Satellite Logic lays off 13% of its workforce

WASHINGTON — Commercial image processing company Satellogic has laid off 13% of its workforce as it continues its efforts to cut costs and win new business from the U.S. government.

May 24 Filing Satellogic said in a filing with the SEC that it had laid off 34 employees, or about 13% of its workforce at the time. The company said the layoffs were part of its “previously announced and ongoing efforts to reduce operational costs and contain expenses.”

The company did not elaborate on which positions or which countries were affected. Satellite Logic said: Annual Report The company reported to the SEC in April that it would have 274 employees worldwide as of the end of 2023, including 150 in Argentina and 47 in Uruguay, where it is headquartered. It has 44 employees in Spain, 21 in the U.S. and 12 in other countries.

The job cuts follow earlier plans to eliminate about 110 jobs in 2023. Those cuts, along with what the SEC filing described as “container capital expenditures and reductions in certain discretionary spending,” were intended to reduce the company’s costs and increase available cash.

Satellogic, which operates a constellation of more than 20 satellites for collecting high-resolution and hyperspectral imagery, reported revenue of $10.1 million in 2023, up 68% from 2022. The company reported a net loss of $61 million in 2023, compared to $36.6 million in 2022.

“While we are encouraged by our positive momentum, revenue growth was slower than expected. As a result, we have taken steps to contain costs and expenses in 2023,” Satellogic Chief Financial Officer Rick Dunn said during the company’s April 15 earnings call.

Satellogic in September projected 2024 sales of $38 million to $58 million, but Dunn said he has since withdrawn that outlook and would not provide a 2024 sales forecast because sales cycles are “often long and dependent on many variables beyond our control.”

The company made the announcement in September. Moved headquarters to the United StatesCompany executives argued that doing so would make it easier for the company to enter the U.S. government market directly, without going through resellers. As part of that process, the company Commercial Remote Sensing License from the Office of Space CommerceThe event took place at the National Oceanic and Atmospheric Administration in November.

Satellogic said in April it expects to complete the transition in the first half of 2024 and will then begin reporting financial results quarterly instead of semi-annually. Since going public in 2022 through a merger with a special purpose acquisition company (SPAC).

The company also announced in April that it had raised $30 million through a senior convertible note agreement with cryptocurrency firm Tether Investments.Satellogic said it would use $27.6 million of its net profits, after trading fees and expenses, to fund the company’s operations.Satellogic reported a cash balance of $23.5 million at the end of 2023, down from $76.5 million at the end of 2022.

“Proceeds from Tether’s investment in Satellogic will help advance our mission as we continue to focus on U.S. strategic and national security markets and global space systems opportunities,” Satellogic founder and CEO Emiliano Kargiman said in a statement.