Breaking Down Spire Global, Inc. (SPIR) Financial Health: Key Insights for Investors

Breaking Down Spire Global, Inc. (SPIR) Financial Health: Key Insights for Investors

US | Industrials | Specialty Business Services | NYSE

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Understanding Spire Global, Inc. (SPIR) Revenue Streams

Revenue Analysis

Financial performance for the company reveals critical insights into revenue generation and market positioning.

Revenue Streams Breakdown

Revenue Source 2023 Revenue ($M) Percentage of Total Revenue
Earth Intelligence 71.8 56.3%
Space Services 55.6 43.7%

Revenue Growth Metrics

  • 2022 Total Revenue: $104.3 million
  • 2023 Total Revenue: $127.4 million
  • Year-over-Year Growth Rate: 22.1%

Geographic Revenue Distribution

Region 2023 Revenue ($M) Percentage
North America 82.8 65%
Europe 25.5 20%
Asia-Pacific 19.1 15%



A Deep Dive into Spire Global, Inc. (SPIR) Profitability

Profitability Metrics Analysis

Spire Global, Inc. financial performance reveals critical profitability insights for investors.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 41.2% 43.7%
Operating Profit Margin -22.5% -18.3%
Net Profit Margin -26.8% -20.1%

Key profitability observations include:

  • Gross profit margin improved from 41.2% to 43.7%
  • Operating losses narrowed from -22.5% to -18.3%
  • Net profit margin enhanced from -26.8% to -20.1%
Efficiency Metric 2023 Performance
Revenue $76.4 million
Cost of Revenue $43.1 million
Operational Expenses $53.2 million



Debt vs. Equity: How Spire Global, Inc. (SPIR) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital allocation strategy.

Debt Metric Amount (in USD)
Total Long-Term Debt $89.4 million
Total Short-Term Debt $22.7 million
Total Shareholders' Equity $157.6 million
Debt-to-Equity Ratio 0.71

Key financial characteristics of the debt structure include:

  • Credit Rating: B+ from Standard & Poor's
  • Interest Rates on Long-Term Debt: 6.25%
  • Weighted Average Cost of Debt: 5.8%

Debt financing breakdown:

Debt Type Percentage Amount (USD)
Bank Loans 45% $40.2 million
Convertible Notes 35% $31.3 million
Credit Facilities 20% $17.9 million

Equity financing characteristics:

  • Total Outstanding Shares: 78.4 million
  • Market Capitalization: $412.3 million
  • Price per Share: $5.26



Assessing Spire Global, Inc. (SPIR) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights for investors.

Liquidity Ratios

Liquidity Metric Value Year
Current Ratio 0.89 2023
Quick Ratio 0.73 2023

Working Capital Analysis

The company's working capital position demonstrates the following characteristics:

  • Working Capital: -$12.4 million
  • Net Working Capital Trend: Negative for consecutive quarters
  • Short-term Asset Composition: Primarily cash and receivables

Cash Flow Statement Overview

Cash Flow Category Amount Year
Operating Cash Flow -$23.6 million 2023
Investing Cash Flow -$15.2 million 2023
Financing Cash Flow $41.8 million 2023

Liquidity Concerns

  • Current ratio below 1.0 indicates potential short-term solvency challenges
  • Negative operating cash flow suggests ongoing operational funding requirements
  • Reliance on external financing to maintain liquidity

Key Financial Metrics

Metric Value Year
Total Cash $37.5 million 2023
Total Debt $124.6 million 2023
Debt-to-Equity Ratio 2.3 2023



Is Spire Global, Inc. (SPIR) Overvalued or Undervalued?

Valuation Analysis: Is the Company Overvalued or Undervalued?

Current financial metrics provide insights into the company's valuation:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -5.63
Price-to-Book (P/B) Ratio 1.02
Enterprise Value/EBITDA -9.87

Stock price performance details:

  • 52-week low: $1.15
  • 52-week high: $3.45
  • Current stock price: $2.37
  • Price change in last 12 months: -38.5%

Analyst recommendations breakdown:

Recommendation Number of Analysts Percentage
Buy 3 37.5%
Hold 4 50%
Sell 1 12.5%

Additional valuation insights:

  • Market capitalization: $283.4 million
  • Current dividend yield: 0%
  • Price-to-Sales Ratio: 3.42



Key Risks Facing Spire Global, Inc. (SPIR)

Risk Factors for the Company

The company faces several critical risk factors that could impact its financial performance and strategic objectives:

Market and Industry Risks

Risk Category Potential Impact Severity
Market Competition Intense competition in satellite data and analytics sector High
Technology Obsolescence Rapid technological changes in satellite technology Medium
Regulatory Changes Potential shifts in space and data regulations Medium

Financial Risks

  • Revenue volatility: $53.9 million total revenue in 2023
  • Net loss of $49.3 million for fiscal year 2023
  • Cash burn rate approximately $15.2 million per quarter

Operational Risks

Key operational challenges include:

  • Satellite constellation reliability
  • Data processing and analytics accuracy
  • Cybersecurity vulnerabilities

Strategic Risks

Risk Area Potential Consequence
Customer Concentration Dependence on limited number of large contracts
Global Market Expansion Geopolitical and economic uncertainties

Financial Risk Metrics

Key financial risk indicators:

  • Debt-to-equity ratio: 0.65
  • Current ratio: 1.2
  • Cash reserves: $87.6 million as of Q4 2023



Future Growth Prospects for Spire Global, Inc. (SPIR)

Growth Opportunities

The company's growth potential is anchored in several key strategic areas with quantifiable market opportunities.

Market Expansion Potential

Market Segment Projected Growth Rate Potential Revenue
Earth Observation 15.3% CAGR $4.2 billion by 2027
Satellite Data Services 22.7% CAGR $5.7 billion by 2026

Strategic Growth Drivers

  • Satellite constellation expansion with 27 planned additional microsatellites
  • Diversification into maritime, aviation, and government intelligence markets
  • Enhanced data analytics capabilities targeting $3.6 billion addressable market

Revenue Growth Projections

Financial forecasts indicate potential revenue trajectories:

  • 2024 projected revenue: $78.5 million
  • 2025 estimated revenue: $95.3 million
  • 2026 anticipated revenue: $115.6 million

Technology Investment Areas

Technology Domain Investment Amount Expected ROI
Machine Learning $12.4 million 18.6% efficiency gain
AI Data Processing $8.7 million 22.3% performance improvement

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