HERNDON, Va. - BlackSky Technology Inc. (NYSE: BKSY), a real-time space-based intelligence company, has announced its plans to conduct an underwritten public offering of its Class A common stock. The offering will include a 30-day option for underwriters to buy an additional 15% of the shares. The completion and terms of the offering are subject to market conditions, and there is no certainty regarding the finalization or the specifics of the deal.
Joint book-running managers for the offering are Oppenheimer & Co. and Lake Street Capital Markets. BlackSky's securities are registered with a shelf registration statement that became effective on December 15, 2022. The offering is to be made through a prospectus and a prospectus supplement filed with the Securities and Exchange Commission (SEC) and available on the SEC's website.
BlackSky specializes in providing imagery, analytics, and monitoring services through its advanced satellite constellation and analytics software platform. The company serves various U.S. and international government agencies, commercial enterprises, and organizations, offering insights for strategic advantage.
This press release contains forward-looking statements which involve risks and uncertainties. These statements are based on current expectations and assumptions, and actual events could differ materially due to numerous factors, including stock market conditions and the company's ability to complete the offering.
The information for this article is based on a press release statement from BlackSky Technology Inc.
In other recent news, BlackSky Technology Inc. has experienced significant developments. The company has secured a multi-year contract with NASA, potentially worth up to $476 million, to provide high-revisit satellite imaging data. BlackSky also reported a 29% year-over-year revenue growth in the second quarter of 2024, totaling $24.9 million, primarily due to strong demand for its space-based intelligence solutions. Additionally, the company has secured $40 million in new contracts and extensions, contributing to a positive adjusted EBITDA for the third consecutive quarter.
H.C. Wainwright recently raised its price target for BlackSky's stock from $2.50 to $15.00, maintaining a Buy rating. The firm sees these contract wins and the upcoming launch of BlackSky's higher resolution Gen-3 satellites as supportive of its revenue growth forecast of 25.4% for the company by 2025. Lake Street Capital Markets also maintained a positive stance on BlackSky, reiterating its Buy rating, despite a slight miss in revenue for the quarter.
BlackSky's Board of Directors has approved a 1-for-8 reverse stock split of its Class A common stock. The company was also awarded the 2024 Novaspace Leading Earth Observation Business Award, recognizing its advancements in delivering real-time, space-based intelligence. These are the recent developments for BlackSky.
InvestingPro Insights
As BlackSky Technology Inc. (NYSE: BKSY) prepares for its public offering of Class A common stock, investors are closely monitoring the company's financial health and market performance. According to recent data from InvestingPro, BlackSky has a market capitalization of approximately $93.23 million, reflecting the company's current valuation in the eyes of investors.
One of the standout InvestingPro Data metrics is the company's impressive gross profit margin, which sits at a robust 69.14% for the last twelve months as of Q2 2024. This indicates that BlackSky maintains a strong ability to control costs relative to its revenue, a positive signal for potential investors considering the upcoming stock offering. However, the company's operating income margin is reported to be -41.66%, suggesting challenges in translating gross profits into operating earnings.
InvestingPro Tips reveal that BlackSky is quickly burning through cash and analysts do not expect the company to be profitable this year. These insights, taken from a pool of 15 additional tips available on InvestingPro, could be crucial for investors weighing the risks associated with the company's future cash flows and earnings potential.
Furthermore, the stock has experienced high price volatility and has fared poorly over the last month, with a 1-month price total return of -48.66%. This level of volatility and recent performance may influence investor sentiment around the timing and pricing of the public offering. Nonetheless, BlackSky's liquid assets exceed its short-term obligations, providing some reassurance regarding the company's ability to meet its immediate financial commitments.
For those seeking a deeper dive into BlackSky's financials and stock performance, additional InvestingPro Tips are available, offering nuanced insights into the company's valuation multiples, historical price trends, and analysts' fair value assessments.
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