BigBear.ai Stock Surges 20% on Acquisition and Strong Q3 Results
BigBear.ai Holdings, Inc. (BBAI) saw its stock rise 20% on Wednesday to $7.28 following the announcement of acquiring Ask Sage for $250 million and better-than-expected third-quarter earnings.
Third-Quarter Performance
- The company reported a loss of 3 cents per share, outperforming analyst expectations of a 7 cents loss.
- Revenue reached $33.1 million, exceeding the predicted $31.8 million.
- Net income was $2.5 million, marking only the second profitable quarter in BigBear’s history and the first since 2023.
- Revenue declined by 20% compared to the previous year.
- BigBear.ai maintained its full-year revenue guidance between $125 million and $140 million.
Stock Movement
The stock gained 6.1% to $6.06 on Tuesday after an 18% rise in premarket trading. Wednesday’s increase added another 20% to the share price.
Ask Sage Acquisition Details
On Monday, BigBear.ai announced the acquisition of Ask Sage, a generative AI platform focused on defense and national security.
- Ask Sage serves over 100,000 users including 16,000 government teams and hundreds of commercial companies.
- The platform offers secure access to AI models from providers such as OpenAI and Anthropic.
- It delivers outputs grounded in verified government database information.
- Ask Sage anticipates annual recurring revenue of approximately $25 million by 2025.
CEO Kevin McAleenan stated the platform "supports 16,000 government teams and hundreds of commercial companies."
BigBear.ai’s strategic acquisition aligns with its focus on AI technology for national security and commercial applications.
Author’s summary: BigBear.ai’s stock surged 20% after its acquisition of Ask Sage and better-than-expected Q3 results, marking a significant milestone with rare profitability and strong future prospects.