Key Highlights

  • PL shares are set to open up 9.16% pre-market to $20.03, rebounding after an 8.20% decline in Thursday's regular session.
  • Fiscal second-quarter Revenue hit a record $116.1 million, up approximately 58% year over year and beating estimates by 11.02%.
  • The company reported a surprise adjusted profit of $0.02 per share, though this missed a smaller consensus loss estimate by 50%.
  • Third-quarter revenue guidance of $101 million-$105 million came in below the $114.5 million consensus estimate.
  • The company raised full-year revenue guidance to $430 million-$441 million and cited a satellite-services pipeline exceeding $4 billion.

Rebound Follows Thursday's Post-Earnings Slide

Planet Labs (NYSE:PL) shares are set to open sharply higher in pre-market trading, rebounding after tumbling 8.20% during Thursday's regular session to its lowest close of the year. The pullback had come despite the company reporting record fiscal second-quarter revenue of $116.1 million, up approximately 58% year over year and well ahead of the $104.2 million consensus estimate.

Planet Labs is a San Francisco-based company that designs, builds, and operates one of the world's largest fleets of Earth observation satellites, delivering high-frequency imagery, geospatial analytics, and software solutions through a subscription-based platform to civil, defense, and intelligence government agencies across more than 65 countries.

Guidance Softness Tied to Rising Launch Costs

Thursday's decline followed CEO commentary flagging growing SpaceX rideshare launch congestion that is pushing up launch costs, along with third-quarter revenue guidance of $101 million-$105 million that came in below the $114.5 million analysts had expected. Defense and intelligence revenue grew more than 90% year over year, while commercial revenue grew more than 15% and civil government revenue grew 5%.

Raised Full-Year Outlook and Pipeline Growth Support the Bounce

Despite the near-term guidance softness, the company raised its full-year revenue outlook to $430 million-$441 million and highlighted a satellite-services pipeline that has grown to more than $4 billion, with more than 25%, or roughly $1 billion, of identified opportunities considered near-term. One research firm reiterated a buy-equivalent rating following the report while trimming its price target to $40 from $53.

Backlog and Net Dollar Retention Point to Underlying Demand

The quarter's remaining performance obligations and Backlog stood at approximately $753 million and $815 million respectively, up 9% and 11% year over year, with net dollar retention at 109%. Recent contract wins included an $8 million agreement for a global monitoring service and a German government tender worth up to €25 million over five years.

Launch Cost Pressure Remains Key Watch Item

With rising launch costs cited as a Factor behind the softer near-term guidance, investors will watch how the company manages this pressure against its growing pipeline and improving Margin profile heading into the back half of the fiscal year.