PlanetLabs with 20% sell-off after disappointing future estimates 📉

Satellite imaging company Planet Labs (PL.US) is under downward pressure today as it missed revenue and profit forecasts for the first quarter of the year. Results for the quarter were slightly better than expectations but that's not what worried analysts.

• The company's revenue rose 31.3% year-on-year to $52.7 million (in line with expectations)
• Loss per share was $0.07 vs. $0.09 forecasts
• The number of customers at the end of the period increased 9% year-on-year to 903.
• Contract value growth (ACV) was 93%

The company estimates Q2 revenue of $53 million to $55 million, against analysts' consensus of $60 million. Forecasts for the fiscal year were also disappointing, with the company estimating $225-$235 million against forecasts of $257 million. Adjusted EBITDA loss for the year is expected to be between $67 million and $58 million.

• For the current second quarter, Planet Labs forecasts revenues of $53 million to $55 million. EBITDA is expected to be between $20 million and $17 million.
• The weak forecasts have reassured analysts that the company is still a long way from generating positive cash flow and full profitability in a niche sector.

A view of flooded Ukrainian towns and villages after the breach of the Novaya Kakhovka dam. The company regularly provides satellite images from the Ukrainian front. However, this has not proved to be a breakthrough in its business to date. Source: PlanetLabsPlanet Labs shares, D1 interval.  The company's shares settled below the 200-session average (SMA200) and failed to continue the positive momentum. Source: xStation5