Back to top

Image: Bigstock

BigBear.ai (BBAI) Extends Partnership With AWS ProServe

Read MoreHide Full Article

BigBear.ai (BBAI - Free Report) recently expanded its partnership with Amazon’s (AMZN - Free Report) division, Amazon Web Services (“AWS”) Professional Service (ProServe). The collaboration will enable AWS’ customers to benefit from BBAI’s warehousing solution.

The warehousing solution that BigBear.ai will provide is rooted in its innovative artificial intelligence (AI)-based solution namely, ProModel AI.
BBAI acquired ProModel Government in December 2020 and ProModel Corporation in April 2022. These acquisitions gave BigBear.ai complete access to ProModel’s discrete event simulator and predictive analytics capabilities.

The solution can be used to leverage AI, machine learning and predictive analytics to enable organizations to make data-driven decisions and optimize their operations. Additionally, the tool helps companies in planning factory setups virtually, spotting and resolving workflow issues for smoother production.

The AWS ProServe clients will now be able to simulate complex warehouse operations virtually and make decisions for optimizing the processes through BigBear.ai’s ProModel.

BBAI Benefits From Strong Partnerships

Shares of BBAI have surged 165.7% year to date compared with the Zacks Computer and Technology sector’s rise of 47.1%.

The company is gaining from multiple deal wins as well as the extension of its contract as the prime contractor for the U.S. Army's Global Force Information Management System, which is valued at $8.5 million.

Additionally, BBAI secured the exclusive Phase 2 execution rights for the Army Test & Evaluation Command's Integrated Mission Management System, which is valued at $7.7 million.

Among its non-governmental partners, BigBear.ai has collaborated with Autodesk (ADSK - Free Report) . The company has also partnered with Palantir and Virgin Orbit in 2021.

BBAI's partnership with Autodesk has resulted in the integration of its ProModel DES into AutoCAD, enhancing the platform's capabilities in architectural, construction and engineering design.

BigBear.ai is benefiting from ProModel, as the solution improves the operational efficiency of its clients and has also led to winning an unnamed shipbuilding customer, which happens to be one of the largest shipbuilders, per BBAI’s second-quarter 2023 earnings release.

The company expects its revenues between $155 million and $170 million. The Zacks Consensus Estimate for fiscal 2023 is pegged at $157.18 million, indicating year-over-year growth of 1.4%.

Zacks Rank & Stock to Consider

BBAI carries a Zacks Rank #3 (Hold).

A better-ranked stock from the broader technology sector is Intel (INTC - Free Report) , which sports Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Intel's fourth-quarter 2023 earnings has been revised 11 cents upward to 44 cents per share in the past 60 days. For fiscal 2023, earnings estimates have increased from 34 cents to 95 cents per share in the past 60 days.

Published in