Planet Labs (NYSE:PL) delivered mixed first-quarter results that revealed an in-line top-line and a bottom-line beat, overshadowed by weaker guidance as it navigates a difficult operating environment, according to analysts at Wedbush.
Still, they’ve maintained their ‘Outperform’ rating and 12-month price target of $8 as the company focuses on adjusting its expense plan to prioritize core business investments while searching for new ways to optimize its expense profile.
Total revenue for the quarter came in at $52.7 million slightly below the Street’s $52.9 million estimate and in line with the company’s guidance range as it added new customers to its platform despite slower sales bookings due to worsening consumer sentiment and slower customer decision-making.
While they attributed a smaller-than-expected underlying loss and adjusted loss per share to strength in its ‘one-to-many’ subscription business model and its ability to remain on its path to profitability by implementing cost management strategies despite smaller deal sizes, the analysts said full-year 2024 guidance came in below Street expectations.
Customers have remained more hesitant and government procurements are taking more time, resulting in continued extended sales cycles and lower deal values for its larger opportunities, the analysts noted.
FY24 revenue is now estimated to be in the range of $53 million to $55 million, falling short of the Street’s expected $60.2 million and reflecting slower new and expansion business.
Although its adjusted EBITDA loss is also likely to be wider than the Street’s previous forecasts, the Wedbush analysts said it is maintaining a path to positive EBITDA in 4Q 2025.
“While this quarter was definitely a bump in the road in PL’s growth story, we continue to remain positive on the name as the company capitalizes on a strong monetization opportunity in its 2024 pipeline while navigating difficult short-term headwinds,” the analysts wrote in the note.
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