Planet Labs Stock Soars Higher After Surprise Q1 Profit - Retail Expects Further Gains

Planet Labs (PL) stock gained 14% in extended trading on Wednesday after the company posted a surprise profit in the first quarter.

The satellite imagery provider posted adjusted net income of $1.2 million, while analysts were expecting it to post a loss of $3 million, according to Bloomberg data.

The company's first-quarter revenue rose 10% to $66.3 million, topping estimates of $62.3 million.

Planet Labs's first-quarter net loss narrowed to $12.6 million from a loss of $29.3 million a year earlier.

It also generated positive free cash flow for the first time during the quarter. The company ended the quarter with $226.1 million in cash, cash equivalents, and short-terminvestments.

On a conference call with analysts, Planet Labs CEO Will Marshall said interest is growing in the company's offerings for the defense sector on both sides of the Atlantic. 

He noted that European awareness about the importance of Planet Labs' data has increased significantly following the beginning of the Ukraine War.

During the first quarter, the company received an eight-figure contract from a European defense & intelligence customer for its PlanetScope and Maritime Domain Awareness (MDA) products.

For the fiscal second quarter, the company expects revenue to be in the range of approximately $65 million to $67 million.

The company also raised the lower end of its annual revenue forecast, with the new range at $265 million-$280 million.

Retail sentiment on Stocktwits was in the 'extremely bullish' (91/100) territory, while retail chatter was 'extremely high.'

One retail trader said it is difficult to find companies that are raising their forecasts amid the current market conditions.

“Hopefully gets some nice upgrades tomorrow,” another trader said.

Planet Labs stock has more than doubled this year.

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