Planet Labs Rally Faces Test as Earnings and SpaceX IPO Loom

Planet Labs will report quarterly results this week. The company’s shares have risen 695% over the past 12 months and 135% year-to-date. Investors are also watching the SpaceX initial public offering planned for June 12.

Planet operates about 200 earth-imaging satellites that provide daily imagery to governments and commercial customers worldwide. Customers use the data for military intelligence, utility infrastructure monitoring, agriculture and insurance underwriting.

In its most recent quarter, remaining performance obligations rose 106% year-over-year to $852 million and backlog increased 79% to $900 million. Quarterly revenue was $86.8 million, up 41%, and full-year revenue totaled $307 million.

Net losses have increased. Planet reported a net loss of $152 million for the most recent quarter, compared with $35.2 million in the same period a year earlier. Full-year net loss was $246 million, up from $123 million the prior year.

Analysts polled by the market expect first-quarter revenue to be about $90 million, roughly a 36% increase year-over-year, and second-quarter revenue near $100 million, about a 73% rise. Consensus estimates for full-year revenue are near $427 million, implying about 40% annual growth.

Some analysts link higher demand for Planet’s imagery to increased activity in the Middle East related to the Iran conflict. The company previously stopped displaying certain Middle East areas after a U.S. decision; the effect of that restriction on sales and customer use is not clear.

The broader space sector has also seen gains. The Procure Space ETF, which tracks the industry, is up about 51% year-to-date and roughly 150% over 12 months. Several pure-play space companies have risen during the same period.

Technically, Planet’s shares peaked near $51.70 in May and have since pulled back. At recent prices the stock traded in the mid-$40s and remained above key moving averages and the 23.6% Fibonacci retracement level. Some strategists warn the stock could pull back toward that retracement after earnings, while other market observers outline a rebound followed by profit-taking after the SpaceX IPO.

Investors will focus on how recent contract wins, customer deployments and geopolitical demand translate into revenue, subscription growth and margins. Management commentary on capital spending for satellite maintenance and expansion, updates on imagery coverage restrictions, and plans to reduce operating losses while supporting the satellite fleet will be watched.