SPIR

Spire Global

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-$5.96 -83.94%
Continuing the focus on the space / satellite industry, here's an interesting quote from a McKinsey interview with Peter Platzer ($SPIR CEO):

"The capability per kilogram of a satellite has been increasing about tenfold every five years for over two decades. The miniaturization of sensors—along with increases in accuracy, power efficiencies, and processing capabilities—all drive that improvement curve and result in the explosion of use cases for space to solve problems on Earth. It’s similar to how Moore’s Law helped move computer use and deployment from only governments to the commercial sector."
Sales Cycles at $PL and $SPIR
Planet ($PL) is set to report fiscal Q2 (ending July) earnings on Monday (Sept. 12). My investment thesis largely rests on a continuous expansion of the customer base. As such, it will be interesting to see how sales cycles have trended in the quarter.

Q1
$PL reported a shortening of sales cycles in Q1 (ending April):
  • "During Q1, we saw a record number of new deals that were both generated in and closed within the quarter."

When prompted whether this was mostly driven by an urgent need for Ukraine imagery, Will Marshall noted:
  • "I think some of it relates to Ukraine. It’s a little bit hard to parse it out. But, certainly, the Ukraine situation is...pushing demand on the defense and intelligence sector. I will just note out as well that this is now becoming a significant food security crisis and we're tracking that with NGOs and also with our agriculture customers."

Spire Global ($SPIR), a related firm selling a different space dataset (radar-generated), also reported a shortening of its sales cycle in Q1 (ending March):
  • _“We are actually seeing...our sales cycles actually shorten in the near-term.”
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Q2
In Q2, however, $SPIR saw the sales cycle for some larger contracts stretch out:
  • "The macro environment has also lengthened the time from initial conversation to contract signature for a handful of our larger pipeline deals. And given the ever-changing market conditions that businesses are contending with, we're also seeing some of our customers needing to go through additional approval cycles, while others are taking longer to obtain the necessary funding. While the pipeline remains extremely robust and growing, we're carefully watching our cycle-time to close."

Planet's Q2 sales cycle trend should provide some answers as to the extent the start of the Ukraine War fueled customer urgency. If cycles continue to improve, it may also reveal an interesting difference in the target customer base's contract approval process.
Another look at co's trading near/below Cash - more SPACs this time

Did some more screens around this, and the following tickers are registering extremely low Price/Cash from completed SPAC perspective. Any takers out there for these? Write-ups or feedback welcome. All companies at less than 2-1 to cash ratio, some are under.

$LTCH - Fast growing arguably "tech" play at 30%+ under cash. Have read the CEO is a bit off via reviews. Is there a story here?
$NNDM - Additive manufacturing play trading 25%+ under cash. Why?
$SHPW - Similar to above, trading way below cash - seem to be collaborating with Desktop metal. Why the disastrous price - worst on the list? Well under cash.
$BLDE - Obviously a long way for VTOLs to really become a thing, but barely over cash value.
$HLGN - Unique approach to Solar.
$ROIV - Anyone understand this business?
$SPIR - Similar profile to $PL here.
$ASTR - Are reusable rockets going to be a thing? If so, these guys are a top 3 player and trading at cash.
$CURI - I've used the product and like it, although a lot of garbage on there, its value for the price.
$AESE - Cash pile trading at 63 cents on the dollar looking for target. Hit a home run on this last time it was setup similarly a year+ ago. Seen a few of these now. Do we just not trust the mgmt?
$ACHR - Seems like a Rivian-tier player in VTOL space. Can they get across finish line?
$SMFR - They seem to be struggling for a direction without Covid testing growth?
$EVLV - Does the technology here look realistic to take share from metal detectors?
$VLDR - Under cash value, but it's Lidar... seems too competitive.
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