Satellogic lays off 13% of workforce

WASHINGTON — Business imaging firm Satellogic has laid off 13% of its workforce as the corporate continues its efforts to cut back prices and search new enterprise from the U.S. authorities.

In a Might 24 submitting with the U.S. Securities and Alternate Fee, Satellogic introduced it had laid off 34 workers, or about 13% of its workforce on the time. The corporate stated the layoffs had been a part of its “beforehand introduced and ongoing efforts to cut back operational prices and management spending.”

The corporate didn’t elaborate on what positions had been affected and in what international locations. Satellogic said in its annual report to the SEC in April that it had 274 workers worldwide as of the tip of 2023, together with 150 in Argentina and 47 in Uruguay, the place the corporate is headquartered. It had 44 workers in Spain, 21 in america and 12 in different international locations.

The newest layoffs come after earlier workforce reductions that lower about 110 jobs in 2023. These cuts, together with what it known as “moderation of capital expenditures and a discount of sure discretionary spending” in its SEC report, had been supposed to cut back the corporate’s prices and stretch out its out there money.

Satellogic, which operates a constellation of greater than two dozen satellites for accumulating high-resolution and hyperspectral imagery, reported $10.1 million in income in 2023, a 68% enhance from 2022. The corporate reported a internet lack of $61 million in 2023 versus $36.6 million in 2022.

“Whereas we’re inspired by our optimistic momentum, we skilled slower than anticipated income progress. Consequently, we undertook value and spending management measures in 2023,” Rick Dunn, chief monetary officer of Satellogic, stated in an April 15 assertion concerning the firm’s monetary outcomes.

Satellogic had, in September, forecasted revenues of $38 million to $58 million in 2024, however Dunn stated the corporate was withdrawing that steering and didn’t provide a forecast for income in 2024 due to a gross sales cycle that’s “typically lengthy and topic to many variables past our management.”

The corporate introduced in September it might transfer its headquarters to america. Doing so, firm executives argued, would make it simpler to faucet into the U.S. authorities market instantly somewhat than work by way of resellers. As part of that course of, the corporate obtained a business distant sensing license from the Workplace of House Commerce, inside the Nationwide Oceanic and Atmospheric Administration, in November.

Satellogic stated in April it was nonetheless on monitor to finish the redomiciling course of within the first half of 2024, and that afterwards it might report monetary outcomes on a quarterly foundation somewhat semiannually as the corporate had been doing since going public by way of a particular objective acquisition firm (SPAC) merger in 2022.

The corporate additionally introduced in April that it raised $30 million by way of a senior convertible notes settlement with Tether Investments Ltd., a cryptocurrency firm. Satellogic stated it’s going to use the online proceeds, after transaction charges and bills, of $27.6 million to assist firm operations. Satellogic had reported a money steadiness of $23.5 million on the finish of 2023, down from $76.5 million on the finish of 2022.

“The proceeds from Tether’s funding in Satellogic will assist advance our mission as we proceed to concentrate on our U.S. technique, the nationwide safety market and our world House Methods alternatives,” Emiliano Kargieman, founder and chief government of Satellogic, stated in a press release.

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