Greetings. Welcome to the BlackSky Technology Third Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]. Please note this conference is being recorded. I will now turn the conference over to your host, CFO Johan Broekhuysen. You may begin.

Good morning, everyone. I'd like to welcome you to the first-ever BlackSky Earnings Call. Fiscal Third Quarter 2021. Today's call will include comments from our Chief Executive Officer, Brian O’Toole, followed by our Chief Financial Officer, Johan Broekhuysen, and then wrap up comments by Brian and we will open the call after that for live Q&A session. A replay of this earnings call will also be available on our website. Information to access the replay is listed in today's press release, which is available at blacksky.com in the Investor Relations section. Before we begin, I would like to remind everyone that today's call -- in today's call we will be making forward-looking statements regarding future events and financial performance and guidance for our fiscal 2021. These forward-looking statements are subject to known and unknown risks, assumptions, and uncertainties, including our outlook and guidance. Anticipated start date, the government contracts, and customer capture, our expectations regarding the impact of COVID-19 -- our ability to grow our business, which depends in part on the successful production, launch, commissioning, and/or operation of our satellites and related ground systems, software, and analytical technologies, all of which are subject to many uncertainties; and our ability to keep pace with the technological advances in our industry and successfully compete in highly competitive markets. BlackSky portions that these statements are not guarantees of future performance. BlackSky undertakes no obligation to revise any statements to reflect changes that occur after this call. You should review our most recent SEC filings for a complete discussion of these factors and other risks that could cause actual results to have a material difference from these forward-looking statements and that may affect our future results or the market price of our stock. In addition, during today's call, we will refer to certain…

Thank you, Brian. I would like to start off by saying how excited I am about the opportunity to be the CFO at BlackSky. I believe that BlackSky, has an incredible opportunity in this industry to be an innovator and a disruptor. I'm confident that its AI driven platform will transform traditional satellite imaging into assess type service that blends imaging from BlackSky 's high revisit rate constellation, and other terrestrial on space-based sensors into actionable intelligence and information in real-time for government and commercial operations. I would also like to start by giving you a brief update on the SPAC transaction. Then I will go through the quarter's financial results and then we'll turn it back over to Brian for some final comments and thoughts. Thereafter, we will open the call up to take some of your questions. As a reminder, this morning, my remarks will talk about GAAP and non-GAAP financial numbers. We show a reconciliation of GAAP measures in the press release which is available in the Investor Relations section of our website at blacksky.com and online with the SEC and the aggregate database. Unfortunately, today's financial disclosures will be limited to capsulated numbers, so I will briefer than I would typically be at a quarter-end. I would like to stress that we do expect to meet the SEC's reporting deadline of Monday, November 15th to file the BlackSky 10Q. Starting with the Osprey merger. With the closing of the SPAC transaction on September 9, 2021, BlackSky was able to recapitalize its balance sheet, and gross transaction proceeds were approximately $283 million. After acquired debt repayments, satellite CapEx that was due and other related costs, we ended the quarter with $197 million of cash in our bank account. We believe that this allows us to continue to…

Thank you. And at this time, we will be conducting a question-and-answer session. [Operator Instruction]. One moment please, while we pool [Indiscernible] questions. Our first question comes from Josh Sullivan with The Benchmark Company. Please proceed with your question.

Hey, good morning.

Good morning, Josh.

Just maybe we can dig into some of the COVID delays and with the startup some new contracts. Is that customer labor issues? Is that budgetary driven? Could we just get a little more detail there? Brian O’Toole: It's really supply chain impacts to existing contracts. These are large fixed-price contracts. And what we're seeing is the impact of the supply chain on delivery of components and then as those stretch out the impact to near-term revenues. So that's the primary driver there, Josh.

Got it. And then just on the pipeline, it looks like you guys had expanded to $2.5 billion, I think it was $1.7 billion earlier in the year, can you just give us some detail on that delta there and where the new opportunities are? Brian O’Toole: Yeah. Josh, we're seeing growth in the pipeline across all 3 aspects of our business: the U.S. Government, International, and Commercial. The largest growth in the pipeline is coming from the DNI sector, both U.S. and International. That's being driven by the demand in the market that's growing for high revisit imagery combined with AI-enabled analytics.

And then just within the commercial market uptake, which industries are quoting a little faster than others at this point between some of the commercial opportunities that you mentioned there? Brian O’Toole: Yes. I think, Josh, we're seeing strong interest from multiple enterprises, Fortune 1,000 companies and the -- from mining, financial services, construction and transportation. Those are the strongest opportunities that we're seeing and that's consistent across a number of different customers.

[Indiscernible] Okay. I'll get back in the queue. Thank you. Brian O’Toole: Thank you, Josh.

And just as a reminder, [Operator's Instructions]. And again, the next question comes from the line from Josh Sullivan with The Benchmark Company, please proceed with your question.

Yes. Maybe you could talk a little bit about the sales force expansion. I think you've mentioned 13 resellers versus your internal growth with direct sales. Where you're seeing the most traction or how should we think about that growing forward? Brian O’Toole: Yes. Josh, we are expanding our global sales capacity across all aspects of our business. So, we more than doubled our sales force since the second quarter. That's a combination of building out our U.S. government team, as well as expanding our international team. We're also expanding our commercial sales capacity, both through inside sales, reps that we've added, and then through the expansion of our global reseller network. So, we're highly focused on continuing to expand that sales network across the entire business.

And then I believe you said you're going to launch as many as 4 more satellites by the end of the year. Where will that take your constellation? And then by the end of '22, where should we think about that constellation being? Brian O’Toole: Yes. So, we have right now, 2 satellites ready to launch next week with Rocket Lab. And then, we've got launches lined up for 2 more launches with 4 -- 2 satellites each, in this quarter as well. So, that will double our current capacity by the end of the year. So, it will give us a 12-satellite constellation. And then we have more satellites planned in early next year which will bring us to a steady-state of 12 to 14 satellites going into next year.

And then just one last one on the NASA award this morning, congratulations. Can you just give us some detail on how large that award might be over the 5 years? Are there any follow-on opportunities coming from that that we should think about? Brian O’Toole: Yes, Josh. It's a 5 year -- what's exciting is it's a 5-year contract. It provides NASA of the ability to buy imagery from us on an annual basis at the scale of multiple millions of dollars per year. And they've been increasing their interest in commercial imagery and analytics for things related to climate change and other research. So that's an exciting opportunity and we expect to see more of that from a number of different commercial customers.

Thank you for that. Brian O’Toole: Thank you, Josh.

And we have reached the end of the question-and-answer session. And I will now turn the call back over to Johan Broekhuysen for closing remarks.

Thanks very much, Operator. I don't have any remarks beyond thank you everybody that joined the call. I'll give the last word to Brian. Brian O’Toole: Thanks, Johan. And I just want to thank everybody for joining us this morning and appreciate you taking the time. And we look forward to talking to you in the future. Thank you.

Thanks very much.

And this concludes today's conference and you may disconnect your lines at this time. Thank you for your participation.