Planet Labs expands deal with onX for outdoor app data

Published 03/04/2025, 14:10
Planet Labs expands deal with onX for outdoor app data

SAN FRANCISCO - Planet Labs PBC (NYSE: PL), a prominent provider of daily Earth data, has expanded its collaboration with digital navigation leader onX to enhance the latter’s suite of outdoor recreation apps. This multi-year agreement will provide onX with access to near-daily satellite imagery from Planet, enriching the user experience for onX’s diverse applications, which include onX Hunt, onX Offroad, onX Backcountry, and onX Fish.

The partnership, which builds on an initial integration in 2023, has allowed onX to develop its ’Recent Imagery’ feature, offering app users updated satellite views of recreational landscapes every two weeks. This feature overlays Planet’s bi-weekly mosaic data on onX’s topographical models, giving adventurers a current view of the terrain.

Brian Riordan, onX Senior Director of Geospatial, highlighted the benefits of integrating Planet’s high-cadence satellite imagery. The imagery enables onX users to make informed decisions by providing current ground conditions, such as snow cover or the aftermath of natural disasters like wildfires.

Planet operates a vast satellite fleet that captures frequent images of Earth’s landmass, offering detailed data to help outdoor enthusiasts safely plan their activities. According to Riordan, Planet’s imagery offers twice the detail compared to other sources, aiding users in responsible and informed outdoor exploration.

The outdoor recreation industry is a significant economic contributor in the United States, boasting $887 billion in annual consumer spending, supporting 7.6 million jobs, and generating substantial tax revenue. Collaborations like the one between onX and Planet are seen as instrumental in promoting responsible recreation and supporting this robust market.

Founded by former NASA scientists in 2010, Planet is a public benefit corporation that provides critical data and geospatial solutions to a wide range of clients, including key sectors such as agriculture, forestry, and government agencies. With the goal of imaging the world daily to track changes, Planet continues to serve as a valuable resource for actionable insights. Based on InvestingPro analysis, which offers 10+ additional exclusive insights about the company, Planet Labs maintains a strong balance sheet with more cash than debt, positioning it well for future growth. This news is based on a press release statement from Planet.

In other recent news, Planet Labs reported mixed financial results for the fourth quarter of fiscal year 2025. The company achieved an adjusted EBITDA of $2.4 million, surpassing the consensus of $1.4 million, and a non-GAAP gross margin of 64.7%, higher than the anticipated 63.5%. However, revenue guidance for fiscal year 2026 fell short of expectations, with projections between $260 million and $280 million, slightly below the consensus of $276.3 million. Additionally, Planet Labs secured a significant contract with the European Space Agency, representing the Hellenic Ministry of Digital Governance, to provide satellite data for Greece’s national satellite data program. The deal is expected to enhance Greece’s satellite technology development.

Benchmark analysts maintained a Buy rating on Planet Labs with a $7.00 price target, noting the transformative impact of a $230 million agreement with JSAT. This agreement involves selling satellite hardware and is anticipated to reduce cash burn by half in fiscal year 2026. Cantor Fitzgerald also upheld an Overweight rating with a $6.30 target, citing potential sales and margin improvements from the JSAT deal. JMP Securities maintained a Market Outperform rating with a $6.50 price target, highlighting a 179% growth in Planet Labs’ Remaining Performance Obligations.

Despite these developments, Planet Labs missed Q1 2025 earnings per share and revenue forecasts, reporting an EPS of -$0.08 and revenue of $61.55 million, both below expectations. The company continues to focus on expanding its satellite services and leveraging AI to enhance its data offerings.

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