Planet, a satellite-imagery and data-analysis company, experienced a decline in its shares after revising its annual revenue guidance following the release of its first-quarter results. The company adjusted its fiscal year 2024 revenue forecast to a range of $225 million to $235 million, down from the previous range of $248 million to $268 million. Planet also anticipated wider losses on an adjusted EBITDA basis, increasing the projected range to $58 million to $67 million from $37 million to $47 million.
The stock of Planet fell by as much as 20% during after-hours trading, starting from its previous closing price of $4.90. Despite the lowered guidance, Planet’s co-founder and CEO, Will Marshall, expressed confidence in the company’s capabilities and the continued demand for its proprietary data solutions driven by global events.
Planet’s Chief Financial Officer and Chief Operating Officer, Ashley Johnson, acknowledged the challenging macro environment and emphasized the company’s focus on achieving profitability. Johnson also highlighted the strength of Planet’s balance sheet, with $375 million in cash and equivalents and no debt.
In terms of financial performance, Planet reported first-quarter revenue of $52.7 million, representing a 31% increase from the same period last year but remaining relatively flat compared to the previous quarter. The net loss for the quarter narrowed by 22% to $34.4 million, or 13 cents per share, compared to a net loss of $44.4 million, or 17 cents per share, in the prior year.
Planet’s customer base grew to 903, with revenue divided among defense and intelligence (44%), commercial (29%), and civil government (27%) sectors. The company remains committed to its fiscal-year calendar that ends on January 31 and is determined to navigate the challenges while maintaining a strong market position.