Planet Falls by 25%

Planet Stock Plummets 25% as Revenue Guidance Cut

Shares of Planet, the satellite-imagery and data-analysis company, experienced a significant drop after revising its annual revenue guidance in the wake of its first-quarter results announcement on Thursday. The company revised its fiscal-year 2024 revenue forecast to a range of $225 million to $235 million, down from the previous range of $248 million to $268 million. Additionally, Planet expects wider losses on an adjusted EBITDA basis, with the forecast now ranging between $58 million and $67 million, compared to the previous range of $37 million to $47 million.

In response to the news, Planet’s shares plummeted up to 25% during midmorning trading on Friday, erasing year-to-date gains and marking the stock’s worst single-day drop since its December 2021 initial public offering.

During the first quarter, Planet reported revenue of $52.7 million, representing a 31% increase from the same period last year, although it remained relatively flat compared to the previous quarter. The net loss for the quarter narrowed by 22% to $34.4 million, or 13 cents per share, compared to a net loss of $44.4 million, or 17 cents per share, in the corresponding period a year ago.

Planet’s customer base expanded to 903, up from 882 at the end of the previous quarter. The revenue breakdown by customer segment shows that 44% is attributed to defense and intelligence, 29% to commercial, and 27% to civil government.

Planet follows a fiscal-year calendar that concludes on January 31.

Source: CNBC

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