Planet (PL) Q1 2024 results

Shares of Planet fell after the satellite imagery and data analytics company lowered its annual revenue forecast following the release of its first-quarter results on Thursday.

The company lowered its guidance for its current fiscal year 2024 revenue to a range of $225 million to $235 million, down from its previous forecast of between $248 million and $268 million. Planet also said it expects bigger losses on an adjusted EBITDA basis, raising its forecast to a range of between $58 million and $67 million from a range of between $37 million and $47 million.

Shares of Planet fell as much as 25% by mid-morning Friday, from its previous close at $4.90. The stock is on track for its worst one-day drop since going public in December 2021, wiping out gains from the year to date.

Despite the lowered guidelines, Will Marshall, co-founder and CEO of Planet, said in a statement that the company “continues to see strong demand for our proprietary data solutions, driven by global events and the growing awareness of our capabilities.”

Planet Chief Financial Officer and Chief Operating Officer Ashley Johnson further highlighted the “challenging macro environment” and said the company remains “focused on the path to profitability.” She added that the company’s balance sheet is “strong,” with $375 million in cash and equivalents and no debt.

For the first quarter, Planet reported revenue of $52.7 million, up 31% from $40.1 million in the same period a year ago, but essentially flat from the prior quarter.

The company’s net loss in the first quarter was $34.4 million, or 13 cents per share. That was 22% less than the net loss of $44.4 million, or 17 cents per share, a year earlier.

Planet’s customer base increased from 882 at the end of the fourth quarter to 903. The customer base is divided by revenue into three segments: 44% is defense and intelligence, 29% is commercial, and 27% is civil government.

The company follows a fiscal year calendar that ends on January 31.