Maxar Technologies Inc.

Jeff Tarr - CEO Gary Ferrera – CFO Patrick Elliott - IR

Peter Appert - Piper Jaffray Jason Gursky - Citigroup Denny Galindo - Morgan Stanley Howard Rubel - Jefferies Mark Strouse - JPMorgan Josephine Millward - The Benchmark Company Chris Quilty - Quilty Analytics Ash Birla - Dougherty & Company

Thank you, Andrew. Good afternoon and thanks for joining our call today.

With me are Jeff Tarr, President and Chief Executive officer, and Gary Ferrera, Chief Financial Officer. Our remarks today will include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based upon our current expectations and assumptions of future events, and are subject to risks and uncertainties that could cause our actual results or performance to differ materially from expectations.

These include revenue, adjusted EBITDA margins, earnings per share, cash flow, sales pipeline and strategic initiatives. We undertake no obligation to revise or update any forward-looking statements.

Please refer to our earnings release and publicly filed reports which can be found at our website for a more detailed discussion. You should also refer to our earnings release for an explanation of the non-GAAP financial measures discussed during this call and for a reconciliation of those measures, which we believe provide meaningful comparisons between periods.

For your convenience, we have posted supplemental materials on the investor relations section of our website. During the question and answer session, please limit your questions to one question plus a follow up, and then please re-enter the queue if you have additional questions.

With that, I will turn the call over to Jeff.

Thanks, Patrick. Good afternoon and thank you for joining today's call.

I'm pleased to report that strong execution of our strategy is delivering better than expected results, enabling us to raise guidance for the full year. Gary will discuss our financial results and revised guidance in detail, but first I’d like to spend a few minutes updating you on our progress, executing our five-point strategy for share owner value creation.

The first point in our strategy, imagery leadership, focuses on extending our industry lead while delivering margin expansion, strong free cash flow and returns. Our progress is reflected in strong adjusted EBITDA margin expansion for the Company overall.

Our imagery business is comprised of three customer groups, US government, international defense and intelligence, and commercial, each of which performed well relative to our expectations in the quarter. Let me share a few thoughts on each.

Our US government imagery business continued to deliver on our customers exacting service level requirements, fulfilling important missions in a volatile world. Earlier today, NGA exercised the option for what will be the seventh year of the EnhancedView SLA.

As a reminder, the EnhancedView SLA is a firm, fixed-price contract with annual renewals through August of 2020. Our business with the US government has been renewed for 15 consecutive years under various contract vehicles, each of which has contributed to the growth of the Company.

DigitalGlobe and its team members are proud to provide a mission-critical service to the NGA and end-users across the US government with our best-in-class constellation and ground infrastructure. In recent weeks, NGA and NRO, the National Reconnaissance Office, which operates government owned satellites, announced the creation of a joint activity focused on commercial imagery.

We’ve been working with both the NGA and NRO for many years and believe the opportunity for increased coordination has the potential to drive further adoption of commercial imagery and integration into additional workflows, which could create new growth opportunities over time. Our international defense and intelligence imagery business performed better than expected, even though DAP revenue was down year over year as anticipated, due to unusually high one-time revenue in the second quarter of last year that we’ve highlighted previously.

We are especially pleased with the unprecedented growing demand for WorldView-4. The value of priority access, the high accuracy 30 cm capacity, was again demonstrated with today's announcement of another letter of intent with what is expected to become the 12th customer in our Direct Access Program.

This multi-year arrangement includes access to our entire WorldView constellation, including WorldView-4. Additionally, we announced that an existing DAP customer also entered into an LOI for WorldView-4 capacity.

With $415 million in new GAAP contracts and LOIs, we believe we are setting the stage for better growth in 2017 and 2018, as we bring our new and existing customers online with our new constellation DAPs and our second 30 cm satellite. Commercial imagery revenue was stable in the quarter and total commercial revenue across all product lines was up, demonstrating our progress overcoming headwinds in this part of our business.

We are encouraged by the emergence of new use cases and recent customer wins including Uber and Esri. In recent months, we’ve seen customers realize the value of our high resolution, high accuracy 30 cm imagery in identifying related features not visible with less capable satellites, enabling better mapping and safer navigation.

While too soon to count on this development for material growth, taken together with our recent DAP wins, we are seeing encouraging indicators of the future potential of our investments in WorldView-3 and WorldView-4. Turning now to the second point in our strategy, platform leadership.

DigitalGlobe has been making good progress building the world's leading multi-source geospatial analytics platform to enable a wide array of customers, developers and partners to unlock the power of our content and drive long-term growth. This business delivered strong double-digit revenue growth in the quarter, albeit on a small base.

And while not a significant contributor to total Company growth, we remain pleased with our progress and are looking to this part of our business to be a more meaningful contributor over the long term. The third component of our strategy, services leadership, is focused on our efforts to more deeply embed our imagery and platforms in our customers' workflows using professional services, combined with proprietary analytic software and IT.

During the quarter, we were awarded two new sole-source contracts within the intelligence community, including a multi-year contract with the Defense Intelligence Agency, or DIA, with a total ceiling value of $55 million and a $4 million contract with NGA. Additionally, our services team continues to drive growth and usage in revenue for our commercial geospatial big data platform across the US government.

We also won three new contracts for our human geography product. Our services team remains focused on serving not only our US government customers, but is engaged with strategic accounts wherever professional services are required to help customers get full value from our imagery and platform offerings.

The fourth component of our strategy is focused on reducing our capital intensity over time, while extending our industry lead. The launch of WorldView-4 is an important component of this strategy.

We are on track for a September 15 launch from Vandenberg Air Force Base. Once this satellite begins generating DAP revenue in the first half of 2017, it will contribute to improved growth and returns.

Importantly, WorldView-4 will substantially increase our ability to image the world with resolution, accuracy and clarity, far beyond that of all other commercial providers, enabling us to better serve our international defense and intelligence customers and unlock new commercial use cases. We remain on track to further extend our leadership in late 2018 or 2019 with a fleet of smaller satellites through our partnership with KACST and TOQNIA space.

This new fleet, which we have now named Scout, will tip and cue our high-resolution satellites and help monitor some of the world's most volatile regions. Finally, we expect to begin investment in our next-generation satellite system in 2017 or 2018 to replace the combined capacity of WorldView-1 and WorldView-2.

This industry-leading multi-satellite system will deliver WorldView class resolution, area coverage and positional accuracy with unprecedented revisit. We continue to anticipate a total cost of approximately $600 million, excluding capitalized interest, considerably less than the combined cost of WorldView-1 and WorldView-2, thereby driving down our capital intensity.

This brings me to the fifth and final component of our strategy, returning capital to shareowners. By executing the first four components of a strategy, we're generating excess cash flow that we are returning to shareowners.

In the quarter, we continue to repurchase shares and return capital under our share repurchase program. Since initiating the program in July of 2014, we’ve repurchased $296 million of our total $335 million authorization, and have reduced our share count by approximately 17%.

Overall, I’m pleased with our progress executing our five-point strategy for shareowner value creation. Our imagery business is delivering margin expansion, strong free cash flow and returns.

Our platform business is unlocking new use cases through an expanding ecosystem. Our services business is winning new contracts while enabling our customers to unlock more value from our imagery and platforms.

Our investments and partnerships are driving down our capital intensity while extending our industry lead, and we continue to return capital to shareowners. Let me now turn the call over to Gary to discuss the results and revised guidance.

Thanks, Jeff, and welcome everyone. The team continued to execute well this quarter.

We generated adjusted EBITDA of $95.3 million, an increase of $7 million or 7.9% over the prior year, while total revenue declined 1.4% to $175.5 million. Our adjusted EBITDA margins continue to be strong at 54.3% versus 49.6% in the prior year.

This increase in adjusted EBITDA margins is due to our ongoing operational efficiencies. While we are pleased with these results and will continue to focus on delivering strong margins, it should be noted that we do expect to make additional investments in the second half of 2016, including certain hirings to support our platform and our other initiatives, as well as absorbing costs related to the launch and operations of WorldView-4.

Now focusing on revenue, US government revenue in the quarter was $111.9 million, down 1.1% year over year. This decline was expected as we had realized the deferred revenue earn out on prior Global-EGD awards in Q2 of 2015.

Diversified commercial revenue was $63.6 million in the quarter, down 2% year-over-year. As anticipated, this was entirely due to strong DAP performance from one customer in Q2 2015.

DAP revenue was $28.5 million, down from $31.6 million in the prior year. On our first quarter call, we had highlighted a potential decline in Q2 DAP revenue due to the unusually strong prior year performance.

This result was better than we had been expected. We had also mentioned that some of our first quarter over performance may have been a pull forward, but DAP revenue for the first half of 2016 delivered revenue growth of 9.8% over the prior year.

As Jeff previously mentioned, on top of these strong results, we have signed an LOI to add what is expected to be our 12th customer to the DAP program, bringing the total volume of new commitments across the constellation since the third quarter of 2015 to $415 million, with approximately 55% of that revenue under firm contract. We believe that on a full-year basis, these commitments have the ability to generate an increase in contracted revenue of approximately $55 million.

We should begin to recognize a small amount of this incremental revenue in the first half of 2017, and anticipate continued ramping throughout the rest of 2017 and into 2018 as we complete the installation of the new constellation DAPs in the second half of the year. Other diversified commercial revenue grew both sequentially and year-over-year.

For the quarter, revenue was $35.1 million, up 5.4% year-over-year, driven by incremental imagery deliveries across multiple verticals, partially offset by weakness in the oil and gas sector. Moving on to expenses.

Our cost of revenue decreased by 3.8% year-over-year. This was a result of various procurement savings across the business, combined with our reengineering and restructuring efforts, partially offset by a small increase in headcount in anticipation of the launch and operation of WorldView-4.

SG&A expenses were down 14.7%. This decline was also driven by our re-engineering and restructuring efforts, which resulted in lower headcount and lower consulting and professional services fees.

In total for the quarter, cost of sales and SG&A expenses, excluding re-engineering costs, declined by $9.5 million year-over-year or 10.6%. This is on top of an already strong decrease in these expenses from Q2 2014 to Q2 2015.

Net interest expense was $4.7 million, reflecting capitalization of $11.7 million. Total interest expense for the quarter, inclusive of capitalized interest, was $16.5 million.

Cash interest in the quarter was $6.7 million, and $29.2 million for the first half of the year. We continue to expect that cash interest paid will be approximately $58 million for the year.

CapEx, excluding capitalized interest, was $42 million in the quarter and $64 million for the first half of 2016. We continue to expect approximately $125 million of CapEx for the year.

For the quarter, we made net investments in CDAFs totaling $3.6 million that were accounted for as deferred contract costs. As previously mentioned, by making these investments in advance of the launch, we will accelerate the realization of revenue on WorldView-4.

As we noted on our last call, these investments could approximate $20 million in 2016, net of customer reimbursements. Total restructuring and re-engineering costs are expected to be $15 million in total, $3 million lower than the originally anticipated $18 million.

We have spent approximately $9.5 million to date and expect to complete this plan in the fourth quarter of 2016. Free cash flow for the quarter was $45.5 million, down $13.6 million year-over-year.

This year-over-year decline is due to an extra payment received from the NGA in Q2 of 2015. As you may recall, in Q2 of 2015, free cash flow was positively impacted by a one-time additional $25 million payment received from the US government based on contractual terms.

As previously mentioned, we expect to receive 12 monthly payments a year on this contract. If we were to adjust out this additional payment from Q2 2015 for comparability purposes, free cash flow would have increased $11.4 million or 33%.

During the quarter, we repurchased nearly 900,000 shares at an average share price of $18 for a total of $15.9 million. Shares outstanding at the end of Q2 were $62.7 million.

As of the end of the quarter, we have $39 million remaining on our authorization. We are adjusting our full-year guidance due to our slightly stronger than anticipated revenue in the first half of 2016 and our continued ability to drive efficiencies in the business.

We now expect revenue to be in the range of $680 million to $705 million, and adjusted EBITDA in the range of $345 million to $365 million. As a reminder, we do anticipate higher costs in the second half due to disciplined investments in our platform business and the costs related to launching and operating WorldView-4.

While we do not provide quarterly guidance, we note, as we did on the last call, that as we did in this quarter, we will face a tough comp in Q4 versus last year due to material prior year outperformance in our DAP business, which we do not anticipate repeating. We are pleased with these revisions to our guidance and remain focused on and committed to driving ongoing efficiency in the business while making disciplined investments to drive long-term revenue and EBITDA growth, margin expansion, free cash flow and ultimately improved returns.

We've had a great start to the year, reinforced by our performance this quarter. Year-to-date revenue is growing, expenses are down and margins have been expanded.

With that, I’ll now turn the call back to Jeff.

Thanks, Gary. We’re pleased with our results in the first half of the year and our improved outlook and our teams remain focused on execution and shareowner value creation as we enter the second half of the year.

Operator, will you please open the call for questions?

Thanks. Gary, given the tremendous success you've enjoyed in terms of managing the costs lower, I'm surprised maybe you’re not slightly more optimistic on the EBITDA outlook.

And I hear what you’re saying in terms of investment spend. So I'm hoping maybe you can just quantify a little more what the incremental costs are for WorldView-4 launch and some of these investment initiatives you talked about.

Yes, I mean I don't get into too much detail. We’ll obviously continue to watch the bottom line very closely, but there will be some incremental spending in Q3 and Q4, so I think you’ll see the total expense line go up slightly.

And then when you look at the total picture, you can tell by our recent performance and the way we set guidance that we take this very seriously and we try to make sure we set a range that’s very achievable, and that’s our focus.

When you say up slightly, you’re talking about year-to-year cost trends, correct?

No, I meant serially. So we were in the 80s each quarter, Q1 and Q2.

Okay. And then on the commercial revenue, it’s great to see you guys getting some traction again in that business.

Can you give any further granularity in terms of what’s driving it? Because I'm wondering specifically if the Uber and Esri contracts that you called out, are they needle movers on a near-term basis?

Sure, Peter. Thanks.

Both Esri and Uber did contribute in the quarter. The Esri contract is a substantial contract.

It’s a multi your contract. It’s actually a win back of a customer that was substantial for us several years ago, but now has come back and we are delighted with that.

Uber is a new customer, starting relatively small but strategic and we are very focused on meeting and exceeding their requirements and growing that business over time.

Good afternoon guys. Two quick questions.

First, Jeff, can you maybe walk through what you view to be both the risks and opportunities to guidance for the rest of this year? And then secondly, your comments about the NGA and the NRO coming together and jointly approaching commercial imagery, can you talk a little bit about what you view to be both the opportunities and threats that are associated with that and whether you view this to be an overall opportunity that outweighs potential threats there?

Thanks, Jason. First of all, with regard to guidance, it's certainly our best view of the future as we look at revenue.

As you know, most of our revenue is recurring in nature, has a good deal of visibility to it. Our US government imagery business for example is a testament to that.

As we look at other parts of our business, international D&I, there’s a level of performance that is contractual, but there is also a level of performance that is based on the needs of the customers. So again last year for example, a number of customers spent more than the contractual minimums.

In the first half of this year a number of customers have done that again. To the extent they pull back the contractual levels, that could put pressure on DAP revenue.

To the extent that they sustain or even increase that spend, that creates upside. In our commercial business, a large percentage of that is recurring.

We have a fair amount of visibility, but as you know a lot of that business is also project oriented and there is, there's always a heavy amount of project work toward the back half of the year. So we feel good about the guidance we’ve set.

We feel good about the outlook. We have considerable visibility, but it’s not perfect visibility.

With regard to the NGA and the NRO, as we’ve mentioned, we see this as opportunity. We've worked closely with both agencies for a long time and this joint activity is about increased coordination.

We believe it’s representative of a shared belief across both agencies that commercial imagery is important and we are the primary provider of commercial imagery today. So we see that as opportunity and to the extent US government can make more use of commercial imagery and embed commercial imagery in more workflows, we believe that’s good for the industry, for DigitalGlobe, and for the US government.

Good afternoon. On the new win that you announced, the two new wins I guess in DAP, you mentioned that it would increase annualized revenue $55 million.

I think in the prior press release you had said $43 million so that’s $12 million a year from these new wins. Is that the right way to think about it and is this evenly split between your existing client that upgraded and the new client that you added?

First of all, that is the correct way to look at it with the additional caveat that they don't all come online all at once and the new customer will likely take longer to bring online. In fact, we may not see revenue from that customer until 2018.

So you need to keep that timeframe involved, but yes you're looking at it correctly. And in terms of splitting it between the two, we’re not in a position to do that.

We just don't reveal individual contracts.

Okay. And then there's been a number of small sat launches this year, some from Terra Bella, some from Planet Labs and then Comsat which has something like a 50 cm.

I don't think it’s as good as your 50 cm, but I was wondering if you had any comment on those launches and how they might be impacting the market? Specifically, are they impacting pricing and are they impacting the length of time that your DAP customers like to sign up for?

Are these new DAP contracts smaller because they want to leave room for some of the new launches that are going on or the contract lengths similar to what they have historically been?

As you can tell, we’ve seen some substantial growth in our DAP business and that’s driven by WorldView-3 and WorldView-4 and our CDAFs, which are a very unique offering in the marketplace. Nobody else comes close.

With regard to small sats, yes, there have been a number of launches. We continue to question the value of standalone small sat constellations, but we also believe that there is a place for small sats.

We believe there are -- and that's the reason that we have announced our [stealth] constellation where we’ll be adding small sats to our constellation in order to enable tipping and cueing and monitoring applications. But I can tell you, we haven’t seen any impact in our customer base, at least related to our business from small sats.

Thank you very much. Peter stole my SG&A comment, Gary.

It’s very nice to see you’ve got a heck of a different metric there, but I’m still going to get you to elaborate a little bit on it. Other than the cost of the tent for the launch, could you elaborate a little bit on what you think sort of a base level of SG&A might be or how you think about managing that going forward?

I remember within a month of me joining last year, Howard, you gave me specific orders to get SG&A down and you were very direct about that, so hopefully you’re happy with the results. I can't give you specifics.

We’re watching everything, so it would be hard for me to give you specifics on that. But looking into the second half, as we mentioned platform we mentioned will need to grow its cost base a little bit just because of the growth.

We start moving into the second half, we also have the launch and we have various costs related to that, both headcount related and just communications, etc. So we are expecting a slight increase there.

And then a second, I know we don't want to get too far ahead, but how do you think about, Jeff, selling the remaining opportunity on WorldView-4 and meshing that with the constellation?

I think the key operative word you’ve used is constellation. We are increasingly selling the power of the constellation.

So our DAP customers for example are increasingly buying our constellation DAF or CDAF offering, which allows them to access all of our satellites. With regard to WorldView-4 specifically, I’m pleased with the progress that we’re making in contracting revenue on that satellite and we still think there’s more to go.

Hey guys. Thanks for taking our questions.

Congratulations on the beat and raise. Just wanted to go back to pricing for the LBS customers.

Last year you guys talked about not being willing to discount the pricing for the LBS because there was plenty of demand with DAP. Just curious if any of those customers have since come back and are willing to renegotiate a higher price, or if any of these recent contract wins, if they are using the higher resolution WorldView-3 and paying for it?

Thank you.

I can tell you that we have been selling 30 cm to a few of our LBS customers, primarily on an experimental or trial basis. What we are finding, I should say they are finding, is with 30 cm imagery at the levels of accuracy that we’re providing it, that there are certain road features and changes that we can uniquely detect that can't be detected with less capable satellites.

Now, it’s still early but I think there is at least some hope that WorldView-3 and WorldView-4 and our future constellation can unlock new use cases. We’ll see.

Got it. Okay, thanks.

On DAP, you had mentioned some of the demand earlier this year you thought was pulled toward. You weren't sure about if the budget dollars would be freed up or not.

Just curious what the latest is from some of those DAP customers. Even if it’s not increases in their budgets for this year, if just given the demand profile this year, if that gives you some optimism for even further increases in their budgets next year.

What I can say is with our DAP customers, we did get better performance in the second quarter than we had expected. I don't want to speculate specifically on the balance of the year other than what’s included in our guidance and the point that Gary made that we have a tougher comparison in Q4.

As we look at next year, I think our success in signing new DAP customers, two this year so far brand-new customers, and upsizing existing customers, bodes well for growth in that part of our business next year.

Thank you. Hi guys.

Jeff, can you comment on the US government's Cyborg solicitation? How do you think that might change the way the NGA buys commercial satellites imagery NGO and data moving forward?

First of all, what I can tell you is we don't see the Cyborg program significantly impacting our business other than potentially creating some upside opportunity to sell some of our emerging capabilities or excess capacity in some parts of the world. Essentially, what that program is about is enabling the NGA to purchase imagery on an as-needed basis from some of the new players who don’t benefit from the EnhancedView contract.

It sounds like it could also create additional opportunities for you to sell to other federal agencies. Is that the right way to look at it?

That’s certainly a possibility. I wouldn’t rule that out.

Great. Can you give us a breakdown of your backlog?

In the past you would provide a breakdown by market segment.

Yes, Josephine, I think I mentioned I think on the last call, we stopped doing that just because there was a lot of noise in the numbers, which made it very confusing for a couple of different reasons, some with of the type of contracts that we were doing, resellers and so no, we don't provide that detail.

Thanks gentlemen. Had a question for you on the renewal on the contract you have with the DIA.

Can you give us a sense of whether that contract is equal to what you had been doing in the past or is that an upsize from your traditional analytics business?

What I can tell you is it has a higher ceiling than our prior run rate. Now, that doesn't mean that the customer will take full advantage of the opportunity up to that ceiling, but certainly it's indicative of the fact that we're meeting and exceeding that customer's requirements.

They see additional demand for what we do and we’re really excited about continuing to work with the DIA in this capacity.

Great. A separate question in analytics.

Maybe I was confused from your earlier discussion. In the early part of this year, you talked about backing out of some of your effort in the commercial geospatial analytics business.

If I heard you correctly in the earlier part of this conference call, you were indicating that you see continued upside in that area. Did I misunderstand how you characterize your approach to the commercial analytics side?

The strategy as we articulated it, Chris, for our services business, has been about driving our information and our platforms more deeply into our customers' workflows across all of our customers and to do that at margins that are in line with that particular industry, which is a different margin profile than the rest of our business. And so that is our focus and what we are finding is it’s working.

The strategy is working. We are selling our -- we are implementing our platform within the US government, which is really exciting.

We’re driving new use cases with regard to our imagery, and we’re helping our customers unlock value from our imagery in ways that weren’t previously possible. So it’s a good opportunity.

Thank you guys. Most of my questions have been answered.

Jeff, I wanted to ask you about Cyborg again. So, that program is completely different than what the NRO and NGA are doing jointly?

The NGA and NRO announcement they made a few weeks ago was about the creation of a joint activity. It’s a coordinating activity.

Cyborg is a program to purchase imagery on an ad hoc -- and geospatial services, on an ad hoc, as-needed basis. So they’re different.

So Cyborg is more of ad hoc that will start -- the NGA said it will go live in 2017, so this will be on top of EnhancedView and that would be something like a value added service that you will provide to them if they need it?

Cyborg is not part of EnhancedView.

Right, okay. Gary, on the CapEx, I know this is a launch year.

What is your minimum maintenance CapEx? $125 million probably includes WorldView-4.

Yes. What we have said in the past is that maintenance is about 6% to 8% of revenue.

We haven’t adjusted that. As we get further into the year and look into 2017, we could probably give you more detail, but I’d stick with that for now.

Hey guys, a couple more. That’s a nice segue actually.

On the CapEx, you mentioned that you’ll start spending on the new satellites in 2017 or 2018. So could you discuss the swing factors that would make you get a two-year CapEx holiday versus just a one-year CapEx holiday?

What type of things should we be looking for and what would be behind the decision on where to start the capital program?

I’d say first of all your term, not ours with regard to CapEx holiday it’s not a term we use here. But with regard to the timing of the start, there are a number of factors.

One is the needs of the US government and our other customers. Another is the use life of our on-orbit assets.

I would say those are the biggest. As we look at those, we’ll make a decision at the appropriate time, but we don't need to make that decision today.

Okay. And then just a quick backlog question.

You don't give as much detail as you used to, but maybe you could just remind us of the rules of the backlog. On this latest contract win, would that 100% be included in the backlog or would it only be the portion that has a letter of intent?

Or what type of rules define when you can put it in and how much of that most recent contract is actually in the backlog?

When you say most recent, are you talking about the DAP contract?

Yes, the new DAP contract.

Yes, those are just letters of intent. Those would not be in the backlog.

Okay. What are the rules about putting it in the backlog?

The rules. So it’s in the backlog when it’s basically booked revenue that needs to be delivered on, not – it’s contracted.

It’s there. It’s not letter of intent.

So the EnhancedView contract is in backlog.

Thank you. Jeff, if for a moment you could frame for us a little bit of the implication of this Uber contract.

I know you don't want to get too far ahead of your customer, but from what I can read, it sort of redefines how people think about mobility.

Well, what I can tell you is Uber has been very public that they’re getting into the mapping business to support their own business and we are really pleased to have been engaged by Uber to provide them imagery to support their early efforts. I will tell you that it is a relatively small contract today.

It is one in which we are very focused on delivering value to the customer and growing it over time.

Those are broad statements and I’m just going to try to pin you down a little bit. Does it stimulate others to look at what you’re doing?

Or have you had any other conversations with people in terms of this general framework, in terms of map detail and mobility?

To that extent, I would say that Uber is a highly respected company and so to be able to announce that customer relationship is one that is certainly helpful. I do believe that what they are doing with our imagery is demonstrating the value of this 30 cm, high-resolution solution, as well as our 50 cm imagery too.

We are encouraged by Uber and by our other customers in the LBS space. We think there is an opportunity there and we are seeing growth this year.

Thank you very much.

Thanks. Gary, you talked a little bit about the revenue impact of the roll out of these new DAP clients and then the WorldView-4 impact in ‘17.

Can you give us any more color in terms of how we should think about that in terms of how quickly it rolls out, order of magnitude in ‘17?

Peter, we’re not really guiding to ‘17 yet. We expect it to start a very small amount, probably in Q1, but very small.

Ramp up a little bit more in Q2 and start developing more throughout the year, but we’ll have to wait until later. One of the issues is timing on getting the CDAFs built out and we can actually start delivering, etc.

There's a lot of inputs to that that we’re not really ready to provide yet.

Got it. How about the margin implications of what appears to be the likelihood of fairly significant DAP growth over the next couple of years as you see the benefit from this increased backlog?

I think you’ve talked in the past about how the DAP business is your highest margin business. Does that have some implications here for the next couple of years then?

Yes. The DAP business is a great business.

Incremental margins there are very good. We obviously will be -- remember, this whole deferred contract cost situation is where we’re taking the hit on cash now, but we don't actually start amortizing the expense until those things go live, and then it goes over the length of the contract.

So there are extra costs that will go out there. It’s just a matter of timing of those deferred contract costs, then moving into the next year and being amortized over the length of the contract.

So yes, they are high-margin but they’re not 100% margin for sure.

Got it. Thank you.

Thank you all for your time today. Looking forward, we will seek to build on our progress executing our five-point strategy for shareowner value creation.

We’ll continue to manage our industry-leading imagery business for free cash flow and returns. We will continue to make disciplined investments in our platform for growth.

We will continue to leverage our analytic services to embed our imagery and platforms in our customers' workflows. We’ll continue to drive down our capital intensity while extending our industry lead, and we will continue to fulfill our promise to return capital to share owners.

Taken together, we believe these strategies will create long-term value for shareowners and we look forward to updating you on our progress. In the meantime, we hope you’ll all join us on the web or in person for the launch of WorldView-4 this September, as we again extend our industry lead and position our company for long-term profitable growth and shareowner value creation.

Thank you.