Planet

Planet Labs PBC

Investment Thesis

Planet is a pioneering Earth observation company operating the world's largest fleet of satellites, providing high-frequency, high-resolution imagery and crucial analytics via its web-geo platform. The company demonstrates robust financial health, reporting $81.3 million in revenue for Q3 Fiscal Year 2026 and maintaining significant backlog and cash reserves ^[1]. A significant inflection point is the $230 million commercial agreement for Pelican satellites with an Asia-Pacific partner, which extends over seven years and signifies a strategic shift into dedicated satellite services, validating Planet's technological prowess and market demand for bespoke solutions ^[2]^[3]. This positions Planet to capitalize on the growing need for actionable geospatial intelligence across diverse sectors, including defense, intelligence, and sustainability, backed by a recurring revenue model of 97% ACV ^[2].

Key Differentiators

• Operates the world's largest Earth-imaging satellite fleet, offering unmatched near-daily global coverage and high revisit rates with its SuperDove, OWL, and Pelican constellations ^[2].
• Advanced satellite technology featuring next-generation Pelican satellites with 40 cm resolution and onboard NVIDIA Jetson AI for edge computing, enabling rapid data processing and insights ^[2]^[3].
• Strong recurring revenue model, with 97% of Annual Contract Value (ACV) being recurring in Q3 FY2026, supported by a substantial backlog of $734 million ^[2].
• Strategic pivot into dedicated satellite services with a landmark $230 million contract for Pelican satellites, diversifying revenue streams beyond imagery provision and validating demand for bespoke space systems ^[1]^[2].

Risk Factors

• Reliance on launch providers like Rocket Lab for satellite deployment introduces scheduling, success, and cost risks, as demonstrated by historical launch anomalies ^[2].
• Execution risk associated with the development and deployment of next-generation constellations like Pelican and OWL, and ensuring their technological capabilities meet market expectations.
• Geopolitical sensitivities and export controls associated with serving a diverse international customer base, particularly for commercial agreements with government implications ^[1]^[2].
• Competition from established players and emerging satellite constellations vying for market share in the rapidly evolving Earth observation and geospatial analytics sector.

Rocket Lab Relationship

Planet represents a crucial, high-value customer for Rocket Lab, validating its end-to-end space capabilities. Their manifest includes three past Electron launches, one of which was successful, demonstrating repeat engagement despite an anomaly. Planet's demonstrated need for launch services for its commercial satellites, and particularly for its next-generation Pelican and Tanager systems, points to significant repeat business potential for Rocket Lab's Electron and future Neutron launch vehicles. These missions are commercial in nature, focused on Earth observation and advanced analytics, often serving government and defense interests. Planet's consistent demand supports Rocket Lab's launch segment revenue, showcases its ability to reliably deliver satellites for complex commercial constellations, and reinforces Rocket Lab's market position as a prime provider for dedicated Earth observation and intelligence missions.