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BigBear.ai Announces First Quarter 2022 Financial Results | News

COLUMBIA, Md.–(BUSINESS WIRE)–Might 9, 2022–

BigBear.ai Holdings, Inc. (NYSE: BBAI) (“ BigBear.ai ” or the “ Firm ”), a pacesetter in AI-powered analytics and cyber engineering options, right this moment introduced monetary outcomes for the primary quarter of 2022.

“We continued to construct momentum through the first quarter as we transition from a steady and worthwhile services-led firm right into a excessive progress, excessive margin technology-first firm. We’re making strategic investments to draw expertise and broaden our portfolio, together with the addition of industry-leading modeling functions with our ProModel acquisition, which enhances our personal AI-based product innovation,” stated BigBear.ai CEO Dr. Reggie Brothers. “With clear proof that AI is changing into a precedence for organizations throughout all sectors, we’re capitalizing on this massive and rising addressable market by making AI-powered determination assist know-how accessible and scalable for a wider vary of firms.”

Dr. Brothers continued, “Our first quarter industrial income surpassed whole industrial income for the prior 12 months, and we count on progress to speed up all through the rest of the 12 months. Moreover, the ProModel acquisition considerably advances our industrial market technique, including lots of of latest, world prospects – together with a number of Fortune 500 prospects – throughout key vertical industries corresponding to manufacturing, healthcare, and shipbuilding.”

“The Consolidated Appropriations Act of 2022, signed in March with roughly $33 billion of elevated spending on the Division of Protection, acknowledges the necessity to speed up the deployment of AI for nationwide intelligence and protection. We count on the brand new invoice, coupled with a gradual abatement of presidency contracting delays, to drive elevated Federal exercise all through the rest of the 12 months and into 2023, opening the door for added alternatives and additional strengthening our backlog,” stated Dr. Brothers.

Monetary Highlights

  • Income of $36.4 million, in comparison with $35.6 million for the primary quarter of 2021
  • Analytics income elevated $2.0 million, or 11%, as in comparison with the identical interval in 2021, primarily pushed by rising gross sales to industrial prospects
  • Gross margin of 27%, in comparison with 29% for the primary quarter of 2021
  • Non-GAAP adjusted gross margin of 47% for the Analytics section in comparison with 49% for the primary quarter of 2021. The lower was primarily because of investments on a decrease margin prototype contract that represents our largest contract pursuit in 2022
  • Non-GAAP adjusted gross margin of twenty-two% for the Cyber & Engineering section, in comparison with 23% for the primary quarter of 2021
  • Web lack of $18.8 million, in comparison with $2.4 million for the primary quarter of 2021, primarily pushed by elevated stock-based compensation expense, industrial start-up prices, non-recurring integration prices, and transaction prices associated to the acquisition of ProModel Company
  • Non-GAAP adjusted EBITDA* of $(2.9) million, in comparison with $2.7 million for the primary quarter of 2021, primarily pushed by elevated funding in analysis and growth in addition to elevated promoting, basic and administrative prices, largely pushed by public firm necessities
  • Ending backlog of $459 million

“I’m notably happy with our means to handle our long-term progress investments within the first quarter, regardless of working underneath a Persevering with Decision for many of the interval,” stated BigBear.ai CFO Josh Kinley. “Our industrial go-to-market technique stays a high precedence, however traders additionally need to know firms can management prices throughout difficult occasions. Moreover, our rising industrial analytics income helped broaden gross margin within the quarter. I’m completely satisfied to report we stay on monitor with our 2022 projections of roughly 30% income progress with continued gross margin enlargement. Total, I’m happy with our progress, which underscores the energy of our underlying enterprise.”

Dr. Brothers concluded, “We absolutely count on the BigBear.ai transformation and progress story to proceed all through 2022. Favorable shifts within the authorities contracting setting and the fast enlargement into the industrial market by way of the ProModel acquisition bode nicely for the corporate . Our first full 12 months as a publicly traded firm is off to a powerful begin, and we look ahead to continued progress and progress all year long.”

Monetary Outlook

The next info and different sections of this launch comprise forward-looking statements, that are based mostly on the Firm’s present expectations. Precise outcomes could differ materially from these projected. It’s the Firm’s observe to not incorporate changes into its monetary outlook for proposed acquisitions, divestitures, adjustments in regulation, or new accounting requirements till such gadgets have been consummated, enacted, or adopted. For extra elements which will affect the Firm’s precise outcomes, discuss with the “Ahead-Wanting Statements” part on this launch.

For the year-ended December 31, 2022, the Firm continues to undertaking:

  • Income between $175 million and $205 million, together with roughly $20 million of economic income

The Firm notes that 2022 projections replicate identified impacts from the COVID-19 pandemic based mostly on the Firm’s understanding on the time of this information launch and its expertise to this point. Inner evaluation of federal solicitations within the Firm’s market confirmed that the time between solicitation and contract award elevated from 290 days to greater than 600 days between 2019 and 2021. COVID-19 led to delays in authorities contract awards in 2020 and 2021, and the Firm can not predict how the pandemic will evolve or what affect it would proceed to have.

Though the Firm does present steering for adjusted EBITDA* (which is a non-GAAP monetary measure), it’s not capable of forecast essentially the most straight comparable measure calculated and introduced in accordance with GAAP with out unreasonable effort. Sure components of the composition of the GAAP quantities will not be predictable, making it impracticable for the Firm to forecast. Consequently, no GAAP steering or reconciliation of the Firm’s adjusted EBITDA* steering is supplied. For a similar causes, the Firm is unable to evaluate the possible significance of the unavailable info, which may have a probably vital affect on its future GAAP monetary outcomes. The outlook relies on sure assumptions which might be topic to the danger elements mentioned within the Firm’s filings with the Securities and Change Fee (“ SEC ”).

Abstract of Outcomes for the Quarters Ended

March 31, 2022 and March 31, 2021

(Unaudited)

 

 

Quarters Ended

$ 1000’s (count on per share quantities)

March 31,

2022

 

March 31,

2021

Revenues

$

36,390

 

 

$

35,570

 

Value of revenues

 

26,523

 

 

 

25,290

 

Gross margin

 

9,867

 

 

 

10,280

 

Working bills:

 

 

 

Promoting, basic and administrative

 

22,020

 

 

 

10,114

 

Analysis and growth

 

2,874

 

 

 

928

 

Transaction bills

 

1,399

 

 

 

 

Working loss

 

(16,426

)

 

 

(762

)

Web lower in truthful worth of derivatives

 

(1,263

)

 

 

 

Curiosity expense

 

3,555

 

 

 

1,860

 

Different expense (revenue)

 

30

 

 

 

(1

)

Loss earlier than taxes

 

(18,748

)

 

 

(2,621

)

Revenue tax expense (profit)

 

77

 

 

 

(184

)

Web loss

$

(18,825

)

 

$

(2,437

)

 

 

 

 

Fundamental and diluted web loss per share

$

(0.14

)

 

$

(0.02

)

EBITDA* and Adjusted EBITDA* for the Quarters Ended

March 31, 2022 and March 31, 2021

(Unaudited)

 

 

Quarters Ended

$ 1000’s

March 31,

2022

 

March 31,

2021

Web loss

$

(18,825

)

 

$

(2,437

)

Curiosity expense

 

3,555

 

 

 

1,860

 

Revenue tax expense (profit)

 

77

 

 

 

(184

)

Depreciation and amortization

 

1,772

 

 

 

1,921

 

EBITDA

 

(13,421

)

 

 

1,160

 

Changes:

 

 

 

Fairness-based compensation 1

 

3,858

 

 

 

25

 

Web lower in truthful worth of derivatives 2

 

(1,263

)

 

 

 

Capital market advisory charges 3

 

703

 

 

 

1,540

 

Non-recurring integration prices 4

 

2,375

 

 

 

 

Industrial start-up prices 5

 

3,427

 

 

 

 

Transaction bills 6

 

1,399

 

 

 

 

Adjusted EBITDA

$

(2,922

)

 

$

2,725

 

1

Fairness-based compensation consists of roughly $2.7 million associated to legacy fairness compensation plans.

2

The lower in truthful worth of derivatives primarily pertains to the adjustments within the truthful worth of sure Ahead Share Buy Agreements (FPAs) that had been entered into previous to the closing of the Enterprise Mixture and had been absolutely settled through the first quarter of 2022.

3

The Firm incurred capital market and advisory charges associated to advisors aiding with the Enterprise Mixture.

4

Non-recurring inner integration prices associated to the Enterprise Mixture.

5

Industrial start-up prices consists of sure non-recurring bills related to tailoring the Firm’s software program merchandise for industrial prospects and use circumstances.

6

Transaction bills associated to the acquisition of ProModel Company, which closed on April 7, 2022.

Consolidated Stability Sheets as of

March 31, 2022 and December 31, 2021

(Unaudited)

 

$ in 1000’s

March 31,

2022

 

December 31,

2021

Property

 

 

 

Present belongings:

 

 

 

Money and money equivalents

$

59,978

 

 

$

68,900

 

Restricted money

 

 

 

 

101,021

 

Accounts receivable, much less allowance for uncertain accounts

 

26,624

 

 

 

28,605

 

Contract belongings

 

2,934

 

 

 

628

 

Pay as you go bills and different present belongings

 

6,601

 

 

 

7,028

 

Complete present belongings

 

96,137

 

 

 

206,182

 

Non-current belongings:

 

 

 

Property and gear, web

 

1,335

 

 

 

1,078

 

Goodwill

 

91,636

 

 

 

91,636

 

Intangible belongings, web

 

81,976

 

 

 

83,646

 

Different non-current belongings

 

741

 

 

 

780

 

Complete belongings

$

271,825

 

 

$

383,322

 

 

 

 

 

Liabilities and fairness

 

 

 

Present liabilities:

 

 

 

Accounts payable

$

6,625

 

 

$

5,475

 

Quick-term debt, together with present portion of long-term debt

 

3,074

 

 

 

4,233

 

Accrued liabilities

 

17,042

 

 

 

10,735

 

Contract liabilities

 

2,792

 

 

 

4,207

 

By-product liabilities

 

 

 

 

44,827

 

Different present liabilities

 

623

 

 

 

541

 

Complete present liabilities

 

30,156

 

 

 

70,018

 

Non-current liabilities:

 

 

 

Lengthy-term debt, web

 

190,853

 

 

 

190,364

 

Deferred tax liabilities

 

422

 

 

 

248

 

Different non-current liabilities

 

343

 

 

 

324

 

Complete liabilities

 

221,774

 

 

 

260,954

 

 

 

 

 

Stockholders’ fairness:

 

 

 

Frequent inventory

 

14

 

 

 

14

 

Further paid-in capital

 

257,602

 

 

 

253,744

 

Treasury inventory, at price 9,952,803 shares at March 31, 2022 and — shares at December 31, 2021

 

(57,350

)

 

 

 

Collected deficit

 

(150,215

)

 

 

(131,390

)

Complete stockholders’ fairness

 

50,051

 

 

 

122,368

 

Complete liabilities and stockholders’ fairness

$

271,825

 

 

$

383,322

 

Consolidated Statements of Money Flows for the Quarters Ended

March 31, 2022 and March 31, 2021

(Unaudited)

 

 

Quarters Ended

$ in 1000’s

March 31,

2022

 

March 31,

2021

Money flows from working actions:

 

 

 

Web loss

$

(18,825

)

 

$

(2,437

)

Changes to reconcile web loss to web money (utilized in) supplied by working actions:

 

 

 

Depreciation and amortization expense

 

1,772

 

 

 

1,921

 

Amortization of debt issuance prices

 

523

 

 

 

143

 

Fairness-based compensation expense

 

3,858

 

 

 

25

 

Provision for uncertain accounts

 

 

 

 

 

Deferred revenue tax expense (profit)

 

174

 

 

 

(202

)

Web lower in truthful worth of derivatives

 

(1,263

)

 

 

 

Adjustments in belongings and liabilities:

 

 

 

Lower (enhance) in accounts receivable

 

1,981

 

 

 

(1,442

)

(Enhance) lower in contract belongings

 

(2,306

)

 

 

897

 

Lower (enhance) in pay as you go bills and different belongings

 

432

 

 

 

(653

)

Enhance in accounts payable

 

1,150

 

 

 

174

 

Enhance in accrued liabilities

 

6,307

 

 

 

2,316

 

(Lower) enhance in contract liabilities

 

(1,415

)

 

 

130

 

Enhance in different liabilities

 

83

 

 

 

21

 

Web money (utilized in) supplied by working actions

 

(7,529

)

 

 

893

 

Money flows from investing actions:

 

 

 

Acquisition of companies, web of money acquired

 

 

 

 

(224

)

Purchases of property and gear

 

(359

)

 

 

(170

)

Web money utilized in investing actions

 

(359

)

 

 

(394

)

Money flows from financing actions:

 

 

 

Repurchase of shares because of ahead share buy agreements

 

(100,896

)

 

 

 

Compensation of short-term borrowings

 

(1,159

)

 

 

 

Compensation of time period mortgage

 

 

 

 

(275

)

Web money utilized in financing actions

 

(102,055

)

 

 

(275

)

Web (lower) enhance in money and money equivalents and restricted money

 

(109,943

)

 

 

224

 

Money and money equivalents and restricted money initially of interval

 

169,921

 

 

 

9,704

 

Money and money equivalents and restricted money on the finish of the interval

$

59,978

 

 

$

9,928

 

Ahead-Wanting Statements

This launch incorporates forward-looking statements throughout the which means of Part 27A of the Securities Act, and Part 21E of the Change Act. Ahead-looking statements typically are accompanied by phrases corresponding to “consider,” “could,” “will,” “estimate,” “proceed,” “anticipate,” “intend,” “count on,” “ought to,” “would,” “plan,” “predict,” “potential,” “appear,” “search,” “future,” “outlook,” and related expressions that predict or point out future occasions or tendencies or that aren’t statements of historic issues. These forward-looking statements embrace, however will not be restricted to, statements concerning BigBear.ai’s {industry}, future occasions, and different statements that aren’t historic information. These statements are based mostly on varied assumptions, whether or not or not recognized herein, and on the present expectations of BigBear.ai’s administration and will not be predictions of precise efficiency. These forward-looking statements are supplied for illustrative functions solely and will not be supposed to function, and should not be relied on by you or every other investor as, a assure, an assurance, a prediction or a definitive assertion of truth or chance. Precise occasions and circumstances are tough or inconceivable to foretell and can differ from assumptions. Many precise occasions and circumstances are past our management. These forward-looking statements are topic to numerous dangers and uncertainties, together with adjustments in home and overseas enterprise, market, monetary, political, and authorized situations; dangers associated to the uncertainty of the projected monetary info (together with on a section reporting foundation); dangers associated to delays attributable to elements outdoors of our management, together with adjustments in fiscal or contracting insurance policies or decreases in accessible authorities funding; adjustments in authorities packages or relevant necessities; budgetary constraints, together with automated reductions because of “sequestration” or related measures and constraints imposed by any lapses in appropriations for the federal authorities or sure of its departments and companies; affect by, or competitors from, third events with respect to pending, new, or present contracts with authorities prospects; potential delays or adjustments within the authorities appropriations or procurement processes, together with because of occasions corresponding to struggle, incidents of terrorism, pure disasters, and public well being considerations or epidemics, such because the latest coronavirus outbreak; and elevated or surprising prices or unanticipated delays attributable to different elements outdoors of our management, corresponding to efficiency failures of our subcontractors; dangers associated to the rollout of the enterprise and the timing of anticipated enterprise milestones; the results of competitors on our future enterprise; our means to situation fairness or equity-linked securities sooner or later, and people elements mentioned within the Firm’s studies and different paperwork filed with the SEC, together with underneath the heading “ Danger Components. ” If any of those dangers materialize or our assumptions show incorrect, precise outcomes may differ materially from the outcomes implied by these forward-looking statements. There could also be extra dangers that BigBear.ai presently doesn’t know or that BigBear.ai at present believes are immaterial which may additionally trigger precise outcomes to vary from these contained within the forward-looking statements. As well as, forward-looking statements replicate BigBear.ai’s expectations, plans or forecasts of future occasions and views as of the date of this launch. BigBear.ai anticipates that subsequent occasions and developments will trigger BigBear.ai’s assessments to vary. Nevertheless, whereas BigBear.ai could elect to replace these forward-looking statements in some unspecified time in the future sooner or later, BigBear.ai particularly disclaims any obligation to take action. Accordingly, undue reliance shouldn’t be positioned upon the forward-looking statements.

Non-GAAP Monetary Measures

The monetary info and knowledge contained on this press launch is unaudited. A few of the monetary info and knowledge contained on this press launch, corresponding to Adjusted EBITDA, haven’t been ready in accordance with United States typically accepted accounting ideas (“ GAAP ”). To complement our unaudited condensed consolidated monetary statements, that are ready and introduced in accordance with GAAP in our press launch, we additionally report sure non-GAAP monetary measures. A “non-GAAP monetary measure” refers to a numerical measure of an organization’s historic or future monetary efficiency, monetary place, or money flows that excludes (or consists of) quantities which might be included in (or excluded from) essentially the most straight comparable measure calculated and introduced in accordance with GAAP in such firm’s monetary statements.

The presentation of those monetary measures will not be supposed to be thought of in isolation or as an alternative choice to, or superior to, monetary info ready and introduced in accordance with GAAP and shouldn’t be thought of measures of BigBear.ai’s liquidity. Buyers are cautioned that there are materials limitations related to using non-GAAP monetary measures as an analytical instrument. Particularly, most of the changes to our GAAP monetary measures replicate the exclusion of sure gadgets, as outlined in our non-GAAP definitions beneath, that are recurring and might be mirrored in our monetary outcomes for the foreseeable future. As well as, these measures could also be completely different from non-GAAP monetary measures utilized by different firms, even the place equally titled, limiting their usefulness for comparability functions and subsequently shouldn’t be used to check BigBear.ai’s efficiency to that of different firms. We endeavor to compensate for the limitation of the non-GAAP monetary measures introduced by additionally offering essentially the most straight comparable GAAP measures and descriptions of the reconciling gadgets and changes to derive the non-GAAP monetary measures.

We consider these non-GAAP monetary measures present traders and analysts with helpful supplemental details about the monetary efficiency of our enterprise, allow comparability of economic outcomes between intervals the place sure gadgets could differ unbiased of enterprise efficiency, and permit for higher transparency with respect to key measures utilized by administration to function and analyze our enterprise over completely different intervals of time

Adjusted EBITDA is outlined as of any date of calculation, the consolidated professional forma earnings of the Firm and its subsidiaries, earlier than finance revenue and finance price (together with financial institution prices), tax, depreciation and amortization calculated from the audited consolidated monetary statements of such celebration and its subsidiaries (ready in accordance with GAAP), transaction charges and different non-recurring prices. Related excluded bills could also be incurred in future intervals when calculating these measures. BigBear.ai believes these non-GAAP measures of economic outcomes present helpful info to administration and traders concerning sure monetary and enterprise tendencies referring to the Firm’s monetary situation and outcomes of operations. BigBear.ai believes that using these non-GAAP monetary measures supplies a further instrument for traders to make use of in evaluating projected working outcomes and tendencies and in evaluating BigBear.ai’s monetary measures with different related firms, a lot of which current related non-GAAP monetary measures to traders.

Non-GAAP monetary efficiency measures are used to complement the monetary info introduced on a GAAP foundation. This non-GAAP monetary measure shouldn’t be thought of in isolation or as an alternative choice to the related GAAP measures and must be learn along side info introduced on a GAAP foundation. As a result of not all firms use equivalent calculations, our presentation of non-GAAP measures will not be corresponding to different equally titled measures of different firms.

Administration doesn’t take into account these non-GAAP measures in isolation or as an alternative choice to monetary measures decided in accordance with GAAP. The principal limitation of those non-GAAP monetary measures is that they exclude vital bills and revenue which might be required by GAAP to be recorded within the Firm’s monetary statements. As well as, they’re topic to inherent limitations as they replicate the train of judgment by administration about which expense and revenue gadgets are excluded or included in figuring out these non-GAAP monetary measures.

Administration makes use of EBITDA and adjusted EBITDA as a non-GAAP efficiency measure which is outlined within the accompanying tables and is reconciled to earnings (loss) earlier than taxes.

We current reconciliations of those non-GAAP monetary measures to essentially the most straight comparable GAAP measure within the tables above.

Convention Name / Webcast Data

BigBear.ai will host its earnings outcomes convention name and audio webcast (listen-only mode) on Monday, Might 9, 2022 at 5:00 p.m. ET. The earnings convention name may be accessed by calling 877-485-3107 (toll-free) or 201-689-8427 (toll). The listen-only audio webcast of the decision might be accessible on the BigBear.ai Investor Relations web site: https://ir.bigbear.ai. For many who are unable to take heed to the stay occasion, a replay might be accessible for 2 weeks following the occasion by dialing 877-660-6853 (toll-free) or 201-612-7415 (toll) and coming into the entry code 13729299. To entry the webcast replay, go to https://ir.bigbear.ai.

About BigBear.ai

BigBear.ai delivers AI-powered analytics and cyber engineering options to assist mission-critical operations and decision-making in advanced, real-world environments. BigBear.ai’s prospects, which embrace the US Intelligence Group, in addition to prospects in manufacturing, logistics, industrial area, and different sectors, depend on BigBear.ai’s options to see and form their world by way of dependable, predictive insights and goal-oriented recommendation. Headquartered in Columbia, Maryland, BigBear.ai has extra places in Virginia, Massachusetts, Michigan, Alabama, Pennsylvania, Utah and California. For extra info, go to: https://bigbear.ai and observe us on Twitter: @BigBearai.

View supply model on businesswire.com:https://www.businesswire.com/information/house/20220509006076/en/

CONTACT: BigBear.ai

Tyler Sigmon

443-430-2622

Tyler.Sigmon@bigbear.ai

Reevemark

Paul Caminiti/Delia Cannan/Pam Greene

212-433-4600

bigbear.ai@reevemark.com

or

traders@bigbear.ai

KEYWORD: MARYLAND UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: DATA MANAGEMENT DEFENSE TECHNOLOGY SOFTWARE OTHER DEFENSE CONTRACTS

SOURCE: BigBear.ai

Copyright Enterprise Wire 2022.

PUB: 05/09/2022 04:15 PM/DISC: 05/09/2022 04:16 PM

http://www.businesswire.com/information/house/20220509006076/en

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