Good afternoon. Thank you for attending today's Planet Fiscal Q3 2022 Earnings Call. My name is Hannah, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. [Operator Instructions]. I would now like to pass the conference over to Christopher Genualdi, VP of Investor Relations. Please go ahead.

Hello, everyone, and welcome to Planet's fiscal third quarter of 2022 quarterly earnings call. Before we begin today's call, we'd like to remind everyone that we may make forward-looking statements related to future events or our financial outlook. Any forward-looking statements are based on our historical performance as well as our current plans, estimates and expectations. The inclusion of such forward-looking information should not be regarded as a representation by Planet that future plans, estimates or expectations will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions as detailed in our SEC filings, which can be found at www.sec.gov. Our actual results or performance may differ materially from those indicated by such forward-looking statements, and we undertake no responsibility to update such forward-looking statements to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. During the call, we will also discuss non-GAAP financial measures. We use these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period to period comparisons. We believe that these measures provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. For more information on the non-GAAP financial measures, please see the reconciliation tables provided in our press release issued earlier this afternoon. Further, throughout this call, we provide a number of key performance indicators used by management and often used by competitors in our industry. These and other key performance indicators are discussed in more detail in our press release. At this time, I'd now like to turn the call over to Will Marshall, Planet's CEO, Chairperson and Co-Founder. Over to you, Will.

Thanks, Chris. Thank you everyone for tuning into our call today. We're thrilled to have just completed our merger with dMY Technology Group, Inc. IV, and listed on the New York Stock Exchange under the ticker PL. It was truly fantastic to ring the opening bell at the New York Stock Exchange last week and celebrate such a huge milestone for Planet. Through this transaction, we've raised over 519 million in gross proceeds. We saw remarkable less than 2% redemptions from the $345 million of SPAC trust proceeds and received the additional 252 million from our PIPE investors. With this capital, we believe we’re fully capitalized to invest in our long-term growth initiatives. Going public marks a significant milestone in our 10-year journey and the beginning of the next chapter for Planet. Before we dive into the results for the quarter, I'd like to take a moment to thank our team, their tremendous hard work and dedication in getting us here today. Without this world-class team that is so dedicated to Planet's mission, we wouldn’t be where we are today. Let's now turn to the results straight away. From the third quarter of fiscal 2022, we delivered a record 31.7 million of revenue. This represents 16% year-over-year growth for our quarter. We increased the customer count to 742 customers at the end of the period, which is a 32% year-over-year growth. We saw our sales pipeline grow 46% year-on-year as we grew and continue to see additions to and execution by our sales team. As you'll hear from Ashley momentarily, we're reiterating our full year revenue outlook for fiscal 2022 and remain focused on executing against this growth plan. Our growth is a reflection of the mission-critical value that we deliver to our customers by subscriptions to our proprietary data.…

Thanks, Will, and good afternoon, everyone. I'm pleased to report that we had a strong third quarter of fiscal 2022. Revenue came in at $31.7 million, which represents 16% year-over-year growth. Our revenue came in slightly higher than we anticipated, largely due to the quarterly pacing of one of our larger customers for which revenue is recognized on a consumption basis. We continue to execute against our top line growth plan, and are therefore reiterating our revenue outlook of $130 million for the full year. Our end of period customer count was 742 customers for the third quarter, which represents 32% year-over-year growth. End of period customer count has consistently grown quarter-over-quarter for more than 10 quarters, reflecting the continued growing market demand for Planet's data. As a reminder, we define end of period customer count as the total count of all customers with an active contract with Planet at the end of the reported period. Another metric that we look at internally as an indication of market demand is the growth of our sales pipeline. We achieved sales pipeline growth of 46% on a year-over-year basis. Historically, our growth has been rate limited by the amount we've been able to invest in growing our sales force. As such, one of the primary expected uses of the capital we raised in going public is to invest in our sales force and the supporting infrastructure that they need to meet the market potential we see for Planet's data. We began making these investments in earnest in Q3, filling critical sales leadership positions globally, adding to all of our teams across the sales organization, and beginning to step up our investments in marketing. These investments are critical to enabling us to capture the market opportunity ahead of us and accelerate our top…

Certainly. [Operator Instructions]. The first question on the line of Mike Latimore with Northland Capital, you may proceed.

Great. Thanks a lot. Congrats on being public and the first earnings call here. Good news.

Thanks.

Thank you.

So the pipeline growth was very strong at 46%. Can you give a little color on how sales cycles and close rates are trending?

Can you take that, Ashley?

Yes. I'd say they've basically been in line with prior periods. And in some geographies, showing signs of improvement.

Got it. And then on the ag vertical, you talked about several big expansions there. And you highlighted one where they expanded in a new geography. Can you give a little more color on kind of some of the dynamics behind these expansions? Is it specifically around geographic expansion with current use cases? Are you seeing further demand for new products or expanding into new use cases such as for -- like internal R&D? A little color on what's going on in the ag vertical would be great.

Yes, I suppose but it's primarily the former. So it's expansion of territories where we have clear product market fit with them and they're just -- in this case, Taranis was exactly just expanding to the Southern hemisphere or territory. We do see that there's big growth opportunities within ag both in that expansion piece. And then also in addition, as we add value-added services, a lot of those ag companies have asked for other product capabilities that as we add, they will be wanting to pay us for. We've also signed a partnership to expand with Syngenta actually, which is really another significant expansion that we can talk about as well.

Great. I guess just the last one, sounds like sales hires are on track. Can you just confirm you’re hiring sales headcount as expected?

Yes. The number of reps and ramp reps continues to grow quarter-over-quarter, so pleased with the progress there. As I mentioned, we've publicly disclosed the fact that we filled out the sales leadership team, which is obviously an important part of our strategy. And we continue to see, frankly, strong candidates in the pool and the ability to close them just based on Planet's position and mission.

I'd just personally add that we have great confidence in Charlie Candy, our Chief Revenue Officer. He's doing just a fantastic job of building out that team.

Excellent. Thank you. Good luck.

Thank you.

Thank you, Mr. Latimore. The next question is from the line of Jeff Van Rhee with Craig-Hallum. You may proceed.

Great. Thanks for taking my questions. I'll add my congrats off and running here. So a couple for me. Just want to dig for a second on pipeline. And in terms of anything that's a variance from the norm, if you were to look at it within the ESG, ag and defense key target markets, any of those particularly notable in terms of what you're seeing develop in the pipeline?

No. I'd actually say it's across the board. I think one is, as we've been able to get more awareness about Planet, that's certainly helping drive pipeline and then having the feet on the street to qualify it and bring it in. One of the areas where we're seeing a significant amount of growth and interest is in civil government, which covers a broad array of use cases from land use monitoring to actually water monitoring and some really interesting new applications, including deforestation. So that's one of the areas where we're seeing a significant uptick in our pipeline and it's certainly exciting, and that's one area where we anticipate sustainability will be an important tailwind for the sector overall.

Helpful. Two numbers questions if I could. One on the revenue picture, obviously outperformed I think consensus and myself as well on the quarter. And then the guide was a bit below. You talked about some usage revenue that had some unpredictability. I'm wondering if that's the difference. And just any color about that Q4 guide versus where the consensus was. And then also, secondarily, if you look at the Q4 guide on EBITDA, I'm wondering what the impact is on Q4 with respect to incremental expenses from the VanderSat acquisition.

Okay. So on revenue, yes, you've got it exactly right. And I thought I had given a wide enough range at the Analyst Day, knowing that there was a little bit of unpredictability around usage. But our expectation is that was really just a little bit more in Q3. And so I've just haircut that out of the Q4 that keeps us whole on the overall year, but it's a matter of just timing and pacing. And that's where -- as we move more and more of our revenue to ratable revenue recognition, we'll get some of this lumpiness out of the picture. So that's primarily what you're seeing on the revenue front. And then on EBITDA, there's been a little bit of movement between OpEx and CapEx. And so if you look at EBITDA minus CapEx in our guidance, you'll see that it's consistent with where we were back in September, but we have had some shifts between OpEx and CapEx predominantly related to expense for the Pelican fleet. So we talked about that following our marketing event in October, and the fact that we're seeing a lot of interest in our high resolution, high revisit capabilities. And so as we lean into that, that's shifted some of our expense from what would be recognized as CapEx to OpEx. So there's a little bit of variability there. But the overall kind of spend picture is the same.

Okay, great. I'll leave it there. Thank you.

Great. Thanks.

Thank you, Mr. Rhee. The next question is from the line of Ruben Roy with West Park Capital. You may proceed.

Thanks very much for taking my questions and echo my congratulations. To start, I guess we could just start off on the last comment you made, Ashley, maybe just talk about usage. And some of these new verticals start to ramp as you add sales across some of these areas like finance, insurance, et cetera. I'm just trying to figure out how to think about sort of usage versus subscription as some of those new verticals ramp, and if you are getting more use cases I guess, how do you think the mix is going to look as we think about maybe next year, fiscal '23?

Yes, I think a lot of it just has to do with how we structure our contracts. And so even for, for example, tasking customers, if we sell them on a credit basis and they're basically subscribing to a certain number of passing credits per month, per quarter, then it virtually becomes ratable revenue recognition, because it's easier to use it [ph]. It gives us high predictability versus some of the contracts that we might have signed a couple of years ago when we were still ramping that revenue stream, which gave us a lot more latitude to the customer in terms of when they would actually use the credits across the year. So I think in terms of how we think about the shift to more subscription-like revenue that has more predictability, it's less of whether it's a PlanetScope subscription or a SkySat tasking subscription, we're able to see more of the revenue shifting to ratable and move away from pure consumption contracts. Does that make sense? Does that address your question?

Yes, it does. That's very helpful. Thank you, Ashley. And then just a quick follow up for Will. As we think about -- you guys talked about these big expansions, and again obviously a lot going on with the government, defense intelligence, et cetera. Now you have capitalized the balance sheet and it's exciting to think about kind of next steps in kind of addressing some of the growth areas in some of these emerging markets. So are there any one or two markets that you're most excited about, Will, or you think you need to invest immediately or accelerate investments into, or do you think it's kind of across the board as we think about some of those new markets, whether it's forestry or finance, insurance, et cetera?

Well, firstly, I think most of our growth is going to come from the existing markets for the next couple of years, and that comes from either expansion in existing accounts or new accounts in those vertical markets where we already know the use cases work. So agricultural, civil government, defense intelligence mapping, and that's where -- there's a lot more ag companies to go after. There's a lot more civil government opportunities to go after. There's 200 countries in the world. We've got -- and then there's state and local governments where we're having a lot of traction on the civil government side as well. There’s 3,000 counties across the U.S. and equivalents across the rest the world. And so we've got huge, huge market there. For the other vertical markets that you're talking about, like finance and insurance and so on, the primary attack is using the capital to build the software stack to enable those, right? We will be doing some work in that area for sure and more in the sort of business development mode. But now that's primarily -- that's why the two major investments, our sales and marketing for the core markets and software to go after the new one. I personally have expressed before that I'm very excited about finance, because I think the principal value of our data for finance is huge. I just think it's a massive alpha on anyone else alike. We can tell the world wide soil before anyone else, we can tell the output of all those couple of mines before anyone else, it ships into our ports before anyone else, et cetera, et cetera. That's got to have intrinsic value. But that needs software to go up the stack to really enable that market. So it's not a primetime thing now. As I said, a huge opportunity in front of us really just in the core markets and that is -- we've got billions of billions of revenue opportunity just in those.

Right. Makes sense. Thanks, Will.

No worries.

Thank you, Mr. Roy. That concludes the question-and-answer session. I would now like to pass the call back to the management team for any closing remarks.

I think that's all we've got today. We look forward to continuing the conversation as we go forward as a public company. So thanks for joining today.

Yes. Thank you, everyone. I'm looking forward to building relationships with you all as we -- and the public market. Look, I said at the beginning of our Analyst Day that we are really excited about the fact that Planet is a data subscription business with a huge market and a big differentiation in the sense that no one else has the scan which is what enables our big market. I think we can add to that a fourth thing which is we're now fully capitalized, right, to go after those opportunities. And so we know where we're investing and now it's execution, execution and execution. So thanks very much.

That concludes the Planet fiscal Q3 2022 earnings call. Thank you for your participation. You may now disconnect your line.