Shares of Planet Labs PBC (NYSE: PL) tumbled 11.79% in pre-market trading on Friday following the release of the company's fourth-quarter earnings report and disappointing guidance for the upcoming periods. The Earth-imaging satellite company's financial results fell short of analyst expectations, raising concerns about its near-term growth prospects.

For the fourth quarter ended January 31, 2025, Planet Labs reported:

• Revenue of $61.554 million, up 4.6% year-over-year but below the analyst estimate of $61.9 million
• A loss of $0.12 per share, wider than the expected loss of $0.02 per share
• Gross margin of 62% (65% on an adjusted basis)
• Operating loss of $19.366 million

Adding to investor disappointment was the company's weaker-than-expected guidance. For the first quarter of fiscal year 2026, Planet Labs forecasts revenue between $61 million and $63 million, below the analyst projection of $64.6 million. For the full fiscal year 2026, the company expects revenue in the range of $260 million to $280 million, compared to the consensus estimate of $274.7 million.

Despite some positive developments, such as achieving positive adjusted EBITDA for the first time since going public in 2021, the market's focus on the earnings miss and conservative outlook overshadowed these achievements. The pre-market stock plunge reflects investors' concerns about Planet Labs' ability to meet growth expectations in the competitive satellite imagery and data analytics market.