Spire announces over 200 customers in 3Q results

This week Spire Global announced its third quarter results. The weather, ship-tracking, and aircraft-tracking company has over 200 customers under contract, a 69% percent year-over-year increase.

“Spire performed well during the quarter, as we continued to make solid progress on our fiscal 2021 plan and a number of our strategic initiatives,” said Peter Platzer, Spire’s CEO. “We reached a new record for the number of ARR customers under contract, we signed several new and significant Weather contracts, and we further advanced our technology with the launch of two new optical ISL satellites that will enhance our offering. Additionally, we signed a definitive agreement to acquire exactEarth, a leader in maritime data with a team that has deep domain expertise. We expect the transaction would bring quite meaningful ARR as well as 150 new customers to whom we can offer additional Spire products and services.”

Spire’s revenue was $9.6 million during the quarter ended September 30, 2021, an increase of 33% from last year’s period.  The company had 225 solution customers under contract with annual recurring revenue (ARR) growing 51% year-over-year to $45.2 million.

Business milestones for the quarter included completing its SPAC in August and receiving $237 million in net cash, a definitive agreement to acquire exactEarth, which would add up to 150 new customers and more revenue. ARR growth came across all of Spire’s current solutions for Maritime, Aviation, Weather and Space Services, with the highest growth coming from Weather and Space Services. Spire closed “a number of significant contracts” for its Weather solution, including with EUMETSAT and NOAA. The data will improve Spire’s weather prediction products around the world.

Spire launched two LEMUR satellites with new optical inter-satellite links (communications lasers). The company plans to roll out the technology in its satellites launched starting in 2022 and 2023. Optical intersatellite links will create a mesh-style network for moving data in-orbit, reducing latency to deliver data and providing more security for customers.

The company increased its data product by 66% for weather data, producing over 20,000 GPS-RO profiles per day, more than all the other major satellites of the world combine.

Next quarter, Spire expects revenues to fall between $11.6 million and $13.6 million with non-GAAP gross profit between $6.8 million and $8.8 million. Adjusted EBITDA is expected between negative $13.3 million and negative $10.3 million.

Doug Mohney

Doug Mohney, a principal at Cidera Analytics, has been working and writing about IT and satellite industries for over 20 years. His real world experience including stints at two start-ups, a commercial internet service provider that went public in 1997 for $150 million and a satellite internet broadband company. Follow him on Twitter at DougonTech or contact him at dmohney139 (at) gmail (dot) com.

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