BigBear.ai Stock Surges 20% on Acquisition and Strong Earnings
BigBear.ai Holdings (BBAI) shares jumped 20% to $7.28 on Wednesday following the announcement of acquiring Ask Sage for $250 million and posting better-than-expected third-quarter results.
Q3 Financial Results
- The company reported a loss of 3 cents per share, outperforming analyst expectations of a 7-cent loss.
- Revenue reached $33.1 million, surpassing estimates of $31.8 million.
- Net income was $2.5 million, marking only the second quarterly profit in the company's history and the first since 2023.
- Despite this, revenue declined 20% compared to the previous year.
- BigBear.ai maintained its full-year revenue guidance between $125 million and $140 million.
Stock Performance
The stock had risen 6.1% to $6.06 on Tuesday after an 18% gain in premarket trading, followed by Wednesday’s 20% surge.
Acquisition of Ask Sage
On Monday, BigBear.ai announced it would acquire Ask Sage, a generative AI platform tailored for defense and national security agencies, for $250 million.
- Ask Sage serves more than 100,000 users.
- The platform supports 16,000 government teams and hundreds of commercial companies, according to CEO Kevin McAleenan.
- It offers secure access to AI models from providers such as OpenAI and Anthropic.
- The system generates outputs based on verified data from government databases.
- Ask Sage anticipates around $25 million in annual recurring revenue by 2025.
"It supports 16,000 government teams and hundreds of commercial companies," said CEO Kevin McAleenan.
Summary: BigBear.ai’s stock surged on solid quarterly profits and a strategic acquisition that expands its footprint in defense-focused AI, positioning the company for significant growth ahead.
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