Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Intuitive Machines Inc (LUNR, Financial) reported a significant increase in Q3 revenue, reaching $58.5 million, which is over four times the sales from the same quarter last year.
- The company closed the quarter with a record cash balance of $89.6 million and zero debt, providing strong liquidity for future operations.
- Intuitive Machines Inc (LUNR) secured a major contract for the Near Space Network Services, valued up to $4.82 billion over the next decade, marking a transformative step in data transmission services.
- The company's backlog reached a record $316.2 million, driven by lunar surface delivery missions and the Near Space Network Services contract.
- Intuitive Machines Inc (LUNR) is strategically positioned with its three core service pillars: delivery, data transmission, and infrastructure as services, which align with commercial and government lunar exploration goals.
Negative Points
- Operating loss for the quarter was reported at negative $13.7 million, although this was an improvement from the previous year's negative $24.8 million.
- The company experienced a $5 million impairment of property and equipment, impacting overall financial performance.
- SG&A expenses increased to $12.3 million from $9.9 million in the prior year, due to higher public company costs and employee compensation.
- The revenue from the OAMS segment decreased by about $5 million from Q2, with expectations of continued ramp down in the fourth quarter.
- Intuitive Machines Inc (LUNR) faces competitive challenges in securing the LTV contract, as discussions with NASA are ongoing regarding potential multiple vendor awards.
Q & A Highlights
Q: Do you anticipate that the LTV contract could still go to multiple vendors even after NSNS was awarded sole source to you?
A: Yes, we are having discussions with NASA about the strategy for the LTV contract, and whether it will be a single or multiple awards has not yet been determined. The door is open for discussions, and NASA is receptive to that possibility.
Q: What types of Space Force or other DoD programs are you looking at bidding on for Exo contract work?
A: We are exploring opportunities with the DoD community, particularly in areas like orbital transfer stages. We see potential for rideshare payloads to go into other orbits in the cis-lunar space as we launch towards the moon.
Q: Can you give some more color on program mix for revenue in the quarter?
A: The $34 million was mostly attributed to OAMS. Other programs are a mix of the Landers and LTV. The LTV contract was $30 million for the first year, contributing about $2 million to $3 million a month.
Q: Is there any expectation for how NSNS could potentially ramp in the fourth quarter and in 2025?
A: The initial $150 million verification phase includes several task orders. The first task order is a six-month period worth about $9 million, followed by a second task order for $18 million. The third task order, worth $43.5 million, involves on-orbit verification and starts operational tasks. Subsequent task orders will further ramp up operations.
Q: What are your thoughts on the potential impact of a new administration on the space industry?
A: We expect a continuation of bipartisan support for the United States' strategic focus on the moon and returning humans to space. Commercial space activities are integral to opening up the cis-lunar economy, and we anticipate this will be strengthened under the new administration.
Q: Can you elaborate on your competitive advantage for the LTV contract?
A: The LTV is a full-service offering, not just a rover. It involves delivery to the surface, autonomous operation, and data transmission. Our company uniquely provides all three services, setting us apart from the competition.
Q: What are some key milestones or catalysts investors should be aware of as you approach the IM2 mission launch and LTV contract decision?
A: For IM2, we are on track for a February launch window. A design review for the heavy cargo lander is scheduled for March. These milestones set us up for the LTV delivery demonstration mission, with proposal activities starting in May and an award expected by the end of the year.
Q: How are you thinking about your cash runway and liquidity over the next 12 months?
A: We are in a strong liquidity position for at least the next year. We may opportunistically add capital to the balance sheet for major contract awards like NSSS and potentially LTV, but we are secure through the end of next year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
