Today I'm taking a deep dive into the latest earnings from BlackSky Technology Inc. (trading on the NYSE as BKSY). If you haven't heard of them before, BlackSky is a big name in real-time geospatial intelligence. They've got their own satellites and a custom-built software platform, and they've been on the public trading scene since late 2021. Let's break down their financials and what they might mean for your portfolio.
The first quarter of 2023 was pretty solid for BlackSky. They pulled in revenues of $18.4 million, which is a 32% bump up from the same period last year. The most impressive part? Their income from stuff like imagery and software analytics services shot up by a massive 114% compared to last year. It looks like BlackSky's bet on becoming more of a software company is starting to pay off.
They're also getting better at keeping costs down. The costs related to their sales only ate up 23% of their revenue this quarter, down from 49% this time last year. That's a good sign that they're getting more efficient and making the most of their high-margin software services.
Looking at their balance sheet, BlackSky's got a healthy $71.6 million in the bank, which should help them keep the lights on for a while. The net loss for the quarter was $17.3 million, which might sound like a lot, but it's actually less than the $20.0 million loss they reported in the first quarter of 2022.
Now, it's worth noting that BlackSky's yearly revenue is still under $100 million. While that might not scream "rapid growth", it's not all doom and gloom. Their solid balance sheet and improving efficiency hint at a pretty promising future.
The company is also expecting strong demand for its products and services to continue. They're predicting revenue between $90 million and $96 million for the whole of 2023, a 42% increase over their 2022 revenue. They're even talking about having positive earnings (before interest, taxes, depreciation, and amortization) by the end of the year.
What Should You Watch?
If you're thinking about investing in BlackSky, keep an eye on their revenues, how much cash they have on hand, and their profit margins. Even though their growth isn't skyrocketing, steady performance in these areas could mean good things for BlackSky's future.
In a nutshell, BlackSky might not be a surefire win for all investors, but it's definitely worth a look. They're still proving themselves, but their recent earnings report has some promising signs. Stay tuned, and keep an eye on how their revenue growth and margins shape up. Happy investing!