Planet Labs PBC (NYSE:PL) Q3 2024 Earnings Call Transcript

So you can query (ph) getting us closer to the vision that I had launched in TED (ph) Talk in 2018, six years ago — five or six years ago, which spoke about this queryable (ph) Earth and that’s a bit of an ultimate vision here, that any commercial client could ask any question of the data, just like you can now ask questions about text of the internet with ChatGPT 4, that queryable vision is becoming closer to reality with these large language models, and we’re really seeing that tick up. You’ll note that a number of big companies, from Microsoft to Google to others, are releasing these multimodal large language models, which is a step from them treating just text on the internet to also treating images and videos and audio track and that plays to our strength enormously because we have this massive proprietary archive of imagery data.

So as those models get better at dealing with the imagery and understanding the context in those images, the faster we can leverage that to then provide answers to commercial clients who don’t have, big geospatial expertise. So we really — again, believe overall in the long term, in the commercial market, it’s a huge opportunity to go after.

Edison Yu: Got it. And just one last one for me, housekeeping, can you tell us or remind us what is the contribution from Sinergise in the full year number at this point?

Ashley Fieglein Johnson: I think last quarter we said we expected it to be somewhere between $4 million and $6 million on the year and I think we’re in line with that expectation. It’s small enough that we aren’t breaking it out, but generally, it’s performing in line with our expectations.

Operator: Thank you. Our next question comes from Jeff Van Rhee with Craig-Hallum. Please proceed.

Jeff Van Rhee: Great, thanks. Just a couple remaining here, on the sales changes, any measurable evidence you can share with respect to the sales changes working either, concrete improvements in cycles or other measurable. I know you’re focusing on the big deals, automation, and making it easier to work with you, but any — even if they’re green shoots, any concrete evidence that the changes are having positive impact?

Will Marshall: Ashley, do you want to speak to that?

Ashley Fieglein Johnson: Yeah. I’d say, first of all, obviously it’s still early days. I’d say, the good news is, we’ve seen a lot of those metrics really stabilize. We’re not seeing sales cycles go longer than what we talked about before, and obviously, we’re focused on now bringing them in shorter. Similarly, I talked about the fact that deal sizes have generally stabilized and as we lean into the larger deal opportunities, we would expect those to expand as well. So we’re looking at the same types of metrics that you would expect us to be focused on making sure that we close the business that’s in front of us, shorten the sales cycles going forward, and as Will said, really make sure we drive that time to value for the customers so that we continue to land and expand so that’s where we’re focused. We’re in a transition, But we feel really good about what we’ve implemented so far and the early results we’re seeing.

Jeff Van Rhee: Okay. And then one brief one on Sinergise, I know you just touched on the four to six for the year, just curious if you’d expand or there is any other color to provide there, any behavioral clues that have been provided by the existing Sinergise base the way they’ve reacted thus far, any other indications of either upside or downside to what you thought you bought there.

Will Marshall: Overall, we feel very positive about the acquisition and how that team is performing. We do see a lot of opportunities coming in related to the tools that they have there. A lot of it’s things like automating the onboarding of those new capabilities so that we can scale to more actors with any given solution, so that’s goodness. As far as I’m concerned, because that means there is the demand and pull.

Ashley Fieglein Johnson: Yeah. I’d say that, very pleased so far. Obviously, it’s an incredible talent pool and a great platform. We’ve moved very quickly on the integration side to enable our customers to leverage those tools and their customers to access Planet data through the platform and now we’re continuing that integration process to create a more seamless experience across the user base and to really push the new capabilities through our sales teams.

Jeff Van Rhee: Okay. Fair enough. Thank you.

Ashley Fieglein Johnson: Thanks, Jeff.

Operator: Our last question for today comes from Chris Quilty with Quilty Space. Please proceed.

Chris Quilty: Thank you. I just wanted to follow up just a little bit on the Pelican, congrats on that initial launch, and obviously beyond the normal, first light and calibration of the satellite, you’ve also got a different element to it — which is the altitude and altitude maintenance. Do you have an idea of how long you expect to go through validation before you can sort of make the decision to pull the trigger on the bigger commitment to the fleet?

Will Marshall: Yeah. I mean it takes normally of order months to fully understand these spacecraft in orbit and we’re feeling very good about where we’re at on that right now as I mentioned earlier. Yeah, and then as you say that helps determine sort of key decision points to then build the rest of the fleet. We are already, by the way, ongoing in building a bunch of those — the exact timing and we then pull in learnings into that as we build that out, so of course, we don’t — of course, send them to launch site before we’ve really understood how that first one is working so — but that construction process is already ongoing for the next set, the first block one, as we call it spacecraft set. Overall, I feel very good about the pace of that program right now.

Chris Quilty: Got it. Sorry, I think I have a little [Technical Difficulty] problem. Are you still taking in new customers on the early access program and have you seen any growth in that pipeline?