With Another Military Contract Under Its Belt, BlackSky Sees Quarterly Losses Slow

BlackSky, a specialist in satellite photography, released fourth-quarter statistics on Tuesday, showing continued loss reduction and the acquisition of a new military contract.

According to CEO Brian O'Toole, "2022 was a foundational year for BlackSky," and "this high level of execution had put us on a road to generating positive adjusted EBITDA in Q4 of 2023,"

The company now has 14 functioning satellites in orbit, and two more will be launched this month on a Rocket Lab mission.

BlackSky reported an adjusted EBITDA loss of $4.6 million for the 4th quarter, which was lower than the $6.5 million loss it recorded for the third quarter and was down 68% from the same time a year earlier. To $19.4 million, revenue increased 69% year over year.

BlackSky announced plans to raise additional funds through the sale of 16.4 million shares of common stock to "a syndicate of new and existing institutional investors" in a private placement that is anticipated to close on Wednesday and generate about $29.5 million in gross proceeds. The company had $75 million in liquid assets at the end of the fourth quarter.

Tuesday morning trading saw a 10% decline in BlackSky stock from its $1.93 prior close. Despite this year's gains, the stock still trades for far less than its around $11 per share initial public offering in September 2021.

BlackSky projects yearly revenue somewhere between $90 million and $96 million in 2023, when it hopes to reach the $100 million mark.

It disclosed a multiyear defense deal for more than $150 million with an unidentified foreign government client. The National Reconnaissance Office awarded BlackSky, one of three satellite photography providers, a contract worth up to $1.02 billion over ten years, last year.