Planet Labs PBC Q2 2025 Earnings Call Transcript

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

Question: Mike Latimore - Northland Securities Inc - Analyst : Yes, I guess just sticking with gross margin, you've guided for that to be in the sort of 59% to 61% range, I think, in the third quarter here. Is that a good new kind of baseline to think about that it should be at least that level going forward? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 05, 2024 / 9:00PM, PL.N - Q2 2025 Planet Labs PBC Earnings Call

Question: Mike Latimore - Northland Securities Inc - Analyst : And then, can you just give an update on the pilots that you've been working on? How many did you have in the second quarter? Do you have any in the third quarter? Just an update on that would be great.

Question: Mike Latimore - Northland Securities Inc - Analyst : And I guess just last on the ag sector. The headwinds there, do you feel like does that stabilize on a sequential basis third or fourth quarter this year?

Question: Kristine Liwag Liwag - Morgan Stanley & Co LLC - Analyst : Just wanted to follow up on the NATO contract that you won, the NATO apps contract. Can you provide a little bit more color around the program structure and the size of that opportunity? I think NATO had said that the overall program could be worth like a combined $1 billion over five years, like, what's addressable to you? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 05, 2024 / 9:00PM, PL.N - Q2 2025 Planet Labs PBC Earnings Call

Question: Kristine Liwag Liwag - Morgan Stanley & Co LLC - Analyst : And then when we -- I guess, we have the first satellite now launched, do you peel back the curtain a little bit on Tanager? I mean, what sort of early contributions are you expecting from this first satellite? And what's your latest thinking about launching the second one?

Question: Kristine Liwag Liwag - Morgan Stanley & Co LLC - Analyst : And if I could squeeze the last question in. I mean, the NGA announced plans to spend $700 million over the next five years to improve AI labeling of space imagery. I guess for something like that, that seems like exactly in your wheelhouse. So can you talk about how your position for this contract? And is this a winner takes all type of pursuit? Or do you see this carrying multiple vendors? How do you think about timing and any sort of perspective on the sizable opportunity for you would be really helpful?

Question: Trevor Walsh - JMP Securities LLC - Analyst : Ashley or Will, just question around the go-to-market changes, kind of, at the top level that you had mentioned. Understand you've got new leadership at kind of at each of the primary vertical areas. Just curious kind of maybe just diving in a little deeper, what exactly those, kind of new leaders will be focusing on that's maybe different, or in addition to kind of how each of those business units were kind of being run before and sort of what the kind of 30, 60, 90 kind of day plan is for those folks.

Question: Trevor Walsh - JMP Securities LLC - Analyst : Yes. Just one last one from me. So actually, just around the guidance for 3Q and beyond, I know you've talked previously about just challenges around, especially the larger government contracts and getting the timing of those. I'm just -- you've talked about the pipeline as well. But then in this quarter, you actually, it looks like between the NATO deal and some of the other seven-figure contracts that you mentioned, it looks like some of those are actually coming to fruition. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 05, 2024 / 9:00PM, PL.N - Q2 2025 Planet Labs PBC Earnings Call So as you think about the guidance, is it now kind of a -- is it the rev rec around just getting those completed contracts operational? And that's what's kind of the lack of visibility on that front is kind of gumming up the works A little bit to kind of give a little bit broader kind of full year guide. I was just curious kind of where the kind of the challenges remain as far as kind of the outlook on the top-line.

Question: Jason Gursky - Citigroup Inc - Analyst : Hey, Will, could you talk a little bit more about the pilots that you were doing for the US government, the D&I customers there? I know you gave some comments in response to a question earlier, but I think some more detail might be helpful. How did those pilots go? What did you learn? What did your customers learn? And how does this become a larger opportunity for you, and when might that happen?

Question: Jason Gursky - Citigroup Inc - Analyst : So this is multiple quarter, multiple year kind of process to bring this to a meaningful contract value. I'm just trying to get a little bit better understanding. And then, actually, I think it'd be helpful if you don't mind, maybe providing some insight on what revenue level you think the company needs to achieve in order to get to cash flow break-even.

Question: Jason Gursky - Citigroup Inc - Analyst : No, sorry. I had thanked you for the two and thought you were limiting it there, so all set.

Question: Anthony Valentini - Goldman Sachs & Co LLC - Analyst : You got Anthony Valentini on for Noah. I'm curious if you guys do any work on the economic indicator monitoring program with the NGA that was awarded a few years ago? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 05, 2024 / 9:00PM, PL.N - Q2 2025 Planet Labs PBC Earnings Call

Question: Anthony Valentini - Goldman Sachs & Co LLC - Analyst : Yes, and I guess I'm curious if Tanager the capabilities there, if Luno, that program that's going to be replacing EIM, if that opens up capabilities for you guys and for the customer that makes your bid more competitive.

Question: Caleb Henry - Quilty Space - Analyst : One just about growth internationally. I think you mentioned earlier that growth is going faster in Latin America and Asia Pacific, kind of outside North America. Can you talk any about the reasons for that, why you're seeing that growth? And does that look mainly like pilots or are you seeing kind of longer contractual commitments?

Question: Caleb Henry - Quilty Space - Analyst : I think maybe one clarification on that is just looking at the Planet backlog and it looks like it's down a little bit. I was wondering if that's because of the influx of kind of new players from around the world that are like trialing the service before going on to longer-term programs. Is there a connection between those two or no?

Question: Caleb Henry - Quilty Space - Analyst : And then if I can do just one more on Pelican. Has Planet settled on a size for the Pelican fleet? I want to say in the SEC filing it was 30 or 32 satellites, but I realized that it's not always -- that's usually an upper limit. So is that, is that the target or have you settled on a different number?