Spire Global Awarded $3.8 Million NOAA Contract for Satellite Weather Data

Rhea-AI Summary

Spire Global, Inc. (NYSE: SPIR) has been awarded a $3,832,500 contract by the National Oceanic and Atmospheric Administration (NOAA) to provide radio occultation (RO) data for one year, from September 18, 2024, to September 18, 2025. This data, consisting of vertical profiles of atmospheric measurements, will be used for NOAA's operational weather forecasts, space weather models, and climate research. The contract is part of an Indefinite Delivery Indefinite Quantity (IDIQ) agreement with a $59 million ceiling for NOAA's Commercial Weather Data Program's Radio Occultation Data Buy II.

Positive

• Secured a $3.8 million contract with NOAA for satellite weather data
• Contract is part of a larger IDIQ agreement with a $59 million ceiling
• Demonstrates ongoing partnership with government agencies
• Provides critical data for weather forecasting and climate research

Negative

• None.

Insights

Financial Analyst

The $3.8 million contract awarded to Spire Global by NOAA is a positive development, albeit modest in scale. This revenue stream, while not transformative, contributes to the company's financial stability and growth prospects. The contract's one-year duration provides a degree of predictable income, which is valuable for investor confidence. However, it's important to note that this represents only a fraction of the potential $59 million ceiling for the IDIQ contract.

From an investor's perspective, this contract demonstrates Spire's ability to secure government partnerships, which can lead to long-term, stable revenue streams. The company's position in the commercial satellite industry, particularly in weather data services, appears to be strengthening. This could potentially lead to more substantial contracts in the future, both from NOAA and other government agencies.

Market Research Analyst

Spire Global's contract with NOAA highlights the growing importance of commercial satellite data in weather forecasting and climate research. This trend presents significant market opportunities for companies like Spire. The global weather forecasting systems market is expected to grow substantially in the coming years, driven by increasing demand for accurate weather predictions and climate change mitigation efforts.

For investors, it's important to consider Spire's positioning within this expanding market. While the company faces competition from other satellite data providers, its ability to secure contracts with major government agencies like NOAA suggests a strong market position. The potential for recurring revenue through similar contracts and possible expansions into related data services could drive long-term growth for Spire, making it an interesting prospect for investors focused on the space and climate tech sectors.

Tech Expert

Spire Global's radio occultation (RO) technology represents a significant advancement in weather data collection. By leveraging a constellation of small satellites, Spire can provide global coverage and near-real-time data, which is important for improving weather forecasting accuracy. The vertical profiling of atmospheric measurements offers a unique dataset that complements traditional weather observation methods.

From a technological standpoint, Spire's capabilities in collecting and processing this complex data at scale are impressive. The company's ability to deliver actionable insights from space-based observations positions it well in the growing market for advanced weather and climate data services. For investors, this technological edge could translate into a sustainable competitive advantage, potentially leading to more contracts and partnerships in the future. However, it's important to monitor advancements in competing technologies and Spire's ability to maintain its technological lead in this rapidly evolving field.

VIENNA, Va.--(BUSINESS WIRE)-- Spire Global, Inc. (NYSE: SPIR) (“Spire” or “the Company”), a global provider of space-based data, analytics and space services, was awarded a $3,832,500 contract from the National Oceanic and Atmospheric Administration (NOAA) to provide radio occultation (RO) data for a one-year period from September 18, 2024 to September 18, 2025.

The Company's near-real-time RO data consists of vertical profiles of atmospheric measurements, including pressure, humidity and temperature, that can reach all points of the globe. The data will be used for NOAA’s operational weather forecasts, space weather models and climate research, among other applications.

“From the ultimate vantage point of space, our satellites are able to provide unique data sets to improve weather prediction, contribute to climate research, and ultimately, protect lives and prevent the loss of property,” said Mike Eilts, general manager of Weather & Climate at Spire Global. “Our continued work with NOAA speaks to the power of government partnership with the commercial satellite industry to improve weather forecasting.”

The award is part of an Indefinite Delivery Indefinite Quantity (IDIQ) contract with a $59 million ceiling for NOAA’s Commercial Weather Data Program's Radio Occultation Data Buy II.

About Spire Global, Inc.

Spire (NYSE: SPIR) is a global provider of space-based data, analytics and space services, offering unique datasets and powerful insights about Earth so that organizations can make decisions with confidence in a rapidly changing world. Spire builds, owns, and operates a fully deployed satellite constellation that observes the Earth in real time using radio frequency technology. The data acquired by Spire’s satellites provides global weather intelligence, ship and plane movements, and spoofing and jamming detection to better predict how their patterns impact economies, global security, business operations and the environment. Spire also offers Space as a Service solutions that empower customers to leverage its established infrastructure to put their business in space. Spire has nine offices across the U.S., Canada, UK, Luxembourg, Germany and Singapore. To learn more, visit spire.com.

Forward Looking Statement

This press release contains forward-looking statements within the meaning of the federal securities laws, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or the Company’s anticipated financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “would,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “project,” “potential,” “seek” or “continue” or the negative of these words or other similar terms or expressions that concern the Company’s expectations, strategy, plans or intentions. Forward-looking statements contained in this press release include, but are not limited to, statements about the Company’s expectations for the use of its RO data and such data’s ability to improve weather prediction, contribute to climate research, protect lives and prevent the loss of property.

The Company cautions you that the foregoing list may not contain all of the forward-looking statements made in this press release. You should not rely upon forward-looking statements as predictions of future events. For other risk factors affecting the Company, see “Risk Factors” in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Moreover, the Company operates in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. The Company cannot assure you that the results, events, and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements.

Neither the Company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. Moreover, the forward-looking statements made in this press release relate only to expectations as of the date on which the statements are made. The Company undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. The Company may not actually achieve the plans, intentions or expectations disclosed in the forward-looking statements and you should not place undue reliance on the forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240909629044/en/

For media:

Kristina Spychalski

Head of Communications

comms@spire.com

For investors:

Benjamin Hackman

Head of Investor Relations

Benjamin.Hackman@spire.com

Source: Spire Global, Inc.

FAQ

What is the value of Spire Global's new contract with NOAA?

Spire Global (NYSE: SPIR) has been awarded a $3,832,500 contract from NOAA to provide radio occultation data for a one-year period.

When does Spire Global's new NOAA contract for weather data begin?

The contract period for Spire Global (NYSE: SPIR) to provide radio occultation data to NOAA is from September 18, 2024 to September 18, 2025.

What type of data will Spire Global (SPIR) provide to NOAA under the new contract?

Spire Global will provide radio occultation (RO) data, which consists of vertical profiles of atmospheric measurements including pressure, humidity, and temperature.

How will NOAA use the data provided by Spire Global (SPIR)?

NOAA will use Spire Global's radio occultation data for operational weather forecasts, space weather models, climate research, and other related applications.