BlackSky Technology Inc. (NYSE:BKSY) Q4 2022 Earnings Call Transcript

Scott Deuschle: Okay, great. And then, the last question for Henry. Maybe just kind of wanted to get your sense for how you approach guidance in general, now that you’ve been public for, I guess, over a year now? It just seems like there’s oftentimes three kinds of guidance you get from companies. One — in one case, it can be an aspirational plan, for some other companies, it can be an operational plan, and for other companies, it’s more of a promise, not an actual promise, but it’s something that they hope shareholders can heavily rely on. I guess, I’d just be curious as you think about guidance this year and going forward as a public company CFO, kind of which of those do you think you align toward?

Henry Dubois: Well, thanks. I mean, that’s a good question. The way we look at kind of providing guidance is we obviously pull together our budget and get work that with our Board to get it approved prior to the end of the prior year. And as we look at that, that one may be more the — I’m not going to call that one aspiration, but that was a little bit stretch. What we want to provide to the Street are the things that we feel very confident that we will hit. As you know, when we went through this year, this past year, we provided guidance of one set of numbers and then we — in August, we were be able to kind of look at kind of how things are performing and provide an update. And we will continue to always update our guidance as appropriate.

So, we want to look at as this is something that we feel that we can make solid plans against. Obviously, they’re not promises per se, they’re what we’re expecting to do. But unfortunately, there are no guarantees in life, but we’re working to make sure that we’re giving everyone the best information that we get.

Scott Deuschle: Okay, great. Thank you, guys.

Operator: Thank you. Our next question has come from the line of Edison Yu with Deutsche Bank. Please proceed with your question.

Edison Yu: Hey, good morning, guys, and thanks for taking our questions. First on the cap raise, how are you thinking about the cash needs going forward? I know you mentioned the ATM is still there. Do we feel confident about after private placement that this is enough for you? Or do you think there’s still a bit left that we need to put on balance sheet?

Henry Dubois: Edison, this is Henry. Thanks for the question. The way we look at it is we’re very pleased with the PIPE raise that we just completed. We’ve got gross proceeds of about $29.5 million from both long-term investors and institutional investors, all U.S. based. We felt that kind of topping up the tanks a little bit made some sense, because we have the opportunity to. We do have the ATM out there. We have not tapped it at this point, and don’t foresee tapping that in the near future. But what we’re looking at is we’ll always look at our cap table and our capital structure and make sure that we’re appropriately positioned.

Edison Yu: Understood. Higher level question on the industry. Obviously, there’s been quite a few things going on. You have Maxar going private. I think Airbus lost a few very important satellites on the Vega launch. You have updated view on how you see kind of the competitive landscape now. Is it tighter than you would have thought, which is driving some incremental pricing/demand? Just curious on the latest thoughts there.