BigBear.ai Holdings, Inc. (BBAI) on Q1 2023 Results - Earnings Call Transcript

Operator: Thank you for joining the BigBear.ai first quarter conference call. This call is being recorded. [Operator Instructions] I will now turn the call over to Shane Karp, Vice President, Marketing and Communications. Please go ahead, Mr. Karp. Shane Karp: Good afternoon, everyone, and welcome to BigBear.ai 2023 First Quarter Conference Call. I'm joined by Mandy Long, our Chief Executive Officer; and Julie Peffer, our Chief Financial Officer. During the call today, we may make certain forward-looking statements. Listeners are cautioned not to put undue reliance on the forward-looking statements, and BigBarry.ai specifically disclaims any obligation to update the forward-looking statements that may be discussed during this call. Many factors could cause actual events to differ materially from the forward-looking statements made on the call. These statements are based on current expectations and assumptions, and as a result, are subject to risks and uncertainties. For more information about these risks and uncertainties, please refer to the forward-looking statements section of the earnings press release issued today and our SEC filings. We will also discuss some non-GAAP financial measures during the call today. These non-GAAP financial measures should not be considered a replacement for and should be read together with GAAP results. You can find the GAAP and non-GAAP reconciliations within our earnings release. Now I'd like to turn the call over to Mandy. Mandy Long: Thank you, Shane, and thank you all for joining today's call. The results we posted in Q1 are a testament to our capabilities across autonomous systems, cybersecurity and supply chain and logistics. Our 16% revenue growth year-over-year despite a challenging macroeconomic environment is a remarkable achievement for the entire team and speaks volumes to the value we are bringing to our clients. We're winning in complex markets, setting us apart in the industries we operate in and positioning us for long-term growth. Our established position and ability to execute are evident in new partnerships, new wins and extensions of our business with existing customers. As you may have seen in our recent press release, we are excited about our new strategic partnership with L3Harris. BigBear.ai is now their exclusive partner to deliver AI/ML-based forecasting, situational awareness analytics and computer vision capabilities for L3Harris unmanned service vessels. This integrated and collaborative approach brings significant long-term opportunities, and our partnership with L3Harris is another proof point in our continued focus on execution and long-term growth. We are also continuing to bring our autonomous system software capabilities to market, like with the U.S. Navy, where our analytics and computer vision capabilities continue to be assessed and demonstrated in live exercises as shown most recently with Task Force 59 and IMX 2023. We are incredibly excited by the Navy's April announcement to continue to scale unmanned platforms, integrating unmanned systems into their Fourth Fleet in Central and South America and operationalizing the concept Task Force 59 has worked tirelessly to develop. In addition, we believe the Navy's decision to scale unmanned platforms to the Fourth Fleet and their engagement with us through Task Force 59 underscores the importance of autonomous systems in future battlefield. Our advanced AI/ML capabilities enable autonomous systems to operate with unparalleled efficiency and safety, supporting higher-risk missions, expanding operational reach and most importantly, saving lives. As the battle space continues to evolve, autonomous systems will play an increasingly significant role. As a leader in providing AI/ML-based forecasting, situational awareness analytics and computer vision capabilities for these autonomous systems, our opportunities to support this type of work are only just getting started. We're continuing to see more rapid adoption of AI- and ML-based solutions and technologies throughout the entire Department of Defense. Innovative approaches to acquiring these AI-focused capabilities such as the Chief Digital and Artificial Intelligence Office's Tradewind Initiative provide a marketplace for DoD leaders to rapidly source, fund and develop solutions in the AI/ML, digital and data analytics spaces. We are excited to announce the recent addition of 2 of our products to the Tradewind marketplace. Observe is our massive distributed data collection capability focused on capturing publicly available information at scale and has a proven track record of providing actionable decision intelligence for our customers for more than 8 years. Additionally, our AI/ML-based forecasting, situational awareness analytics and computer vision capabilities originally developed for autonomous systems will now be widely available for many other DoD use cases. We look forward to onboarding other portfolio solutions into the Tradewind marketplace in the coming weeks and months. This is all in the service of supporting the speed, efficacy and accuracy of our customers' decision-making processes. We continue to operationalize artificial intelligence and machine learning at scale by creating order from complex data, identifying blind spots and building predictive outcomes. And we're not just winning at the federal level and in defense, the pandemic and subsequent disruption demonstrate that the dramatic impact of uncertainties on supply chain and establish the need for intelligent contingency plans to minimize the impact on operations. AI has the power to revolutionize the way we handle logistics, optimize production processes and improve overall efficiency. Through decision intelligence algorithms, machine learning and real-time data analytics, we can better forecast demand, minimize inventory costs and ensure on-time delivery of products. AI can play a similarly impactful role in manufacturing, helping to detect quality issues early on, improved product design, automate repetitive path and help free up valuable time and resources for higher-level work. Ultimately, we're looking to provide a higher form of decision intelligence, empowering businesses to make smarter, data-driven decisions that streamline operations and help drive profitability. We have already been making a lot of progress. We recently extended our relationship with a global Fortune 500 food company that has been using BigBear.ai simulation tools since 2020. They work with us to extend discrete event simulation modeling to evaluate production of existing lines and also support design, test and evaluation of potentially new production areas. In support of these solutions, we've integrated resources directly with the company to perform the project management and data collection responsibilities to ensure successful and on-time delivery of set objectives. The simulation solutions that are being created speak to identify bottlenecks and opportunities for process improvement, while also providing the confidence that any new designer build option is tested thoroughly before any major investments are made. We're enabling similar decision-making in a large diesel engine manufacturer that's looking to allocate capital to phase out old designs and drive extensive design work, capital equipment deployment and plant modification. Given the capital and resource-intensive nature of this endeavor, extensive verification and validation efforts of the proposed changes must be executed. To unleash their success, we're building a comprehensive discrete event simulation model of their current and future state production systems, enabling scenario analysis and experimentation in a digital twin. As a result, our customer will be able to deploy capital and effect change faster and with greater confidence and success. Our work in health care continues to pay off as we signed a number of new contracts with hospitals, such as the Children's Hospital Colorado and Thomas Jefferson University Hospitals for FutureFlow Rx and MedModel. For Thomas Jefferson, we designed the department-level simulation to support future state operations for observation, extended recovery patients and to inform long-term staffing needs. This is incredibly important as the staffing crisis in health care continues and as the pressure on hospitals and health systems increases with the aging population needing more care. While it's easy to focus on the headline wins, the foundational work we are doing to ensure our long-term success continues to be a part of the team's focus. During the quarter, we continued our move towards a streamlined approach with a simplified reporting framework and a sustained rigor on cost management. Our work this past quarter focused on improving our operating processes and tightly managing discretionary spending. Cost discipline will remain a priority as it forces rigor and prioritization around decision-making and unlocks growth opportunities by fueling the most impactful areas of our business while also putting us in a much better position to deliver meaningful shareholder returns over time. With much of our restructuring now behind us, our new operating model is positioned for positive operational cash flows in the back half of 2023. Bigger picture, AI continues to experience an unprecedented wave of excitement as the entire ecosystem of enterprise application looks for new ways to leverage this disruptive technology. Winners and losers will emerge from this period of rapid maturation and those with the ability to grow and execute at scale will be well-positioned to take share across various end markets. The industry has received a lot of attention over the last year. And while the race is only getting going, BigBear.ai has a meaningful head start. It is with this head start that we've been able to make strategic hires such as Norm Laudermilch, who will be taking over the role of Chief Operating Officer. Norm has 30 years of technical and executive level experience and has served in a number of roles, including Chief Operating Officer, Chief Technology Officer and Chief Information Security Officer. He has experience in both startup and Fortune 50 companies across federal and commercial markets. We are also promoting Greg Goldwater to Chief Growth Officer. As Chief Growth Officer, Greg will continue to develop strategies to drive growth across the entire BigBear.ai business and identify new opportunities that align with our capabilities and our core mission to deliver clarity for the world's most complex decisions. Lastly, many of you have likely heard the recent calls for pausing AI development. My thoughts on this are simple, powerful technology that has the ability to change the world does not come without risk and pausing is the option that our adversaries would love for us to choose. As an organization who works every day to protect our nation and what it stands for, our role is to leverage these capabilities responsibly and ethically and put them to work where they can make a difference in our national security and in the other environments that we service. That is what we do. And it is why we are the company that our customers call when the hardest problems need to be solved. We have been a leader in providing a higher form of decision intelligence for more than 20 years. We are our customers' North Star in this AI-driven industrial revolution, and we are doing so with a strong foundation to ensure lasting impact for the company and for our shareholders. We have a leaner, more nimble business today, and we will hire and retain those who are here for the mission and can do things that others cannot. We are now stronger and more resilient than we were 6 months ago, and we are just getting started. With that, I will turn the call over to Julie for a detailed review of our financials. Julie Peffer: Thank you, Mandy. Before I dive into the financials, I'd like to address the consolidation of our legacy Cyber & Engineering and Analytics segment into one reportable segment beginning this quarter. As Mandy discussed, we continue to reorganize the business to drive improved operational efficiencies. And as part of the leadership announcements we've made today, we're moving into a more functional structure that will ensure we go to market, develop products and solutions and drive delivery execution as one team. Segment changes were implemented as of Q1 2023 and historical data in the new segment is available as a consolidated view. Now let's turn to our first quarter results. Revenue for the quarter was $42.2 million, up 16% year-over-year and compared to $36.4 million in the first quarter of 2022. This is primarily driven by growth with our Army customer through contracts such as Global Force Information Management, or GFIM Phase 2 and other key programs. As we have stated in the past, I do want to reemphasize that our revenue can be lumpy and can fluctuate meaningfully depending on the quarter in which contracts are awarded, milestones achieved or contracts complete. Total gross margin was 24% in the quarter, a 300 basis point decrease from 27% in Q1 2022, driven by additional cost on the GFIM Phase 2 program, which completes in the second quarter of 2023. We're performing well on this program, but continue to invest in critical capabilities to maintain our strong position as we move towards the production contract. We are in active discussions to continue this important work through GAAP funding until the production contract can be funded with 2024 government fiscal year funding. Backlog was $197 million at the end of the first quarter, which is down 10% or $22 million compared to fourth quarter of 2022. This was driven by the removal of Virgin Orbit from our backlog due to the uncertainty from their recent bankruptcy announcement. Now turning to expenses. For Q1, operating expenses were $22.2 million, which includes R&D expense of $1.1 million and SG&A expenses of $20.4 million. On a year-over-year basis, total operating expenses were lower by 15% this year in Q1. As a reminder, we began to ramp up indirect hiring in late Q1 last year with hiring hitting a peak in Q2 2022 before declining substantially through the rest of the year. We will continue to be disciplined in our expense management and focus on implementing scalable processes, operating rigor and driving overall efficiency across our business.Net loss was $26.2 million in the quarter versus $18.8 million in Q1 of 2022. Net loss of $26.2 million for the first quarter of 2023 includes $10.6 million of noncash expense related to the change in fair value of PIPE warrants that were issued in January 2023, $3.8 million of equity-based compensation and $0.8 million related to restructuring charges. Net loss for the quarter of 2022 was $18.8 million. Adjusted EBITDA was a loss of $3.8 million in Q1 2023 compared to adjusted EBITDA loss of $2.5 million in the fourth quarter and $3.9 million in the third quarter of last year.Q1 adjusted EBITDA was impacted by a onetime bad debt reserve booked against receivables owed by Virgin Orbit who announced bankruptcy in April. In addition to the gross margin compression from investments in the quarter on key programs such as GFIM Phase 2.In review of the balance sheet, at the end of the first quarter, we had cash and cash equivalents of approximately $21.8 million. This increase was due to the PIPE transaction that we completed in January. We continue to focus on lowering our cash burn in second half of 2023 to get to positive operational cash flow, which excludes nonrecurring and nonoperational items such as interest payments, transaction fees and tax payments for stock vesting. In addition to lowering our cash burn, the $500 million shelf registration that we filed in April will allow us to more easily access capital markets moving forward in support of organic and inorganic growth at this pivotal time in the AI industry landscape. Now turning to our financial outlook. Today, we are reaffirming our guidance of expected 2023 revenue in the range of $155 million to $170 million. We continue to expect adjusted EBITDA to be single-digit negative adjusted EBITDA in millions for 2023. As Mandy previously stated, 2023 continues to be a foundational year for us as we build out our operational rigor and enhance our go-to-market capabilities, but we are thrilled with the progress we've seen so far. We're very excited about our new strategic partnership with L3Harris to deliver AI/ML capabilities to their unmanned surface vessels as well as emerging opportunities as we expanded our core and adjacent markets. We will continue to be disciplined in cost management, and we will make targeted investments to accelerate our position as an industry leader in AI.I will now turn to Mandy for final remarks before we turn to Q&A. Mandy Long: Thank you, Julie. I'm extremely excited about the pipeline ahead and our ability to deliver as we move forward. Our cost-cutting initiatives have been challenging, but we continue to be proud of the focus and the agility of the BigBerry.ai to collaborate and innovate in changing times. Operator, we are ready for questions. Thank you. Operator: [Operator Instructions] And our first question comes from Mike Latimore. Operator: Our next question comes from Louie Dipalma of William Blair. Operator: And our next question is from Param Singh of Oppenheimer. Operator: There are no further questions at this time. This concludes the conference call. We thank you for your participation. You may disconnect your lines at this time, and have a great day.
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BigBear.ai Holdings, Inc. (NYSE:BBAI) Insider Sale and Financial Overview

  • Chief Accounting Officer Ricker Sean Raymond sold 9,515 shares at $3.12 each, still holding 284,124 shares.
  • Wall Street analysts have an average brokerage recommendation (ABR) of 2.00, indicating a Buy rating for BigBear.ai.
  • Despite a negative P/E ratio of -3.99, BigBear.ai has a price-to-sales ratio of 5.59 and a low debt-to-equity ratio of 0.054.

BigBear.ai Holdings, Inc. (NYSE:BBAI) is a key player in the field of AI-powered decision intelligence solutions. The company is known for its innovative approach to enhancing defense capabilities, as demonstrated by its recent collaboration with Hardy Dynamics. This partnership aims to improve AI orchestration for U.S. Army drone swarm operations under Project Linchpin, highlighting BigBear.ai's commitment to national security.

On May 6, 2025, Ricker Sean Raymond, the Chief Accounting Officer of BigBear.ai, sold 9,515 shares of the company's common stock at $3.12 each. Despite this sale, he still holds 284,124 shares. This transaction is publicly documented on the SEC website. Such insider activities can sometimes influence investor sentiment, especially when combined with analyst ratings.

Wall Street analysts have shown optimism towards BigBear.ai, with an average brokerage recommendation (ABR) of 2.00, indicating a Buy rating. Among the four contributing brokerage firms, two have given a Strong Buy recommendation. This positive sentiment could potentially impact the stock's price, as media reports about rating changes often do.

Despite a negative price-to-earnings (P/E) ratio of -3.99, BigBear.ai's price-to-sales ratio of 5.59 suggests that investors are willing to pay $5.59 for every dollar of sales. The enterprise value to sales ratio is 4.98, providing insight into the company's valuation relative to its revenue. However, the enterprise value to operating cash flow ratio is significantly negative at -26.17, indicating challenges in generating positive cash flow.

BigBear.ai's financial metrics reveal some difficulties, with a negative earnings yield of -25.05%. However, the company maintains a low debt-to-equity ratio of 0.054, indicating a relatively low level of debt compared to equity. Additionally, a current ratio of 1.66 suggests that BigBear.ai has a good level of liquidity to cover its short-term liabilities, providing some financial stability amidst its challenges.

BigBear.ai Holdings, Inc. (NYSE:BBAI) Faces Financial Challenges Amid Investigations

  • BigBear.ai's Chief Accounting Officer sold 2,066 shares, amidst ongoing investigations into potential federal securities law violations.
  • The company announced a delay in filing its annual 10-K report and will restate financial results for fiscal years 2022 and 2023, leading to a 14.9% drop in stock price.
  • Financial metrics reveal significant challenges, including a negative price-to-earnings (P/E) ratio of approximately -2.88 and potential liquidity concerns with a current ratio of approximately 0.46.

BigBear.ai Holdings, Inc. (NYSE:BBAI) operates in the artificial intelligence and machine learning sector, offering data-driven decision-making solutions across various industries. Despite its innovative services, the company is currently facing significant financial challenges, highlighted by recent events and investigations.

On April 1, 2025, Ricker Sean Raymond, the Chief Accounting Officer of BigBear.ai, sold 2,066 shares of the company's common stock at $2.90 each. This transaction occurs amid ongoing investigations by Levi & Korsinsky and Pomerantz LLP into potential violations of federal securities laws by BigBear.ai. These investigations were triggered by the company's announcement on March 18, 2025, that it would delay filing its annual 10-K report and restate financial results for fiscal years 2022 and 2023.

The restatement of financial results is due to issues related to the accounting treatment of BigBear.ai's convertible notes due in 2026. This disclosure led to a 14.9% drop in the company's stock price, closing at $2.97 per share on March 18, 2025. The negative impact on the stock price reflects investor concerns about the company's financial health and transparency.

BigBear.ai's financial metrics further highlight its challenges. The company has a negative price-to-earnings (P/E) ratio of approximately -2.88, indicating a lack of profitability. Its price-to-sales ratio is about 5.39, suggesting that investors are paying a premium for each dollar of sales. The enterprise value to sales ratio is slightly lower at 5.14, reflecting the company's valuation, including debt.

Additionally, BigBear.ai's enterprise value to operating cash flow ratio is significantly negative at around -21.34, underscoring difficulties in generating positive cash flow from operations. The negative earnings yield of approximately -34.78% and a negative debt-to-equity ratio of about -4.24 further emphasize the company's financial struggles. The current ratio of approximately 0.46 suggests potential liquidity concerns, as it falls below the standard threshold of 1.

BigBear.ai Holdings, Inc. (NYSE: BBAI) Faces Challenges Despite AI Innovations

  • Dorothy D. Hayes, a director at BigBear.ai, sold 16,000 shares amid a significant share price drop and a wider-than-expected net loss reported in Q4 2024.
  • The company projects revenues between $160 million and $180 million for 2025, with a negative adjusted EBITDA, raising concerns about its profitability trajectory.
  • Despite the challenges, HC Wainwright analyst Scott Buck maintains a Buy rating for BigBear.ai, highlighting the company's potential in defense and intelligence sectors.

BigBear.ai Holdings, Inc. (NYSE:BBAI) is a key player in the field of AI-powered decision intelligence solutions. The company focuses on providing advanced analytics and AI-driven insights to enhance decision-making processes across various sectors, including government and defense. Despite its innovative offerings, BigBear.ai faces stiff competition from other technology firms in the AI and analytics space.

On March 12, 2025, Dorothy D. Hayes, a director at BigBear.ai, sold 16,000 shares of the company's common stock at $3.29 each. This transaction comes amid a challenging period for the company, as highlighted by a significant 25.2% drop in share price following the release of their fourth-quarter 2024 earnings. The earnings report revealed a wider-than-expected net loss of $108 million, a substantial increase from the previous year's loss of $21.3 million.

Despite securing key government AI contracts, BigBear.ai's outlook for 2025 remains concerning. The company projects revenues between $160 million and $180 million, with a negative adjusted EBITDA in the single-digit millions. This raises questions about its profitability trajectory, especially given the current financial metrics. The company's price-to-earnings (P/E) ratio is approximately -3.19, indicating negative earnings, while the price-to-sales ratio stands at about 5.89.

In the fourth quarter of 2024, BigBear.ai reported revenues of $43.8 million, which fell short of the Zacks Consensus Estimate by 19.09%. However, this still marked an 8% increase year over year. The company's shares have plummeted 30.8% year-to-date, contrasting with the Zacks Computer & Technology sector's decline of 9.7% and the Zacks Computers - IT Services industry's rise of 11% during the same period.

Despite these challenges, HC Wainwright analyst Scott Buck maintains a Buy rating for BigBear.ai, albeit with a reduced price target from $7 to $6. Buck remains optimistic about the company's long-term prospects, citing potential benefits from increased investments in sectors like border security, defense, and intelligence. Additionally, BigBear.ai has improved its financial position by de-leveraging through corporate actions, holding approximately $115 million in cash and reducing its debt-to-cash ratio from 4.0x to 1.2x.

BigBear.ai (NYSE:BBAI) Earnings Preview: What to Expect

  • BigBear.ai is projected to report a 33.54% increase in revenue year-over-year, with expectations set at approximately $54.17 million for Q4 2024.
  • The company is expected to post an earnings per share (EPS) of -$0.05, showing an improvement from the previous year's loss.
  • Despite revenue growth, BigBear.ai's financial health indicators such as the negative price-to-earnings (P/E) ratio and negative enterprise value to operating cash flow ratio highlight ongoing profitability and cash flow challenges.

BigBear.ai (NYSE:BBAI) is a company that specializes in artificial intelligence solutions, catering to both commercial and government sectors. As the company prepares to release its fourth-quarter 2024 earnings on March 6, 2025, Wall Street anticipates an earnings per share (EPS) of -$0.05 and revenue of approximately $54.6 million.

The company's revenue is projected to be $54.17 million, a 33.54% increase from the same quarter last year, as highlighted by Zacks. This growth is attributed to an expanding client base and increased government investment in AI solutions. Despite this, the expected loss per share remains at 5 cents, an improvement from the previous year's 14 cents per share loss.

Historically, BigBear.ai has had mixed results, missing the Zacks Consensus Estimate in two of the last four quarters, while exceeding it in the other two. This has resulted in an average negative earnings surprise of 60.72%. The company's negative price-to-earnings (P/E) ratio of -6.91 indicates ongoing losses, while a price-to-sales ratio of 7.65 suggests investors are willing to pay $7.65 for every dollar of sales.

The enterprise value to sales ratio is 8.55, reflecting the company's valuation in relation to its revenue. However, the enterprise value to operating cash flow ratio is significantly negative at -56.67, highlighting challenges in generating cash flow from operations. The earnings yield is -14.47%, further emphasizing the company's current unprofitability.

BBAI's debt-to-equity ratio of 2.09 indicates a higher level of debt compared to equity, while a current ratio of 2.06 suggests the company has a good level of liquidity to cover its short-term liabilities. As the earnings release approaches, investors will be keen to see if the company can meet or exceed expectations.

BigBear.ai's Financial and Stock Performance Analysis

  • BigBear.ai has experienced significant stock price volatility since its SPAC merger, with a notable decline from its peak in April 2022.
  • The company's financial metrics, including a negative P/E ratio of -6.65 and a debt-to-equity ratio of 2.00, highlight its financial challenges and reliance on debt.
  • Despite these challenges, there's an optimistic outlook from some analysts predicting a potential rise in stock price to $7, amidst ongoing volatility and financial difficulties.

BigBear.ai, trading on the NYSE under the symbol BBAI, specializes in AI-oriented analytics tools. The company went public through a SPAC merger three years ago. Initially, the stock traded at $9.84 per share, reaching a high of $12.69 in April 2022. However, it later fell below $1 by the end of that year, raising concerns about its investment potential.

On January 3, 2025, Ricker Sean Raymond, the Chief Accounting Officer of BBAI, sold 2,067 shares at $4.03 each. Despite this sale, he still holds 247,903 shares. This transaction occurred amid a 7.48% decline in BBAI's stock price, reflecting ongoing volatility. The stock is currently trading around $5, with some analysts predicting a rise to $7.

BBAI's financial metrics reveal challenges. The company has a negative P/E ratio of -6.65, indicating losses. Its price-to-sales ratio is 7.32, showing investors pay $7.32 for every dollar of sales. The enterprise value to sales ratio is 8.23, reflecting its valuation relative to revenue. The negative enterprise value to operating cash flow ratio of -54.55 highlights cash flow issues.

Despite these challenges, BBAI's current ratio of 2.06 suggests it can cover short-term liabilities with short-term assets. However, the debt-to-equity ratio of 2.00 indicates reliance on debt for financing. The earnings yield of -15.04% further emphasizes financial difficulties. These factors contribute to the stock's volatility and investment uncertainty.

A Wall Street analyst's optimistic outlook, suggesting a potential rise to $7, contrasts with BBAI's current financial struggles. This mixed sentiment reflects the broader uncertainty surrounding the company's future performance and investment potential.

BigBear.ai (NYSE:BBAI) Experiences Stock Surge Amid Shareholder Sale

  • BigBear.ai (NYSE:BBAI) sees a 19.3% increase in stock price despite significant shareholder sale.
  • The company's financial metrics indicate challenges, with a negative P/E ratio of -6.53 and a price-to-sales ratio of 7.20.
  • Investor optimism may be driven by external factors, including industry moves by competitors like Palantir and a broader market recovery for speculative stocks.

BigBear.ai (NYSE:BBAI) is a software company that specializes in artificial intelligence and machine learning solutions. It operates in a competitive landscape with companies like Palantir, which also focuses on AI-driven data analytics. Recently, BBAI Ultimate Holdings, LLC, a significant shareholder, sold 6,075,697 shares at $4.15 each, yet still retains a substantial holding of 64,157,821 shares.

Despite the sale, BBAI's stock is experiencing a notable surge, with a 19.3% increase as of Thursday afternoon. This rise is significant, especially when compared to the flat performance of the S&P 500 and a modest 0.1% increase in the Nasdaq Composite. The stock's rebound is part of a broader recovery among meme stocks, which faced bearish pressures due to macroeconomic concerns.

The recent surge in BBAI's stock price is likely influenced by news related to Palantir's defense industry plans, as highlighted by The Motley Fool. This development has positively impacted BBAI's valuation, despite the company's financial challenges. BBAI has a negative P/E ratio of -6.53, indicating ongoing losses, and a price-to-sales ratio of 7.20, showing investor willingness to pay a premium for its sales.

BBAI's financial metrics reveal some challenges. The enterprise value to sales ratio is 8.10, and the enterprise value to operating cash flow ratio is significantly negative at -53.69, indicating difficulties in generating cash flow. The earnings yield is -15.31%, further emphasizing financial struggles. However, the company maintains a strong liquidity position with a current ratio of 2.06.

The debt-to-equity ratio of 2.00 suggests that BBAI relies heavily on debt financing. Despite these financial hurdles, the recent stock price surge indicates investor optimism, possibly driven by external factors like Palantir's industry moves and a broader market recovery for speculative stocks.

BigBear.ai and SoundHound AI: A Comparative Analysis of Stock Performance

  • BBAI Ultimate Holdings, LLC sold 2.86 million shares of BigBear.ai (NYSE:BBAI), leaving it with 70.39 million shares.
  • BigBear.ai's stock price has seen a modest increase of 13.71% over the year, with a current market capitalization of approximately $784.3 million.
  • SoundHound AI's stock price has surged approximately eightfold in 2024, significantly outperforming BigBear.ai with a market cap nearing $7 billion.

On December 18, 2024, BBAI Ultimate Holdings, LLC, a significant stakeholder in BigBear.ai (NYSE:BBAI), sold 2.86 million shares of the company's common stock at $3.59 each. This transaction leaves BBAI Ultimate Holdings, LLC with around 70.39 million shares. BigBear.ai operates in the competitive artificial intelligence sector, alongside companies like SoundHound AI.

BigBear.ai's stock price currently stands at $3.13, reflecting a decrease of 7.94% or $0.27. The stock has fluctuated between $2.99 and $3.82 today. Over the past year, it has seen a high of $4.80 and a low of $1.17. Despite these fluctuations, BigBear.ai's market capitalization is approximately $784.3 million.

In comparison, SoundHound AI has experienced a significant increase in its stock price, approximately eightfold throughout 2024, boosting its market cap to nearly $7 billion. BigBear.ai, on the other hand, has seen a more modest increase of 13.71% in its stock price. Both companies started the year with market caps below $1 billion.

BigBear.ai's trading volume on the NYSE is 70.3 million shares, indicating active investor interest. As the competition between BigBear.ai and SoundHound AI intensifies, investors are keenly observing their performance. Both companies are striving for superior market performance as they head into 2025.