BigBear.ai Announces Q4 and Full Year 2021 Financial Results 

News highlights:

• Revenue of $145.6 million for the year ended December 31, 2021
• Gross margin of 23% for the year ended December 31, 2021
• Analytics segment adjusted gross margin of 45% for the year ended December 31, 2021
• Nine new prime contracts won; ending total backlog of $465 million for the year
• Successful completion of business combination with GigCapital4, Inc.
• Added four seasoned key executives with deep industry expertise
• 2022 financial outlook provided

COLUMBIA, Md., March 18, 2022 -- BigBear.ai Holdings, Inc. (NYSE: BBAI) (“BigBear.ai” or the “Company”), a leading provider of AI-powered analytics and cyber engineering solutions, today announced financial results for the fourth quarter and full year ended December 31, 2021.

“The growth of our federal Analytics business and new commercial opportunities are fueling our move toward more scalable, high growth, technology-first solutions and products,” said BigBear.ai CEO Dr. Reggie Brothers. “We have a deep bench of top-tier talent with domain expertise across our product, engineering, and sales & marketing functions, and we are well positioned to execute our commercial SaaS strategy in 2022. Our government business continues to thrive, providing a solid foundation for R&D innovation in areas that resonate with the public and private sectors. 2021 was a milestone year for BigBear.ai, and we are looking forward to even more exciting growth opportunities in 2022.”

Financial Highlights

• Revenue of $33.5 million in the fourth quarter and $145.6 million for the year ended 2021
• Gross margin of 11% in the fourth quarter, largely due to transaction-related stock-based compensation, and 23% for the year ended 2021
• Non-GAAP adjusted gross margin of 34% for the Analytics segment and 28% for the Cyber & Engineering segment in the fourth quarter and 45% and 23% for the year ended 2021, respectively
• Net loss of $114.8 million in the fourth quarter and $123.6 million for the year ended 2021, reflective of $61 million of stock-based compensation expense from vesting that occurred upon the merger
• Non-GAAP adjusted EBITDA* of $(2.3) million in the fourth quarter and $4.9 million for the year ended 2021
• Ending backlog of $465 million
• Cash and cash equivalents of $68.9 million as of December 31, 2021

“Our aggressive investment strategy has put us in a remarkable position to capture new growth opportunities, while also growing our core business among federal customers,” said BigBear.ai CFO Josh Kinley. “We added new contracts and customers throughout the year, resulting in a backlog of $465 million, which is three times the size of our entire revenue for 2021. Delayed government contract awards and the Continuing Resolution pushed some revenue into future periods, and this depressed near-term EBITDA, but our investments throughout the year have positioned the company for growth in 2022. The company continues to be EBITDA positive on an adjusted basis, and we are already seeing the results of our investments.”

Dr. Brothers continued, “We will continue to rely on our strong services business as a predictable source of revenue as we ramp up our commercial business toward the latter half of the year. The geopolitical climate today is increasing demand for technical solutions, operational support, and expert guidance among our federal customers. Our significant backlog, which is 14% higher than last year, multiple new customer wins, and 100% customer retention rate provide strong momentum for the entire business in 2022.”

Financial Outlook

The following information and other sections of this release contain forward-looking statements, which are based on the Company’s current expectations. Actual results may differ materially from those projected. It is the Company’s practice not to incorporate adjustments into its financial outlook for proposed acquisitions, divestitures, changes in law, or new accounting standards until such items have been consummated, enacted or adopted. For additional factors that may impact the Company’s actual results, refer to the “Forward-Looking Statements” section in this release.

For the year-ended December 31, 2022, the Company is projecting:

• Revenue between $175 million and $205 million, including approximately $20 million of commercial revenue
• Positive Adjusted EBITDA*

“We will leverage our history of strong organic growth and strategic M&A to make 2022 a transformational year for the company,” Dr. Brothers continued. “We expect to grow revenue substantially among commercial customers, positioning the company for sustainable, highly-profitable revenue in a growing addressable market.”

The Company notes that 2022 projections reflect known impacts from the COVID-19 pandemic based on the Company’s understanding at the time of this news release and its experience to date. Internal analysis of federal solicitations in the Company’s market showed that the time between solicitation and contract award increased from 290 days to more than 600 days between 2019 and 2021. COVID led to delays in government contract awards in 2020 and 2021, and the Company cannot predict how the pandemic will evolve or what impact it will continue to have.

Source: BigBear.ai