Spire Global, Inc. Q4 FY2024 earnings call

• Strong demand for Spire’s products and technology solutions, driven by extreme weather events and global security concerns. • Opportunities in weather and climate with government data purchases shifting to commercial services; AI-driven weather models introduced. • Growth in space reconnaissance with new business wins like the Canadian Space Agency contract and establishment of a dedicated business unit. • Focus on efficiency, productivity, and standardization with a program management office enhancing governance and collaboration. • Leadership changes with Ali Engel joining as permanent CFO.

For fiscal year 2024, GAAP revenue was $110.5 million, increasing 13% year-over-year, driven by increased annual reoccurring revenue and space services contracts. ARR at quarter end was $112.2 million, up 5% year-over-year. The weather and climate segment benefits from demand due to extreme weather events, with opportunities in government data purchases. The space reconnaissance segment is growing with new business wins and a dedicated unit.

• First quarter 2025 revenue expected to range between $22 million to $24 million. • Full year 2025 revenue excluding maritime expected to grow 12% to 17%, with larger growth in the second half. • 2026 expected to have ~20% revenue growth excluding maritime. • Q1 2025 ending ARR expected between $128 million and $130 million. • Q1 non-GAAP operating loss range: negative $11 million to negative $13 million; adjusted EBITDA range: negative $7.5 million to negative $9.5 million.

• Uncertainty in timing of maritime transaction closing impacting revenue and expenses. • Impact of legal, accounting, and financial advisor fees in the first quarter due to restatement and maritime transaction. • Uncertainties in government budget timelines affecting revenue from space services contracts.

Q: To what degree should we expect revenue growth being in the second half to do with the continuing resolution and government's inability to issue new program start contracts until a final budget is put into place?

A: Growth in the second half is due to committed revenue on the books, with a diversified subscription-based model. Revenue flow out from existing contracts and new satellite launches triggering space services revenue.

Q: Can you give more color on the level of confidence in the maritime sale closing in the next two to four weeks?

A: Regular interaction with the buyer, with ongoing work on transition services agreement. Court date on May 28th, with both legal and transaction timelines approaching.

Q: How should we think about free cash flow looking forward?

A: First quarter has extra expenses due to restatement and funding, but normal flow and progression towards free cash flow positive expected once transaction closes, leveraging diversified solutions and leveraged infrastructure.