Intuitive Machines(LUNR)2024-08-13 17:52Financial Data and Key Metrics - Revenue for Q2 2024 was 18 million) [5][12] - Revenue for the first half of 2024 was 28.2 million, compared to 13.2 million in Q2 2023, driven by the completion of the IM-1 mission, contract modifications, and increased SG&A costs [14] - Cash balance remained strong at 31.6 million, with 5 million of debt retired in Q2 [15] - Free cash flow in Q2 was an outflow of 213 million, with new awards such as the 70 million of new backlog in 2024, with significant opportunities still on the horizon [5] - Intuitive Machines has sold out rideshare capacity on its second mission and secured commercial rideshare delivery services for asteroid mining on its third mission [7] - The company completed the system requirements review for its Lunar Terrain Vehicle Services program, validating its wheeled vehicle and heavy cargo class lander designs [8] - Intuitive Machines submitted a letter to NASA expressing interest in commercializing the NASA VIPER rover system, leveraging its heavy cargo class lander capabilities [9] Market Data and Key Metrics - The company is advancing its three pillars of space commercialization: delivery services, data transmission services, and autonomous operations [4] - Intuitive Machines is uniquely positioned to win the Near Space Network Services (NSNS) contract, which is critical for enabling comprehensive data services around the moon [10] - The company is focused on establishing itself as a pioneering space exploration company, with the addition of NSNS positioning it to offer key services for a robust lunar economy [11] Company Strategy and Industry Competition - Intuitive Machines is leveraging government contracts to create and mature commercial services, a model it believes is a winning formula [7] - The company is focused on developing capabilities for delivery services, data transmission services, and autonomous operations, which are essential for future space exploration [6] - Intuitive Machines is competing in the LTV bidding pool as the only prime contractor with demonstrated experience delivering, transmitting data from, and autonomously operating on the lunar surface [8] - The company is responding to China's advancements in lunar exploration by emphasizing the importance of VIPER's science for US space exploration [9] Management Commentary on Operating Environment and Future Outlook - Management raised the low end of the full-year 2024 revenue guidance from 210 million, resulting in a new range of 240 million [5][17] - The company is confident in its cash position, with sufficient funds to cover expected operations for the next 12 months [15] - Intuitive Machines is focused on key program awards, including the NSNS and CP-22 contracts, which are expected to drive accelerated growth and solidify its long-term business plan [17][18] Other Important Information - The company has moved into its new Houston Spaceport facility, which allows for the simultaneous construction of multiple spacecraft [7] - Intuitive Machines has designed and manufactured the majority of its flight hardware for its third mission and is preparing for assembly and integration [7] - The company is working on a coalition to commercialize the VIPER rover mission, aiming for a late 2027 timeframe [45][46] Q&A Session Summary Question: Timing and implications of NASA's response to Intuitive Machines' VIPER submission [19] - NASA canceled VIPER due to budget concerns, and Intuitive Machines is proposing a commercial mission to fly VIPER using its Nova-D heavy cargo lander [19][20] - The company is forming a coalition with commercial companies, international partners, and universities to offset costs and improve mission economics [20][21] Question: Milestones for the lunar communications network [22] - Intuitive Machines is aiming to deploy a communication satellite data relay satellite by Mission 3, with key milestones including the NSNS contract awards expected in August and September [22][23] Question: Facilities cost and CapEx [24] - The company has essentially completed its CapEx investment for the new Lunar Production & Operations Center, with no large CapEx requirements expected going forward [24] Question: Delays in NSNS and CP-22 contract awards [26] - The company expects the NSNS and CP-22 contract awards in August and September, respectively, with no significant delays anticipated [26] Question: Investment required for VIPER [27] - Intuitive Machines is still assessing the costs associated with VIPER, but believes the $84 million budget left by NASA is not reflective of commercial costs [27][28] Question: Milestone payments for IM-2 [29] - The company is tracking to a December-January launch window for IM-2, with final milestone payments expected in 2025 [29][30] Question: OMES contract progress and margins [36][37] - The OMES contract is back on schedule and within budget, with high single-digit margins expected for the service contract [37][39] Question: Diversification beyond NASA [42] - Intuitive Machines is pursuing DoD work, including rideshare payloads and a subcontract with another commercial entity, and is executing on the JETSON low-power contract [42][43] Question: Potential move of VIPER to Nova-D mission [45] - The company is in discussions with NASA and aims to launch VIPER commercially by late 2027, pending feedback from NASA [45][46] Question: Timing of NSNS contract award [47] - Intuitive Machines expects the NSNS contract awards in August and September, with no impact anticipated from the election or budget flush [47][49] Question: Commercial demand for LTV [50] - The company sees significant commercial interest in the LTV, with plans to monetize it during the five months it is not operated by NASA [50][51]