Planet Labs PBC (NYSE:PL) Q1 2024 Earnings Call Transcript

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Ashley Fieglein Johnson: Great. Yes. So, I think what’s important is, again, I will have a positive signal in terms of the market and the demand. And so as Will referenced, there are areas where we will continue to invest and obviously having the feet on the street in those places where we have the pipeline and need to make sure we have the teams to go close it. And similarly behind those products where we are feeling a lot of pull from the market is still and want to make sure that we putting appropriate would behind those arrows. But part of this also is just making sure that we’re being very focused and that’s how we make these investments, we’ve done a lot of investing over the last 18 months and now is the time to make sure that we’re being efficient and focus on the path to profitability.

Mike Latimore: Got it. And then just on the pipeline. Sounds like that was very strong in the quarter and you referenced the thing five, eight-figure deals. Are there any commonalities among those deals in terms of new logos or expansions or commercial versus government and then how does the sort of seven-figure pipeline during the quarter?

Will Marshall: What was the last week?

Ashley Fieglein Johnson: Seven-figured. [indiscernible]

Will Marshall: Yes. Well, firstly, I mean we’ve never seen pipeline generation quite like this last quarter and we really scrutinize and only have to put qualified deals into our plan. And to have those five eight-figure deals is just again we’ve — noticed anything like that. Most of that isn’t government space, but there is a healthy mix has been civil government and defense and intelligence. So, it’s quite a variety of applications and what we’re seeing drive this as we hinted out on a little bit on the call prepared remarks the sustainability regulations are driving big deals and then there’s also AI which is — it’s really an accelerant and a catalyst. So, we’re seeing this pretty strong momentum of these seven and eight-figure deals and you’ve heard some of the wins that I spoke about. So, yeah, but off-the-charts pipeline generation, which is why it’s a little bit of a mixed signal when we’re talking about the — reducing the revenue growth rate.

Mike Latimore: Yes. Okay, thanks.

Ashley Fieglein Johnson: Okay. Thank you.

Operator: Thank you, Mr. Latimore. Our next question is from Jeff Van Rhee with Craig-Hallum. You may proceed.

Jeff Van Rhee: Great. Thanks for taking my questions. Couple, first just walk me through the sales. I guess just the sales and usage environment and how it evolved, particularly when this weakness started to really manifest itself just a little more precision on when and what you saw.

Ashley Fieglein Johnson: Yes. I’d say, in general, we always expect backend loading on a quarter for closing deals, we have the pipeline coming in. We had a lot of commit that we expected to convert. As we reached the final weeks of the quarter and things pushed into early Q2, it still felt like we were on track as Will referenced, we had a really nice eight-figure deal close in May, we had a couple of other wins that came over the goal line right in the final weeks early in May. So, the signal remained relatively strong. But there were — as I mentioned, one where we got the award still working to get the ink on the paper, Will referenced the eight-figure deal where because of budget constraints on the part of the customer, they actually went up uptick their usage until much later in the year, which from our revenue recognition perspective, we’ve got this multiyear committed dollar amount when we actually start to report that revenue is going to be later than what we anticipated.

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