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Planet Federal wins NASA small satellite data contract

Published 09/09/2024, 14:14
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SAN FRANCISCO - Planet Labs PBC (NYSE: NYSE:PL), recognized for its daily Earth data and insights, has secured a position in the NASA Commercial SmallSat Data Acquisition Program (CSDA) through its subsidiary, Planet Federal. The new contract, announced today, enables the subsidiary to supply commercial data to support NASA's Earth science research endeavors.


The contract, a fixed-price, indefinite-delivery/indefinite-quantity (IDIQ) agreement, extends through November 15, 2028, with a maximum cumulative value of $476 million across all awardees. Planet Federal's inclusion in the CSDA program allows continuous delivery of PlanetScope imagery and additional Planet products to NASA researchers, maintaining access to the company's comprehensive archive.


Planet's Dove satellite constellation, which captures high-resolution images of Earth's landmass daily, has amassed an average of more than 2,700 images for each point on Earth. This extensive collection of data has been instrumental in various applications, including climate change monitoring, biodiversity conservation, disaster response, and other critical research areas.


Will Marshall, CEO and co-founder of Planet, expressed pride in the ongoing partnership with NASA, highlighting the shared history and commitment to leveraging space technology for Earth's betterment. He emphasized the importance of the collaboration in advancing climate science and other research fields.


The CSDA program serves as a cost-effective strategy to augment Earth observations from NASA, other agencies, and international partners. It enhances the range of Earth science research by providing improved spatial resolutions, increased temporal frequencies, and innovative capabilities, facilitating a deeper understanding of our planet and supporting informed decision-making.


Based on a press release statement, this contract marks a continuation of Planet's contributions to NASA's research initiatives and underscores the company's role in providing valuable geospatial data to a broad spectrum of clients, including leading agricultural, forestry, intelligence, education, and finance organizations, as well as government agencies.


In other recent news, Planet Labs reported a 14% year-over-year increase in its Q2 2025 revenue, totaling $61.1 million. This growth was driven by significant strides in the Defence and Intelligence sector, which saw over 30% growth in revenue, and the Civil Government sector, with over 20% growth. The company's organizational changes and a headcount reduction of approximately 17% reflect its focus on operational efficiency.


The successful launch of its Tanager satellite and 36 new SuperDoves marks another key development. Planet Labs has also established partnerships with NATO and various international entities. Analysts note that the company aims for adjusted EBITDA profitability by Q4 of the fiscal year and expects Q3 revenue to be between $61 million and $64 million, indicating a projected 10% to 16% YoY growth.


These recent developments underscore Planet Labs' continued efforts in executing its strategy and capturing market opportunities. However, it's worth noting that despite these advancements, the company reported an adjusted EBITDA loss of $4.4 million for Q2. As always, investors are advised to consider these facts in the context of their investment strategies.


InvestingPro Insights


As Planet Labs PBC (NYSE: PL) forges ahead with its NASA Commercial SmallSat Data Acquisition Program (CSDA) contract, the financial health and market sentiment surrounding the company are critical for investors to consider. According to recent metrics from InvestingPro, Planet Labs holds a market capitalization of $522.39 million. This valuation is reflective of the company's potential in the growing commercial satellite imagery market.


One of the notable InvestingPro Tips for Planet Labs is its impressive gross profit margins, which have been reported at 52.79% for the last twelve months as of Q2 2025. This figure not only demonstrates the company's ability to effectively manage its production costs relative to its sales but also signifies its strong positioning in the marketplace.


However, despite the strong gross profit margins, the company has been identified as quickly burning through cash, which could be a point of concern for investors monitoring the company's financial sustainability. This information is crucial, especially when considering the long-term implications of the company's growth strategies and capital expenditures.


Moreover, the stock has experienced significant price volatility, trading near its 52-week low. This level of volatility is an important consideration for investors looking for stability or those trying to time the market for entry and exit points.


For more in-depth analysis and additional InvestingPro Tips on Planet Labs, investors can explore the full list of 13 tips available at InvestingPro, which provides a comprehensive investment toolset for those seeking to make informed decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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