exactEarth earnings heading in the right direction despite COVID-19

Despite the ongoing Coronavirus COVID-19 pandemic, exactEarth earnings are heading in the right direction.

The company reported that only one customer had delayed payment due to COVID-19.

Revenue was $4.4 million, up 13% compared to Q2 2019 with year-to-date revenue at $8.5 million, up 15% compared to $7.4 million in the same period last year.

That’s part of the financial picture released today by exactEarth for the three- and six-month periods ended April 30, 2020.

Other highlights included:

• Subscription Services revenue was $3.9 million, up 22% compared to $3.2 million in Q2 Fiscal 2019; Year-to-date, Subscription Services revenue was $7.7 million, up 23% compared to $6.3 million in the same period last year
• New Order Bookings were $3.5 million, down 41% compared to $6.0 million in Q2 Fiscal 2019; Year-to-date, new Order Bookings were $10.6 million, up 17% compared to $9.0 million in the same period last year
• Order Bookings backlog at the end of Q2 2020 was $24.9 million compared to $24.6 million at the end of Q2 2019
• Gross margin was 32.3%, compared to 8.4% in Q2 Fiscal 2019; Year-to-date, gross margin was 40.9% compared to 23.0% in the same period last year

According to Peter Mabson, President and CEO of exactEarth, looking forward, the company expects “a significant reduction in our quarterly cash burn and to trend closer to becoming cash flow and Adjusted EBITDA positive.”

Of note, new order bookings were down 41% compared to Q2 Fiscal 2019. However, year-to-date, new order bookings are up 17% compared the same period last year. exactEarth stated that “the increase year-to-date reflects strong new and renewal order activity with customers in both the commercial and government markets.” As well, order bookings “fluctuate on a quarter-to-quarter basis reflecting the timing to complete new customer agreements.”

The company has a new satellite, ESAIL, set to launch next week on an Arianespace Vega launch. exactEarth will operate the satellite for the European Space Agency (ESA). The satellite was built by LuxSpace as part of the ESA ARTES (Advanced Research in Telecommunications Systems) program which Canada participates in.

For the early stages of the Coronavirus COVID-19 pandemic, exactEarth appears to been relatively unscathed.