LUNR - Earnings call transcript Q1 2024 | Intuitive Machines, Inc.

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Operator

Welcome to the Intuitive Machines' First Quarter 2024 Conference Call.At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions].

As a reminder, this conference is being recorded.Now, I would like to hand the conference over to your host, Stephen Zhang, Head of Investor Relations. Please go ahead, sir.

Stephen Zhang

morning. Good call Intuitive and XXXX and Interim Vontur leading the Officer, call.Chief that Controller, the will of some events. economy, first current please with are Altemus; begin, and Steve forward-looking Chief the call Machines' to earnings future quarter Executive the our consist respect forth Steve other note of Welcome we today.Before Financial to discussed setting of today's information expectations the during statements our business, Officer differ could statements results actual from factors. those forward-looking company's The any in materially due indicated many to company's described release XX-K These forward-looking the factors are under filed XX-Q the statements SEC. recent in most the earnings company's with and and We SEC expect measures are do forward-looking non-GAAP update certain rules any defined information statements.We to in the that and to as not regulations. applicable also financial undertake obligation discuss measures and company's release earnings financial earnings which the operational on in to posted filed presentation our on GAAP provides on measures included an X-K.Finally, our website we context call are the Reconciliations additional performance. Form and

You this the Steve www.intuitivemachines.com/investors.Now, to at call over Investor I'll Altemus. our can Relations presentation turn find page on

Stephen Altemus

China's an in had the increase over We this was continued Intuitive showcased new OMES and May enable moon year. moon the Thank their moon hope traditional Intuitive of On potentially success and of last which XXX% the Machines' Machines from our way and for samples broke the another of not trajectory. the feat of being operations. year the technological X first economics quarter growth successful the yet far to exploration.Intuitive and Machines' disrupted paradigms is economy. of lunar strategic challenge first historic to $XX.X full barriers and and to what The steady in and during to lunar on first is stand stable for start quarter successful successes alone. China an for the on to importance company you landing the quarter the IM-X X, public Stephen. Thanks, the mission launched drumbeat accomplishment anchored burgeoning side nation by the a utilization. do to US we fundamentally funding standout the to economic was team Revenue of of the efforts this willingness X Chang'e demonstrates return III execution their a and the Machines quarter call building Intuitive the action quarter, million importance far of side. our excellent and government of commercial versus The of This and was mission, to

We as are of the systems following required review with of completed viability as our space effort. operations In four-year investment Machines a lunar firmly development standing mission and to put mover advancement the first of our our paramount. complete and In the new this position global at in showcased a to standing Machines the believe this Intuitive program The the at performance. and team a weeks in industry national We we lunar agility at Intuitive quarter the landscape, is this our the committed of forefront endeavors is and space. race the space race rapidly in the in evolving comprehensive asset commercial vehicle how supporting imperative. technological landing, forefront success performed.Our assessed first this and technology company

such land our and vehicle The with moon, technical expand XX harshest that technology. hazard to software review better mission space capability we customer to we navigating continue namely South the avoidance our the successful in for that our the in in precision the and of believe refines landing our on surface and landing perfection our accuracy pinpoint possible landing first data advancements next the resulted While mission. Each autonomy with times track autonomous delivery, and strive in algorithms Pole. exercises and complex environments of to accurately on set precision hardware make in

to lunar confirmed In to developed determination are tech best vertically our missions.The of capital the This launch found lunar agile technical that operations, lunar and services distance, human expect the addition, access improvements within flight services impact with of provide any expansion we mission additional our technical and or services vehicle. precision assembly position X the adjustments communications, no improve surface. for performance in IM-X navigation company we on is XXXX landing, capable reviewed and investment adding vehicle current robust, communications, At RF capabilities command this autonomous operations technology the and that will we lunar access to the are improve control sustainable support surface future experience is continue capabilities making provide on date integrated capability of several quarter we perform require little and our orbit we goal in to and review way. in adjustments on the data of can lunar comprehensive we company customer lunar that while core, its intended and focused our a communication

phase, the In operations and lunar next operations.The piece represent following beyond first the Lunar autonomous days our and discovery onto delivery team to year moon phased the has lunar the program and take of will terrain Intuitive preliminary the for LTV. across first heavier and Intuitive delivery the surface missions, the for racer value design total of a planned first The of itself, of Campaign. rover delivery of April announcement and create the Machines a the Machines and Terrain operations critical development the led system, Vehicle deployment, three the and billion award QX, vehicle over LTV moves payloads design in of systems $X.X multiple Artemis structured and infrastructure starting delivery, crude contract awards. Services Beyond is X cargo autonomous us science both

the development, If phase, Intuitive production larger the to awarded the company's be lunar cargo lander manufacturing, vehicle's commercial and lander, current expect as program class in of design, we the the Nova-C the operations awarded mid-XXXX, Machines. cargo important services deployment the second which LTV assembly, core for project and Houston operations service lander phase, It's second and be our will matures. uses smaller the LTV vehicle test the calls surface epicenter for the led and and Machines' center technologies in The demonstration. as itself same for to Intuitive and by NASA allows note delivery

award this be and communications the expansion of the technological economy. its in core navigation high backbone technologies over essential eagerly are laying of operations phase our assists the Beyond to the Machines, for the into piece move NASA data performance and multi-year in production, communications demonstration, contract Machines' commercial, lunar are and timing of command critical services. the chess foundation anticipating the and initial in operations is in Intuitive continuous another mission the control is relay communication for government and on services, system. advancements These command control vehicle control lunar autonomous and command will a requires precision economy applied Intuitive and will and lunar the and Moon surface Intuitive position international significant reliable navigation lunar with satellites of around a Autonomous a very communications, in period.For or infrastructure the announcement for of currently autonomy. operations moon. next degree to Machines Every

NASA of now its have for mission in economics Machines of competitive second in NASA's am that last the on increase to race.During fully full that, business believe proposal land base over to in to I'm much the Steve unprecedented of and The timing in contract in Machines.With shortfall excited that technical year. CP-XX with for to This demonstrate to the an balance NASA's opportunity the overall technical provided innovation reliance that US the now the United mentioned creates break the issue global from award same our systems update, Interim the Since and enable We more I billion price for and I our Chief seeing next of site, guidance. for program. Officer, first we mentioned maturity to to Financial XXXX the the on second IM-X prepared powerful cislunar launch the the their Steve in our budget $X possibly XXXX sample this expansion in the advantage about cislunar strategy return Vontur pleased US noting the quarter aerospace XXXX. moon.With procuring the space for its reduction, and Mars economic XXXX most Machines' Intuitive system. twice we call, tremendous our back expecting potentially in pending first of we guidance launch fourth of Vontur. this the came are commercially for growth to the landing to becoming year our leverage QX return.Finally, broke to in the turn we certainty announcement moon government samples industrial CLPS the barriers about a shift Machines the the the designs landing stability the after on investments and mission mission We that towards discussions South agency ability to final I intends Pole are progressing and provide of execution technology We mission has the quarter, in call lunar make and plan will the later to economic the agency Intuitive what difference this holds solar the that and Mars has of XXXX the details call our technologies material deeper States architecture year mission still report Already, through with sought continue to of company its based date through mission over this systems quarter.Earlier, engaged Intuitive timeframe. Intuitive are disrupt services. Machines that expect award set we year cost go the progress the for to and expansion. the Intuitive revenue we with innovative necessary solution I'll anticipate commercial third success Earth. NASA. to developing speaks we delivering recognized we barriers awards, is insert and traditional to on US IM-X seen ingenuity been commercial one have this of as into have

Steven Vontur

you, payloads. and a the by by joining liquidity, Thank compared first XXXX to I'll mission by our revenue rounded over in $XX.X going today. $XX results, our through first the had revenue and just our and million accelerated couple thanks III of revenue quarter everyone of XXXX quarter. NASA our quarter CLPS quarter and $XX.X and driven was begin the related few million in full from guidance.Revenue first to million on revenues with comments in XXXX, We primarily OMES impacts of followed Steve, us quarter out a one-time backlog of three

the had about we mission $XX million related to IM-X success First, milestones.

recorded to work with missions. to of also the mission additional task IM-X contract payloads, the two as orders modifications We we updates landing CLPS IM-X an sites revenue combined remaining and million on $X.X and timing, relating NASA finalize to for

million mission quarter two by well XXXX earlier primarily OMES for The operating in in million higher million by late in the IM-X year. we on and was driven was quarter, the by lower milestones above a to this the partially success non-cash other quarters loss prior was the headcount mentioned was overall primarily and comp versus not as driven Steve, As and expect primarily loss G&A. the of offset the awards IM-X XXXX in margin first sometimes of QX modifications and $XX.X this $X.X in the the higher launch and activity.Operating again equity the quarter to exist were III as positive increases, $XX missions, by quarter incentive XXXX. quarter did noted including improve ran continued higher versus Gross items IM-X that first last and mission XXXX. SG&A in driven by

from and $X.X we coupled in $XX.X bids quarter-end other on the continue we with approximately saw conservation position accounting in to QX as increases we cash balance and expenses, proposal the reflects the were company's quarter legal is our proceeds ever professional and of the addition, such in totaling capital working rent strongest as In growth. the management This Included headquarters new rapid and side, focus million.On corporate fees, and one-time expenses support million, on exercises. capital driven continued by a cash ended million the primarily warrant $XX.X liquidity. with charges

of is through sufficient ending the to believe year. the balance cash end our to We continue fund that operations QX

In planned win we the and of continue reserves business. addition, throughout we expect to operations add on the new as to cash remainder execute year

the we the further quarter to As capital for was in Operating sheet. cash quarter of opportunistic of in going resulting be the continue will which our we $X cash previously used in quarter to markets with defensive balance $X.X since for million of stated, million, the burn and flow outflow free an reflects strengthen expenditures million, lowest capital public. capital cash $X.X

strive We $XXX.X decline while CLPS and as breakeven cash backlog continue margin of OMES million executed the as expenditures prioritizing expected we quarter and million free disciplined $XX.X towards contracts. a about contracted first on flow ended to we higher with remain our business.We of with

year.With revenue with revenues.Overall, confidence Steve the quarters million a to the the quarter. the by to and on strength operator, program during both opportunity revenues of backlog be awards year expect increase million, to gives and us year throughout including award with key decisions We and coupled NSNS recent award of between outlook expanded continued next Machines. an forward and ready representing including we for company's This provide the task opportunities this year, of gives for look couple X.X year, times of providing the operationally are next times for to an as great a to X.X in grow on we LTVS driven LTV We confidence our solid CP-XX.Moving the record which growth. the quarter outlook for in the this XXXX now Intuitive III new showcases revenue record awarded to had financially OMES quarters growth questions. was The $XXX remainder and said, start a $XXX for expected the in executing tremendous outlook the that prior us

Operator

Instructions]. [Operator sir. you, Thank

of Desilva first The with the line from question Suji MKM. comes ROTH

Sujeeva De Silva

the 'XX much of that 'XX, the of about guidance what your covered period backlog, curious for And talking covers the I'm guidance $XXX million? and how there new

Steven Vontur

million. For about component, have right the the backlog be now we believe XX% burned of sitting the remainder about We year. $XXX through of about backlog backlog our XX% of that will at

Sujeeva De Silva

with in supported upside new that wins And guidance? it you wins are or that 'XX, guidance then any assuming wins existing to be contract guidance and for by 'XX additional additionally would is the

Stephen Altemus

is weigh that we Suji. in the we look The pending. way have there, at Yeah. Hey that awards probability we

end So beyond guidance end us CLPS success that of award, what time, mode IM-X we're the there's of the mission that landing award, is two a includes on negotiating in the the maybe and the then But lower an that NSNS NASA. the with mode to for upside the takes IM-X with payment. higher to and next range negotiated the

Steve are weighted of us probability those range described. and all what that that's So gives the

Sujeeva De Silva

whether ancillaries payloads guys would of Steve, it IM-X, a with mentioned then be? anchored mission sort And out of would, you time the I first potentially guess, that that lastly, across between, kind of or customers, customer the would in of what to if direction some general portioned commercial an series equally have Im in all inserted wondering concept IM-X. be

Stephen Altemus

to Yeah. we payloads with set Right now purchase of a critical of the manifest get to can go where we're aggregating forward a essentially booster. waiting

gets And declare us a where so case, That that's bit we negotiating. we'll occasionally point this in that's we And to sized little larger. fairly commercial what mission. can those we're come get evenly and in the actually this payloads one have

payload from So but it'll medium out to as go answer kind complement. maybe question a it's a smaller to the a of we that'll mix round not be kind your large and of to mix forward directly,

Operator

the Next comes with The from Josh Sullivan Benchmark line Company. of question

Joshua Sullivan

substantially big into here, what down draws burn year-over-year. the year-end? But cash are the as far As

Stephen Altemus

big missed part, I draws. the last the Josh,

Joshua Sullivan

I'm trying here. understand, to down cash just burns

of of You're balance the just stating that the tent the end to have into work large here burn year. cash we are you get think cash you poles end you year? good a the curious, I'm as through what the for

Stephen Altemus

be indirect run payments We of month payments of our booster for a burn. indirect the our is And goods the part drawdown $X.X biggest about sold, missions. would each support million Yeah. or as the at of cost

for IM-X We the have payments books and year. for this booster IM-X on

the have as I'd And are so biggest payable. those say that accounts we ones

Joshua Sullivan

then it. lunar mission. Chinese Got your there, the And in mentioned comments you

competition their really Indians that return that lunar or other the pace? their tempo up own moving looking strategic it What's viewed have here. conversation your at at You or NASA the sample their of US missions as own ramp-up view in Is as ambitions? these nations is picking

Stephen Altemus

have the has economy the the what or we Well, to the price annual we're commercial takes of moon. to sparked missions of to to as go economy will. an moon, I the install if we think government it said, as of US cadence fortunate, barrier US we can US I the has kind NASA break where And

we like as missions on as be complex that might flying this in more have be shots quickly feels behind as it catch-up goal. China many as While at we aren't we we'll point, may frequently or

NASA provide can and we're the supply think the right, SLS elements heavy the is think and missions on in And of building us program the might with the lends the bigger surface them. commercialize going lift moving and humans. of put itself while to particular to moon the service in occurring, for CLPS the ahead where cargo and that's heavy activity interest. happy to is And for I government's a So lift which to strategic critical that is be CLPS I where fill to the base chain going,

Operator

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

Andres Sheppard-Slinger

you OMES the to wanted kind be margins there I margins and expect? out some color of IM or you might thinking the if should we also ask maybe point for contract? X maybe as Just about of, what for how can kind give to curious maybe Mission

Steven Vontur

we've reported are So IM-X projects IM-X historically, close to or breakeven. as missions lost and

So that. running any margin consolidated of the as on operations is that, contracts, the basis. have work we OMES those on those in range won't rest off a of margin we X%

So with in but the final some again, IM-X contracts, don't expect have successful fees, losses we any once may like land. on IM-X that or the IM-X we bumps to had milestone future we

Andres Sheppard-Slinger

maybe quick just a And follow-up.

you that vehicle next us the that the how maybe narrowed or the out. And what understand that might either terrain to there? trying catalyst one guess is I that playing from pertains just can is going program to three expectation one Just it to two? companies to are the contract, you As get lunar it's have see bid remind

Stephen Altemus

a that the have -- build now, next period would multiple the to we what take is companies they're months demonstration. the period expect the to actually forward off. to Yeah, there'll the demonstration. indicated But be thinking with delivery million system awards. design that LTV as moon preliminary on order out develop X that a X are of to the that to by kick and There's XX then NASA a happen X roughly a it, XX-month task period portion demonstration issued month deliver be and about the order Right as and stated. I year, that that NASA doing $XX over fully could it this will later a has of X, companies of design, maybe of do XX possibly go the year, we

services XX or the contract so could be contract. that that and sales written and point it's that purchased like itself services number a go complement years, things me IDIQ with billion that data out those demonstration. a that are However, over include broadly And LTV the can communications of under $X.X multi-award let that's and there

compete one So year issued next that the the and that's is we bigger demonstration. for mid-XXXX task order though

Operator

Boss from Griffin Securities. with comes line B. question Next of the Riley

Griffin Boss

received related to use leverage to leftover initial NASA much talk how then, LTV. Can And looking capacity use in availability for possible that, more commercial broadly potentially commercial turn, interest customers of if will the time the any to utilize capacity any you've terms what NASA start require I'll expects LTV to cases? on already and potential about then from the LTVs, from you these excess for LTV? in or

Stephen Altemus

well moving Well, NASA LTV like science science astronauts mobility present science, to use autonomous necessary plans the things both logistics it as they're mission and the for fly and and for to cargo around yeah, that. gather where they surface, as use use collecting the payloads on and capability there, discovery, geological when to samples

So there a plan. is

infrastructure ranges overarching exciting, NASA to X of I think a in months X the infrastructure not plan own contract the would about case, quite to this of use, in Machines and X to quite months, unique use, commercial year and is of is from That's that X the the be terms the which that we there. service operate while able Intuitive NASA and provide.

companies for do the and caching have harvesting surface, that interest individuals and and materials to or for had excavating later We on want those return to of mining earth. materials

that's we companies. quite a NASA, there interesting. number was -- And there our to submitted of interest letters that commercialization of of in So plan number a from were

I of be the had contract. on the in awarded order we XX think LTV using the interested companies should

of bit it gets move will a I and that And we think interest grow. attention, only more quite forward So as interest.

Griffin Boss

of mean obviously, broadly, then maybe lunar operational I'd the Starship specifically? general, curious And a there's for to what various in could your of be for and SpaceX's future but reasons, a talk hear thoughts Starship, for on transport about more lot successful Intuitive

Stephen Altemus

Yeah.

systems while the be previous mentioned launch that whether the Starship, is And system aggregate a importance the various smaller the Starship, the and capability. a sustained has community in the the nice sizes and and the mission or moon is put to cargo space companies United missions States moon heavy up on of Intuitive very keep a will heavy and and feed smaller around component single a the locations moon, regular on a cargo critical moon. have multiple Machines really it to version it What's be to complementary critical will that of of on moon. elements I strategic in presence a human will we'll in satellites service to of in And cargo and heavy though that what's the Starship. I enough of that the to will question, to cadence be to is a lift around mission As moon think delivery way deliveries comes lift

Griffin Boss

sneak first commercial I if just the after putting talked then fully about more Without you potential in And X could mission mouth, in words IM-X. your there. Steve,

said you are expecting commercial be payloads. Would that you You fully fulfill whatever or incremental to you were would to enough commercial aggregating to two right it assume get demand demand years? that today seeing then mission mission are within next a fully warrant a the

Stephen Altemus

holding get contracts signed payloads have today. signed multiple contracts, mission. we we where and with negotiations and the to contracts opportunity this those to we that as And have commercial we've a are come We to that And declare a us in declare mission. a point aggregating negotiate negotiations underway been and those enough give for commercial those as mission

we next and the the We fill expect that to is moon. CLPS competed so which of mission we the this this And gap more between two maintain that years. next cadence missions going to coming gap is in last CP-XX, over want one X-year the that

a international commercial we of fly see growing to the years. and in interest of that are contracts continually and next see we the signed couple of lot terms to moon, So over interest

Operator

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

Austin Moeller

there integration? before aspiring the question Are on payloads if are put first my on IM-X all seeking IM-X and here. not, you currently And occupied? to Just still slots

Stephen Altemus

out. slots talking to aspiring some to and an that mission. of on still slot at and IM-X fill customers payload filled on availability are sold max have the slot were We capacity potential on All that with prior that were IM-X

Austin Moeller

was thinking riding IM-X? And first follow-up, just the what's [indiscernible] a should that be we that? How be to status currently aboard satellite the supposed about of

Stephen Altemus

-- is, we've -- second anticipation hopefully mentioned quarter, anticipate that capability We've wasn't the of where com in combined what back we've two done that much the we mission. went NSNS should be that and found the satellite satellite built award, out requirements at compliant coming with communications were better out coming on in which NASA of first a looked we or second our awarded and out So I that an NASA.

comp built we'll building better two, fly we that a second better, IM-X. and So com or on on satellite, relay a bus are and our

Operator

Next line Deutsche question comes Yu of from with Edison Bank. the

Xin Yu

What think of geopolitical our economy on sort system angle, DoD's the on view this the is moment? the how the do out, at aspect you playing especially are with and

Stephen Altemus

faded-off is I Edison, race, this The your comment? that space there. interest in missed the you DoD's last part,

Xin Yu

The cislunar economy?

Stephen Altemus

Well, towards to there's as the think traffic be some But as in model missions a what's more and to or increases reallocate X cislunar moon, leadership moon a the Okay, at see going need number priority. their in then on gain the they're a -- around budgets year some interest economy. Geo stated the that yeah. point. I I X than that will to before this focus lot they'll able to of think ex-Geo, that maintains of And by in priority and DoD and there's and going

appetite the will increase. space for seeing couple awareness for said, model capabilities appetite the and force I space next And slowly we're So management of growing traffic cislunar domain years. space over as then, traffic that the and information additional like increases,

Xin Yu

And couple we question CP-XX on fits into just and term broader LTV. the company's this overall awards? NSNS think kind that more strategy and vision How do upcoming longer of of with when sort the we

Stephen Altemus

moon. around about think take able to the moon of communicate can part mobility is the on essentially presence respect because I think and build navigation. surface, to to gives control including delivery the ability And the to you surface, strategy the communications things that. it, the to, to extreme LTV, around human I to infrastructure begin LTV to And critical be able that we be command So if it's do interest, of supports then with move and we can sustained then to

the mobility. command builds the delivery, ecosystem how awaiting, extreme and moon. and fits anxiously government so to like in provide control, and contract, all service moon deploy that satellites the our And capability And of be I that's NSNS company said, that last our relay And together. able of chess the and in around terms for that data an piece back to communications around to we're communications, in

Operator

back Thank questions. like you. to Altemus floor no further closing would are hand I There Machines' CEO, the Intuitive Steve remarks. for to

Stephen Altemus

you, thank call. today joining everybody, on attending the us for Well, and

As talking the you. you heard, future. that we we've to to had expect and a historic momentum build year. forward operationally look Thank first to quarter, and in you both the throughout on I financially,

Operator

Thank you. concludes today's This teleconference.

at lines Thank participation. You you your for may disconnect your this time.

Intuitive Machines (LUNR) 14 May 242024 Q1 Earnings call transcript