11:40 AM EST, 12/10/2024 (MT Newswires) -- Planet Labs' (PL) fiscal Q3 revenue of $61.3 million fell below consensus estimate but its recurring annual contract value grew to 97% with "strongest bookings quarter in history," Wedbush said in a note on Tuesday.

The company's weaker fiscal Q4 guidance compared to the Street's esitmate reflects ongoing challenges in the commercial sector and slower conversion of large government pilot programs in to contracts, according to the note.

The firm said that despite near-term challenges, Planet Labs is positioned for long-term growth, with momentum expected to improve in fiscal 2026.

"This quarter was a bump in the road to the Planet Labs growth story, as the company looks to capitalize on a strong monetization opportunity heading into fiscal 2025's end," Wedbush added.

The brokerage maintained its outperform rating on Planet Labs' stock with a $5 price target.

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