Scanway, a Wrocław-based company listed on the NewConnect market, has taken a significant step towards scaling its business in the world’s most competitive space market. The company has entered into a cooperation agreement with a US space entity to provide a new class of optical instruments for a planned constellation of Earth observation (EO) satellites. The value of the contract for the first instrument is estimated to be around USD $4.3 million, but key to the company’s long-term valuation appears to be the change in business model that this agreement inaugurates.
From an operational perspective, Scanway has committed to delivering an advanced telescope integrating several cameras operating in different wavebands. The delivery time is set at 24 months from the operational start of the project. Payments will be made in tranches when milestones are reached, which is standard in the industry, allowing for ongoing funding of R&D work. Although the identity of the US partner has not been disclosed, the announcement points to an established entity, carrying out missions for both commercial clients and government institutions, which significantly reduces execution risk on the part of the contracting authority.
The most interesting aspect of the deal, however, is the revenue layer beyond hardware sales. Scanway is entering into a Data-as-a-Service (DaaS) model. This means that the Polish company will not only provide the ‘eye’ of the satellite, but will also participate in the profits from the sale of the data generated by the instrument. The mechanism is that data streams will be made available to end customers in a subscription model, with a portion of these revenues going directly to Scanway.
The significance of this contract structure is twofold. Firstly, it allows Scanway to generate recurring revenue (ARR), an indicator particularly valued by technology investors and stabilises cash flow in the long term. Secondly, profits from DaaS are expected to co-finance the construction of further instruments for the US partner. This creates a self-perpetuating growth mechanism in which the commercial success of the first satellite directly funds the expansion of the entire constellation, without the need to constantly seek external capital for new instruments.
For Scanway, which made its IPO in 2023, this is a strategic validation of the technology. Entering the US – a market with the highest barriers to entry, but also the largest budgets – with a new optical instrument architecture positions the company in a new league of suppliers. If the first phase of the project is successful, the Polish entity could become a permanent part of the supply chain for US EO constellations, diversifying its portfolio with high-margin products and a long product life cycle.
