Planet Labs PBC (NYSE:PL), a leading provider of daily data and insights about Earth, stock rose 14.76% (As on September 5, 11:35:02 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 22. Percent of Recurring Annual Contract Value (ACV) for the second quarter was 93%. End of Period (EoP) Customer Count increased 17% year-over-year to 855 customers. Net dollar retention rate for the quarter was 125%, while net dollar retention rate with winbacks was 127%. Second quarter gross margin expanded to 48%, compared to 35% in the second quarter of fiscal year 2022. Second quarter Non-GAAP Gross Margin⁽¹⁾ expanded to 52%, compared to 36% in the second quarter of fiscal year 2022. Ended the quarter with $458 million in cash, cash equivalents and short-term investments.

PL in the third quarter of FY 22 has reported the adjusted earnings per share of -7 cents, beating the analysts’ estimates for the adjusted earnings per share of -14 cents. The company had reported the adjusted revenue growth of 59 percent to $48.5 million in the third quarter of FY 22, beating the analysts’ estimates for revenue of $42.4 million.

For the third quarter of fiscal year 2023, Planet expects revenue to be in the range of approximately $45 million to $48 million, representing approximately 47% year-over-year growth at the midpoint. Non-GAAP Gross Margin is expected to be between approximately 47% to 49%. Adjusted EBITDA is expected to be between approximately ($22) million and ($20) million. Capital Expenditure as a Percentage of Revenue is expected to be between approximately 16% and 19% of revenue for the third quarter.

For fiscal year 2023, Planet has increased its revenue outlook and expects it to be in the range of approximately $182 million to $190 million, representing approximately 42% growth at the midpoint. Non-GAAP Gross Margin is expected to be between approximately 49% to 51%. Adjusted EBITDA is expected to be between approximately ($68) million and ($60) million. Capital Expenditure as a Percentage of Revenue is expected to be between approximately 13% to 15% for the full fiscal year 2023.

On the other hand, Planet announced that it is supporting NASA’s Communication Services Project, or “CSP”, alongside two partners, SES Government Solutions and Telesat Government Solutions, to demonstrate real-time space-to-space connectivity solutions from Planet’s LEO satellites to other in-space communication satellites operated by SES and Telesat. Planet will work to demonstrate its state-of-the art communication technology stack involving real-time satellite connectivity for NASA’s CSP, with the goal of further building its relationship with the agency and accelerating the deployment of low latency solutions for Planet customers.