notes and warrant liabilities |
|
(17,155 |
) |
|
|
13,540 |
|
|
|
(5,726 |
) |
|
|
30,053 |
|
Stock-based compensation |
|
29,337 |
|
|
|
2,923 |
|
|
|
41,956 |
|
|
|
14,012 |
|
Other (income) expense |
|
1,923 |
|
|
|
285 |
|
|
|
2,248 |
|
|
|
(186 |
) |
Adjusted EBITDA |
$ |
(16,691 |
) |
|
$ |
(1,726 |
) |
|
$ |
(41,052 |
) |
|
$ |
(11,218 |
) |
PLANET RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
January 31,
|
|
January 31,
|
|
January 31,
|
|
January 31,
|
||||||||
(in thousands) |
|
|
|
|
|
|
|
||||||||
Reconciliation of cost of revenue: |
|
|
|
|
|
|
|
||||||||
GAAP cost of revenue |
$ |
23,230 |
|
|
$ |
22,825 |
|
|
$ |
82,987 |
|
|
$ |
87,383 |
|
Less: Stock-based compensation |
|
1,569 |
|
|
|
258 |
|
|
|
2,257 |
|
|
|
843 |
|
Non-GAAP cost of revenue |
$ |
21,661 |
|
|
$ |
22,567 |
|
|
$ |
80,730 |
|
|
$ |
86,540 |
|
Reconciliation of gross profit: |
|
|
|
|
|
|
|
||||||||
GAAP gross profit |
$ |
13,916 |
|
|
$ |
7,456 |
|
|
$ |
48,222 |
|
|
$ |
25,785 |
|
Add: Stock-based compensation |
|
1,569 |
|
|
|
258 |
|
|
|
2,257 |
|
|
|
843 |
|
Non-GAAP gross profit |
$ |
15,485 |
|
|
$ |
7,714 |
|
|
$ |
50,479 |
|
|
$ |
26,628 |
|
GAAP gross margin |
|
37 |
% |
|
|
25 |
% |
|
|
37 |
% |
|
|
23 |
% |
Non-GAAP gross margin |
|
42 |
% |
|
|
25 |
% |
|
|
38 |
% |
|
|
24 |
% |
Reconciliation of operating expenses: |
|
|
|
|
|
|
|
||||||||
GAAP research and development |
$ |
27,163 |
|
|
$ |
11,384 |
|
|
$ |
66,684 |
|
|
$ |
43,825 |
|
Less: Stock-based compensation |
|
11,332 |
|
|
|
1,077 |
|
|
|
15,400 |
|
|
|
3,583 |
|
Non-GAAP research and development |
$ |
15,831 |
|
|
$ |
10,307 |
|
|
$ |
51,284 |
|
|
$ |
40,242 |
|
GAAP sales and marketing |
$ |
19,226 |
|
|
$ |
10,047 |
|
|
$ |
52,917 |
|
|
$ |
37,268 |
|
Less: Stock-based compensation |
|
5,918 |
|
|
|
494 |
|
|
|
7,877 |
|
|
|
1,687 |
|
Non-GAAP sales and marketing |
$ |
13,308 |
|
|
$ |
9,553 |
|
|
$ |
45,040 |
|
|
$ |
35,581 |
|
GAAP general and administrative |
$ |
24,733 |
|
|
$ |
6,586 |
|
|
$ |
56,672 |
|
|
$ |
32,134 |
|
Less: Stock-based compensation |
|
10,518 |
|
|
|
1,094 |
|
|
|
16,422 |
|
|
|
7,899 |
|
Non-GAAP general and administrative |
$ |
14,215 |
|
|
$ |
5,492 |
|
|
$ |
40,250 |
|
|
$ |
24,235 |
|