Intuitive Machines(LUNR) - 2024 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue for the first quarter of 2024 was $73.1 million, representing an increase of over 300$18.2 million in the first quarter of 2023, driven primarily by the successful IM-1 mission and OMS-3 operations [86][94] - Gross margin improved to a positive $12.2 million, primarily due to IM-1 mission success milestones and modifications on other missions, with an operating loss of$5.4 million compared to $14 million in the first quarter of 2023 [6][94] - The company ended Q1 with a cash balance of$55.2 million, the strongest quarter in cash position ever, driven by $50.6 million in proceeds from warrant exercises [16][94] Business Line Data and Key Metrics Changes - The IM-1 mission contributed approximately$12 million in revenue from success milestones, with an additional $5.6 million from IM-2 and IM-3 related contract modifications [15] - The company reported a contracted backlog of$222.3 million, with an expected decline of about $46.3 million as contracts were executed [96] Market Data and Key Metrics Changes - The company anticipates a revenue outlook for 2024 between$200 million and $240 million, representing an increase of 2.5 to 3 times prior year revenues [17] - The Lunar Terrain Vehicle (LTV) contract has a total program value of over$4.6 billion, structured across multiple phased awards [91] Company Strategy and Development Direction - The company is focused on establishing a cislunar economy through advancements in command and control, communications infrastructure, and autonomous operations [4][12] - Intuitive Machines aims to position itself as a national asset supporting global space endeavors, emphasizing the importance of stable funding and commercial utilization [88][92] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, highlighting the successful execution of the business plan and the anticipation of significant NASA awards [5][17] - The management acknowledged the competitive landscape, noting the strategic importance of the moon and the need for the U.S. to maintain a strong presence in lunar exploration [88][92] Other Important Information - The company is preparing for its IM-2 mission launch expected later in 2024, with plans for a third mission in 2025 [5][15] - The company is actively engaging with NASA to provide solutions for the Mars Sample Return Program, leveraging technology developed for lunar material return [14] Q&A Session All Questions and Answers Question: What is the current status of the backlog and how much of it covers the 2024 guidance? - Approximately 80% of the backlog is currently at about $222 million, with expectations that about 80$3.3 million a month, with significant payments related to booster payments for IM-2 and IM-3 missions being the largest cash draws [24] Question: How does the company view competition from other nations' lunar missions? - The management believes that while the U.S. may appear to be behind in frequency and complexity of missions, it will catch up quickly due to more opportunities for lunar missions [25] Question: What are the expected margins for IM-2 and OMES contracts? - IM-2 and IM-3 missions are expected to be loss projects or close to break-even, while OMES margin is running in the 5% range on a consolidated basis [43] Question: What are the next catalysts for the Lunar Terrain Vehicle contract? - The company expects a $30 million task order from NASA to kick off the preliminary design phase for the LTV, with a demonstration portion to follow [44]