Planet Labs PBC Q1 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ryan Koontz - Needham & Company, LCC - Analyst : Hi, Chris. Thanks for the question. How should investors think about the EOCL award relative to your trailing revenue for this customer set? Can you give us some color there?

Question: Ryan Koontz - Needham & Company, LCC - Analyst : Got it. If I can just get a quick follow-up. Any color on your go-to-market expansion activities in terms of sales ads, what's the labor pool looking like right now, and new processes you're putting in place? Can you give us an update on that side as well?

Question: Jeff Van Rhee - Craig-Hallum Capital Group - Analyst : Great. Guys, congratulations on the EOCL. A couple for me. You mentioned the pipeline growth. Maybe you could put a little finer point on it. Can you quantify the dollar value growth year over year and any notable compositional change in terms of what's in there? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 14, 2022 / 9:00PM, PL.N - Q1 2023 Planet Labs PBC Earnings Call

Question: Jeff Van Rhee - Craig-Hallum Capital Group - Analyst : Any compositional change in the pipeline?

Question: Jeff Van Rhee - Craig-Hallum Capital Group - Analyst : Great. Thanks. And one last if I could sneak it in. I hate to split hairs, but, Ashley, as it relates to the guidance, obviously the midpoint is being tweaked modestly higher. The high end of the range was $190 million. You pulled the high end of the range down to $187 million. Let me split hairs for a second. In terms of pulling that down, what would account for a scenario where the high end comes down slightly? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 14, 2022 / 9:00PM, PL.N - Q1 2023 Planet Labs PBC Earnings Call

Question: Mike Latimore - Northland Securities, Inc. - Analyst : Great. Thanks. Yeah. Very nice to see the growth acceleration here. In terms of the sales cycle, it sounds like it's shrinking. Just to be clear, is it shrinking outside of kind of the Ukraine influence as well?

Question: Mike Latimore - Northland Securities, Inc. - Analyst : Yeah, makes sense. Any -- just qualitative update on VanderSat and these kind of three variables you announced in April? How are they getting woven into the demand here?

Question: Mike Latimore - Northland Securities, Inc. - Analyst : I guess on M&A, how is the environment and how are seller expectations at this point, given the market pullback here?

Question: Chris Quilty - Quilty Analytics - Analyst : Thanks. Just want to follow up on that M&A direction. When you look at the opportunities out there, do you think your needs are primarily on acquiring people, in some cases, through acquisition or software? Or are there things on the hardware side, given some of the future efforts you've got ongoing?

Question: Chris Quilty - Quilty Analytics - Analyst : Got you. And follow-up on Ukraine. Did you see any meaningful uptick in the quarter that you can measure that may or may not be repeatable in

Question: Chris Quilty - Quilty Analytics - Analyst : Great. And final question on the Pelican initiative. Appreciate the information you've put out on that. Have you seen, given current supply chain issues, any challenges that might either impact the timing or cost of that effort? And one specific follow-up, just relative to the new capabilities that brings online. Do you anticipate either significant new investments in capabilities or software or specific sales forces to basically target the customer set that would be most interested in that higher resolution imagery?

Question: Chris Quilty - Quilty Analytics - Analyst : Great. Maybe it was an unartful way to ask the question, but within your existing customer base, do you have a good sense of what uptake for 30-centimeter imagery there might be that you can flip the switch and sell to existing customers?

Question: Chris Quilty - Quilty Analytics - Analyst : Great. And congrats again on the EOCL award.

Question: Noah Poponak - Goldman Sachs & Co. LLC - Analyst : Hello, everyone.

Question: Noah Poponak - Goldman Sachs & Co. LLC - Analyst : Hey. How's it going?

Question: Noah Poponak - Goldman Sachs & Co. LLC - Analyst : So one of the other companies on EOCL put out a pretty detailed press release with a lot of numbers, even held a conference call about it. What is the reason for not providing that disclosure on sizing, what that means for your business?

Question: Noah Poponak - Goldman Sachs & Co. LLC - Analyst : What is the -- it does, to a degree. Yes. Since you've quantified the impact to your backlog, can you just give us your updated backlog? I don't think I've seen that. (multiple speakers)

Question: Noah Poponak - Goldman Sachs & Co. LLC - Analyst : And the $152 million is before or after the EOCL?

Question: Noah Poponak - Goldman Sachs & Co. LLC - Analyst : And EOCL effectively doubles the $152 million?

Question: Noah Poponak - Goldman Sachs & Co. LLC - Analyst : Sorry, I missed what the $146 million was. Okay, that is helpful; I appreciate that. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 14, 2022 / 9:00PM, PL.N - Q1 2023 Planet Labs PBC Earnings Call

Question: Noah Poponak - Goldman Sachs & Co. LLC - Analyst : You had indicated previously that your guidance for the year was conservative with regard to both timing and size of the range of possibilities on EOCL. Today, you've raised your midpoint by $2 million. I guess that's a little surprising that that's not -- I guess that size is a bit surprising if you were previously conservative on timing and size, and you're saying to -- the timing, I guess, was on the conservative end, but the size was larger. Is there something else that's moving around in the year outside of EOCL?

Question: Noah Poponak - Goldman Sachs & Co. LLC - Analyst : It does. Okay, last one. You have a separate release on the expansion of the relationship with Bayer. Can you talk a little bit more about that? Is that a meaningful change in the work scope there or the revenue contribution? Or is it more of an ongoing continued type of thing?

Question: Jeff Van Rhee - Craig-Hallum Capital Group - Analyst : Great. Just a couple of quick follow-ups. Ashley, do you have the RPOs for the prior year? So the April 21 quarter, both 12 month and total? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 14, 2022 / 9:00PM, PL.N - Q1 2023 Planet Labs PBC Earnings Call

Question: Jeff Van Rhee - Craig-Hallum Capital Group - Analyst : I can maybe ask a different one (multiple speakers)

Question: Jeff Van Rhee - Craig-Hallum Capital Group - Analyst : Okay. That's helpful. Thank you. And then, Will -- or I guess for both of you. You commented on bookings. I think, Will, you said you're super happy -- very happy with the sales execution. Again, can you put a finer point on it? Did they -- I'm assuming that means they beat the bookings range of expectations of what you're looking for in the quarter. But just dial that in a little more. How good was the actual bookings here maybe compared to any prior period or something?

Question: Jeff Van Rhee - Craig-Hallum Capital Group - Analyst : Yup. Okay. And then last for me, just on the EOCL, to your point you're sharing firm commitments, so you have chosen to share a broader, more aspirational number, I guess. But if you think in that direction, you've given us the firm commit, but what are the paths to expanding it beyond the firm commits? I mean, I'm just wondering how much of a stretch it is to see that thing get larger, even meaningfully larger, over time.

Question: Caleb Henry - Quilty Analytics - Analyst : Thanks. Hi, guys. Just a straightforward question that these people haven't seemed to want to ask. What is the maximum possible value for the 10 years?

Question: Caleb Henry - Quilty Analytics - Analyst : Okay. Figured I would ask, so your presentation has D&I as 30% of revenue in the quarter. Just wondering if you could share, like by the end of this year, what is that going to look like as EOCL starts rolling in? I guess, will it look like more than half of Planet's revenue by then?

Question: Caleb Henry - Quilty Analytics - Analyst : Okay. Thank you. Can you give an update on the Carbon Mapper program? I think there's supposed to be two satellites that'll launch next year. Is that still the plan? And are there plans still for a larger system there?

Question: Caleb Henry - Quilty Analytics - Analyst : Okay. Just two more questions for me. The first is about Pelican. I thought they're supposed to have crosslinks on board. The SEC application indicated that they would be mainly for tasking, but also kind of different from what I've read in the press. I think the SEC filing was for C-band crosslinks. Press said Ka with the possible route to optical. So can you kind of clarify which one it is? Or at least what it'll be initially? And if it's just for tasking, or if you envision that being used for more data transfer and various purposes?

Question: Caleb Henry - Quilty Analytics - Analyst : Okay. And then my last one. So the US government is becoming slightly more approving of 10-centimeter resolution imagery. Does Planet have any plans to go lower in terms of resolution beyond the 30 centimeters afforded by Pelican?