Planet (PL)

The decline came after the satellite-imagery and data-analysis company cut its annual revenue guidance after reporting 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 raised its forecast, also saying it expects a wider loss on an adjusted EBITDA basis From a range of $37 million to $47 million to a range of between $58 million and $67 million.

Planet’s shares fell as much as 25% in mid-morning trading Friday, having previously closed at $4.90. The stock is headed for its worst one-day decline since going public in December 2021, erasing year-to-date gains.

Despite the lower guidance, Planet co-founder and CEO Will Marshall said in a statement that the company is “seeing strong demand for our proprietary data solutions due to global events and growing awareness of our capabilities.”

Planet’s chief financial officer and chief operating officer Ashley Johnson emphasized the “challenging macro environment” and said the company is “focused on the path to profitability.” He 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 for the same period a year ago, but effectively flat from the previous quarter.

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

Planet’s customer base grew from 882 at the end of the fourth quarter to 903. Its customer base is divided into three parts based on revenue: 44% is defense and intelligence, 29% is commercial and 27% is civilian government.

The company follows the financial year calendar which ends on 31st January.

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