VIENNA, Va. - Spire (NYSE:SR) Global, Inc. (NYSE: SPIR), a provider of space-based data and analytics, has been awarded a contract from the National Oceanic and Atmospheric Administration (NOAA) valued at $3,832,500. The contract, effective from September 18, 2024, to September 18, 2025, tasks Spire with supplying radio occultation (RO) data for use in weather forecasting and climate research.
The RO data comprises vertical profiles of atmospheric measurements, including pressure, humidity, and temperature, and is intended to enhance NOAA's operational weather forecasts, space weather models, and climate research endeavors. Mike Eilts, general manager of Weather & Climate at Spire Global, commented on the utility of the data, highlighting its role in improving weather prediction and contributing to climate research.
This new contract is part of a larger Indefinite Delivery Indefinite Quantity (IDIQ) contract, which has a $59 million ceiling and is designated for NOAA's Commercial Weather Data Program's Radio Occultation Data Buy II.
Spire Global operates a constellation of satellites that gather real-time data using radio frequency technology. The information collected is used for global weather intelligence, monitoring ship and plane movements, and detecting spoofing and jamming, which are vital for predicting their impact on economies, security, and the environment.
The company also provides Space as a Service solutions, enabling customers to utilize Spire's infrastructure for their business needs. Spire maintains a global presence with offices in various countries including the United States, Canada, the United Kingdom, Luxembourg, Germany, and Singapore.
This press release also contains forward-looking statements that involve substantial risks and uncertainties. These statements include expectations about the use of RO data and its potential effects. However, such forward-looking statements should not be seen as guarantees of future performance and are subject to risks, uncertainties, and changes in circumstances.
This news article is based on a press release statement and presents the facts as provided without any endorsement of claims.
In other recent news, Spire Global has successfully negotiated an amendment to its financing agreement with Blue Torch Capital, providing immediate covenant relief. The amendment includes a waiver for defaults due to exceeding the maximum debt to EBITDA leverage ratio and for failure to deliver financial statements for the fiscal quarter ended June 30, 2024. As a result, Spire is required to make a $10 million payment toward its outstanding principal balance of term loans by August 31, 2024.
Spire Global has also announced a restatement of its financial statements for fiscal years 2022 and 2023, and the first quarter of 2024, affecting $10 million to $15 million in annual revenue. Despite this, the company expects no revenue loss from these restatements. Analyst firms Stifel and Raymond James have maintained their Buy rating and downgraded Spire Global, respectively, following this announcement.
The company has delayed the filing of its second-quarter financial report for 2024 and has been notified by the New York Stock Exchange about not meeting listing standards. Despite these challenges, Spire Global is set to join the Russell 3000 Index, a significant milestone for the company. For the first quarter of 2024, the company reported a 6% year-over-year increase in revenue, reaching $25.7 million, and anticipates a robust rebound in the second quarter with revenues projected between $29 million and $33 million.
InvestingPro Insights
As Spire Global, Inc. (NYSE: SPIR) secures a pivotal contract with NOAA, the financial metrics and analyst insights from InvestingPro offer a deeper understanding of the company's current market position. Spire's market capitalization stands at $194.78 million, reflecting its scale within the space-based data and analytics sector. The company's gross profit margin is particularly impressive at 58.39% for the last twelve months as of Q1 2024, indicating a strong ability to convert revenue into gross profit.
However, the company's financial health is not without its challenges. According to InvestingPro Tips, Spire is quickly burning through cash and is not expected to be profitable this year. Additionally, the stock has experienced significant price volatility, with a 24.08% decline over the last month and a 36.83% drop over the last six months. These factors are crucial for investors to consider, especially those looking for stability and near-term returns.
For those interested in exploring further, there are an additional 11 InvestingPro Tips available at https://www.investing.com/pro/SPIR, which provide more in-depth analysis and insights into Spire Global's performance and future outlook. These tips could help investors make more informed decisions, especially in the context of Spire's latest contract and its potential impact on the company's growth trajectory.
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