HERNDON, Va. - BlackSky Technology Inc. (NYSE: BKSY), a provider of real-time geospatial intelligence, has secured a contract to supply non-Earth Imaging (NEI) services, enhancing Space Domain Awareness (SDA) capabilities for an undisclosed customer. The company announced today that it will integrate Gen-2 satellite imagery of on-orbit spacecraft into the customer's SDA assets.
This contract marks BlackSky's foray into SDA services, leveraging its high-resolution Gen-2 satellite constellation to meet the immediate needs for NEI solutions. CEO Brian O'Toole emphasized the move as a demonstration of BlackSky's technical agility and strategic commitment to innovation, offering practical value to space situational awareness operations.
Space Situational Awareness is essential for monitoring space objects and their environment, ensuring space safety, and enabling real-time space traffic coordination. The data assists operators in predicting and avoiding potential collisions and the effects of natural space events.
By delivering NEI capabilities, BlackSky aims to utilize the previously underused capacity of satellites, particularly when they pass over oceans or traverse the Earth's dark side. This capability is expected to enhance the company's service offerings and support missions related to space security.
BlackSky operates a leading small satellite constellation in low earth orbit, designed to capture cost-efficient imagery. Its Spectra AI software platform processes data from its own satellites and third-party sensors to provide the insights and analytics required by its customers, which include U.S. and international government agencies, commercial entities, and organizations worldwide.
The company cautions that some statements in the press release are forward-looking and subject to risks and uncertainties. BlackSky's future results may differ materially from those projected due to various factors. The information presented in this article is based on a press release statement.
In other recent news, BlackSky Technology Inc. posted a 29% year-over-year revenue growth in the second quarter of 2024, totaling $24.9 million. The company also secured a five-year contract with the National Geospatial-Intelligence Agency valued at up to $290 million, and a multi-year contract with NASA potentially worth up to $476 million. Additionally, BlackSky expanded a contract with an international defense customer by approximately $6 million, bringing the total annual commitment to nearly $18 million.
Analysts at Craig-Hallum upgraded BlackSky from Hold to Buy, citing the company's recent $46 million capital raise which is expected to help the company achieve free cash flow breakeven by 2026. Similarly, Lake Street Capital Markets significantly increased its price target on BlackSky's shares from $4.00 to $32.00, while maintaining a Buy rating.
BlackSky also announced a public offering of its Class A common stock priced at $4.00 per share and approved a 1-for-8 reverse stock split of its Class A common stock. These recent developments reflect a period of significant growth and expansion for BlackSky Technology Inc.
InvestingPro Insights
BlackSky Technology Inc.'s recent contract for non-Earth Imaging services aligns with its strategic focus on innovation and expanding its service offerings. This move into Space Domain Awareness could potentially open up new revenue streams for the company, which is particularly significant given its current financial position.
According to InvestingPro data, BlackSky has shown impressive revenue growth, with a 43.02% increase in the last twelve months as of Q2 2024. This growth trajectory is further supported by a strong gross profit margin of 69.14%, indicating efficient core operations. These metrics suggest that the company's expansion into new service areas like SDA could be well-timed to capitalize on its operational strengths.
However, investors should note that BlackSky faces some financial challenges. An InvestingPro Tip highlights that the company is quickly burning through cash, which could be a concern given its ambitious growth plans. Additionally, another tip indicates that analysts do not anticipate the company will be profitable this year, underscoring the importance of new contracts like the one for NEI services in potentially improving the company's financial outlook.
For those interested in a deeper analysis, InvestingPro offers 14 additional tips for BlackSky Technology Inc., providing a more comprehensive view of the company's financial health and market position.
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