JOSH KINLEY, CFO, BIGBEAR.AI:
More than more than happy to address that. So, as I mentioned earlier, we had already, you know, I think were very conservative in our
projections. And we have in our pipeline inserted a level of conservatism with regard to when government contracts are going to be awarded. We know we were in the midst of COVID at the time.
We certainly saw our government customer base realizing those impacts; they were short staffed to begin with, they had a lot of workplace closures. Because of
the nature of these engagements, some of these contracts being classified. These are not things that people can do from their living room, if you will. And so the fact that that workforce was not available to push through the contract awards, it
added a level of complexity to the timing for those awards.
So, you know, I keep going back to we won every engagement that we spoke to investors about
five to six months ago. But theres COVID-related delays or something that was simply out of our control, especially due to the resurgence with the Delta variant and further restrictions that happened. So, you know, with that said, all it did
was shift that revenue six months to the right. So it did impact our end-of-year projections, because we didnt onboard that as quickly as possible.
But we are looking and even incorporating that conservatism, or more conservatism moving forward. I am optimistic, Ill say. Several opportunities, we
talked about things that we expect to onboard in Q4, and it seems like things are back on track, so to speak. And so the things that we are projecting between now and year end, we have very favorable feedback from the government that those things
are going to happen on time, so we dont see any additional risk there.
SEAN BATTLE, CHIEF
STRATEGY OFFICER, BIGBEAR.AI:
Okay, thanks, Josh. We have another couple of
revenue related questions. The first one is: What do you expect to drive revenue within your traditional government market in the next few years? And the second one is, Ill save that for after this question, Josh, to see if Reggie wants to
throw it out to other folks.
SEAN BATTLE, CHIEF STRATEGY OFFICER,
BIGBEAR.AI:
You want me to read the question Reggie? Ill repeat it, just to make sure everybody got
it. So the first question is: What do you expect to drive revenue within your traditional government market in the next few years?
JOSH
KINLEY, CFO, BIGBEAR.AI:
So Ill talk about a few things there. Number one, we had
mentioned the maturity of our products, and how the government is now more open to moving away from traditional labor-based engagements, because they see the impact our products can have on their operations. So we have seen a lot of evolving
conversations with the government where theyre interested in expanding the scope of our existing relationships, we have a couple of examples in our pipeline of exactly that. So they want to accelerate the deployment of our solutions in that
space.
The other thing on the government side, and I had mentioned this briefly before, is we have seen that 30% CAGR, historically, that was with a
focus on a relatively small, and I dont want to make it seem like its just a few customers, because we support huge enterprises, you know, Army, Intel agencies, etc. But, you know, that 30% CAGR is just based on the needs of those
entities. And you know, lets say 20 different government customers that that we support today with our products and services.
27