11:43 AM EDT, 04/01/2024 (MT Newswires) -- Planet Labs' (PL) fiscal Q4 revenue exceeded expectations in a challenging deal environment due to its strong performance in civil government and defense and intelligence markets, Wedbush said in a note Monday.

The company reported revenue of $58.9 million, beating the Street estimate of $58.2 million, according to the note. The company's gross margin and adjusted EBITDA also came ahead of guidance, highlighting its ongoing efforts to enhance profitability, Wedbush said.

Planet Labs' significant contract wins during the quarter included a seven-figure annual contract value agreement with the Naval Information Warfare Center Pacific and an eight-figure, multi-year data license deal with Carbon Mapper that extends until 2030, the firm added.

Wedbush said the company's guidance for fiscal Q1 aligns with expectations while reflecting challenges in the commercial deal environment but with a focus on cost management and core business investments to optimize expenses.

The investment firm reiterated its outperform rating for Planet Labs and kept the price target at $6.

The company's shares fell 10.6% in recent trading.

Price: 2.28, Change: -0.27, Percent Change: -10.59