Andrew Chanin on PL Earnings & "Powerful" Tools, SPCX Starship Expectations

bucks and change right now. All right. Let's go deeper into the space economy now in our tech spotlight. Joining us now is Andrew Shannon who's the CEO of co-founder at Procure AM. Andrew, thank you so much for your time today. Today. So the next big test for this space is obviously going to be Planet Labs. Is there anything in particular that you're looking to hear from that report? So we just recently heard a defense deal out in Europe. This company has been doing a pretty good job of winning contracts around the world, not just here in the U.S. and so people will be looking to see if, despite an expected revenue increase, what the losses will actually look like for this quarter. But another area that people are really interested about is how much demand AI will bring for, for, for earth observation, which is a major part of what this company does. Yeah, I want to talk about that because it seems like the overarching story for this one really revolves around the transition from just like a satellite imagery type of company to more of a AI powered utility. Can you sort of explain where they're at in that transition right now? And what's important to be watching out for? Sure. So, you know, in recent years, Earth's earth observation has been a segment which has been about almost 50% of the spending comes from governments and defense. But when you think about Earth's earth observation and what you can do when you start incorporating AI into this massive, massive amount of information and data that you're able to gather from these satellites is you're possibly able to make some, some better predictions and observations and things that are actually happening in real time on earth and also tracking these various patterns, but utilizing the power of AI, you might be able to unlock significant amounts of trends, whether that be weather, whether that be, you know, movement, whether that be erosion and things like that, that climate change focused people might be interested in, but also for businesses tracking things like maritime, where different things are at different times and in all different areas there. So being able to have the power of being able to view the world and get updates on a daily basis, but coupling that with AI to determine how those things have changed and where they might be headed based on those changes, could be an extremely powerful tool relevant to, to many, many players beyond just the typical government and defense spending payers. Oh, absolutely. I mean, you know, I'm thinking about natural disasters. I mean, what's happening in Nepal right now. I'm thinking of agriculture as well. It's so important. As for this company and what it signals about the broader space economy right now. I mean, I was reading about how it was sort of, I guess, penalized previously for its cash burn, but it's kind of trying to change that narrative with turning a corner on profitability. I mean, how does that sort of set the bar for other companies in the business of space, do you think? So I think so many companies had a lot of hype running into the space X IPO. If you look back at the charts, you know, so, so much of the upwards movement over the last couple of years came, you know, around December and into the space X IPO in June. And after less than, you know, stellar IPO for space X, a lot of people started to do what we saw in the Spac boom bust cycle, where everyone was just kind of throwing indiscriminately. These these space names out. And then all of a sudden you started seeing, you know, what some of these companies are starting to, to build an interesting base. They're starting to show, you know, revenues on some of the investments that they made. And so many projects of space are long term. And so it's tough to really judge some of these companies on a quarterly basis when some of these projects can take years to even a decade to, to see into fruition. But we're kind of at the stage where we have seen a lot of investment. We're starting to see revenues coming out of a lot of these different projects that these companies have done. And, you know, it's it's happening all, you know, these sell offs in space seem to be happening while these companies are winning some major contracts. So this isn't just a US story. This is a global story. And this is something where some of these names might have been penalized a little bit harshly. And you look at a name like Planet Labs, which is significantly below its 52 week highs. And to the extent that some of these companies can show, yes, we have growing revenues, our losses are decreasing, we're winning new contracts and we're entering new areas. I think that should be something that a lot of investors may be excited about. I want to focus on space. Obviously having a good day today as well. There seems to be a number of catalysts driving that. We've had a couple of sort of high profile analyst call outs from Bernstein SoC gen as well. Oppenheimer two, a couple of price targets raised here reiterating outperform ratings too. But there has also been a filing targeting September 15th for flagship flight 14 of Starship, which what are you paying attention to right now? I mean, how significant is that news as far as you know, in the next couple of weeks as a catalyst for this stock, a successful and safe starship is is huge. It's it would be a tremendous advancement for the overall space economy. Space X has been a leader in driving down the cost of accessing space. Starship will potentially be something to significantly drive down those costs even further. It will be exciting to see what kind of demand there is. You know, there's kind of limited orders being taken, but a lot of people that are probably going to want to to get on those payloads, not just in the immediate future, but but ahead for various space projects, whether that be governments or groups like NASA and other space agencies or actually individual companies. I think we're just scratching the surface at who wants to enter the space domain. And then you look at something like this deal that we saw for for the Spaceport Louisiana. And I think that's an absolutely huge win for the state of Louisiana. I'm lucky enough to have gone to university down at Tulane University down there. And it's a state that's near and dear to my heart and to to bring a company like SpaceX, which is trying to do so many incredible things and possibly provide numerous jobs for graduates down there and to bring a whole new space culture to the to that part of the Gulf Coast, I think would be an absolute game changer, not just for for SpaceX, but also for the local economy there. And that has the ability to, to unlock a lot of launch capacity. That right now, we're trying to figure out how these companies are going to be able to reach some of their goals, because there are only so many spaceports, there are only so many windows for launch, and for SpaceX to have their own wholly owned and operated spaceport right down the Gulf Coast could be a true game changer for successful in the build out there. Yeah, I mean, certainly seems to be a milestone as far as what I'm reading. I mean, this very much matters to investors when it comes to the execution and cadence as well. So I think that's going to be something to watch moving forward. Really appreciate it. Andrew. We have to wrap things up there, but