Planet Labs (PL) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 FY25 revenue of $60.4M, up 15% year-over-year, driven by strong government demand and new platform launch.

• Customer count grew 14% year-over-year to 1,031, with over 90% of contracts annual or multi-year and 95% recurring ACV.

• Net loss narrowed to $29.3M from $34.4M year-over-year; Adjusted EBITDA loss improved to $8.4M from $19.1M, marking the fourth consecutive quarter of sequential improvement.

• Launched the Planet Insights Platform and prepared Tanager-1 hyperspectral satellite for launch, expanding analytics and imaging capabilities.

• Ended Q1 with $276M in cash, cash equivalents, and short-term investments; no debt outstanding.

Financial highlights

• Q1 revenue reached $60.4M, a 15% increase year-over-year, with government customers as the primary growth driver.

• Non-GAAP gross margin was 55% in Q1, down from 56% year-over-year; GAAP gross margin was 52%.

• Adjusted EBITDA loss improved to $8.4M in Q1, from $19.1M year-over-year.

• Cash, cash equivalents, and short-term investments totaled $276M at quarter end.

• Backlog was $219.8M, with 64% expected to be recognized in the next 12 months.

Outlook and guidance

• Q2 FY25 revenue expected between $59M–$63M, representing 10–17% year-over-year growth.

• Q2 non-GAAP gross margin guidance is 51–53%, with Adjusted EBITDA loss expected between $10M and $7M.

• Capital expenditures for Q2 expected to be $14M–$17M.

• Targeting Adjusted EBITDA profitability by Q4 FY25.

• Management expects continued investment in R&D, sales, and marketing to drive growth and expand into new verticals.