Kleos Space has released its update for the quarter ending 30 September 2021 (Q3 2021). Commenting on the Company’s September quarter progress, Kleos Space CEO Andy Bowyer said:
“Kleos continues to commercialise its geolocation data while preparing for future growth, rapidly building its satellite constellation to increase data volume and value and scaling its data-as-a-service operations to meet growing customer demand. Successful testing of our data collection and processing systems with early adopter customers has validated and de-risked our technology. Evaluation of our first data products by subscribers is converting to repeating subscription revenues. We are the first company in the World to fly clusters of four satellites, with data from our Scouting Mission satellites delivering unprecedented, proven, precision geolocation capability of very low power transmitters to within 300 metres. The team has built and proven a World leading technology producing unique and valuable data and a large, growing customer base ready to buy it. Increased data volumes are converting the customer pipeline from evaluation to revenue generation, bringing exceptional revenue opportunities in the coming quarters”.
COMMERCIAL PROGRESS
Kleos’ geolocation data is sold as a service (DaaS) to government and commercial entities around the Globe on a volume basis i.e. million km2/month collected.
In Q3 the Company has grown the customer base, with the geographically diverse pipeline comprising:
- 223 qualified deals (30% growth from Q2)
- 74 Defence and security entities
- 12 Resellers
- 137 Integrators
- 71 signed agreements with resellers, integrators, and end users
- 52 signed evaluation contracts for Guardian LOCATE data in place representing U$4.7m ARR opportunity post trial periods (2 months) at lowest subscription level (US$7500/month)
- 15 customers currently reviewing data
- 5 contract proposals in negotiation representing U$2.9m ARR
Kleos is moving toward repeating revenues from Q3 to Q4 2021, and is now onboarding subscribers with its initial Scouting Mission data, increasing revenue contribution from existing subscribers and over time as higher-value datasets from additional and more capable satellites become available.
Vigilance Mission (KSF1):
Commissioning activity on KSF1 is progressing, with satellite hardware check out proceeding successfully. The improvements being made to flight software used on KSF1 satellites is applicable to KSF2 & KSF3 missions, therefore the work currently being performed reduces commissioning times for those future missions.
Patrol Mission (KSF2):
The assembly, integration, and test of the four satellites of the KSF2 cluster continues as planned. The satellites will be ready to launch on the Transporter-3 SpaceX mission scheduled to launch in January 2022.
Observer Mission (KSF3):
Contracts for the construction and launch of the next cluster of satellites have been signed. The satellites are targeting a mid-2022 launch.
OUTLOOK
Kleos has a large addressable market, providing a cost-effective intelligence, surveillance, and reconnaissance (ISR) solution for global economic, societal and security challenges. Its global activity-based data improves the detection of illegal activity, including drug and people smuggling, illegal fishing, border challenges and piracy.
