Release Date: May 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Revenue increased significantly to $73.1 million in Q1 2024, a 300% increase from the previous year, driven by successful lunar missions and operational revenues.
- Successfully completed the first lunar mission, showcasing technological advancements and operational capabilities, enhancing the company's reputation in space exploration.
- Secured a Lunar Terrain Vehicle services award with a potential value of $4.6 billion, indicating strong future revenue and growth potential.
- Made significant technical improvements in autonomous vehicle operations and precision landing, which are expected to enhance future mission performance and customer experience.
- Strong cash position at the end of Q1, with $55.2 million, bolstered by $50.6 million from warrant exercises, providing a solid foundation for ongoing operations and growth.
Negative Points
- Operating loss reported at $5.4 million for Q1 2024, although it is an improvement from the previous year, it still indicates ongoing financial challenges.
- Increased expenses in general and administrative sectors, driven by higher headcount, incentive compensation, and non-cash equity awards, which could impact profitability if not managed effectively.
- Dependence on significant future contract awards to meet the upper range of revenue guidance, introducing uncertainty and reliance on external factors.
- Potential risks in technological execution and mission performance, as indicated by the need for continuous improvements and refinements in technology.
- Competitive and strategic pressures from international space missions, requiring continuous innovation and investment to maintain a competitive edge.
Q & A Highlights
Q: Can you clarify what percentage of the current backlog is expected to be recognized within the 2024 fiscal year?
A: Stephen Altemus, CEO of Intuitive Machines, noted that approximately 80% of the current $220 million backlog is expected to be recognized throughout the remainder of the year.
Q: Does the 2024 revenue guidance include potential new contract wins, or is it based solely on existing contracts?
A: CEO Stephen Altemus explained that the guidance includes probability-weighted potential awards. The lower end of the guidance accounts for ongoing negotiations with NASA, while the upper range and possible exceedances consider additional awards and success payments.
Q: What are the major factors contributing to the cash burn expected by year-end?
A: Altemus mentioned that the primary factors are the indirect support costs, which run about $3.3 million monthly, and significant payments for booster operations for upcoming missions.
Q: How does Intuitive Machines view the increasing lunar mission activities by other nations like China and India?
A: Altemus highlighted that while other nations are advancing, the U.S. strategy of leveraging commercial capabilities to reduce costs will allow rapid scaling and frequent missions, potentially catching up and surpassing other nations' efforts.
Q: Can you discuss the expected utilization of the Lunar Terrain Vehicle (LTV) by NASA and the availability for commercial use?
A: Altemus detailed that NASA plans to use the LTV for about six to seven months annually, leaving five to six months for commercial activities. Intuitive Machines retains ownership of the LTV, offering significant commercial opportunities when NASA is not using the vehicle.
Q: What impact could SpaceX's Starship have on lunar transport and for Intuitive Machines specifically?
A: Altemus sees Starship as complementary to Intuitive Machines' efforts. While Starship could handle heavy and large-scale cargo missions, Intuitive Machines will focus on regular, smaller-scale deliveries, enhancing the frequency and diversity of lunar missions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
