Full Year 2023 Financial Results Reported by Satellogic
Revenue up 68% to $10.1 million in FY 2023
Financial results for the year ended December 31, 2023, and a business update have been provided by Satellogic.
"As the EO market and macroeconomic environment continue to evolve, we are strategically realigning our business to capture high value opportunities in the U.S."
Emiliano Kargieman, Satellogic
According to the report, revenue for the year ended December 31, 2023, increased 68% to $10.1 million, as compared to revenue of $6.0 million for the year ended December 31, 2022. The increase was driven primarily by Space Systems and Asset Monitoring lines of business. Gross profit, excluding depreciation expense, for the year ended December 31, 2023, totalled $5.0 million, an 84% increase, as compared to $2.7 million for the year ended December 31, 2022.
Gross margin was 50% in the full year 2023, as compared to 45% for the prior year period, due primarily to the year over year increase in revenue.
General and administrative expenses were $23.5 million for the year ended December 31, 2023, as compared to $37.2 million for the year ended December 31, 2022. The decrease was primarily due to cost savings initiatives in 2023, lower professional fees related to elevated merger activity during 2022, and lower insurance and other administrative expenses.
Research & Development expenses decreased to $10.7 million for the year ended December 31, 2023, as compared to $13.1 million for the year ended December 31, 2022. The decrease was driven primarily by a decrease in other research and development expenses and professional fees, as a result of cost control measures implemented in 2023. Additionally, employee related expenses decreased due to lower average headcount in 2023 as compared to 2022.
Net loss for the year ended December 31, 2023, increased to $61.0 million, as compared to a net loss of $36.6 million for the year ended December 31, 2022. The increase was primarily driven by a decrease in the change in fair value of financial instruments.
Non-GAAP Adjusted EBITDA loss for the year ended December 31, 2023, decreased to $44.1 million from an Adjusted EBITDA loss of $56.0 million for the year ended December 31, 2022, primarily due to an increase in revenue, as well as a decrease in non-merger related costs and expenses and as a result of cost control measures implemented in 2023.
Cash was $23.5 million at December 31, 2023, as compared to $76.5 million at December 31, 2022. Net cash used in operating activities decreased to $49.6 million for the year ended December 31, 2023, as compared to $68.5 million for the year ended December 31, 2022, primarily due to a reduction in headcount, research and development expenses, and professional fees.
"As the EO market and macroeconomic environment continue to evolve, we are strategically realigning our business to capture high value opportunities in the U.S. With our focus on the U.S., we have taken two important steps," said Satellogic CEO, Emiliano Kargieman. "First, we commenced the process of redomiciling to Delaware from the British Virgin Islands, with an aim to complete the conversion in the first half of 2024. As a result, once this process is complete, we will report results on a quarterly basis consistent with being a domestic filer. Second, in late 2023, we were granted approval for a remote sensing license for our constellation with the National Oceanic & Atmospheric Administration (NOAA). The license results in Satellogic being subject to NOAA’s oversight as we pivot operational control of our satellite constellation to U.S. personnel and expand the Satellogic ground station network to include U.S. based ground stations. These actions are crucial in terms of satisfying requirements for expanding business in the U.S. market and better positioning us to compete for U.S. government and allied contracts. With these two steps, we anticipate targeting new U.S. government contract opportunities in 2024, in addition to our current pipeline of international government and commercial opportunities.