Planet Labs (PL) is seeing major geopolitical tailwinds amid increasing mission-critical demand globally, driving the growth of its defense and intelligence segment, Wedbush Securities said in a note Friday.

The company reported fiscal Q1 results with beats across the board as strong demand from domestic and international government agencies buoyed defense and intelligence segment growth to more than 65% year over year during the quarter, the brokerage said.

Backlog rose 72% to about $906.1 million and remaining performance obligations grew 81% to roughly $816 million, according to the note.

Planet Labs targets to capitalize on its government pipeline and expand its artificial intelligence-based commercial offerings, the brokerage said.

Wedbush Securities reiterated its outperform rating and $50 price target on Planet Labs.

Shares of Planet Labs were down nearly 4% in premarket activity Friday.