DALLAS, TX -- March 7th, 2025 -- BlackSky Technology, Inc. (NYSE: BKSY): Stonegate Capital Partners updates their coverage on BlackSky Technology, Inc. (NYSE: BKSY). BKSY reported revenue, adj EBITDA, and EPS of $30.4M, $7.4M, and ($1.01), respectively. This compares to our/consensus estimates of $38.7M/$34.2M, $7.7M/$7.0M, and ($0.43)/($0.27).This marks the fifth quarter in a row of positive adjusted EBITDA. The Imagery and Software Analytics segment reported revenue of $17.5M, down $1.6M from the prior year period. This decrease was due to an upfront delivery of ~$2.0M in images for a previous project. The Professional and Engineering segment reported revenue of $12.9 in 4Q24, representing a sequential increase due to ~$7.0M in deliverables under the Indonesian contract. Consolidated gross margins improved to 77.4%, an increase from 66.2% in 3Q24. Adjusted EBITDA improved significantly to $11.6M from the $(1.0M) posted last year. 

Company Updates:

Contracts: The Company secured several significant contract awards this quarter among several unique customers and service options. BKSY was awarded several nine-figure multi-year contracts, with one spanning 7 years. This was among other multi-year contracts and contract extensions that will utilize both Gen-2 and Gen-3 constellations. Recent 2025 contract awards increased the 4Q24 backlog from $261M to ~$390M. We are encouraged by both the size and term of the new contract announcements, noting the premium that BKSY is able to command while still aligning itself with customers to support long term needs.

Gen-3 Satellite Launch: In the quarter, The first Gen-3 satellite was successfully launched and began delivering imagery that exceeded customer expectations for initial image quality. Assembly and integration of the next Gen-3 satellites is underway, with an additional 7 launches expected over the next 12 months. These Gen-3 satellites will combine high-frequency monitoring with 35cm very high-resolution imaging, giving BKSY significant potential to expand revenues and margins.

Balance Sheet and Liquidity: BKSY ended 4Q24 with a strong balance sheet. Cash and restricted cash at the end of the quarter were $14.4M. When combined with $39.4M in short-term investments, the Company ended the quarter with $53.8M in liquidity. BKSY is expecting an additional ~$27.9 million in liquidity over the next 12 months as the Company reaches certain milestones and collects the associated cash from customers. Lastly, The Company received a $32.0M cash prepayments in 1Q25 for a recent contract. We expect that this liquidity will sustain BKSY through the next dozen launches, and into FCF positive territory. CapEx totaled $9.5M in 4Q24 and $50.2M for the full year.

Guidance: BKSY set its FY25 revenue guidance in a range of $125.0M to $142.0M, driven by sizeable multi-year sales opportunities. The Company guided to an adjusted EBITDA range of $14.0M to $22.0M. Due to the Company’s strong backlog and strong potential for step-ups in contracts, we view this guidance as reasonable and have adjusted our model accordingly.

Valuation: We use a DCF Model and EV/EBITDA comp analysis to guide our valuation. Our DCF analysis produces a valuation range of $12.13 to $15.10 with a mid-point of $13.48. Our EV/EBITDA valuation results in a range of $13.69 to $17.03 with a mid-point of $15.36.

About Stonegate
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.

This press release is distributed by Reportable. Blockchain Registration, Verification & Enhancement provided by NewsRamp™. The source URL for this press release is Stonegate Updates Coverage on BlackSky Technology, Inc. (NYSE: BKSY) 4Q24.