Good afternoon, thank you for attending today's Planet Labs PBC Fiscal Fourth Quarter and Full Year 2025 Earnings Call. My name is Jayla and I'll be your moderator for today. All lines will be muted in the presentation portion of the call with an opportunity for questions and answers at the end. I'd now like to turn the conference over to our host, Cleo Palmer-Poroner from the Investor Relations team. Cleo, you may proceed.

Thanks, operator, and hello everyone. This is Cleo Palmer-Poroner from the Investor Relations team at Planet Labs PBC. Welcome to Planet's fiscal fourth quarter and full year 2025 earnings call. I'm joined by Will Marshall and Ashley Johnson, who will provide a recap of our results and discuss our current outlook. We encourage everyone to please reference the earnings press release and earnings update presentation for today's call, which are available on our Investor Relations website. Before we begin, we'd like to remind everyone that we will make forward-looking statements related to future events or our financial outlook. We also may reference qualified pipeline, which represents potential sales leads that have not yet executed contracts. Any forward-looking statements are based on management's current outlook plans, estimates, expectations, and projections. 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 historic and forward-looking non-GAAP financial measures. We use these non-GAAP financial measures for financial and operational decision-making and as the 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, which is available on our website at investors.planet.com. 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 and our earnings update presentation, which are intended to accompany our prepared remarks. At this point, I'd now like to turn the call over to Will Marshall, Planet's CEO, Chairperson, and Co-Founder. Over to you, Will.

Thanks, Cleo, and hello, everyone. Thanks for joining us today. Last year was an exciting and transitional year for Planet, and I'm incredibly proud of everything our teams have achieved. We shifted our go-to-market structure to be a vertically-focused approach and towards selling solutions. We took a major step up in the satellite services market and closed a $230 million contract with a marquee customer. We launched 74 satellites into orbit, including our Second Pelican and First Tanager spacecraft. We launched the Planet Insights platform and delivered our new Global Forest Carbon Monitoring product. And we drove meaningful improvements in our financials throughout the year, including reaching our target of adjusted EBITDA positive in Q4, the first time in the company's history. All of this sets Planet on a sound footing going into this year. To briefly summarize the full-year results, we generated a record $244.4 million in revenue, representing an 11% year-over-year growth. Non-GAAP gross margin for the year was a record 60%, up from 54% a year ago, and full-year adjusted EBITDA loss came in at $10.6 million. Q4 was a record quarter for revenue, gross margin, and operating margin. And as I already mentioned, we achieved our goal of delivering a first adjusted EBITDA profitable quarter, a target we set two years ago and a major milestone on our journey to positive cash flow. Backlog increased in the quarter to almost $0.5 billion, up over 100% year-over-year and approximately 115% quarter-over-quarter. We believe this puts us in a strong position with a clear path to at least double our revenue growth rate in FY'27 compared with FY'26. I'd like to spend a little time on our landmark $230 million commercial agreement we signed with our long-term partner in Japan, JSAT. Last year, we made the strategic decision…

Thanks, Will. It was indeed a very productive year, representing an important transition for Planet across a number of fronts. Let's shift gears now to go through the financial results in more detail. Revenue for the fourth quarter came in at a record $61.6 million, representing approximately 5% year-over-year growth. Full-year revenue came in at a record $244.4 million, representing approximately 11% year-over-year growth. As Will mentioned, we introduced a new go-to-market structure last year, aligned to our customers and markets. And we began to see a shift from selling data to selling solutions targeted at specific market segments. We expect this shift to continue into the year ahead, led by our defense and intelligence business, but applying to our civil government and commercial business as well. We see this shift toward selling targeted solutions as a core part of our strategy to re-accelerate growth while enhancing the predictability of our business going forward. During fiscal year 2025, our defense and intelligence sector revenue grew more than 20% year-on-year. Civil government revenue grew approximately 15% year-on-year. And the commercial sector was down more than 10% year-on-year but has shown signs of stabilization and improvement since the trough in Q1. With the discrete commercial headwinds showing signs of abating, we look forward to a return to normalized growth in future periods. For the full fiscal year, EMEA revenue grew more than 15% year-over-year. Latin America revenue grew approximately 30%. Asia Pacific grew nearly 15%, while North America revenue grew approximately 5% year-over-year. Looking ahead, we see significant growth potential across all regions. In EMEA, national security solutions, particularly Maritime Domain Awareness, or MDA, and Global Monitoring Service, GMS, are attracting strong interest driven by the current complex geopolitical environment. We also anticipate growth from Area Monitoring Systems, or AMS, supporting the…

We will now begin our question-and-answer session. [Operator Instructions]. Our first question comes from Colin Canfield with the company Cantor Fitzgerald. Colin, your line is now open.

Focusing on the pre-cash flow dynamics, if we could maybe just kind of flesh out the bridge, including what's moving in and out of CapEx and gross margin, as well as some of the working capitals assumptions you're making in 26. And then given that the company made some commentary on 27, if we can kind of just flesh out a little bit what the cadence looks like to getting to pre-cash flow positive. Thanks.

Thanks, Colin. So as we talked about, we are in a peak CapEx investment cycle this year. So that's reflected in the guidance that we gave for CapEx for the full year and is also reflected in my commentary about expecting our cash burn to be roughly half this year versus last year. As I mentioned, the JSAT contract is structured in such a way that the cash payments are relatively front end loaded, which enables us to fund working capital for the program. So it's the balance of our traditional business, obviously with high gross margins and very strong collection experience with our customer base. Managing our expenses across the board very carefully. And then at the same time, investing in both the JSAT program and the building and launching of the Pelican and Tanager fleet. So, as I mentioned, this year we're expecting cash burn to be roughly half. And based on our current view of the business, we could see getting to cash flow profitability over the next 24 months.

Our next question comes from Edison Yu with the company Deutsche Bank. Edison, your line is now open.

I want to ask on the AI deal with Anthropic. In terms of the discussions you have with them, how are you thinking about the ultimate monetization of these, whether it's used to a model or whether it's just selling data to them? How are you sort of thinking about the way to actually make a lot of money off this?

Good question. Well, I'm personally very excited about that partnership. It's really, really cool. And there's others that we're doing in a similar vein. I mean, it's a really exciting time, as I said in the prepared remarks. It's extraordinary, the development in AI. And we feel right in the middle of it, literally, as well, because we're a few blocks away from Anthropic, a few blocks away from OpenAI, a few blocks away from the Google Gemini team here in San Francisco. And so you sort of feel it. And our data set, as I mentioned in the remarks, is just sort of sitting credible, a unique data set to train these models on as these companies try to deal with real world problems. They need real world data. You can't very well deal with disaster response or security with any sort of synthetic data. And so Planet data is really very primed for that. Ultimate monetization, I think our near term focus there is on these solutions that we're building with AI. They are AI enabled by the maritime domain awareness, like looking over large ocean territory for ships and then identification of them and so on. That sort of thing, we have real business to go after. We've already got meaningful revenue there. We're growing that with focus. And there's others like GMS and AMS that Ashley mentioned. And then as for the foundation efforts of the kind that we're doing with Anthropic, it's a little bit more experimental, but the in principle benefit there is really great because it can speed time to value. We've been very impressed with how these foundation models out of the box can do analysis on satellite data, can code against our API, can do things that speed up our ability of our existing customers to get from zero to something that has value and answers meaningful questions, as well as opening up a new set of potential clients that could get value who don't have geospatial expertise at all. And so this is an accelerant overall. It's early days on the foundation stuff, but the work we're doing on MDA and everything is really near term value that we're driving and growing our business.

Our next question comes from Michael J. Latimore with the company Northland. Michael, your line is now open.

Yes. Ashley, at the end of your remarks there you talked about AI, Pelican, Tanager, and new satellite service wins as a revenue opportunity in 27. Would those be incremental to the doubling of the growth rate or are those included in that doubling of the growth rate goal?

Yes. Great question. So in the remarks about the ability to double the growth rate based on the backlog that we have, that is literally pointing to the contracts that we have and have secured and our views as to, one, our ability to renew that business and then also execute against the business that's there that is multi-year in nature. Upside to that growth rate is some of the areas that we talked about that we're investing in. So as Will just said, AI, we believe, is an incredible accelerant to delivering value to our customers and to enabling these solutions that we are building out with partners. In addition, if we sign any additional contracts on the satellite services front, that would be upside to that acceleration and growth rate. And then finally, bringing the Pelican and Tanagers online gives us an opportunity to increase the data that we're selling with our existing customers as well as bring new customers in. So those are all upside to the current visibility that we have to the growth rate of our business.

Great. And then just to be clear, when you say positive cash flow, are you talking free cash flow or cash flow from operations?

That's really about, that's about free cash flow. Or another way of saying it is cash flow from operations minus CapEx. Sorry, I interrupted you.

Our next question comes from Jason Gursky with the company Citigroup. Jason, your line is now open.

If you don't mind, just a couple of quick clarification questions and then one more meaty one. On the clarification of the doubling of the growth rate, is that at the midpoint of the range in 2026? So you double off of the midpoint or could we grow off the, could we double off the top end of your range? That's one clarification question. And then the other clarification one, on the increased expenses that you expect here in 26, is that kind of like a one time in nature kind of thing and that rolls down in 27, or do we need to see revenue growth for margin expansion? And then the meatier question is just the monetization of the non-JSAT areas of the world. Just kind of curious, will you be going out and looking to try to find people that are going to take down dedicated access over a region of the world or is this all going into the library and you're trying to monetize the library? I'm just kind of curious how you're thinking about the monetization outside of that part of the world. Thanks.

Why don't I take the first two and let Will talk about our strategy around satellite services. So in terms of the doubling of the growth rate, why don't we just start with looking at the midpoint of our guidance as a good place to start for how we're thinking about FY27. But obviously you can look at the increase in backlog and what applies to the next 12 months and obviously it's great to have such a strong book of business even for the 12 months after the one ahead of us. It's great visibility for us. On the expenses side, as I mentioned, we are both investing on the space system side. So making sure that we have the capacity for all of the programs that we're running for the core business. So that includes core data business, so Pelican and Tanager as well as our SuperDoves fleets. In addition to the staffing required to execute against this great new contract that we have with JSAT. So that's one side of the investments. And so those obviously are teams that we'll need because we'll be continuing to grow our operations on the space system side. And then investments in AI and the software engineering team. So again, I don't view these as one time in nature, but rather really investing in R&D, which enables us to innovate and really stay ahead of the market. Will, do you want to take the question on monetization outside of?

Yes, I mean, the great thing about this partnership is that not only does it pay for our satellites up front, if you like, those Pelican fleets. And as I mentioned, it's a sort of win-win-win for us, them and our other customers because of the increased capacity. On that latter point, we get to monetize the rest of the world, which is most of that capacity. They have dedicated access over their area of interest, which is in and around Japan, basically. And so the rest of the world, we get that capacity and commercially can leverage that. And of course, that's all upside to and great margin potential for that partnership. And I don't know if your question is leaning in this direction, but as I mentioned, there are a handful of other opportunities that we're going after where there's long term partnerships like we've had with Japan, that's strategic and synergistic with the core business. And we're very excited about the market potential here. Obviously, we feel that we're in a very strong position here because Planet has such a long history of doing Earth observation satellites. We've launched more Earth observation satellites than anyone else. And when countries think about their demand for dedicated access, we're really a first port of call. And so it's a very exciting opportunity.

Our next question comes from Ryan Koontz with the company Needleman & Company. Ryan, your line is now open.

With regards to the revenue guide, Ashley, how much does that contemplate the current chaotic situation in Washington? Obviously, it's a very dynamic situation, but it seems that there are already impacts. I assume you're contemplating some impact in that revenue guide, just the state of things there, either on the civil, especially on the civil side, I'm guessing. Any color you can share there?

Look, I think we've attempted to take an appropriately conservative approach to our guidance. So reflecting potential risks related to macro pressures, timing of new business. So that would include ways that the uncertainty in the current environment might cause new business to be delayed. Also factoring in customer usage patterns that we've seen have variability in the past. And then we have a brand new satellite services contract, which is a new revenue recognition methodology for us. And so we are being appropriately conservative about how we see that revenue pacing in over the course of the year. So while it's not possible to reflect every potential outcome related to the current geopolitical and economic environment. We believe, actually, that solutions such as ours are core to government efficiency. And that in many ways, the current environment can be opportunity for companies like Planet that bring much more efficient means of getting these kinds of insights and data. And we see this both domestically and internationally as driving a lot of opportunity for us. I don't know if you want to add anything there, Will.

Yes. I could, actually. I mean, there are real opportunities in this. As Ashley's saying, they're pushing towards efficiency. Planet is not just hypothetically able to do that. We've done that before. We've done that for NASA. We've done that for DoD. We've done that for the intelligence community. And so we're actually seeing opportunities like that arise. We're actively working with those agencies on that. And we feel like we're in a good position. And as Ashley mentioned, also internationally, this is creating a reaction that actually countries need and are demanding this sort of capability sooner. And we've seen a lot of interest in that, including in sovereign satellites. And Planet is in a unique position to service that. We've also seen increased budgets and an incredibly increased urgency for that in those countries as well. So Planet, I think, can lean into some of that changing geopolitical dynamics pretty successfully. Of course, there's risks, but I would say the opportunities definitely outweigh them.

Our next question comes from Jeff Van Rhee with the company Craig-Hallum. Jeff, your line is now open.

A couple for me. Maybe first just on space services. Just to be clear, this is sticking to existing configuration footprint capabilities. So this is Doves, Pelicans, et cetera. Just being sold on essentially a different delivery model, sort of phrased differently. This isn't space services with a vision to customization.

Yes, so we are really focused. As I said, we've got interest in all three types of our satellites, Pelicans, Tanagers and Doves. And in all three of our vertical markets, commercial, civil government and defense intelligence. The biggest area is the defense intelligence, the Pelicans, but it really does span all those. So, yeah, it's focused on the existing technology roadmap. And that's how we can make it very synergistic here. Where this pays ahead that capital expenditure of building up those fleets faster. But then, of course, there's plenty of upside potential, as we were just talking about for JSAT.

Did Jeff have a follow up question?

Did you have a follow up question?

Our next question comes from Trevor Walsh with the company Citizens Financial Group. Trevor, your line is now open.

Maybe just to kind of piggyback a little bit off your comments, Will, and actually obviously chime in. But around this space services opportunity, I think you had mentioned 10 satellites associated with JSAT. So, by my math, at least 22 kind of authorized Pelicans. Does that footprint of 10 kind of, is that a good proxy for kind of what other kind of mini constellations, let's call them, for other types of deals that would kind of need to look like that? And then I guess secondary question with that is how easy or could you kind of boost that 32 kind of regulatory kind of approved number if the opportunity kind of demand kind of comes in? And how easy or how much, how quickly could you move on that kind of aspect of things? Thanks,

Yes, I think you've got the math roughly right. And yes, as you know, as you're citing, we've got approval up to 32 of those. The deals themselves could vary in numbers, of course. But yes, I mean, we're seeing interest in around that sort of scale from other countries as well. So we'll see where that comes out. These are big strategic partnerships. So, this is a -- it really is. These are complex transactions, but they, again, Planet is in a relatively unique position to supply them being vertically integrated and having much more Earth observation satellites than anyone else. So we really are. And in a lot of cases, having these long-term relationships where they can trust our data and capabilities. Yes, I hope that gives a flavor.

Our next question comes from Josh Sullivan with a company, The Benchmark Company. Josh, your line is now open.

Just as far as the focus on larger, just the focus on larger customers while directing some of the smaller customers, third parties. What's the pig through the snake there? Maybe when do we see the customer account stabilize?

That's a good question. I think, as you know, the customer account excludes anybody that is solely transacting through the platform because those tend to be to be smaller. But obviously, we're developing a really strong pipeline of interest to the new solutions that we've been bringing to market. So, the focus on making sure that we have the right solutions for the right customers should result in stronger net dollar retention rate, which I've said is a really core focus for us. And also increase the average customer size, which is obviously a really important metric for us as well. So, as I mentioned on the prepared remarks, the drop in customer count actually is in line with the strategy that we've had of really focusing our direct sales on those larger customers. And we've seen that play out in the increase in average ACV over the course of the year.

Yes, if I could just add, I mean, I think that the Planet Insights platform, the purpose of that is to help serve those smaller customers and to do so cost efficiently. So most of our sales resources can be focused on those big accounts where we see the biggest potential still. But it is also because we believe in that long tail. Eventually, as the tools get better, as we are seeing with the Planet Insights platform and some of the AI solutions, this is enabling more people to get value out of it. That's a huge potential still here with geospatial data, and particularly for Planet, where you don't have to task satellites all the time because we've got the daily scan. And for many users, that means that the data is already there and they can get value out of it sitting there. So that's our strategy.

The next question comes from Anthony Valentini with the company Goldman Sachs & Co. Anthony, your line is now open.

Ashley, I'm just curious. You've done a great job explaining the new strategy of going after larger new customers. And I think you had mentioned in your prepared remarks that you guys are looking to march your way back to industry-leading net dollar retention ratios. Could you maybe just talk a little bit about the strategy of how you're actually going to achieve that? And then am I thinking of it correctly that because you guys are going after larger customers that are new customers, that's almost like that's the offset of the lever on the NDRR, that it's kind of going to be lower because of that? Just if you could kind of talk through that, that would be helpful. Thanks.

Yes, absolutely. As I mentioned, a core part of our strategy is in building these solutions that enable us to accelerate the time to value for our customers. And to be embedded operationally with those customers. And we believe that by doing so, we have seen and we will continue to see strong retention rates and expansion rates with those customers. And organizing our operations according to vertical markets, it's really about getting more of the company directly connected to our customer needs. So that every aspect of our product development is really solving a core operational challenge that our customers are facing that our data can uniquely address. And enabling our sales team to really prioritize those opportunities where we have the strongest product market fit and growing with those customers. So it's been a core part of the changes that we've made operationally over the last 12 months, as well as the investments that we've been making on the solution side and with our partners. To really see the time to value accelerate, which is a key part of then having best in class retention rates. I don't know if you'd add anything.

No, I think it's great.

Our next question comes from Greg Pendy with company Clear Street Markets. Greg, your line is now open.

I just wanted to know on commercial, you mentioned stabilization that you're seeing earlier in your comments. Can you elaborate a little bit on that? Thanks.

Yes. So I specifically in the agricultural sector, we're starting this year from a much stronger place. We've highlighted a few key customer wins and renewals. We're actually seeing our large ag customers ramp up nicely in their usage going into this growing season. And a lot of it was some transitions that we made working closely with those customers last year to understand where their business was going, parts of their business where they were reducing their investments. So more on the marketing side and leaning into those areas where they're really investing, which is in improving operational efficiencies and being part of reducing the amount of inputs and increasing the output. And there's a lot of places where we can drive really tangible ROI to our customers and making sure that that is the nature of the way we're working with those customers. We also see opportunity across the commercial sector with energy and insurance. Energy, obviously, with bringing Tanager online, as well as in the insurance space, we've continued to expand with some of our marquee customers on that front. So, again, it's been a rough year just with all the changes going on in the ag sector, but a lot of really positive signs in the last few quarters.

Our next question comes from Caleb Henry with the company Quilty Space. Caleb, your line is now open.

I just had two questions. First is sort of on the existing changes in U.S. government. On the Spire call, there was a conversation about seeing a lot more funding headed towards commercial weather and them kind of anticipating a pretty dramatic change and uptake on their side. I'm wondering on the electro-optical side or any of the sensor types that Planet offers, if management is kind of anticipating any similar meaningful changes from the new administration in terms of how they make use of commercial satellite imagery?

A hundred percent. Yes. So, we expect them and their focus is on efficiency and leveraging commercial capabilities. And we fit right into that. Again, that's across civil government, defense and intelligence agencies. We're in active discussions with them and how we can help them on that priority. And it's something that we have done before. To the point, our Tanager partnership came out of a collaboration with NASA and is enabling them to do those missions at lower cost. Our EOCL contract with NRO is enabling them to get access to satellite imagery, much lower cost than doing their own way. So, these are the kind of programs that I think the government is going to double down on and accelerate in this environment. And again, as I mentioned earlier, we're seeing significant budgetary increases in other countries like Japan and Europe as a party to reaction as well. And that is something that we want to lean into too. We're a global company.

Okay, thanks. And then just one clarification on the JSAT contract. What's the rough timeline for when you start launching those satellites? Is that something where you want to get a minimum number of dedicated planet satellites up first and then you ship to JSAT, maybe interest first? Or kind of when do you start rolling out the JSAT portion of the Pelican fleet?

Yes. So we are focused first on our own satellites that are most critical to the continuity of our SkySat fleet. Continuity and, of course, enhancements in all the ways we should describe Pelican is. And then next is the JSAT ones, which will be mainly in the next 24 months.

Our next question comes from Colin Canfield with the company Cantor Fitzgerald. Colin, your line is now open.

Hey, thanks for the follow-up. Maybe we can just talk a little bit about the contract opportunities that we'll talk about. Handful of opportunities. Sounds like they're pretty similar. Obviously, you have a little bit of a split across the types of satellites that might be procured. But if you could maybe talk through kind of what the total size of that bid pipe looks like and how that splits out relative to the services pipeline.

I haven't got a pipeline number for you right this second. It is early days in our entry into this. But what I will say is that we're seeing strong demand there from different countries. And many countries took note of the partnership we did with Japan. So it's only further accelerated subsequent to our announcement of that. There's a lot of interest, but we've been very strategic about which ones we focus on when, because these are big, complex transactions, as I said. And so we're focused on ones that are most synergistic, that are going to drive our current product pipeline and align with our long-term financials as well. That's the way I think about it. We will obviously continue to share more as we can in the coming quarters.

I would now like to turn the conference over to the CEO and Co-Founder, Will Marshall. Will, you may proceed with closing remarks.

Well, look, overall, I'm very proud of what we've achieved here in the last year that you've been hearing about today. And I feel that the Planet is in a great position overall, especially based on the JSAT partnership that we mentioned and our strong backlog. Our big focus this year is really on growth acceleration using from these new data sets, from these AI-powered solutions and a handful of other partnerships in satellite services. And finally, I'll just note about the AI transition. I really think of that as a strategic focus for the year, a bit like going more fulsome into the satellite services sector was a big strategic decision last year. This year, it's going to be focused on AI across the board. And we believe that can accelerate our opportunity. So thanks for joining us today. And a real big thanks to all of our teams that enable everything that we've been discussing. And so look forward to giving you an update next time. Thanks.

That will conclude today's conference call. Thank you for your participation and enjoy the rest of your day.