Nice summary Inferno31. They seem to have taken the feedback...

Nice summary Inferno31.

They seem to have taken the feedback regarding transparency.

The main takeaways from today are that the US foundations are built out and that current costs are indicative for the full year. Also flagged drop in gross margin from 90% to ~85% due to amortisation of capture costs.

It's not rah rah positive news that everyone would like but they are being up front about what to expect.

Re: amortisation, the change in margin is due to the capture costs being capitalised.

i.e. they fly today and that obviously incurs immediate cash cost. The imagery is treated as an intangible asset and gets recorded on the balance sheet and amortised over the next 5 years.

Think of it as you capture once but that imagery is useful to (revenue generating) customers not just today but also for some period after.

Because its amortised over 5 years even with capture costs constant over time then amortisation rises for the first 5 years. As they began capitalising capture costs ~2 years ago, the amortisation will continue to rise for the next 3 years.