BlackSky Technology Inc. (NYSE:BKSY) Q2 2023 Earnings Call Transcript

Brian O’Toole : I think the way to look at it, Griffin is, initially these Gen-3 satellites will replace existing capacity. So, you’ll see continued revenue growth as we’ve been experiencing in the last couple years. So that’ll continue. As we reach a certain level of Gen-3 capacity over the coming years, you will begin to see a step function related to certain contracts.

Griffin Boss : Okay. Understood. Thanks for the color there. And then, I wanted to jump back to the previous question on SPIRE and get clarification. What’s the go-to-market strategy with this? Is this an add-on feature to the Spectra platform or sold as a separate service from both you and SPIRE?

Brian O’Toole : It’s an add-on feature to the Spectra platform and it’s a capability that we’re bringing to our existing and targeted customers.

Griffin Boss : Great. Okay. Thanks for taking my questions. Appreciate it.

Brian O’Toole : Thank you.

Operator: And our next question comes from the line of Caleb Henry. Quilty Space. Please proceed with your question.

Caleb Henry: Hey guys. Couple questions. I also want to kind of revisit the topic of the Gen-3. The wording on the Rocket Lab deal, it sounds like not all of the launches are for Gen-3. Just wondering if you could clarify if that means you guys have decided to launch some Gen-2s there or even continue production of Gen-2, before moving up?

Brian O’Toole : Well, the general aspect of the deal is that, with Rocket Labs as we can deploy capacity in different types of satellites where and when we want to. The primary – primarily, those launches are for Gen-3 capability.

Caleb Henry: Okay. And then, just a question about the current solar context. There’s been a lot of solar weather that’s been impacting constellation operators. We’ve seen this with the SkySats and others is that having an impact on your current fleet operations, as well as you’re planning for a Gen-3. Just to be in an environment where atmosphere has kind of been inflated and it’s having an impact on spacecraft lifetimes and lower earth orbit.

Brian O’Toole : Let me just start with, our constellation is healthy and performing as expected. We designed our satellites to deal with that type of environment in space. And we’ve reached a point where we’ve incrementally deployed this constellation over the course of last couple years and have deployed significant amount of capacity to meet our growth objectives. And we’re now entering a point in time where some of those satellites are reaching end of life. So you’ll start seeing us replace those. It has really reflected in the contract we designed with Rocket Lab and the progress we made on Gen-3.

Caleb Henry: Okay. And then, can you talk about the imaging capacity that you expect the Gen-3 will have. I understand that they’re slightly bigger satellites, but typically a higher resolution, sometimes high resolution comes at the expense of surface area that can be covered. And so just wonder if you can share some color on that.

Brian O’Toole : The satellites will have volumetric capacity similar to our Gen-2 satellites. But as you mentioned, they will have increased resolution up to 35 centimeters and also will include a shortwave IR capability.

Caleb Henry: Okay, and then just the last question, a quick one LeoStella had announced a new larger bus the other day I think for the Small Sat Conference in Utah. Is that what BlackSky plans to use for Gen-3?

Brian O’Toole : Gen-3 is utilizing a different technology. But I think what you’re seeing with LeoStella is – as a strategic investor and JV partner in that company, that type of progress in there and their bus technology over time is something we can take advantage of as part of our business.