Satellite data provider Planet Labs PBC expects increased defence spending in Europe to further boost demand for its services after its backlog more than doubled in the fourth quarter.
The earth imaging company’s list of pending projects is now US$498 million ($665.10 million), up from US$232 million at the end of October 2024, according to a statement Thursday.
Almost a third of that is expected to be recognised over the next year.
“I don’t want greater instability in the world, but the fact that it’s happening does drive interest in Planet’s data even more strongly,” Planet Labs CEO Will Marshall said in an interview.
More than 70% of Planet Labs’ revenue comes from government clients. European countries are looking to boost defence spending by hundreds of billions of euros as the US considers cutting its military commitments to the continent.
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Germany passed a landmark spending package earlier this week while the European Union proposed a EUR150 billion ($217.39 billion) defence loan earlier this month.
Planet Labs’ adjusted earnings before interest, taxes, depreciation and amortization turned positive in the fourth quarter, the first time since going public in 2021.
The midpoint of its full-year revenue forecast of US$260 million to US$280 million was below the average US$274 million expected by analysts.
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In January, the San Francisco-based company signed a contract with the European Space Agency and a US$230 million deal with Tokyo-based SKY Perfect JSAT Holdings Inc. as it looks to expand in the Asia-Pacific region.
Chart: Bloomberg
