Artificial intelligence technology services company BigBear.ai has released its second quarter 2022 financial report, which includes a revenue result of $37.6 million.
The Columbia, Maryland-headquartered company said Thursday that its Q2 gross margin was 25 percent and analytics revenue grew at a rate of 18 percent ($2.9 million) from the prior year period, but that geopolitical events such as Russia’s invasion of Ukraine as well as an unstable economic climate hindered other areas of income.
Reggie Brothers, CEO of BigBear.ai and a GovCon Expert, noted second quarter triumphs such as the company’s acquisition of modeling, simulation and planning application manufacturer ProModel; the widespread usage of BigBear.ai software in hospitals; and a new deal with “one of the largest health systems in the Eastern U.S.”
The company also reported a net loss of $56.8 million — compared to a loss of $3.2 million in the comparable period in 2021 — and a non-GAAP adjusted earnings before interest, taxes, depreciation and amortization of negative $7.7 million, as opposed to a positive $0.5 million for the same quarter last year.
GovCon Expert Reggie Brothers, who is a multiple-time recipient of the Wash100 Award, pointed to the significant revenues that the company normally generates from government customers who have been preoccupied with the conflict in Ukraine as a major factor in reducing earnings, though he also said that ultimately the military’s missions and objectives overseas will likely call for the adoption of many of the AI tools and technologies BigBear offers.
For the time being, though, BigBear.ai’s team has altered its expectations and outlook for 2022 to accommodate hold-ups in contracts from the government and protracted sales cycles. It is looking to tighten spending and extricate unnecessary costs going forward.
Recently appointed chief financial officer Julie Peffer predicted that contract work for which BigBear is currently developing prototypes will pay off in the form of “large multi-year contracts with considerably higher margins” in the coming year.
BigBear.ai additionally reported a solid backlog of $325 million for the second quarter of 2022.
“While the second quarter presented challenges to our 2022 performance and slowed the pace of our transformation, we remain confident in our ability to capture larger, higher-margin projects with both federal and commercial customers to drive long-term growth,” Brothers commented.