LLAP - Earnings call 3 2023 | Terran Orbital Corp

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Operator

My name is Emily, and I'll be coordinating your call today. [Operator Instructions]. I'll now turn the call over to our host, Jonathan Siegmann. Please go ahead, Jonathan.

Jonathan Siegmann

Thank you, Emily. thank joining and quarter Orbital's everyone, earnings. XXXX morning, you Terran for third Good morning Bell, Matt are Chief this of me With Marc Corporation. of Financial Corporate Orbital Terran Chief Orbital Executive Co-Founder, Terran Corporation; acting and Riffel, Officer, Controller Officer and Chairman a and will then the and highlights past provide Marc will review of quarter, Matt the business update quarterly results. executive to answer available will your be then team Terran overall questions.

and on assumptions, make certain as forward-looking These our call, current subject today's based expectations cause actual are uncertainties. we may result, materially events During and to on made Many and this statements could statements a statements. risks differ are to forward-looking call. from factors

any and about For put which refer statements and of this the our on also Exchange can certain these be specifically company update please found will Securities reliance www.terranorbital.com. Readers refer call. undue information uncertainties, to Commission, disclaims risks forward-looking non-GAAP during discussed not to be more to are financial forward-looking cautioned on and on statements, each call. company's that information to may we today's obligation website, the note any the Please that the filings with

most non-GAAP will release. reconciliations comparable find with to earnings it You can GAAP Marc. our financial over With measures in of turn the measures I the press that,

Marc Bell

town engagement. call. virtual Well, to increase thank our effort want also I to is conference event third you, who part thank XX, earnings attended which John. Thank of our XXXX you, our everyone, on for investor quarter of those you October joining hall

year-over-year across customers more team's opportunities X engagement the which increasing of have than to continents, had on to $XX.X billion, satellites wins with will revenue we excellent an different XX over million [indiscernible] from hall, that several cash revenue contract for positive, quarter X,XXX flow growth our our we X investments XX%, town at until cover $X.X During pleased announced active highlight valued expectation were capital cash programs sufficient expected relating current our in $XX.X million. is and XX and recently operations to becoming and XXXX. We to

third $XX million Our period. from XXX% adjusted -- comparable $X.X over to million in increased million the profit quarter $XX from gross

pipeline executing a resulting contracts successfully new of on record-breaking inclusive is sign orders October. converting million our surge our team and backlog to Our in announced in of $XXX

years in us We to and for automation investments foundation are us satellite improvements as benefits important initial establish intended operating the the we position lay our with leading are -- announced capacity, come. To starting of supplier globally, the These strategic efficiency. and the to see in investments of X initiatives. with to for growth equipment recently buses

flight of standard feature introduction us for platforms our new and of deliver methodology scale on extensive This satellite enables level comic a lineup platforms. mass components, that and desire. design These a heritage pricing minimal with us our which the to customization, our is satellites have quality and allows depending flexible design. bus speed, modular needs our standard customers of customers' using architecture First X that

which We to [indiscernible] represents will by fully maintaining by commercial and deliver satellites XX to to customers not stock initiative, initiative or the just to operational government turnouts to deliver bus components, a and responsive be we Second, XXXX. standard customers of of interchangeable we a able within plan days of required The both QX be missions. by in years. and have days, space days critical launched our integration payload XX objective complete within able

Development Agency performance programs. overall updates. our I'm the to on you update happy turning and and support of quarterly to our progress Now team's Space

are a transfer our to layer. team of launched our the tranche beta total work were production X hard in for partner, to our [ in layer. on at side, satellites, at September. Meanwhile, of award the tranche in transfer of announce build providing We XX XX transfer the XX a are and the selection ] us of is X to buses support October which by satellite of ST's Martin, Lockheed of manufacturing This we later, support brings XX pleased satellites

strategic We are to To of of stellites track a the these delivering quarter to new program, to the critical fourth first our decision on of this the by commit components of second of and the made security chain quarter during the balance we supply supplier. begin propulsion XXXX. the end to the enhance

very don't of produce we components One few the currently in-house.

be took We we're partnership significantly trying X ] protect are well and of We transfer outside a now tranche we experience differentiate position transfer the the our to layer launch, improved. of on that Martin missing Tranche with has proud Lockheed help pleased of believe margin the to us to for satellite and performance decade-long report am not record tZERO protect our awards schedule. to X, and the of -- action with and us record [ this SCA's track layer. I track the and program

primarily increase our we have fact programs of gross Our mix profit on gross are the contracts adjusted better margins. working and larger represents in profit that that and

is gross Our year's our previously targets. X.X% now year-end in comparable for margin double XX.X% the year-to-date margin period adjusted profit last of disclosed line gross is of and with

and by important it metric we to great next EBITDA this move year, progress. positive is As an shows become

destiny. of your our to produce over growing control control and chain, our all supply which of components our our control continue XX% supply chain. We lowers up I delivery. speeds believe that We we costs now and in-house, we improve if our

we employees Some companies lay vendors. off our lay

assembly, circuit and rod CNC now, full torque TVAC. in-house board assembly, bought have bus testing live wire harnessing, printed machining, We

Rivada like coming in-house. We to quick days be challenge. I'd of firm modules the or components, with to the vendor provide and competitive The update and our price Space ready bought months. Any cost not and live is in when other Networks. schedule price adding to long be who AIT fixed plus keep gone, scale world a will on with removed in subsystems of product up that meet a We programs. company's cannot and the contract are we we are will

hall investor Since payments received. earnings received and do definitive and town a As schedule be we our when disclosed and milestone last late have not meeting. last further may further not have expected yet month, first our at call,

which delay, as removed result receive engaged that have regular of as the and hence revenue XXXX the remain we related we a and we this full be outlook, the a we contribution should contract by in believe I on expected for accomplished expect contractual proud our have am conservative guidance. We milestone payments guidance want is to As continue will going significant and reassured of timing future our over we in Rivada heading. basis uncertain, to Rivada of and to recently year. today been Rivada are this year to revenue our our provide with Rivada we've change where cash Accordingly, forward. Overall, what flows,

Riffel for year. the for the you, full that, to Financial as our acting been performance Matt the outlook me introduce to quarter is Terran on has job. Matt Controller Chief in earnings provide years the over couldn't Orbital we and take Corporate more hand Over us financial And call Now opportunity the our past ask amazing done the prepared last let X for Matt for to and Matt. who call joining time. the review the serve to I'll Officer. has financial With anyone first an to

Mathieu Riffel

morning, happy the be in help exciting to today Thank company you, this Marc, to its I'm at and here good point and everyone. journey. support

added, our have as the well I which plan additional we compelling our the we of most as As our XXXX budget, capabilities, and company. about which breadth magnitude it's pipeline opportunities find

discrete opportunities, help these attractive While to it's steer to these difficult deliver execute it's model and opportunities. a and company's to efforts the forecast privilege on

prior growth primarily with revenue, work for million am programs quarter which to due on XXXX, performed the a the the the was was Now quarter contribution the over $XX.X third quarter of for the $X.X quarter. a in in additional XXXX. as continued revenue same XX% was Rivada. Gross in as on our results to in same comparative to period our The year. financial $XX,XXX basis the third for profit increase increase well of I pleased the million from compared SBA on

depreciation quarter $X.X in in to and in profit of share-based million XXXX. amortization in included gross of third cost Adjusted and $XX gross quarter adjusted same compared sales. Excluding the million the was compensation cost

our changes Our and $XX.X the profit This gross for the coming period to ourselves million estimates our relating as quarter third largely company future of of in the increased XXXX. administrative EAC growth. nonrecurring and our a in increase decrease pipeline year. to the $XX.X expenses our in adjustments compared selling, benefits, for investment and function years. an negative by to ramping due driven foundation and general was administrative same was adjusted to million sales in development gross to partially share-based compared in backlog of to quarter the inventory increase vision in gross due supporting the to and cost increase adjusted EBITDA of overall during our adjusted the a certain of the labor by activities were primarily expenses. Overall, serve quarters back The by million loss and of same the multibillion increase growth profit profit an in general 'XX benefited in expenses from the and was million in part offset adjusted expenses $XX third quarter in business development primarily compensation. Adjusted office in prior negative marketing offset $XX EBITDA is initiatives, capabilities EBITDA an dollar is business across and higher for and XXXX. Selling, quarter The related of of

billion quarter of to Our primarily of at $X.X million Rivada. investments billion, related expenditures $X.X in our and $X.X was capacity capabilities. to Capital quarter for with end related our is and the backlog contract the the were which

approximately [ Finally, million approximately which aided of obligations. on offering in and of September ] as by ] $XX.X million $XX.X our hand, had we was gross million million -- [ of equity $XXX debt September X.X cash XX,

$XX on we announce and remain awards heading on team. for we million #X excited XXXX. and XX, of and our finishing strong hand. We year existing new remain priority the cash can successful our Efficient about new October over the full into a of on contracts execution note hope As had

the previous execution highlighted our of our variable near-term exact important our impacting an results. contracts timing As is in on calls, new

other -- That recognition revenue policies, not for accounting do under recognition is recognition not until results full revenue reminder, on of $XXX year the larger on to million in awarding start the certain po our the working for least potential and cash a removal a revenue programs. in to and expect delayed our of performed is work to at accounting year-over-year primarily other recognized Rivada, decrease drive or we is revenue be now challenges guidance the the we're XX% The through greater our in receipts compared XXXX revenue. We than XXXX. related increase As of programs contracts.

line gradual gross year-to-date of targets, execution. $XX.X year-end disclosed previously vary profit we program margin margin future and in Our adjusted on improvement periods. and now of The with magnitude depending may is in pace improvement and our mix expect million

know year our CapEx less now to $XX back turn Marc. than we the the to Finally, for I'll million. expected is over be call

Marc Bell

everybody, going Today, you, we're turnout. going who -- you, we're to around. We're answers this differently And to supportive for your going Matt. who We're do cover then start to ask. open Thank up to going questions with a anybody that institutions it little and do time to us. thank

the to to -- we the Hall, people yourself have reading going those to where -- feel we're going did And As free e-mailed some questions. off unlike queue. add take Town all questions, we're to

questions you our that, question. yours. back to With I going first ask all and to can to guess, we're over Operator, if asked right? the turn to be anybody will Here, and answered it back over live, a -- live turn operator,

Operator

Konrad to first comes We'll Greg Instructions] which [Operator now question, our from go Jefferies. with

Unknown Analyst

economics to where Gates on Sam prior this X? from how we economics we to the tranche With Greg winning third [ tranches? think for And compared that backlog, tranche about should is here the dialing in sort transfer Jefferies Konrad. a in and X relative order can the Congratulations ] tranches go This the should layer. think how on role about from X of in

Mathieu Riffel

I'll Greg. take at Thanks, an answer one. that

a think which economics award. And programs. as award. we it other -- a in it the with was And be of SDA margin, little high to mid- to be particular bit our as in awards, backlog reminder, to of we our larger October September award for but relatively larger lower expect teens XX, it it's an generally So we that's comparable our as it's go of this -- is The going was -- -- some with a mid-teens forward. this

Marc Bell

go more and will on, bring as time to Yes. goes modules and And as margins -- more we we improve continue we're as seeing, in-house. components

Unknown Analyst

I Got it. follow-up. And maybe helpful. quick just That's as a guess,

the revenue? terms of to initiative the you've enable on space highlighted that that You should we responsive to working What and about in set. And a been to you could ] in mission space? new guys some into maybe timing the of convert the for size that and of that TAM think products spot why on that then good compete sort you think you're in [

Marc Bell

repeat you again? that very the Can beginning of

Unknown Analyst

Yes.

to set some you terms highlighting that about your how of just been you're to of the here? of trying You've like conversion products then to that [ and working understand enable opportunity sort revenue and responsive from that? does and that ] the space new think what initiative looks in TAM what that on And

Marc Bell

and a Kernel with paper years Nobody [indiscernible] J. XXXX, ] became the here, all attention that started get was a or it to making and called general the And doing the we're who dinner Space. of where suppose. we the a us. he come first the started So he Space, to National space at I dream [ lot was true he XXth it the a of came going on -- be fourth order then as this. at wrote Tactically to really at in Responsive And paid month delivered little facility I for his on the became recently ago X talking it. was Raymond just that And time, satellite about him background month. of to we're visited down dream

all world shown things a it cost used want It's currently it days, years. enough X% they shorten is need long. want -- billions of too agency into helped all it The a is to Ukraine, how talked cost has being decade to program, demand Space X% to There's by government their them things about change and stage quickly it the about always only get get to supply, us take down now. space. the has need space. the of build development not down put They overnight to years incredible ability very fluid. days faster. to They a The they and assets could satellite. and Israel and from cycle, only was to for to, ISR just to -- has taking and that X but not goal met

for have for see any we just doing the facility, at be assemble if us end where different And turnaround year We X of X-month satellites. ] assembled. quickly. very end large, our U.S. modules TAM new which [ to assembled for stock, to will going [indiscernible] And slow. for all will robotically so has will the just That models our we're We're get incredibly buttons well now robotically, the -- components we will assembled of this next Goodyear. all it, start but X/X who calling are and on to our globally bid know currently the not called robotically. robotically year the be programs able seeing By just year, we a do us it's by as satellite things be country of the modules, We'll next in allow shot of in but the been Goodyear our we of X- won. be that it. Once really to and assemble or modules first

XX up, any orbit pops that us get could and within difference. that a a conflict Does days. It's from So help? big an country time satellites on order

Unknown Analyst

I That's Marc. you, very helpful. Yes. appreciate it. Thank

Marc Bell

other Any questions?

Operator

question Erik Rasmussen comes Stifel. with next from Our

Erik Rasmussen

with were about what SDA surprised programs seems others you the It and that it thus the wanted are additional awarded. -- just been What well, future to has is from progress under-indexing out? we've awards? I team for programs Great. what various -- how learned awarded of FDA be? And on of could to ask date been think about expectations and And the the so award played we on sort has that you but the seems in alpha far, context share executed if your have what far. sources Terran what

Marc Bell

there. many So questions

as So to what SDA want never couldn't assumptions goes, in and we we win far the of future. as make could

On he diversity of the wants ] Alpha everything, award, very it and other FDA, clear, we there. base. knew manufacturing out can't players And we win made the there Derek are has a [

went row. in a we -- in to expect We a So we do X row. didn't win

us It's -- was winning. up. that and So Lockheed it's the were Lockheeds', prime not and

the us not we're been winning. But for was now surprise programs because before. tracking a SDA at it big never of day looking end at weren't other we So that on the we

We to you. they've done on haven't of been of types other the and programs what that have most

as talking them on also, -- their have more been our because we are before. want for we're becoming does and to now with their that orbit buses FDA. So Tranche we with And are ] performance, -- well with had primes we've we bind we lot SDA cred the on street pleased to Lockheed other than and more very everything X in [ And not bids popular. have we about XX partnering a

guess pretty We as about in very SDA business their appreciate feeling we never really other this, programs the but what listening to good much. they're to think as we're want So future. they to probably

Erik Rasmussen

And should the I still with about the XXXX think on awards. XX% with then at convert end your at of XXXX? by backlog how you you. the split new Got $X.X of portion? and is reflects this between Are Yes. XXXX, quarter. we to higher know the then expecting those Great. And billion maybe Rivada that, which it's

Marc Bell

get of right, production lot is this weighted out a year. you're assembly heavily which when as mode, and Rivada pushed about real get is talking towards with what well, 'XX definitely manufacturing But -- you right to that's the the 'XX We're things gets of modules. pushed It's into happened revenue because here. to the your as

is if important at The end of part the all day. revenue at happens the the

Erik Rasmussen

Great.

So -- in or up so Rivada satellites the by 'XX. QX terms -- is but of of moved hasn't those though -- having time QX line for

Marc Bell

have -- by has date ITU, specific has specific to satellites the Rivada a orbit to in Rivada -- X according dates. their

cost to be But to is there. get order end just So but Rivada the in to there we bid more through of you we of -- end money that the to on TX it at XX spend have for because still if other million think the things TX, all got more And to will for that we've and and we're have waiting recognized going buses to it's day, deliver. it, hear. non them the -- of we include $XXX about that does get backlog we XX

development seeing for business a are Martin up stood -- couple Lockheed we and the recently organization, we on just have first relied We years. now of

now are expanding our to primes. We lots different wings of

are primes Chinese, are one largest dialogue them -- with. the of there's only there the don't them think X Three XX in we XX world, primes of in we're left. to, I talk and

big been all the to talking so can very It's together. a primes we major on And planet. how work busily we've other

Erik Rasmussen

Got you. Great.

Marc Bell

time point. lot more I'll Yes. been more one on spending commercial. And make a We've

future. and spending part making up not U.S., future our we DoD is larger revenue So the of the base seeing commercial lot are in larger IC just a but a in of and we're

hard the pushing kicking diversity many very across around -- board. There the are revenue going we're for So planet. we're Rivada's

Operator

Our Bose Riley B. question Griffin ] comes from Securities. [ next

Unknown Analyst

margin. a program dependent gross quarter-to-quarter. guess, pro XX% that X% generally the remaining in, to gross programs margin? -- in the have now mix you able other forma in are 'XX you to be represents I gross high understand words, call margin off point where expecting on So now -- it, the you XX. first So your at going But this for are are you just the year? teens, beyond target expand it's backlog mix forward, speaking, I on

Marc Bell

for the Gavin. Yes. Thanks question,

we low we're have our So to the [indiscernible] now is mid-XXs. point really is margin in XX.X% expectations. backlog our in right the What optimistic future that for

our what of new so our forward. profile seen tacking leading on good And higher than margin backlog, margins just going pretty feel out on some We we've legacy programs, program.

Unknown Analyst

over Okay. jumping Sure. to Then X. tranche

you're But complete the So of has expecting initially you propulsion deliveries in good out switch quarter. in fourth away see. just Astra], quarter. that to given That's in to pushed expected number still that from the the deliveries suppliers fourth the [

more is at the So revenue tranche of all to that into contributing lower pushing guide revenue 'XX? that

Marc Bell

-- a deliver with of we mean had ] way schedule thing of our like propulsion to this to deliver ] the hedging by is Astra the been end has do been reality has to whole I ahead [indiscernible] we challenge. [ We we're do just quite originally, a expect and dream year. The engines [ according tZERO bets. with from them, been see but

will different [ forward, that providers X on Moving on X have Tranche used [ we we ] music, that Astra]. not dependent are

extra So If we'll ] of ] engines a don't they have deliver. the just great. fronter engines, still that deliver and have program lot it [ [ all deliver, we both next Astra our means is

Unknown Analyst

Okay. configuration X enterprise the GEO It gears for last third so to you was bus, on configurations All to and that. C MEO shifting see And new interesting the right. for then had applications. the disclosure week your

could more just any buses? MEO any give are Are if bidding those on you or RFPs for you color. So geo Or applications? currently curious you building

Marc Bell

of what We we for is are decided. it that's ] And MEOs so lots geos. RFPs and [ -- bidding on lots micro of

are We asking that. of line are configurations that We there decided you bus That's this is you the were for because that. getting why expand X out do see a lot enterprise demand for. to what to different

[indiscernible] sizes what are an today. are focus NRE we for to so demanding our And trying customers on

Unknown Analyst

for Okay. one last just then Great. me. And

about satellites XX was, XX customers. across $X.X it billion valued opportunities, at the X,XXX talked whatever You the

$X spot. you a per implies the it So around $X that about is quick per million guys of to I that -- $X which I just call think mean, of historically, sweet million math maybe million have sort on satellite -- I sort satellite, mean, talked

you can understand the us there? help sort disconnect just of So

Marc Bell

understand. don't I sorry. I'm

have your You you repeat Can on that static line? question?

Unknown Analyst

sure. Yes,

talked valued billion. you X,XXX the satellites So at $X.X about

satellite. a on million [ math quick per $X just So ] that under implies

think historically, the on about talked million wondered just give I if you've to disconnect. I million could some for you color $X $X satellite.

Marc Bell

the It's all place. over

[ you have So have $X for million], for million]. some some you $XX [

It's you just very depending EMEA -- are in on wide people more or building, -- much [ LEO micro really have million. expensive $XX ] [ a [ things what things or are ] in deli]. for Some than geo

at everybody needs, is sites, the lines. and going is bus So which out different looking satellites, not why all all sizes fit keep expanding we

Operator

question from Wainwright. comes with Buck next Our Scott H.C.

Scott Buck

to kind demand Marc, not that up or follow space. and your in the from macro has commercial seeing demand of Curious regarding what comments just on general term? partners maybe whether kind of potential dampened of near the uncertainty commercial some you're of kind

Marc Bell

that. spectrum, space to anything when of the partners are The from I of very very handset just I down. constellations. spectrum started, the to looking direct that the than of at mean, on There's DoD first everything far out -- IC utilize for around world requiring Internet applications seeing that slowing we the People and demand and was the to but tons want [indiscernible]. are people the Things from there. to we've hyper-focused see very it's commercial seen exceeds demand to XG astronomical. is We're lots robust greater I don't far commercial large, from

buses. note been but then little for but things people money of we're to seeing we getting the use to spot but are -- bigger now has XXX We the interesting we're to smaller, and bit the space the there's sweet the more like people make thing also dollars is is it want willing It's right our So was kilograms size -- more, a it's and interesting. bigger, wave before. think spend

at. we've Because push we're we're build, the then seeing for the huge looking recurring exciting. business. refreshes people So is to LEOMEonGO]. very commercial got to [ revenue LEO seeing remember, but Everything in are when a quantities replace that into It's big we

significantly. add point just these thing. as thing to me we one go to is costs Let start One quantities, out down start the building

So of dramatically. again, costs these -- everybody. the lot board we with as over down comes to things over go across volume is replicate and recurring pricing the for better a stood There

Scott Buck

now? you on kind phase there? that No, or And are discovery the sense. phase makes actively are programs of Or still Sure. Marc, bidding in you research

Marc Bell

Oh, no, were quite bidding. we actively

and they bidding we Jan and pace. around great team world, at very actively are job, his done on a So have ] have the a things Mac running [ rapid very

a we've of great are lot proliferated, for we're They're people us. the So people, the us. wants side, is own want later to the it's Things. country has have the their of They Americans. just build front from beauty amazing. customers gotten We we're network. own Every It's transfer technologies tracking XG to DoD doing. to and their to have what have side for invigorating of production specs of a Internet government, now just seeing the They of it's know their country, not the country the to want military want to own People in are constellation. every finding that they -- small It's for coming and don't wants abilities marketplace. own somebody their mass are all who everybody. But commercial, it getting layer, have

Scott Buck

Yes. That of in terms us and from Matt, quarter helpful. what was in can the revenue? you tell Rivada very contribution makes sense

Mathieu Riffel

was $X.X quarter. Rivada's -- $X year-to-date on million in basis million a for the about Yes. revenue was around like around

Operator

who a go Mark, private Mark comes of Our next please investor. Stone, line from ahead. question the is

Unknown Attendee

Yes.

question not was, to million do of anyhow, sent And comment never question to have satellite, flow $X additional $X of have back, I positive? think you gets may is, Rivada, through cash enough a previous make my to satellite cash my million made single a a math comes it out First, couple presuming for on [indiscernible] Rivada. there, a that and

Marc Bell

we do. Yes,

Operator

line. We have in no on further the questions

turn call the the back So management team. I'll to

Marc Bell

coming I still take these on than everybody we're anybody's to excited, ask people to If to we and to time for the I your anybody And bear very for was year questions. at a know people appreciate wants think everyone we not, going today. Orbital have on, more question, a with going into us. Hold year-end is As are we're happy going your left on call. amazing If and Terran question, here excited And the an I XXXX support. me. thank be

there. There I is a a there question. think Is Operator? question? it's

Operator

We with Klein Sunder Jordan have Corporate a Aviation. question from

Unknown Analyst

road with In Rivada, flow possible see earliest the regards and what the worst-case down is happening? the what's you becoming or the quarter to you latest positive positive, scenario, see flow cash cash without it

Marc Bell

XXXX and currently Jordan. our forecast going Thanks, We're still cycle. through budget Yes.

be So QX, to during but late positive cash flow will earliest XXXX. QX, plan is will be be the

Mathieu Riffel

of on lot of that timing just based A programs. is

Marc Bell

All right.

we one up. have Operator? we've more just As -- got popped

Operator

Our question comes [ from with Investment. Tassos [indiscernible] ] next of Rates

Unknown Analyst

within within you discuss next the announced where next Can the months? X quantify just X your please just what decisions within And within you maybe months? the to pipeline expect you Yes. expect opportunities pipeline be

Marc Bell

Well, just competitors go give pipeline details was our were but help We talked we on. what figure that about to we in that trying out don't don't yet. bids haven't we specific we're closed through on the general, working

Unknown Analyst

for more any without into the color getting to or pipeline, the But next year to next there what specific got near-term over more. shed be programs that that's over looking months? the you you're can as is spread on maybe within But out probably few size

Marc Bell

commercial We're -- from the more opportunities and to have to government X around over some make. months to and have world. the next significant more expect both entities announcements We seeing from large we set

or are some will they color on go there's announced, on don't to that as get competitive more now. processes And have just we the want We that phone. detail into bidding so we

Unknown Analyst

about? are regard Rivada have or opportunities opportunities, with won to And commercial you what other commercial optimistic then besides

Marc Bell

many have to been want don't same into yet. that things argumentative back be here. trying to optimistic the We answer. haven't to but I'm be We not go on details to about, closed

will So well doing opportunities. in -- they we of with are we we the number as disclose And bidding a publicly very process them. won't close,

Unknown Analyst

And then just more. X

And use? on utilize to that is return Just one so, capital rate allocating specific return just capital. company rate you capital? invested hurdle regard invested discuss with the a on when if can you the Does

Marc Bell

we whether as better. try purchased, robots that or it things XX-month to or we get I equipment be a mean, we look test ROI and at such,

robotics for than XX on [indiscernible] XX than It a less all virtually [indiscernible] less ROI on months. is So our with example, of months. XX-month

So than get money less. kind at to we months and that's back how of all we've XX the we want that less it. or look CapEx spend, And our viewing we big been

we these things. well of And tend quick because fast. very, As very to want lot very them we've by the outsourcing returns been in-house, bringing a be returns

only $XX below of -- I as CapEx So this and capital we're come the that. to we we CapEx spend. as that to try expect million projected very efficient in we year, we mean far

Unknown Analyst

And just then final thing.

It Terran So things was tweet X by of that. morning. year have about that that about events this track confident morning, retweeted there end a Have on expect schedule. getting down, slowed spoken Declan can this looks talking on maybe the you Ganley, Rivada just they're this? that the talk they're you to that the Orbital with directly remains October of payment they back you fully out and and like about And but program the this

shed any light that. can more you just if on wondering Just

Marc Bell

know speak Declan their we aware of just morning, funding obviously source personally this we I and funding and who Yes. sources. -- to he is who their are

retweet said, we good free that, have they to more closed other did always funding their the that retweet because but tweet. like yourself. comment haven't thing. a It's yet, that he's than progress. confidence I in are making said, it than But source. I frustrated yes, it to So don't -- other I they Feel very That

X We great. have one more? them is coming. This Keep more. Two more,

Operator

Peter comes Our question a Singh, Investor. Private next from

Unknown Attendee

format. and thank easy, know for this it's that. given not taking appreciate Marc, and everyone, I you, this how. you, for I hosting call Thank

Marc Bell

hear to everybody. from want we Yes,

is think I this great.

Unknown Attendee

performance. I quick question delayed QX a QX. Just you potentially are and Tranche the know regarding into QX now mentioned deliveries that X

Marc Bell

not the We went delayed not schedule to difference. Yes, original the It's a out original. were delayed. trying beat There's QX. The schedule. we're to

I but So just we're beat Making is I it. schedule. it on to schedule. don't make on like beat We were to them. easy, to trying like schedule

Unknown Attendee

Fair enough.

mean Is off $XX million QX. for the and $XX what that of around currently, million if looks we for now like million, QX? I'm for expected $XXX correct? So is the are I revenue it target where going XXXX

Marc Bell

side. the on be would That low

that number, known would earlier, programs on conservative we providing which lower time. certain we're aren't for challenges XXX and this As mentioned fact challenges resolution the QX imply guidance certain -- that reason there's and have of the the is ultimate a those revenue at

Mathieu Riffel

caught And lower want to get again. to I and ever never to my out with them then -- target again with go having to revenue have raise

never do used going and missed first. the revenue we're XX years, target, the we this we've to So And it. to the is for back way

mistake want So that make to never we again.

to being So we're conservative. back

Unknown Analyst

XXX Okay. from lesson Fair target. the Yes. I enough. guess, learned

call, and research not that you Terran funding Did we QX extreme the diligence right alternative funding Rivada mentioned Rivada? any about around And experiencing due from are not potential done consider the delays now? require the does During had payment. we

Marc Bell

We why them and confidence very they had funding funded. no well. have source been I their No. personally ago. met wouldn't I with long time knew saw reason a extreme

quite to But was was diligence this us a their both had lot we fund. funded. to we get on a we them ability And confidence and done of So on a still just did was -- yes, Rivada. it extreme surprise, to and all -- expect to sides,

at large other are But it that things. have the external that come delayed there to and expect is day. circumstances some sovereign end them up a popped through we the of have Just

Operator

Our next a Stone, who from is question comes Mark investor. private

Unknown Attendee

have. Twitter So reminding comments a mentioned last the previous I a of question

in site, ago X protected. posts have actually a are or Terran unprotected. have I a Twitter about of submitted the and question weeks still few X weeks pending As ago, And to them

Orbital So mistake of that they why protected? on Terran or by kind purpose? Was some are

Marc Bell

media really is talking me, looking what will we shaking with he's but out. you're check at head saying, it his no Guy about, social clue

don't look I So shaking into know. obviously head. you. I his he He's believe to I going said, is Like it.

So to going sorry, I out find guy to accounts, Thanks pointing put but for that us. don't out. the the does [indiscernible] who is

Operator

is Peter we he a Singh from follow-up investor. Next, have question a private again,

Unknown Attendee

here. Just one question more

have the their Regarding and the pipeline And proposing align announced with when should recent cofounders letter the fact thoughts from pipeline proposal they the there? you Rivada? the minus shareholders consider it after how you how are the and the that does reduced Any that revenue guidance.

Marc Bell

the I don't understand question.

Unknown Attendee

proposing are the -- cofounders pipeline. their The cofounders

Marc Bell

X they're deceased. Anthony [ First Terran of The Marc are Those are cofounders. Staton, founders. is X Orbital founders Bell, and not who all, Dan Privates the of ]

to you your please. got So straight, get facts

able Second, is they they predicted -- they proposed they were $X.X great. billion, said they which can close

we're It It wanted -- give seen be lots and the cannot not decision. on. of choose they same that helpful we not same be If working things. have be don't thing. could information, shareholders, the the we We we're bidding but things to could us to, disclose their what on, have they they that's

Operator

we have. all questions the Those are

the So all I'll to management back talk team.

Marc Bell

the I appreciate you Well, time thank And to you for holidays, and very all next really have and guess Thanksgiving enjoy questions. We speak everyone everybody inviting We very I and attending, to it. everybody. the we'll joining us. you much after for Okay. else the to want your everybody, feedback much be appreciate will -- thank

Operator

lines. may Thank everyone, for us today. your This joining disconnect you you, our and now call, concludes

Terran Orbital (LLAP) 14 Nov 232023 Q3 Earnings call transcript