SAN FRANCISCO - Planet Labs PBC reported third-quarter earnings that beat analyst expectations, but revenue fell short and the company provided weaker-than-expected guidance, sending shares tumbling 15% in after-hours trading.
The Earth imaging company posted adjusted earnings per share of -$0.02 for the quarter ended October 31, beating the analyst consensus estimate of -$0.06. However, revenue came in at $61.3 million, missing expectations of $63.26 million despite growing 11% YoY.
For the fourth quarter, Planet Labs forecast revenue between $61-63 million, well below the $66.1 million analysts were expecting. The weak outlook overshadowed the company's improved profitability metrics in Q3.
"We are pleased with the multiple large contracts secured with government customers globally this quarter, which we expect to ramp up into the year ahead," said CEO Will Marshall.
"The third quarter represented Planet's largest ever quarter of ACV bookings, helping lay the foundation for future growth."
Planet Labs reported record GAAP gross margin of 61% in Q3, up over 1,400 basis points YoY. Non-GAAP gross margin hit a record 64%, improving over 1,200 basis points from the prior year.
The company ended the quarter with $242 million in cash and short-term investments and no debt. Planet Labs said it remains on track to achieve adjusted EBITDA profitability next quarter.
"We saw significant improvement in the fundamentals of the business during the quarter, as evident in the year-over-year and sequential improvement in margins, as well as the continued progress on our path to profitability," said President and CFO Ashley Johnson.
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