Spire Global Inc Q2 2023 Earnings Call Transcript

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

Question: Austin Moeller - Canaccord Genuity - Analyst : Hi, good afternoon.

Question: Austin Moeller - Canaccord Genuity - Analyst : My first question here, Peter, last quarter, we discussed how some contracts and expansions of contracts from customers had been delayed. Is the takeaway from the strong results and higher number of ARR solution customers this quarter that some of these delayed contracts got closed out in Q2?

Question: Austin Moeller - Canaccord Genuity - Analyst : Excellent. And are the majority of the customers you're seeing right now for RF SIGINT currently coming from NATO Europe? I know you can't say who they are.

Question: Austin Moeller - Canaccord Genuity - Analyst : Excellent. Very exciting. Congrats on the quarter.

Question: Erik Rasmussen - Stifel - Analyst : Yeah, thanks for taking the questions. Congrats on the strong results and margin improvement.

Question: Erik Rasmussen - Stifel - Analyst : Yeah. And maybe sticking with margins, you obviously continue to see nice progression there. And then you just reported 64% on a GAAP basis. But as we think about your more recent target, I think you gave last quarter a goal of GAAP gross margins of 70%. When do you see you hitting this target?

Question: Erik Rasmussen - Stifel - Analyst : Great. And then maybe just -- had a number of contract signings and pretty meaningful. It seems like the pace of those awards is picking up. And also, the magnitude and level of engagement seems to be increasing. What's driving this relative strength? And how do you see the split maybe between your data services and space services business as it relates to sort of the opportunities the team is tracking?

Question: Erik Rasmussen - Stifel - Analyst : Great. And then maybe on the CFO transition, do you have any updates you could share on how the process is going and what we can sort of expect to see?

Question: Erik Rasmussen - Stifel - Analyst : Great. I'll jump back in the queue. Congrats again.

Question: Ric Prentiss - Raymond James - Analyst : Thanks. Good afternoon, everyone.

Question: Ric Prentiss - Raymond James - Analyst : Hey. First, since this is probably the last call for Tom, I wanted to say I've enjoyed working with you. It's been a pleasure. So best wishes. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 09, 2023 / 9:00PM, SPIR.N - Q2 2023 Spire Global Inc Earnings Call

Question: Ric Prentiss - Raymond James - Analyst : You mentioned on the ARR that there's a timing issue; one ARR finished up. And that's the reason for the quarter-to-quarter downtick in the ARRs. But you also, I think, mentioned that you had some confidence about winning it back. Can you give us a little more color on kind of what's involved in that contract and why you think you can win it back? And are they using anybody else right now?

Question: Ric Prentiss - Raymond James - Analyst : Very good. And the stock split is coming up in the next 30 days. Has the decision been made yet as far as what magnitude of reverse split it will be?

Question: Ric Prentiss - Raymond James - Analyst : Exactly. And when will that decision be made and announced? Do you know?

Question: Ric Prentiss - Raymond James - Analyst : Makes sense. Okay. And a follow-on for me, Tom, you mentioned some of the per-share numbers out there. And the share count's going up more significantly than what we had in our model. Is there anything going on specifically as far as the share count?

Question: Ric Prentiss - Raymond James - Analyst : Okay. And that's also, since it was June, it doesn't reflect much within 2Q, but it affects more so (multiple speakers) --

Question: Ric Prentiss - Raymond James - Analyst : Right. Okay. Appreciate it. Say hello again, Tom. Best wishes.

Question: Jeff Meuler - Baird - Analyst : Yeah. Peter, thanks for all the use case and AI examples. But I just -- on the financials like -- I know this has been asked. But it does look like a really big step-up sequentially from Q3 to Q4 to hit the full-year ARR guidance. And you've announced a bunch of really large contracts. Are a lot of these large contracts not hitting until Q4, and that's a big part of the answer? Or is it more based upon confidence and pipeline of large opportunities that are at an advanced stage but which you've not yet announced?

Question: Jeff Meuler - Baird - Analyst : And can you get into the guidance range without winning back a portion of the NOAA contract before year-end?

Question: Jeff Meuler - Baird - Analyst : Got it. And then, Peter, you referenced kind of the unusual weather activity in the first half of the year and insurance companies stopping writing business in certain states. Just help me with like the insurance market opportunity for you. Have you started to make good inroads there? Do you tend to go direct to the insurers, or do you tend to partner with or sell into some of the other data and analytics solution providers that sell through to the insurance industry? Just talk through the insurance market as an opportunity for you.

Question: Jeff Meuler - Baird - Analyst : Okay. And then just last, anything you can say about like -- from a geographic perspective, it looks like your growth has been quite a bit stronger in the Americas. Just any reason for that. I don't know if it's sales resources driven or opportunity driven.

Question: Jeff Meuler - Baird - Analyst : Okay. Thanks.