Earnings call transcript Q2 2023

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Operator

Ladies and gentlemen, greetings, and welcome to the Intuitive Machines Second Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Josh Marshall. Please go ahead, sir.

Josh Marshall

Good afternoon. second earnings Machines Intuitive to quarter call. XXXX Welcome and Officer, Erik Executive Officer, are Financial Altemus; Steve call. Chief Sallee, Chief leading today's

The economic begin, expectations current projections could due items, and the not expectations economy indicated many some update to described of performance. that respect to today's results financial and in of please other of most XX-Q our any information and the with statements factors. statements. objectives are we the forward-looking business, those actual materially of from release recent in forward-looking our during filed company's differ consist factors call plans events. earnings of forth statements setting any statements forward-looking and future to on under do future with undertake discussed obligation management press company's will Before the We company's the note statements forward-looking These These include SEC.

that measures are included We also regulations. X-K. measures the GAAP expect earnings information rules company's SEC in Reconciliations to measures financial to and in discuss and defined applicable as filed are Form on release certain the non-GAAP

financial are additional presentation which call Finally, context an on website, to our posting we earnings our performance. provides

Investor could www.intuitivemachines.com/investors. You Relations on this find presentation our at page

Steve Now, to turn I'll the call Altemus. over

Stephen Altemus

Sallee our quarter for online. our a the Chief analysts XXXX. to I overview second of and of for business Intuitive Erik Thank units, you, to company's hand earnings and will of for by the with the Machines new X begin Welcome, upcoming quarter investors Officer, Josh. of brief the call financial today provide call. the our review a After, I'll summary everyone, second quarter updates I'll a results followed Financial XXXX any milestones. Then company across

and first-mover commerce company infrastructure in in We development a business to distinct services. Lunar lunar contributes establishing the through space XXXX a Services on position the set operates Products has infrastructure Services, founded services and Orbital a and company Space space areas; focus that X and is Data moon. Machines Intuitive with Services, of Lunar lunar of specific Each and Access Infrastructure. and believe

Services in time. and or flight and affordable lunar our has vehicle and complexity of network increase contracts space and governments, Nova-C has on to lander, spacecraft SpaceX. surface. Control, plans frequency over reliable lunar to place company Access Mission means developed communications a The the lunar companies and cislunar explore Intuitive program the individuals complete Lunar launch space-to-ground manifest a provide that includes the a Machines with X missions series with missions of on for

services that cislunar private relay communications, Lunar and from spacecraft Data data Data and is called navigation the designed the Network on LDN lunar space secure to Lunar Services is support and a systems and imagery sends network The secure to and moon. in the receives for surface.

to to services LDN Force. the backup NASA and expect provide We Space U.S.

of as Orbital for include orbital well Services refueling services These government organizations. satellites and and provide as share. commercial orbits raising the ride in-space services existing repair,

space products. program business defense cost-effective offerings including including systems. navigation unit human Products Intuitive new vehicles, lunar offers systems, and These $XX power habitation mobility and core billion drones, and supports extends streams, its energy. and customers propulsion Space Infrastructure NASA's include Finally, infrastructure reliable revenue Artemis across Machines and systems, rovers and

operational quarter With that, let's move highlights. into our second

integration. a final and Today, is vibration lander a complete forward launch. for preparing laser-focused set IM-X process assembly assembly During campaign engine spacecraft and test prepare The our IM-X for IM-X quarter, launch in we on run, included test, of the complete quarter test window starting to the unfavorable delivery launch final complete second window engine last were launch from a on acceptance In case December. window a The pad November priority launch high change second X-day secured November in in have launches pad, XXA, will preserving we in September. our due be a conditions has launch or launch a prepared XX. for to company and on

are November. on scheduled a we launch Falcon in Right X manifested now,

congestion Kennedy Space missions higher possible. using at Center, launches priority pad the we With XXA that for always recognize are

However, the remains aspects firmly our we fixed can attention on control.

Nova-C and moon lunar is with Our lander that IM-X to the to the we completely same continue deliver in our execute to of a ready intensity the go business built rest September. will

mechanisms lunar IM-X Nova structure, completion the NASA's of completing anticipated Micro payload Progress This on IM-X. of throughout capitalization the mechanisms the building We're valuable will This ice, prospect insights company. remarkable IM-X drill is continues from drone, our and for to September. a lander. rocket-fueled second integrating deployment in the primary water integration TRIDENT the payloads and includes gained toward progress that

IM-X the the lunar expect completed company's to at Spaceport. We and production be facility new in Houston operations

commercial XX, for operations designed officially program growing Our new September will start units. to demand X business of ribbon-cutting each Artemis for ceremony scheduled our and inside support NASA's our home

near-term sustainable of nuclear our As and those half extend in our technologies the in power capabilities exploration. Orbital we time Throughout in-space first we're the our approaches, on longer-term advancing to missions lunar using launch Services invested apply focusing market. XXXX, and

the $XX enable a awards Tipping to may to Intuitive Nova-C the the the moon. system to for radioisotope recent assets team on July, earth night approximately to Turning lunar of power and development that lasts and of days. Technology NASA's period Mission refers in XX shadowed the permanently of In Point operate proposals. through Directorate survive night a that moon lunar Machines darkness lunar Space like million cycle and The and awarded regions initiative

the on the temperatures from the moon extend surviving a night, time, surface of the as weeks By earth several this could lunar Fahrenheit. low to degrees mission lunar minus as XXX on reaching X years. drastically, surface drop During

developing Force into space support survive Artemis and the Machines' calls Lab's and contract Technology The called beyond of the exploration systems that Gateway, generator integrated positioning month. Air lunar enable landers the cycle. On-orbit and to an Intuitive Intuitive using Intuitive be orbiting the develop a program night these pool to this Zeno support The Unlocking is this team in power Intuitive proposal Energy for application entire capability power in radioisotope power interoperable proposal Research surface for radioisotope the industry. Machines longevity, solutions to maneuverability radioisotope low of NASA's JETSON, of Nuclear is it NASA's Machines satellite systems Americium-XXX Power role extends may Machines Joint for moon. assist lunar sterling its entered to Supplying lunar outpost multipurpose paramount power in

Fission briefed Energy the power, contract, reactor building and Power we Department expertise, space Intuitive and systems, generation Machines' on which NASA. leverage JETSON of its exploration power nuclear existing team Lunar our Surface

phase, Surface award is expected Power second later for million The $X.X year. our this Fission contract

success, as in-space adaptable these forward-looking and opportunities remains a spread a to civil defense, represent and exciting an Machines energy NASA of the company. fundamental across dynamic, While Intuitive our evolve opportunity agencies nuclear pillar for

award. awarded in evaluation Services servicing NASA Omnibus affirmed up Intuitive repositioning the Multidiscipline refueling days X-year and $XXX orbital Accountability Office debris proposals, technologies OMES satellite resulting the the April, OMES In call, services, In Machines as NASA's including removal. referred its of U.S. III million satellite to develop retaining and Engineering enabling Government to this to leading

to Services start growing expect in marketplace. and forward Orbital our We look transition to soon

would bid sectors, Machines contractor Lunar $X of team and We Services Intuitive Artemis part key human submitted Racer Machines' quarter, NASA's including submitted exploration Moon development Lunar proposals region space of NASA's our the of flight. the be the South the more for Vehicle contract and program first Terrain The for flight. and Terrain as across Pole contractor moon. the has in the Intuitive human prime debut in as than billion Since prime defense Vehicle is spread a space aerospace

date program taking is outside to company effects steps of changes. mitigate The the positively control award

the for services quarter a CP-XX, agency's from have awards drill calls which lander the a example, to the to XXXX. class South November deliver from Pole Near NASA's Space Network to early moved third has Nova-C contract XXXX For moon's moved to and

support trajectory, career to to senior Nicole our forge has in facilitate our Board Before enriching I companies. Director. have public our continue now endeavors. roles wanted included ahead expertise Machines of in help to Board, Directors. leadership new Nicole's we mention conclude, and I valuable growth distinguished appointed Nicole's With To Intuitive the Seligman we global a

turn to over Machines Intuitive Financial Chief Erik With Sallee. Officer, that, call the I'll

Erik Sallee

begin quarter with second resolved thanks include and the contract, million. us through favor everyone Steve, to the mentioned our $XX.X million 'XX last in week, results. quarter $XXX.X initiative, the of This not Steve Payload as concluded QX protest this contracted of joining revenue second and I'll the going our by backlog second of today. Thanks, a ended us earlier, quarter or in in the Lunar NASA III with Driven NASA's XXXX. We clearing to million which, begin does backlog OMES transition by Services company work quarter start to Commercial year. compared in revenue $XX primarily the way second CLPS, in for XXXX

negative Operating a $XX.X schedule million $XX.X the balance ended due Steve is quarter versus primarily impacts period. as to $X.X This loss was costs. cash well We the 'XX earlier in public year million. mentioned second negative million company as of with prior of

our Given delays financial full federal anticipated to the contract are of result a commitments guidance previously U.S. for year This an and for awards. material government customer budget customer XXXX. of government issued not acquisition uncertainty, loss is we time withdrawing lines

With ready for that, operator, questions. we are now

Operator

session. [Operator conducting Instructions] we gentlemen, and Ladies a you. Thank be will question-and-answer now

with Desilva MKM. question Our Roth from of Suji line comes first the

Suji Desilva

to Steve, drivers guidance. Erik, I and of on the is progress pushouts pad a and of and you is of can much versus the exciting you spending more which the cited Steve, coming. sense, program which here things program guess, meaningful factor congratulations want how can the Erik, I understand Maybe the congestion. factor. you lot each a of press uncertainty talk Certainly, one a us give here. launch in just then or about is delays maybe maybe Maybe withdrawn a government what these U.S. release,

Stephen Altemus

This thanks Steve. the is Suji, question. for

bipartisan our Artemis overall bid the budget flight for With source. primary government an funding, an which federal respect vehicle. in commitment the leading And see Lunar uncertainty. we But election it's growth for still program. in flight We our human contract with is to in that of -- see a see. support the budget, human to really in the NASA space Terrain you share year provides in particular, U.S. Let's to generous this sense space up

and the that which is the launch the this to to a globally it's commitment Indian and human good federal Lunar right South geopolitics South see programs. like at look Russian to can space the support and upon Lunar the the have government recently us, launch Pole we also and means You pole, from

see and July to had initially in We major moved the That protest. November the offered now time frame. some the did like post was we about awards delays out OMES protest talked contract. in However, to award

the CLPS quarter Network is we services, quarter, sequence good we bid Raytheon. in XXXX. award quarter Space NASA also, Near first moved quarter for fourth the we're that from a next the CLPS make Directorate. program or the missions moved in before between the communications and into which quarter the the mission We third well early proposal coming Mission second the late up that saw Science CLPS teaming with with for the program one, out saw into CP-XX, -- partnering also the And award. the then of of That they from of from fourth third the that quarter, on really That first and to position

time right that the July, And award will did when just affect expected like has saw It's us. ones that award, news, that and Tipping an good All we it frame on-ramp effect and they're which things. then Point, wasn't May that generally until all they that implementation we contract. we and stay still we sliding that commitments other an receive in the for to the with smaller and award, on are

left what occur fourth award quarter I for X the our LTV occur fourth AFRL both significant we CLPS in third the about late OMES of to terms look quarter, in Mission and here you transition year, the the Fission to those start award this in occur can to next expect the have Surface been as both frame. reactor possibly late phase milestones at terms in November, the will we to quarter, November, of launch Power I've execution some what's talking in of time think to follow-on next proposal, in go the JETSON this the

external of where kind of pressures of that's kind stand, that's environment we're so and assessment on with And the an where it's we and going us.

Suji Desilva

loaded, in that can of these progress the understand it XQ 'XX how it back-end OMES And I for first programs around, loaded? as are quarters, progresses quarter? kind let's Maybe full say, line you guess, a sense steadily obviously. move once that to specifically just revenue, now Or just Okay. of Is on linearity-wise. front-end that up relatively through the starting does

Stephen Altemus

will the transition we'll now, then time the ahead actually what us to move start dates contract right time that from transition a we on of Well, time divided of from the of And total be a considering months portion value There's about will period. November-December kind is of NASA there'll kind be. with depending negotiation orders several that be set ramp-up there'll on the to thinking it we're a execution. actually when in the contract. We how to the task here initial that the on number don't We of that and be by are that think ramp-up period, frame. expect unfold

Suji Desilva

sense contract as your interesting What's to competition, important likelihood your for here. guys. the an kind on The that that And prime. me to because think a I that versus think then maybe winning just I'll move lastly, of that win of milestone handicap be in LTV will first and sounds you you

Stephen Altemus

and what done, -- What and you a P-go Yes. we We pipeline associated. deal P-win a as and field we strong Machines teaming and we've of that each will know, pipeline of to competition, the a multiple our is give and exceptionally Grumman AVL Boeing show then of P-win we Northrop with the one. and a for awards, try understand team of an and a subcontractors. strength limited come our with great and assess to team we think transparency and We the our know entrants opportunities, as as out Intuitive prime that be there's

Operator

line question Austin comes next Our from of the with Moeller Genuity. Canaccord

Austin Moeller

here. question first my Just

appropriated right? the so for the fiscal formation, of contract essentially quarter, to NASA with be that's 'XX That the would award fourth in IM correct? would Just dollars, expected already clarify, still be what timing the

Stephen Altemus

end trying it NASA delayed Austin, that So initially the was September, out but by the towards get to end of November. of

essentially we submission. CLPS in a next slip saw X-month that So,

Austin Moeller

And missions then under on there? like receipts OMES the more to to cash other to balance expect and NASA from the your do you current million the execute needs you satisfy expect do $XX your IM sufficient be plate? Or cash contracts contracts your

Erik Sallee

Yes.

We needs. expect flow which in our you sufficient current balance actually great our operating sign. our I is cash mean be Obviously, I cash you've think, cash following I think take our the seen, existing positive, that receipts of contracts saw from is was cash to our a as cash and to you're lumpy. care Austin, QX us,

both milestone-based. inflows Our are outflows and

lumpiness this. as be there And program year so like on able this a full these to you've some always And got from withstand talked tried quarter-to-quarter, be got we've of we've and really delays about, at look to resilient types basis. you've to in to

can So, provide on further which cushion then the we through. should cash have if facility $XX opportunistically balance use sheet million on And the committed needed. milestones take us our plus we obviously we have the the also equity books to

Austin Moeller

expand mean as slowdown Can NASA terms on to to me record? seem to program Russia earlier, there's of Lunar other of fiscal the in regards what important I you be call you're sending of the going Pole South budget congressional in CLPS year just the versions any then indicative to may. one I the mentioned the to Luna-XX there 'XX that more, doesn't on in and you you? And if programs seeing

Stephen Altemus

budget their Where items. to we U.S. and program force budget it some trades will Austin, in NASA lower to priority will the Yes. the do to commitment pressure space have Artemis across the make within human is overall affect in a see that affect flight. federal

believe, science negotiations least I Technology the the flowing out in budget, of dollars, to from those And so the see will at across Space are who be come dollars Directorate the dollars terms in that Mission occurring receive out portfolio the dollars technology and what those the Senate with fencing, that science and of NASA between will Science competing of out Mission are today. House limited reduced a that and that you'll flow Directorate a will appears

see lander, will funding. from Terrain should top highest the that but the sorting still that vehicle receive the we items we Artemis So namely flight the that, namely the space items that's really the human out priority human and Luna suits see space where program, as that occur,

Operator

comes question the Deutsche next Laura from Our line Li of with Bank.

Laura Li

Congratulation on next to the elaborate more good to nice my launch execution be, you could prior question steps scheduled. launch? the last it's your quarter, would like and see IM-X on And

Stephen Altemus

the Thanks, Yes. appreciate of engine some question. a and made burn date, completing our hot wild the engine is that I is over progress the past and Laura. success. lander which test was where a subsequent execution Like that incredible and full the propellants with and fire I integrated the quarter to we've fill a and lunar flight we said, test, that fire with then

will assembly of no That Going lander wire sure magnetic software, in software. every that on adverse effect to connection works flight testing powered X testing we'll conjunction make series interference up. make go is every the when lander that functional all flight to with harness pin-out the complete, test into of and our run there's forward, with payloads then sure about weeks electric with our

that its the making gravity And all the to be we sure a faring. And then and wet that no are ready from the just days cape. kind of launch sure then and to mass and And do from there's shipping the we'll that XX. to be dress We get pad before do launch encapsulated are ship container and center measurements, get site by all rehearsal to propellants into And it's point, measurements to on a expect launch. to we'll then up vehicle that about make then And the prepared to completed at we processing the out XX to already the ship filled in and go. only there, actually the September buttoned site. gases congestion

Operator

of next Our the Sheppard comes from Andres with line Cantor question Fitzgerald.

Andres Sheppard

withdrawn. quarter. clarify Steve, guidance congrats just maybe on to on the Erik, the Wanted

guidance, the So to be revenue cash? to gross clear, the exclusively revenue the guidance? it and does apply that margin is the Or

Erik Sallee

that the happen And across Steve -- I and company all might to the or in trying those in timings any withdrawing the obviously, week Andres. November, the of as the or associated, And are interrelated. and pinpoint December and gross executing of X those felt are at there's guys or We're the really with timing really margin, Yes, doing, and business vision milestones terms helping be are focus just that board. our around January. X them withdrawing -- of just how here was great. significant we're X a make in earlier, really year-end, QX material around of X help uncertainty But revenue, we're guidance thanks or right from we're of really, of said falling on year-end, would and it's there for we important what's strategy. -- and successful awards them not that our there's to mean, you on question, some

time not when guesses and it's We're So, you're space we these In the first of to down comfortable that weeks move. obviously, than government making didn't cases, you're company particularly there, here lines launch. more ultimately, a little just to of couple experience those, which seen that. feel can acquisition we've when dealing some with that, on a

So what's driving that's really it.

had we that It's out anything to lost haven't we right. all to the in earlier, our that's said material we forecast previously As shifted us.

so at apply orient you all we are on try So, because milestones are all the to the But does across relevant. that board. and related, the metrics that least you of it mentioned

we like they about the and way award of payment how are profitability know launch top OMES Kind know on best of previously. we because big and those and line as well, date, break obviously, and not, on value kind that depending of of landing, talked the best cash on drive going to things timings the our and success right now, some the we the

So color hopefully, or a on little -- our that statement. some light on sheds more

Andres Sheppard

year. there might give revenue margins? either year-end? positive time, or expecting this us mentioned you So in past, is visibility of that had stand? I positive you able target be to I the as at in thoughts to terms might later EBITDA by additional any by was know Any where we the this around a Should guess, margins that be And

Erik Sallee

half, Yes, I positive mean everything. feel we is comment land word, then the to gross be think naturally our I'd wrong about obviously, think mitigating CapEx second the margin thing be OpEx. we good on a pointing future. going down And successfully one the is year we I should are which say the to we of of good towards if but this second can't CapEx. sign, I half. year, our in come And will over relative first then the mitigating the half that's non-COGS some

some SG&A, increased the public that that half. kind the as will of company costs the mitigate that over second run created as first rate half So of on well through things other we're an and over

in terms of second half. those So, are the high-level maybe thoughts directionally the where headed we're in of some

Andres Sheppard

And may. one, if last maybe I one

upcoming these the to there? period Or up ending, Any market be about rollover color thinking as how Any thinking and this should for the what shares that? right, the think be now should we unlocked? do -- about float? for increase being you are visibility in the With lock sponsor, how

Erik Sallee

the it's have Honestly, company to that. bet, You an opinion Andres. difficult on for

the obviously decide. public So, let we'll what timing that. but -- stated correctly let market information, just we'll the you That's is on

Andres Sheppard

again. Congrats

Operator

you. Thank

further there Chief over and hand Co-Founder, for As Executive are the no Steve Officer, would closing Altemus, his now to I questions, conference President comments.

Stephen Altemus

and intensity history today you short you joining a appreciate for few with very you in much. us forward making time to your months. Thank We just spent with our us. and our thank look continuing -- together Well, execution

Operator

your of you Thank Intuitive participation. concluded. conference The now Machines for has

disconnect now your may You lines.

Intuitive Machines (LUNR) 14 Aug 232023 Q2 Earnings call transcript