SATL - Satellogic Q4: The Business Struggles Amid Rapidly Contracting Satellite Networks

2024-04-17 03:46:50 ET

Summary

• Satellogic’s revenues soared by 67.6% to $10.1 million in 2023, but the improvement came from satellite sales.
• Satellogic now has just 25 satellites in orbit, and I expect 2024 revenues excluding the Space Systems business to be flat or down slightly.
• Free cash flow for 2023 was negative $64.5 million, and I think the company could run out of cash by the end of 2024.
• The short borrow fee rate is over 50%, and it could be best for risk-averse investors to avoid Satellogic’s stock.

Introduction

I’ve written three articles on SA about Satellogic (SATL), the latest of which was in September 2023 when I said that its satellite network is shrinking and that the updated 2023 guidance for revenues of between $10 million and $20 million looked overoptimistic....

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