HERNDON, Va. - BlackSky Technology Inc. (NYSE: BKSY), a geospatial intelligence firm, has secured a contract with NASA to provide satellite imaging data, enhancing the agency's Earth observation capabilities. The indefinite-delivery/indefinite-quantity contract, potentially worth up to $476 million, extends through November 2028, as part of NASA's Commercial Smallsat Data Acquisition Program (CSDAP).
The contract will enable NASA-backed researchers to access BlackSky's high-revisit satellite imagery, assisting in various studies related to Earth's ecosystems, oceanography, geography, and polar systems. BlackSky's CEO, Brian E. O'Toole, emphasized the importance of real-time, all-day monitoring capabilities for government demands.
BlackSky's Spectra platform utilizes artificial intelligence to analyze data from its satellite constellation, aiming to automatically monitor patterns and detect anomalies on a global scale. This technology supports NASA's Earth science research and applications that contribute to the understanding and improvement of planetary life.
As a provider of real-time geospatial intelligence, BlackSky designs, owns, and operates a leading low earth orbit satellite constellation. The company's Spectra AI software platform processes data from its own satellites and third-party sensors to deliver critical insights and analytics.
BlackSky serves U.S. and international government agencies, commercial businesses, and organizations worldwide. The company is headquartered in Herndon, VA, and is publicly traded on the New York Stock Exchange.
This announcement is based on a press release statement and contains forward-looking statements subject to risks and uncertainties. These statements are based on current expectations, and actual future events may differ materially. BlackSky undertakes no obligation to update these statements after the date of release, except as required by law.
In other recent news, BlackSky Technology Inc. has made significant strides in its financial and operational performance. The company reported a 29% year-over-year revenue growth in the second quarter of 2024, reaching a total of $24.9 million, primarily due to robust demand for its space-based intelligence solutions, particularly from government customers worldwide. Additionally, BlackSky has secured $40 million in new contracts and extensions, contributing to a positive adjusted EBITDA for the third consecutive quarter.
Lake Street Capital Markets maintained a positive stance on BlackSky, reiterating its Buy rating and a price target of $4.00. The firm highlighted BlackSky's achievement of its third consecutive quarter of positive AEBITDA, despite a slight miss in revenue for the quarter. The company is also preparing for the launch of its next-generation Gen-3 satellites, a move that is expected to further boost its growth.
Furthermore, BlackSky's Board of Directors has approved a 1-for-8 reverse stock split of its Class A common stock. The reverse stock split will consolidate every eight shares of issued Class A common stock into one new share, with no alteration to the number of authorized shares or the par value per share. Despite some uncertainties, such as the timing of large contracts, BlackSky maintains its full-year 2024 revenue guidance between $102 million and $118 million. These recent developments indicate a strong trajectory for BlackSky.
InvestingPro Insights
BlackSky Technology Inc. (NYSE: BKSY) has recently captured headlines with its significant contract with NASA, which could be a pivotal moment for the geospatial intelligence firm. While the potential for growth is evident, a closer look at the company's financial health through InvestingPro reveals a more nuanced picture.
InvestingPro Tips suggest that BlackSky operates with a significant debt burden, which could pose challenges, including the potential difficulty in making interest payments on its debt. Despite this, the company boasts impressive gross profit margins, with the last twelve months as of Q2 2024 showing a margin of 69.14%. This indicates BlackSky's ability to retain a substantial portion of its sales as gross profit.
InvestingPro Data indicates that BlackSky has a market cap of $113.78M and a negative P/E ratio, reflecting that the company is not currently profitable. The revenue growth, however, is robust at 43.02% over the last twelve months as of Q2 2024, which could signal a positive trajectory for the company's sales performance.
For investors considering BlackSky's stock, it's worth noting that the stock has experienced high volatility and has taken a significant hit over the past week, with a 30.05% drop in price total return. However, the company's liquid assets exceed its short-term obligations, which may provide some stability in managing its immediate financial responsibilities.
For those interested in further insights, there are additional InvestingPro Tips available that delve into the company's financial metrics and stock performance. These tips can be a valuable resource for investors seeking to understand the potential risks and opportunities associated with BlackSky's stock.
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