Planet Labs PBC (PL) reported its second-quarter earnings on Thursday, revealing a miss on revenue expectations. While the company met analyst consensus estimates for quarterly losses of six cents per share, its revenue of $61.09 million fell short of expectations by 1.17%. Despite the miss, Planet Labs did experience a 13.64% increase in revenue year-over-year.
The company highlighted continued strength in its government customer base, particularly in the defense and intelligence sectors, where revenue grew by over 30% year-over-year. This growth was attributed to strong demand for Planet’s broad area monitoring solution coupled with its artificial intelligence capabilities. CEO Will Marshall noted that Planet has restructured its business towards an industry-aligned operating model, leading to improved operational efficiency across the company.
Looking ahead, Planet Labs expects revenue for the third quarter of fiscal year 2025 to range from approximately $61 million to $64 million. The company also anticipates a non-GAAP gross margin of approximately 59% to 61%.
Following the earnings announcement, Planet Labs’ stock experienced a significant decline, dropping 13.1% to trade at $2.1550 on Friday. Analyst sentiment on the stock was mixed. Needham analyst Ryan Koontz maintained a Buy rating on Planet Labs but lowered the price target from $7 to $5. Craig-Hallum analyst Jeff Van Rhee also maintained a Hold rating but raised the price target from $2 to $2.5.
Despite the recent dip, Planet Labs remains focused on its long-term growth strategy and continues to invest in its core capabilities. The company’s commitment to innovation, particularly in the areas of artificial intelligence and data analytics, positions it for continued success in the growing space sector.
