Satellite imagery venture BlackSky has announced its first quarterly profit. The company reported a net income of $675,000 for the third quarter, a significant improvement from the net loss of $13.1 million reported during the same period last year.

BlackSky’s third-quarter revenue also saw a 26% increase from the previous year, reaching $21.3 million. Chief Financial Officer Henry Dubois attributed the positive net income to a change in the company’s accounting practices regarding warrant liability exposure. Excluding this impact, BlackSky would have incurred a net loss of approximately $9.2 million.

Looking ahead, BlackSky has adjusted its 2023 revenue outlook to a range of $84 million to $90 million, slightly lowering the top end from its initial guidance of up to $96 million. The company currently holds $51.5 million in cash and equivalents, along with a contract order backlog worth $252 million.

Despite its positive performance, BlackSky’s market capitalization remains a fraction of its debut valuation, which is a common trend among space stocks that have recently gone public.

Overall, BlackSky’s quarterly profit marks a significant milestone for the company as it continues to build momentum and progress towards its year-end goals.