Institutional and retail investors are waiting with bated breath for DigitalGlobe's (DGI) IPO tomorrow. The company is a provider of high resolution satellite imagery for defense and commercial applications. Rival company GeoEye (GEOY) will surely be keeping a close watch on the pricing's results.
Business Overview (from prospectus)
We are a leading global provider of commercial high resolution earth imagery products and services. Our products and services support a wide variety of uses, such as defense and intelligence initiatives, mapping and analysis, environmental monitoring, oil and gas exploration, and infrastructure management. Our principal customers include U.S. and foreign defense and intelligence agencies and a wide variety of commercial customers, such as internet portals, companies in the energy, telecommunications, utility, and agricultural industries, and U.S. and foreign civil agencies. The imagery that forms the foundation of our products and services is collected daily via our two high resolution imagery satellites and managed in our industry-leading content archive, which we refer to as our ImageLibrary. We offer a range of on- and off-line distribution options designed to enable customers to easily access and integrate our imagery into their business operations and applications.
Offering: 14.7 million shares at $16 - $18 per share. Net proceeds of approximately $16.6 million will be used general corporate purposes and possible acquisitions, of, or investments, in other complementary businesses, products or technologies.
Revenue for the year ended December 31, 2008 increased by $123.5 million, or 81.4%, to $275.2 million from $151.7 million from the year ended December 31, 2007, primarily due to growth in domestic, which includes the U.S. and Canada, defense and intelligence revenue... Commercial revenue increased by $6.1 million, or 12.6%, to $54.4 million, primarily due to increased international revenue. Domestic commercial revenue increased $0.1 million, or 0.4%, to $25.1 million from $25.0 million from the year ended December 31, 2007. International commercial revenue increased $6.0 million, or 25.8%, to $29.3 million from $23.3 million from the year ended December 31, 2007, primarily due to growth in revenue from Central and South America, China, India and Europe....Cost of revenue for the year ended December 31, 2008 increased by $6.4 million, or 29.0%, to $28.5 million from $22.1 million for the year ended December 31, 2007.
Our products and services compete with satellite and aerial imagery and related products and services offered by a range of private and government providers. Our current or future competitors may have greater financial, personnel and other resources than we have. Our major existing competitors include GeoEye (GEOY), SPOT Image, ImageSat International N.V. and the National Remote Sensing Agency, Department of Space (Government of India), plus numerous aggregators of imagery and imagery-related products and services, including Google (GOOG) and Microsoft (MSFT). In addition, we compete against aerial providers of high resolution imagery, whose offerings provide certain benefits over satellite-based imagery, including better resolution. The value of our imagery may also be diluted by earth imagery that is available free of charge.