1/2/2023 - Written By Caleb Henry
An example of what happens when deSPAC’d companies lead off with inflated growth projections they had slim chances of hitting – Satellogic now expects less than 20% of the revenue for 2022 that it anticipated a year ago. Instead of $47 million for fiscal 2022, Satellogic is now headed towards $6-8 million for the year. As a result, Satellogic plans to shed 18% of its workforce, delay indefinitely construction of a Netherlands satellite factory, and scale back launches to a maximum of 21 satellites in 2023. Satellogic is far from the only company to promote unrealistic growth ahead of a SPAC IPO (BlackSky lowered its forecast in February 2022, as did Spire in July 2021). One silver lining from Satellogic’s business update is its win of a three-year contract with the government of Albania, worth $6 million a year for priority access to two satellites. That puts Satellogic in a strong position to at minimum double its resume in 2023.
SOURCE: https://spacenews.com/revenue-shortfall-causes-layoffs-and-delays-at-satellogic/