Record Q1 Revenue, up 91% Compared to Prior Year Period
Imagery and Software Analytical Services Revenue Grew to 70% of Total Revenue

Herndon, VA – May 11, 2022 – BlackSky Technology Inc. (“BlackSky” or the “Company”) (NYSE: BKSY), a leading provider of real-time geospatial intelligence and global monitoring, today announced its results for the first quarter ended March 31, 2022.

First Quarter Financial Highlights:
Record revenue of $13.9 million, up 91% from prior year period
Imagery & software analytical services revenue improves 63% over prior year's quarter
Net loss of $20.0 million
Adjusted EBITDA (1) loss of $9.5 million
Cash balance at the end of March 2022 was $138.4 million
Capital expenditures of $13.4 million

(1) Non-GAAP financial measure. See “Non-GAAP Financial Measures” below and reconciliation table at the end of this release.

“Increased customer demand worldwide for our imagery and analytic solutions drove record quarterly revenue for BlackSky with first quarter revenue growth of 91% versus the prior year,” said Brian E. O’Toole, Chief Executive Officer. “We're seeing stronger demand from U.S. and International governments for the critical intelligence and insights BlackSky provides. It is clear the world needs BlackSky's unique capabilities now more than ever. The current crisis in Ukraine has underscored the vital importance of real-time Earth intelligence for military, commercial, and humanitarian applications. To address growing demand, we're expanding our direct sales team and reseller network. We are seeing immediate payback in these investments with multiple new contract wins in the first quarter. Our satellite operations team continued to execute successfully launching two additional satellites last month, bringing our total constellation to 14. We are very proud that these satellites achieved commercial operations within 12 hours of launch. Overall, we are pleased with the strong start to the year and are excited to carry this momentum forward throughout the year.”

Financial Results

Total revenue for the first quarter of 2022 was $13.9 million, up $6.6 million or 91% from the first quarter of 2021. Imagery and software analytical services revenue was $9.8 million primarily driven by increased demand from new and existing government contracts and represented approximately 70% of total revenues. Also contributing to the increase in total revenues was engineering and systems integration revenue of $4.1 million primarily driven by an increase in the percentage completion of certain contracts.

Gross Margin
Gross margin for the first quarter of 2022 was 21.2% compared to 24.5% in the prior year period. The decrease was primarily from higher engineering and systems integration expenses largely attributable to non-recurring design costs and material procurement costs, partially offset by strong imagery and software analytical service margin of approximately 40%.

Operating Expenses
Operating expenses for the first quarter of 2022 were $30.1 million, which included $9.3 million of non-cash stock-based compensation expense. Excluding stock-based compensation expense of $9.3 million in the first quarter of 2022 and $0.5 million in the first quarter of 2021, year-over-year operating expenses increased $10.0 million. The increase was primarily due to higher depreciation expense driven by the six additional satellites placed into orbit in the fourth quarter of 2021, investments in sales, software, and engineering hires, and public company operating costs.

Operating Loss
Operating loss for the first quarter of 2022 was $27.1 million compared to an operating loss of $9.5 million in the first quarter of 2021. The year-over-year increase in operating loss was primarily due to higher operating expenses as stated above, partially offset by an increase in gross profit.

Adjusted EBITDA (1)
Adjusted EBITDA loss for the first quarter of 2022 was $9.5 million compared to an adjusted EBITDA loss of $6.2 million in the prior year period. The year-over-year decline was primarily due to investments in sales, software, and engineering hires, as well as public company operating costs.

Balance Sheet & Capital Expenditures
As of March 31, 2022, cash and cash equivalents totaled $138.4 million. Capital expenditures for the first quarter of 2022 was $13.4 million.

Recent Business Highlights
Awarded a multi-million-dollar contract from an International government to provide on-demand satellite imagery

Signed additional agreements with a number of International governments and non-governmental organizations (NGOs) to provide real-time imagery and analytics in high demand locations
Received additional task orders for the Economic Indicator Monitoring project with the National Geospatial-Intelligence Agency (NGA)
Experienced increased customer demand and order activity with the National Reconnaissance Office (NRO) to provide intelligence and insights in support of the crisis in Ukraine
Expanded global reseller network by over 25% further strengthening BlackSky's sales distribution channels in the UK, Eastern Europe, Asia, and Central and South America regions
Enhanced the Company's site monitoring product capabilities with new analytics and imaging features to better support our growing customer base
On April 2nd, the Company launched two additional Gen-2 satellites into orbit, bringing the total constellation to 14 satellites. These two satellites successfully began revenue-generating commercial operations within 12 hours of launch.

2022 Outlook
The Company continues to anticipate strong demand for its geospatial intelligence and analytic insights throughout the year. As a result, the Company maintains its full year 2022 revenue expectations of between $58 million and $62 million, which at the mid-point of this range results in a 76% increase over the prior year. The Company continues to expect capital expenditures for the full year 2022 to be between $52 million and $56 million, a decrease compared to 2021 spend as the Company believes capacity from the 14-satellite constellation will be more than sufficient to support increased customer demand.

Investment Community Conference Call
BlackSky will host a conference call and webcast for the investment community this morning at 8:30 AM ET. Senior management will review the results, discuss BlackSky’s business, and answer questions. To access the call, participants should dial 1-877-589-7299 (domestic) or 1-201-689-8778 (international) at least ten minutes prior to the start of the call. To hear a live web simulcast or to listen to the archived webcast following completion of the call, please click here or visit the Company’s investor relations website at and then select “News & Events” to access the link to the webcast. To listen to a replay of the conference call, please dial 1-877-660-6853 or 1-201-612-7415 using access code 13729486. The audio replay will be available from approximately 12:30 PM ET on May 11, 2022, through May 25, 2022.

About BlackSky Technology Inc.
BlackSky is a leading provider of real-time geospatial intelligence. Leveraging its own satellite constellation and harnessing the world’s emerging sensor networks, the Company monitors the activities and locations worldwide that matter most to its customers. BlackSky’s on-demand constellation of proprietary satellites, together with the sensors in its partners’ constellations, are capable of imaging targeted locations on Earth multiple times a day in a variety of conditions. The data collected from BlackSky’s satellites and other sources populates BlackSky’s proprietary data lake and platform. Cutting-edge computer techniques, including machine learning and artificial intelligence, allow BlackSky’s

customers to derive unique and commercially valuable insights, providing them with a first-to-know advantage. BlackSky’s suite of real-time geospatial intelligence products can be integrated into a customer’s system or made available through BlackSky’s Spectra platform using a laptop and internet connection. The Company’s variety of pricing and utilization options enables customers to customize their first-to-know experience. For more information, visit

Non-GAAP Financial Measures
Adjusted EBITDA is defined as net income or loss attributable to BlackSky before interest expense, income taxes, depreciation and amortization, as well as significant non-cash and/or non-recurring expenses as management believes these items are not as useful in evaluating the Company’s core operating performance. These items include, but are not limited to, realized loss on conversion of bridge notes, stock-based compensation expense, unrealized (gain)/loss on certain warrants/shares classified as derivatives, satellite impairment loss, (gain)/loss on debt extinguishment, (gain)/loss from discontinued operations, loss/(gain) on equity method investment, transaction related legal settlements, and transaction costs associated with derivative liabilities.

Adjusted EBITDA is a non-GAAP financial performance measure. It should not be considered in isolation or as an alternative to measures determined in accordance with GAAP. Please refer to the schedule herein and our SEC filings for a reconciliation of these non-GAAP financial performance measures to the most comparable measures reported in accordance with GAAP and for a discussion of the presentation, comparability, and use of such financial performance measures.

Forward-Looking Statements
Certain statements and other information included in this release constitute forward-looking statements under applicable securities laws. Words such as "may", "will", "could", "should", "would", "plan", "potential", "intend", "anticipate", "believe", "estimate", "future", "opportunity", "will likely result", or "expect" and other words, terms, and phrases of similar meaning are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements involve estimates, expectations, projections, goals, forecasts, assumptions, risks, and uncertainties, as well as other statements referring to or including forward-looking information included in this release.

Forward-looking statements are subject to various risks and uncertainties, which could cause actual results to differ materially from the anticipated results or expectations expressed in this release. As a result, although BlackSky's management believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because BlackSky can give no assurance that they will prove to be correct. The risks that could cause actual results to differ materially from current expectations include, but are not limited to, the risk factors and other disclosures about BlackSky and its business included in BlackSky's disclosure materials filed from time to time with the U.S. Securities and Exchange Commission ("SEC"), which are available on the SEC's website at or on BlackSky's Investor Relations website at

The forward-looking statements contained in this release are expressly qualified in their entirety by the foregoing cautionary statements. All such forward-looking statements are based upon data available as of the date of this release or other specified date and speak only as of such date. BlackSky disclaims any intention or obligation to update or revise any forward-looking statements in this release as a result of new information or future events, except as may be required under applicable securities law.

Investor Contact
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Media Contact
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(in thousands)
Three Months Ended March 31,
Imagery & software analytical services$9,772 $5,998 
Engineering & systems integration4,124 1,296 
Total revenue13,896 7,294 
Costs and expenses
Imagery & software analytical service costs, excluding depreciation and amortization5,907 4,379 
Engineering & systems integration costs, excluding depreciation and amortization 5,048 1,130 
Selling, general and administrative22,536 8,478 
Research and development146 28 
Depreciation and amortization7,391 2,764 
Operating loss(27,132)(9,485)
Gain (loss) on derivatives8,140 (14,008)
Income on equity method investment257 196 
Interest expense(1,255)(1,168)
Other income (expense), net(144,091)
Loss before income taxes(19,988)(168,556)
Income tax (expense) benefit— — 
Net loss(19,988)(168,556)
Other comprehensive income— 1,389 
Total comprehensive loss$(19,988)$(167,167)
Basic and diluted loss per share of common stock:
Net loss per share of common stock$(0.17)$(0.70)
Weighted average common shares outstanding - basic and diluted115,479 242,289 

(in thousands, except par value)
March 31,December 31,
Current assets:
Cash and cash equivalents$135,886 $165,586 
Restricted cash2,5182,518
Accounts receivable, net of allowance of $8 and $39, respectively
Prepaid expenses and other current assets5,0446,264
Contract assets2,8651,678
Total current assets151,804178,675
Property and equipment - net67,10270,551
Investment in equity method investees4,2594,002
Intangible assets - net2,3392,480
Satellite procurement work in process51,84640,102
Other assets565 560 
Total assets$287,308 $305,763 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued liabilities$15,530 $10,837 
Amounts payable to equity method investees3,9515,613
Contract liabilities - current9,52811,266
Other current liabilities2,6192,819
Total current liabilities31,62830,535
Liability for estimated contract losses3,6266,054
Long-term contract liabilities3,000568
Derivative liabilities8,78616,925
Long-term debt - net of current portion71,90971,408
Other liabilities1,463653
Total liabilities120,412126,143
Commitments and contingencies (Note 16)
Stockholders’ equity:
Class A common stock, $0.0001 par value-authorized, 300,000 shares; issued, 120,506 and 117,160 shares; outstanding, 117,927 shares and 114,452 shares as of March 31, 2022 and December 31, 2021, respectively.
Additional paid-in capital657,781650,518
Accumulated deficit(490,897)(470,909)
Total stockholders’ equity166,896179,620
Total liabilities and stockholders’ equity$287,308 $305,763 

(in thousands)
Three Months Ended March 31,
Cash flows from operating activities:
Net loss$(19,988)$(168,556)
Depreciation and amortization expense7,391 2,764 
Bad debt expense— 
Stock-based compensation expense10,240 508 
Loss on issuance of Bridge Notes— 96,476 
Issuance costs for derivative liabilities and debt carried at fair value— 47,623 
Amortization of debt discount and issuance costs502 348 
Gain on equity method investment(257)(196)
Loss on disposal of property and equipment— 24 
(Gain) loss on derivatives(8,140)14,008 
Changes in operating assets and liabilities:
Accounts receivable(2,868)(1,651)
Contract assets(1,187)(66)
Prepaid expenses and other current assets1,220 (158)
Other assets(5)96 
Accounts payable and accrued liabilities1,533 (3,753)
Other current liabilities(200)(11)
Contract liabilities - current and long-term694 1,258 
Liability for estimated contract losses(2,428)(171)
Other liabilities811 874 
Net cash used in operating activities(12,676)(10,583)
Cash flows from investing activities:
Purchase of property and equipment(1,926)(17)
Satellite procurement work in process(11,499)(7,502)
Net cash used in investing activities(13,425)(7,519)
Cash flows from financing activities:
Proceeds from issuance of debt— 58,082 
Proceeds from options exercised17 
Proceeds from warrants exercised— 120 
Payments for deferred offering costs— (321)
Payments for debt issuance costs— (91)
Withholding tax payment on vesting of restricted stock awards(3,616)— 
Net cash (used in) provided by financing activities(3,599)57,791 
Net (decrease) increase in cash, cash equivalents, and restricted cash(29,700)39,689 
Cash, cash equivalents, and restricted cash – beginning of year168,104 10,573 
Cash, cash equivalents, and restricted cash – end of period$138,404 $50,262 

(in thousands)
Three Months Ended March 31,
Net loss$(19,988)$(168,556)
Loss on issuance of Bridge Notes, including debt issuance costs expensed for debt carried at fair value— 144,099 
Stock-based compensation expense10,240 508 
(Gain) loss on derivatives(8,140)14,008 
Depreciation and amortization7,391 2,764 
Interest expense1,255 1,168 
Income on equity method investment(257)(196)
Adjusted EBITDA$(9,499)$(6,205)