BigBear.ai to implement commercial SaaS strategy in 2022 amidst heavy backlogs of 2021

NYSE listed, BigBear.ai is all set to implement its commercial SaaS strategy in 2022. The company’s CEO Reggie Brothers laid out his plans for 2022 while announcing the financial results for the fourth quarter and full year ended December 31, 2021.

Brothers said, “We have a deep bench of top-tier talent with domain expertise across our product, engineering, and sales & marketing functions, and we are well positioned to execute our commercial SaaS strategy in 2022.”

BigBear is a leading AI-powered analytics and cyber engineering solutions provider. Brothers added that BigBear’s government business continues to thrive, providing a solid foundation for R&D innovation in areas that resonate with the public and private sectors. 

BigBear’s federal analytics business and new commercial opportunities are fueling its move toward more scalable, high growth, technology-first solutions and products, according to the company press release.

Highlights of BigBear.ai 2021 results

  • Revenue of $33.5 million in the fourth quarter and $145.6 million for the year ended 2021
  • Gross margin of 11% in the fourth quarter, largely due to transaction-related stock-based compensation, and 23% for the year ended 2021
  • Non-GAAP adjusted gross margin of 34% for the Analytics segment and 28% for the Cyber & Engineering segment in the fourth quarter and 45% and 23% for the year ended 2021, respectively
  • Net loss of $114.8 million in the fourth quarter and $123.6 million for the year ended 2021, reflective of $61 million of stock-based compensation expense from vesting that occurred upon the merger
  • Non-GAAP adjusted EBITDA of $(2.3) million in the fourth quarter and $4.9 million for the year ended 2021
  • Ending backlog of $465 million
  • Cash and cash equivalents of $68.9 million as of December 31, 2021

Commenting on the results, BigBear CFO Josh Kinley said “We added new contracts and customers throughout the year, resulting in a backlog of $465 million, which is three times the size of our entire revenue for 2021.”

Projection for year-ended December 31, 2022

  • Revenue between $175 million and $205 million, including approximately $20 million of commercial revenue
  • Positive Adjusted EBITDA

The company notes that COVID led to delays in government contract awards in 2020 and 2021, and cannot predict how the pandemic will evolve or what impact it will continue to have.

Kinley said, “Delayed government contract awards and the Continuing Resolution pushed some revenue into future periods, and this depressed near-term EBITDA, but our investments throughout the year have positioned the company for growth in 2022. The company continues to be EBITDA positive on an adjusted basis, and we are already seeing the results of our investments.”

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