Planet Labs expands Wales government contract for satellite monitoring

Published 03/06/2025, 14:14
Planet Labs expands Wales government contract for satellite monitoring

SAN FRANCISCO - Planet Labs PBC (NYSE: PL), a provider of daily Earth data and insights with a market capitalization of $1.15 billion, announced today an expansion of its contract with the Welsh Government, enhancing their capabilities for monitoring agriculture, water, land use, and emergency response. This deal allows the Welsh Government to utilize Planet’s high-resolution SkySat tasking, near-daily global satellite imagery from PlanetScope, and the analysis-ready Planet Fusion data. According to InvestingPro data, the company maintains impressive gross profit margins of 57.65% and holds more cash than debt on its balance sheet, indicating strong operational efficiency.

The collaboration, which began in 2020, is now evolving from pilot projects to the development of operational systems integrated into routine processes. The Welsh Government is employing satellite data to support various policy areas, including compliance, monitoring, land use, and water quality management. Additionally, they are assessing the economic impacts of landscape changes using Planet’s high-cadence, high-resolution historical imagery. The company has demonstrated solid growth, with revenue increasing by 10.72% over the last twelve months.

Planet’s President and CFO Ashley Johnson expressed excitement about the role of their satellite data in transforming agricultural lands and resource efficiency across Europe. The Welsh Government’s access to Planet’s technology is expected to drive innovative policy outcomes and strengthen evidence-based policymaking for the Wellbeing of Future Generations.

Planet, known for operating the largest fleet of Earth observation satellites, provides critical data and solutions to around 1,000 customers worldwide, including top-tier companies and government agencies in agriculture, forestry, intelligence, education, and finance sectors.

This expanded agreement also extends to all eight universities in Wales, offering campus licenses that contribute to research and future landscape modeling for government policy.

The information for this article is based on a press release statement from Planet Labs.

In other recent news, Planet Labs announced its multi-year contract with EMDYN to supply near-daily global satellite imagery, enhancing EMDYN’s capabilities in intelligence-led solutions and security services. The financial terms of this contract have not been disclosed. Additionally, Planet Labs has expanded its collaboration with onX to provide enhanced satellite imagery for outdoor recreation apps, benefiting users with more current terrain views. In terms of board developments, Planet Labs nominated Gary B. Smith, CEO of Ciena, to join its board as a Class I director.

On the financial front, Goldman Sachs downgraded Planet Labs’ stock from "Buy" to "Neutral," reducing the price target from $6.00 to $3.50 due to concerns over the company’s ability to achieve profitability amidst challenging economic conditions. Conversely, Cantor Fitzgerald maintained an "Overweight" rating on Planet Labs, with a price target of $6.30, citing confidence in the company’s pricing power and potential for high incremental margins. These recent developments reflect a mix of strategic partnerships and contrasting analyst perspectives on Planet Labs’ financial outlook.

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