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On Wednesday, Spire (NYSE:SR) Global, Inc. (NYSE: SPIR) faced a downgrade from Outperform to Market Perform by Raymond James following recent revelations that the company will have to restate historical financials. The need for restatement stems from a review of the accounting policies related to the timing of booking Space Services business.
The announcement, made on Tuesday afternoon, indicated that the restatements could significantly impact Spire Global's financials, with an expected $10-15 million reduction in annual reported revenue, which translates to approximately 8-12% of the total.
The implications for the company's EBITDA are currently uncertain, but the restatements have the potential to substantially affect the previously issued guidance for 2024, which was in the range of approximately $7-15 million.
Adding to the company's challenges, the New York Stock Exchange (NYSE) has notified Spire Global that it is not meeting listing standards. The company has been given a deadline of February 19, 2025, to file its second-quarter report for 2024 (2Q24 10-Q) in order to maintain its listing on the NYSE.
The analyst from Raymond James expressed concerns about the potential for Spire Global's shares to perform well, given the lack of accurate financial information currently available to investors. This situation is expected to continue to weigh on the company's stock performance in the interim.
In other recent news, Spire Global, a provider of space-based data and analytics, has announced a delay in filing its second-quarter financial report for the period ending June 30, 2024. The delay is due to the company's need for additional time to finalize its financial statements, prompting a rescheduling of its second-quarter 2024 results conference call. The company has committed to filing its Quarterly Report on Form 10-Q as soon as practicable, although a specific timeline has not been provided.
In another major development, Spire Global is set to join the Russell 3000 Index starting in July, marking a significant milestone for the company. This inclusion is an affirmation of Spire Global's growth trajectory and commitment to shareholder value. The Russell 3000 Index, managed by FTSE Russell, represents approximately 98% of the U.S. equity market.
For the first quarter of 2024, Spire Global reported a 6% year-over-year increase in revenue, reaching $25.7 million. Despite certain challenges, the company anticipates a robust rebound in the second quarter with revenues projected between $29 million and $33 million.
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