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BlackSky Saw Sharply Higher Revenue, Narrower Loss in 2022

By Doug Messier
Parabolic Arc
March 8, 2023
Filed under , ,
BlackSky Saw Sharply Higher Revenue, Narrower Loss in 2022
Credit: BlackSky Technology

BlackSky Technology nearly doubled its revenue in 2022 while sharply narrowing its net loss as the company expanded its real-time satellite geospatial intelligence services (GEOINT).

BlackSky’s revenue for 2022 was $65.35 million, an increase of 92% over the $34.09 million in 2021. Fourth quarter revenue was $19.4 million, an increase over the $11.49 million from the same period in 2021.

BlackSky’s net loss was $74.34 million for 2022, a reduction from $245.64 million during the previous year.

“2022 was a foundational year for BlackSky, we won up to $1.3 billion in multi-year contracts, nearly doubled revenues to $65.4 million, and demonstrated significant margin performance; this high level of execution has put us on a path to achieving positive adjusted EBITDA in Q4 of 2023,” CEO Brian E. O’Toole said in a press release.

“Increased customer demand worldwide for BlackSky’s dynamic monitoring and analytic solutions drove record revenues in the fourth quarter growing 69% year-over-year to $19.4 million. In addition, we’ve successfully scaled our operations and are now delivering thousands of high-resolution images reliably each day with AI-driven analytics to customers around the world. I want to thank our team for all their hard work and dedication that enabled us to achieve all these milestones. We look forward to another strong year of execution and carrying this strong momentum into 2023,” O’Toole added.

BlackSky had cash, cash equivalents and other assets totaling $75 million at the end of the fourth quarter. Capital expenditures totaled $44.1 million last year.

BlackSky said it expects revenue of $90 million to $96 million in 2023. The company is projecting capital expenditures to range from $40 million to $45 million.

BlackSky announced a private placement of approximately $29.5 million from a syndicate of new and existing institutional investors. The company will use the net proceeds for general corporate purposes and investments in its space and software platforms.

BlackSky also announced a contract worth more than $150 million to provide advanced space-based tactical GEOINT-as-a-service to an international ministry of defense customer.

BlackSky’s financials are below.

(in thousands, except per share amounts)

Three Months Ended December 31, 2022Three Months Ended December 31, 2021Year Ended December 31, 2022Year Ended December 31, 2021
Imagery & software analytical services$16,166$5,454$47,415$15,365
Professional & engineering services3,2516,03517,93518,720
Total revenue19,417 11,48965,35034,085
Costs and expenses
Imagery & software analytical service costs, excluding depreciation and amortization3,9253,830 14,462 13,013
Professional & engineering service costs, excluding depreciation and amortization 3,783 6,348 21,36521,735
Selling, general and administrative20,222 28,676 79,672 86,655
Research and development 290 27 739                         112
Depreciation and amortization                          9,495                         4,502                   35,661                   14,306
Satellite impairment loss                               —                               —                           —                   18,407
Operating loss                      (18,298)                     (31,894)                 (86,549)               (120,143)
Gain on debt extinguishment                               —                         4,134                           —                      4,059
Gain on derivatives                          1,183                       35,047                   11,812                   23,885
Income on equity method investment                          1,222                             234                      1,916                      1,027
Interest income                             452                               —                      1,116                           —
Interest expense                        (1,669)                       (1,502)                    (5,425)                    (5,165)
Other income (expense), net                          2,135                                 4                      2,081               (147,656)
(Loss) gain before income taxes                      (14,975)                         6,023                 (75,049)               (243,993)
Income tax (expense) benefit                               —                               —
(Loss) income from continuing operations (14,975)6,023 (75,049) (243,993)
Discontinued operations:
(Loss) gain from discontinued operations (628) 707 (1,650)
Income tax (expense) benefit
(Loss) gain from discontinued operations, net of income taxes (628) 707 (1,650)
Net (loss) income (14,975) 5,395 (74,342) (245,643)
Other comprehensive income
Total comprehensive (loss) income$(14,975)$5,395$(74,342)$245,643)
Basic and diluted (loss) income per share of common stock:
(Loss) income from continuing operations$(0.13)$0.05$(0.64)$(3.37)
(Loss) gain from discontinued operations, net of income taxes; (0.01) 0.01(0.02)
Net (loss) income per share of common stock$(0.13)$0.04$(0.63)$(3.39)
Weighted average common shares outstanding – basic and diluted119,064113,645117,82172,462

Note: Effective January 1, 2022, the Company reorganized its classification on the consolidated statements of operations and comprehensive loss to better align the Company’s broad portfolio. As a result, the prior period amounts presented to reflect the impact of the reorganization have been recast.




(in thousands, except par value)

December 31, 2022December 31, 2021
Current assets:
Cash and cash equivalents$34,181$165,586
Restricted cash2,8352,518
Short-term investments37,982
Accounts receivable, net of allowance of $0 and $39, respectively3,1122,629
Prepaid expenses and other current assets4,7136,264
Contract assets5,7061,678
Total current assets88,529178,675
Property and equipment – net71,58470,551
Operating lease right of use assets – net3,586
Investment in equity method investees5,1144,002
Intangible assets – net1,9182,480
Satellite procurement work in process50,95440,102
Other assets2,841                560
Total assets$233,919$305,763
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued liabilities$14,367$10,837
Amounts payable to equity method investees3,7285,613
Contract liabilities – current6,78311,266
Other current liabilities2,0482,819
Total current liabilities26,92630,535
Liability for estimated contract losses7146,054
Long-term contract liabilities109568
Operating lease liabilities3,132
Derivative liabilities5,11316,925
Long-term debt – net of current portion76,21971,408
Other liabilities2653
Total liabilities112,215126,143
Stockholders’ equity:
Class A common stock, $0.0001 par value-authorized, 300,000 shares; issued, 121,938 and 117,160 shares; outstanding, 119,508 shares and 114,452 shares as of December 31, 2022 and 2021, respectively.1211
Additional paid-in capital666,973650,518
Accumulated deficit(545,281)(470,909)
Total stockholders’ equity121,704179,620
Total liabilities and stockholders’ equity$233,919$305,763




(in thousands)

Years Ended December 31, 2022Years Ended December 31, 2021
Cash flows from operating activities:
Net loss                    $(74,342)                    $(245,643)
Gain (loss) from discontinued operations, net of income taxes                     707                    (1,650)
Loss from continuing operations                     (75,049)                     (243,993)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense                     35,661                     14,306
Operating lease right of use assets amortization                       1,640                            —
Gain on debt extinguishment                            —                     (4,059)
Bad debt (recovery) expense                          (22)                            58
Stock-based compensation expense                     20,025                     42,571
Loss on issuance of 2021 convertible Bridge Notes                            —                     99,669
Issuance costs for derivative liabilities and debt carried at fair value                            —                     48,009
Amortization of debt discount and issuance costs                     1,805                     1,807
Gain on equity method investment                     (1,916)                     (1,027)
Loss on disposal of property and equipment                     —                     24
Gain on derivatives                     (11,812)                     (23,885)
Satellite impairment loss                            —                     18,407
Interest income                        (656)                            —
Other, net                          106                            —
Changes in operating assets and liabilities:
Accounts receivable                        (461)                          216
Contract assets – current and long-term                     (5,996)                       2,118
Prepaid expenses and other current assets                       1,413                     (5,207)
Other assets                          (12)                        (309)
Accounts payable and accrued liabilities                          (75)                       2,543
Other current liabilities                     (1,180)                     (2,680)
Contract liabilities – current and long-term                     (4,942)                     (5,262)
Liability for estimated contract losses                     (5,340)                        (198)
Other liabilities                       2,355                       3,020
Net cash used in operating activities                   (44,456)                   (53,872)
Cash flows from investing activities:
Purchase of property and equipment                   (11,677)                     (1,266)
Satellite procurement work in process                   (32,385)                   (62,643)
Purchase of short-term investments                   (50,343)                            —
Proceeds from maturities of short-term investments                     13,000                            —
Purchase of domain name                            —                            (7)
Proceeds from equity method investment                          804                          302
Cash flows used in investing activities – continuing operations                   (80,601)                   (63,614)
Cash flows used in investing activities – discontinued operations                        (978)                            —
Net cash used in investing activities                   (81,579)                   (63,614)
Cash flows from financing activities:
Proceeds from recapitalization transaction, net of payment of equity issuance costs                            —                   244,880
Payments of transaction costs related to Sponsor Shares                            —                        (291)
Proceeds from issuance of debt                            —                     58,573
Proceeds from options exercised                            47                          130
Proceeds from warrants exercised                            —                          163
Capital lease payments                            —                            (2)
Debt payments                            —                   (22,198)
Payments for deferred offering costs                          (31)                            —
Payments for debt issuance costs                            —                     (6,238)
Withholding tax payments on vesting of restricted stock units                     (5,069)                            —
Net cash (used in) provided by financing activities                     (5,053)                   275,017
Net (decrease) increase in cash, cash equivalents, and restricted cash                 (131,088)                   157,531
Cash, cash equivalents, and restricted cash – beginning of year                   168,104                     10,573
Cash, cash equivalents, and restricted cash – end of period                    $37,016                    $168,104




(in thousands)

Three Months Ended December 31, 2022Three Months Ended December 31, 2021Year Ended December 31, 2022Year Ended December 31, 2021
Net loss$(14,975)$5,395$(74,342)$ (245,643)
Interest income (452)(1,116)
Interest expense 1,669 1,502 5,425 5,165
Depreciation and amortization 9,495 4,502 35,66114,306
Loss on issuance of Bridge Notes, including debt issuance costs expensed for debt carried at fair value 147,387
Stock-based compensation expense 3,636 13,306 20,025 42,571
Gain on derivatives (1,183) (35,047) (11,812)(23,885)
Satellite impairment loss 18,407
Proceeds from earn-out payment (2,000) (2,000)
Loss (gain) from discontinued operations, net of income taxes 628 (707) 1,650
Severance 435 1,196
Income on equity method investment (1,222) (234) (1,916) (1,027)
Forgiveness of non-trade receivables 106
Contingent legal liability (301) 399
Transaction costs associated with derivative liabilities 291
Gain on debt extinguishment (4,134)(4,059)
Adjusted EBITDA$(4,597)$(14,383)$(29,480)$(44,438)