Summary
BigBear.ai reported revenue of $33.48 million for FY2021 Q4 and $145.58 million for the full fiscal year. Gross profit was $3.83 million in the quarter and $34.07 million for the year. Gross margin was 11.4% in Q4 and 23.4% for the full year. The operating loss was $74.37 million in Q4 and $78.47 million for the year. Operating margin was -222.2% in Q4 and -53.9% for the full year. Net loss was $119.27 million in Q4 and $123.55 million for the year. Diluted EPS for the full year was -$1.15. Operating cash flow was -$17.51 million in Q4 and -$19.78 million for the year. Capital expenditures were $0.04 million in Q4 and $0.64 million for the year. The fourth quarter included the closing of the merger with GigCapital4 on December 7, 2021. The full-year results include the activity of PCI, NuWave, Open Solutions, ProModel, and BigBear.ai.
Deferred revenue ended the quarter at $4.21 million, up 677.6% from the prior-year quarter. Remaining performance obligations were $159.00 million. Non-GAAP Adjusted EBITDA for the Successor 2021 Period was $4.9 million. Free cash flow for the same period was -$20.4 million. The company ended the year with $465.7 million in total backlog. Total backlog was $408.561 million at December 31, 2020. Funded backlog was $91.2 million at December 31, 2021, compared with $63.0 million at December 31, 2020. Unfunded backlog was $68.2 million versus $45.8 million. Priced, unexercised options were $144.0 million. Unpriced, unexercised options were $119.7 million. Anticipated follow-on awards were $42.6 million. The company defines backlog in these categories to give investors more context on risk and uncertainty. Funded backlog represents contract value for which funding is appropriated. Unfunded backlog represents contract value for which funding has not been appropriated.
BigBear.ai booked more than $150 million of new contract awards during the Successor 2021 Period. Key wins included a five-year single award TACTICALCRUISER contract from the United States Cyber Command, a one-year contract with the Defense Intelligence Agency, and one of two Global Force Information Management Phase 1 Prototype contracts from the United States Army. The company also announced a commercial partnership with Palantir Technologies and signed partnerships with Redwire, Terran Orbital, and Virgin Orbit. The Palantir partnership integrates Palantir's Foundry platform with BigBear.ai's Observe, Orient and Dominate solutions. The merger with GigCapital4 closed on December 7, 2021. The company issued $200.0 million of unsecured convertible notes. It repaid the Antares Capital Term Loan. The convertible notes bear interest at 6.0% per annum and mature on December 15, 2026. The merger is accounted for as a reverse recapitalization. The company operates two segments, Cyber & Engineering and Analytics. Cyber & Engineering provides technology and management consulting, while Analytics focuses on big data computing and analytical solutions.
Costs remain a central risk. The full-year operating loss shows that expenses continue to outpace gross profit. The company recognized a full valuation allowance on its deferred tax assets. Goodwill impairment testing for the year ended December 31, 2021 resulted in no impairment. Management believes cash from operations and existing credit facilities will be adequate for the next 12 months. The company faces risks from COVID-19, Executive Order 14042, government contract funding, and the estimates used to determine backlog. Many contracts are not fully funded at award. Backlog includes anticipated follow-on awards that depend on the company remaining the incumbent. The company is subject to Executive Order 14042, which mandates vaccinations for employees of businesses servicing federal contracts, except for medical or religious exemptions. It has activated a pandemic crisis response plan. Revenue recognition requires judgment, especially for long-term contracts and variable consideration. The company's assessment of goodwill and intangible assets relies on projections of cash flows, market conditions, and discount rates. Changes in these assumptions could lead to impairment charges. The push into commercial markets is still in its nascent stages.
On December 7, 2021, BigBear.ai entered a $50.0 million senior secured revolving credit facility with Bank of America. The facility matures on December 7, 2025. The company may increase commitments under the revolver by up to the greater of $18.8 million or 100% of consolidated adjusted EBITDA. The company also entered a $4,233 D&O Financing Loan with AFCO Credit Corporation to finance its directors and officers insurance premium. That loan has an interest rate of 1.50% per annum and matures on December 8, 2022. The convertible notes are unsecured and convertible into 17,391,304 shares of common stock at an initial conversion price of $11.50.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2021 | Q3 FY2021 | QoQ | Q4 FY2020 | YoY |
|---|---|---|---|---|---|
| Revenue | $145.6M | — | — | — | — |
| Gross profit | $34.1M | — | — | — | — |
| Gross margin | 23.4% | — | — | — | — |
| Research & development | $6.0M | — | — | — | — |
| Sales & marketing | $106.5M | — | — | — | — |
| Operating income (loss) | -$74.4M | -$2.0M | -3686.5% | — | — |
| Operating margin | -51.1% | — | — | — | — |
| Net income (loss) | -$119.3M | -$1.9M | -6096.3% | — | — |
| Net margin | -81.9% | — | — | — | — |
| Diluted EPS | -$1.11 | — | — | — | — |
Risks
A significant portion of revenue depends on public/government sector sales, and failure to receive or maintain government contracts or changes in contracting or fiscal policies could materially harm the business. MD&A notes most historical revenues come from the Federal Government and its agencies, and many contracts are not fully funded at award.
Two customers accounted for 32% of revenue for the twelve months ended December 31, 2021 (Successor), and about $189 million of the approximate $466 million total backlog as of December 31, 2021 was attributable to these significant customers. Their contracts include termination for convenience provisions.
The total remaining deal value of awarded contracts was approximately $465 million as of December 31, 2021, but the majority contain termination for convenience and the U.S. federal government cannot exercise options more than one year in advance. Backlog also included $119.7 million of unpriced unexercised options and $42.6 million of anticipated follow-on awards.
Sales efforts involve considerable time and expense, and the sales cycle often lasts six to nine months but can extend to a year or more. MD&A states timing is affected by government budgeting and appropriation cycles, making quarterly results and cash flows difficult to predict.
Most revenue comes through time-and-material and fixed-price contracts, and fixed-price contracts expose BigBear.ai to cost overruns. MD&A reports Cyber & Engineering cost of revenues was 80% of segment revenue for the Successor 2021 Period, up from 78% for the Successor 2020 Pro Forma Period, driven by increased subcontractor costs.
As a newly public company, BigBear.ai faces increased compliance and administrative burdens. The filing discloses it did not design and maintain effective IT general controls, including user access controls for segregation of duties, which when aggregated could result in misstatements across financial statement accounts.
The company has limited operating history as a combined company after acquiring NuWave, PCI, Open Solutions and ProModel, and may fail to integrate acquisitions or manage growth effectively. MD&A reports $1.783 million of non-recurring integration costs and $6.917 million of capital market advisory fees in the Successor 2021 Period.
Success depends on hiring, retaining, training and motivating qualified personnel, especially software engineers and data scientists, and senior management. The risk factor notes that perceived value of equity awards and compensation mix may affect recruiting and retention.
Results are exposed to economic downturns, inflation, and health epidemics including COVID-19. MD&A says the full impact of COVID-19 could materially affect financial condition and operations and notes Executive Order 14042 vaccination requirements for federal contractors.
The company has existing debt and may need to refinance it on less favorable terms. The filing lists the Convertible Notes bear interest at 6.0% per annum and mature on December 15, 2026, and MD&A discusses available liquidity and debt service as key cash requirements.
Goodwill and finite-lived intangible assets from acquisitions may be impaired if forecasts, discount rates or cash flows deteriorate. MD&A states it will continue to monitor goodwill for potential impairment indicators in future periods.
BBAI Ultimate Holdings controls a majority of voting power, and BigBear.ai is a controlled company under NYSE rules, allowing it to rely on exemptions from certain corporate governance requirements and reducing stockholder protections.
SaaS KPIs
All quarters →Total Backlog
Summary, forecast, risks and KPIs are extracted from BigBear.ai Holdings, Inc.'s SEC filings for Q4 FY2021 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.