LUNR - Earnings call transcript Q2 2024 | Intuitive Machines, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Intuitive Machine Second Quarter 2024 conference call. [Operator Instructions] I would now like to turn the conference over to Stephen Zhang, Head of Investor Relations.

Stephen Zhang

Good morning. Welcome to the Intuitive Machines Second Quarter 2024 earnings call. Altemus, are Chief leading Steve Controller, Officer Officer, Vontur, Steve the Executive and Financial Interim and Chief call today.

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

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

we website, on which presentation financial provides on posted our performance. context operational and our call additional an Finally, earnings

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

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

Stephen Altemus

The moon, of addresses XXXX. commercialization. and vision space. a services operate refer I and commercial year. space in the as first more and were the ability quarter these of last or get The send was extend and means joining in this the Stephen, than and the X for million space. that working more transmission everyone the up advantage in us was at It during competitive and all significant same on data in services, Revenue living million, our that's than asteroids, quarter living trajectory. requires year to autonomous this Mars, pillars living operating every operations accomplishments double and Intuitive $XXX.X Revenue for services, Thanks, and of second quarter to data milestones Machines half them to people to that $XX.X there, achieved believe morning. to is all welcome landmark autonomously, just nearly the X Company's we delivery providing advance whether mining space,

OSAM into marking second sufficient are to OMES operations to still debt on for million fund revenue to sales. the this $XXX.X million believe XXXX, million of on so sheet the in We of next This to This Intuitive successful base raising the nearly appropriations $XXX in far the sizable X.Xx in $XXX several end standard year's execution with new up Xx balance resulting year prior full-year half million, we the range project our which is stabilizes revenue Machines $XX of low a horizon. X cash Company's outlook million. the underpinned equates advancing from XX and XXXX for us million to backlog III months. $XXX new and gives with booked contract confidence expected the $XXX opportunities by year

This future move as essential complements that engine services, selection the areas, capabilities lander, our with our cargo ability and next we're site as We evolve considerable allow transmission operations. developing NASA, successful In that continued and and lunar believe mission. delivery with class growth towards expertise in lenders flight have capabilities our support of autonomous July, qualification engine systems and assembly finalized data potentially and prospecting are selection we partnership mission, second Machines our progress our landing successful including integration with reconnaissance For testing making our we holding Collectively, us for world-class. landing resources. our for to the are heavy fielding of part delivery cycle, valuable flight to in site the qualification. And that, site to Intuitive is landing identify services, foundational activities.

Houston Now we spacecrafts simultaneously. construct capacity have we multiple are to new Spaceport facility, in our that

our components, and we preparing For third the integration. are assembly for majority flight and supplier mission, received have manufactured of hardware, our designed and

I of mission As delivery offered Machines launch to point capacity payload part fill rideshare our want lander a Lunar out Intuitive mission, lunar on to missions, addition to are which that the in vehicle excess services improves our profitability.

mining mission. the initial has and is deployment third mission second Machines commercial contracts on model believe maturing secured of second services missions quarter, capacity government creating for admissions. Intuitive NASA our rideshare our beyond We've winning we As on is a satellite through services formula. sold This services and asteroid rideshare out on delivery commercial current contract of our one

Now of our dimension shifting another focus business. to

the with the surface, the requirements XXX for autonomously the This February Intuitive vehicle demonstrated the review designs. on services pool prime LTV Recall of from lunar surface wheeled Intuitive validated cargo surface We also through services commercial data autonomously competing contractor lunar and class unique milestone year, heavy both IM-X our program. delivering are the lander is to transmitting operating in payloads and vehicle data hours delivered terrain only mission. lunar moon. we this the system experience and to bidding completed and on NASA among in IM providing of competitors Machines the for as Machines operated

demonstrated near-space our Intuitive delays, coupled growth to Machines NASA award network we opportunity NSNS to contract government system. samples the win on uniquely in positioned for unique is critical capabilities, push Machines month, advancements a continued these dominant far-side underscored China's that time. program. moon. submitted satellites. from endeavors commercial NASA's are VIPER offer with heavy discovered concerns valuable and to South positively transmission NASA improved in around In believe develop data itself Artemis of Data satellites Pole. Intuitive to water Intuitive Machines and support remains imminent, Intuitive China's for moon. past Machines our returned advancements pioneering the the for policy is the become designed respect establishing and XXXX in space. contracts to mission. The is rover interest fly and science to expressing data importance the power. to for key autonomously VIPER services is class of samples the return capabilities autonomously its economics of on citing material community in of Intuitive identify Machines through contract and relay Similar the from space lunar commercial mission, moon's June, a a lunar first nation budgetary sample that's operated moon, commercializing laser-focused letter side autonomously capability that and opportunities service provide enables resources orbiting response element services far deliver orbiting company. our the a in its of VIPER, cargo supported its data infrastructure the enabling These in mission keystone the exploration canceling lander, that recognize to by commercial navigation, lunar prospecting, continue to transmit in for services. the data part support VIPER around larger VIPER of Washington NASA to this impacting believes sample With U.S. return the a and soil and Published We both of first-ever current and on VIPER significance satellites the funding to exploration. in space decisions that services support comprehensive could The the the the this data We Machine's The molecular form and analyzed space scientists stable and exploration. is the is China's to search planned Chinese Intuitive communications is requires as

With with autonomous our a Leveraging of these data execute contracted pace. develop exciting a that offer transmission to continue space thesis, and revenue, positioned lunar to such lunar pillars capabilities allow economy. a delivery at addition X the NSNS, business be key to and economy X higher we of will continue on the services unfolding services, It's robust demonstrate that rapid we Intuitive Machines level services, services. Consistent of see for enable the to operations.

the with technologies believe a our Interim financial Chief and in that are turn Financial Machines' capabilities position Steve over Intuitive advantage. competitive strong I'll call Officer, We underscore With Vontur. that, demonstrated we to

Steven Vontur

on everyone impact moment. you, of to We contract with joining quarter $XX in that XXX% same IM-X us projects. the the coupled QX over under quarter quarter backlog, the thanks increase and to were a to in cash revenue with in the driven raise and our our associated The today. and for estimates solid financially mods had guidance. JETSON revenues of million end our Steve, improves XXXX, the million to in and low NASA year in another These expanded million confidence strong outlook contract LTVS, up quarter CLPS More includes us in and primarily compared of modifications the also quarter negotiation the Revenue $XX.X IM-X of Thank revenue full-year by low-power prior nuclear satellite to the gives OMES, $XX.X with QX. changes the second price.

and estimates to align During the towards second cost resulted these which modifications, revised we progress in quarter, contract revenue completion. with lowered

of $XX.X year, million the the the better earlier quarter operating on However, the mission In missions, payload X giving delivery million and loss Mission primarily our on as versus to X. our employee the was going landing public uncertainty noncash next previously quarter times impacts reduced insight the new the compensation in X schedule location for us on mentioned mission XXXX. driven to SG&A site $XX.X Mission forward the expand as second modifications of NASA program rent the company modifications by in capabilities enhance to higher quarter this million and lunar believe we meet due continue new stock-based future. completion corporate contract IM-X our well for loss requirements of in Operating higher as the the was run, benefits, well compensation long to headquarters. in these allow us costs, in contract $X.X our as increases modifications, The operational into

of cash and now payments $X our we forward Our position our million. early million each X NASA mission payments CLPS In balance outstanding These loan, $XX.X cash for paid derisk company's on the launch at quarter, each. and helped approximately provider our the $X outstanding In of balance debt. in debt-free. the going QX off July, mobilization off remained final only at paid million are we launch million credit we the as strong $X million payments remain retired missions for $XX.X

cash we with debt and on With current believe us, that our provider the position sufficient the milestone payments success does significant the mission or fact position. wins, any sheet operations we XX cash impact our cash is the capital these final of behind balance any months. launch XX-month expected our no of company, on next further payments for raises, outlook not This expect for no which further coupled new could IM-X, strengthen to contract include fund outflows opportunistic

For cash added color, million. was we quarter million cash $X.X an CapEx in with ended million resulting of of outflow balance. July Operating flow $XX.X the of free in cash million, in a quarter with the $XX.X $XX.X used

outflow mentioned provider launch predominantly of million lunar was our for As driven earlier, by $XX.X this X missions. payments

we contracted I the milestone NASA million $X.X payments. for half the the Going higher project into an such CLPS forward, price a partially contracts, strong as and $XXX of we our in of earlier. and contract with as decline the increases visibility second offset We driven expected of loans other ended awards, quarter as inflows for remaining LTVS the of X expect timing Phase second contracted new contracts, year, the on by backlog million, by of collection on million $XX discussed our executed

III We with the orders, the new expect the backlog program NSNS of task driven awards, and key by through to the remainder including award coupled on decisions OMES next year grow CP-XX.

Moving year. our outlook to the for on

already had all with for Steve the $XXX.X of XXXX. half which in exceeds As revenues, said, great we of first a million revenue year

$XXX now in Machines. Given Intuitive guidance to and XXXX, new continue accelerated will remainder $XXX for of questions. pending the of We ready our $XXX raising in end into long-term weeks million, this low plan. full-year for forward that award visibility are the to to operator, that, was the range the year. million business With coming another and solidify from a confidence look $XXX for quarter are resulting strong our we Overall, decisions million we of to revenue our the growth million drive

Operator

be question of Desilva Instructions] first from our Roth will [Operator Capital. Suji And coming

Sujeeva De Silva

how VIPER it is to in And terms was implications if with schedule to you start Understanding congrats critical Altemus What's NASA progress submission. program the what information Steve of unable the of that timing move the forward are the to Steve, your NASA on to that rover and -- the wanted gather? here. going you going continue for is I the response? to lunar VIPER. respond with

Stephen Altemus

interesting is any the VIPER commercially on challenges story internationally. a But if canceled asked They there was very rover VIPER NASA budget referencing side. parties program. or interested

here solution. payload Friday, we there science on that that important monetize of And our that heavy in said, And the NASA we commercial capability offset the Artemis response water and the other so can Nova-D. our which I companies, Machines, about And that the trained in future cargo scientists partners, coalition on program. space month for the lander to the that like kilograms and X,XXX to to for mission on together important flying the X,XXX to we international expect economics. extra a the terms via We're volatiles surface kilograms. Propose called of RFI, X,XXX VIPER, improve kilograms submit an If of about about any lunar out as us in putting is payload know, with gives NASA with has came to and very it's is is of and kilograms position that costs Intuitive soil. actually the That commercially. that VIPERs in ice prospecting to fly universities. to partnership in XXX class Nova-D

on some that of live astronauts is prospecting is the it data to VIPER does We to moon. too and data really mission precursor Our surface instrument. sophisticated engineering help scientific that work a how but the Artemis demonstration. collects for understand highly the think

So comes designs that is important. to the that that need We we'll surface. LTV rover we deployed collect maybe the be science based of but that think very that too comes -- science on systems to for think also influencing the late

Sujeeva De Silva

satellites next from The And are or the that to milestones that capabilities, -- I'm the steps milestones orbiting launch in lunar what missions. communications. we're What comms can the help the endeavor? building? for watch are next then having diversifying future important and curious, network or with

Stephen Altemus

Let's see.

first direct about round built to know, large ground we to mission. our We network XX we've you on As the -- for can dishes earth on earth aperture moon. earth to the dishes, out communicate so network ground radio the astronomy used from

see going the that that We made Space contract have milestone communication is on, here relay under We're for earth, the data but relay satellite first aiming up. year services Near construction and satellite to Machines Network ends for competitive item instantiation. data also our to contract. major line satellite, the on X Intuitive both we'll line they put Mission range be where to The direct call it, item. the contract this

X capability We to month really kick the expect September off those contract and us in awards. That that August this instantiating for operational those beginning initial the in in and awards on is space.

we hopefully, so that about quarter. And can next talk

Sujeeva De Silva

one then And quick financial question.

done? the next about several cost for required it talked months? the to for you Is facilities more CapEx that has XX next covering cash happen quarters. the place? is in Or in already facilities You the Are there

Steven Vontur

the for We've facility. investment essentially CapEx the completed

that operations a know, was leaseback of Lunar center -- financed you by pay city Houston, new and the to production arrangement As was in long-term city. the we our

costs lease our of of come essentially essentially income. And or portion working out operating capital off. the -- our paid our CapEx that So is is

expect don't large So we forward. going CapEx requirements any

Operator

of Boss B. Riley coming our Griffin next from will question be And Securities.

Griffin Boss

for believe guess piggyback in just expectation was summer. CP-XX, that So NSNS as IM first, and want the this I the your formation award, on for conversation. earlier to the for call, I last well I

the any Just causing color there? any delay idea have curious or if you what's

Stephen Altemus

this procurement from contracts, awards terms government. of up both trying kind down we predict of and on the those to in Yes, see of

NASA and takes best anticipated. communicate We longer information scheduled their them from and we the we updates take that than Sometimes on the get procurement, then take us. to

and awards we're government. fairly both hear in award now, the here, award the our going of the right in So the the NSNS NSNS and second September, to from counterparts we're outcomes inside confident directly August that's CP-XX

Griffin Boss

any into to I need what And Intuitive costs just clarity some wanted Intuitive to complete well. outlined, to the rover? or anything VIPER would Or you invest basically be really as need then that invest also, would -- Is the are on to get transporting VIPER rover? does which there

Stephen Altemus

moving they completing to the handle the we're NASA That's get that stop but to I vacuum before that's area and trying had take I I how know Well, won't did planned plans rover. up have Is believe goes to testing, thermal cover. still which was cost one a a that understand all we far they think forward. delivery? that, to way the they're on to it to

operational go some made commercially. surface, be would number. the instruments are we left be some actually NASA or to the by number. operate that. the pay to terms what to don't there needed real That's there of think commercial for That's either in cost where government investment contribution think I $XX million budget actually on to I that do a not is would a some

in select not the would my team team the surface. and it's key from from on them that team our and opinion. But science to have build join I to significant, us operate help take So want the members

Griffin Boss

Q in we get in sense Just of the for modeling milestone is wording a release payments when could press expect of to IM-X. milestone of bit The trying different. potential -- better sort a in terms little the

to the the that in window early was So XXXX. say extended launch Q, you

in that to sense of IM-X just clarity you're So if to I any the launch get that have January Is be correct? some whether wanted expecting you 'XX.

Stephen Altemus

We control about ship contract a our within the site date to the in you're internally to, when That's the we I at the manage and to better Cape. out is our launch to mission of through then the problems. What have go when to. XX-day any referring facility launch first technical completed. have essentially flow see processing what payload to what barring I found what to landers the pad. manage it's we we That's

of Some is actual not time that launch work scheduling on within our the control.

pushed several several our As that recall, the months. missions from around launch last manifest important there attempt you were highly us

this And of January. first actual be through the so importance. to the this frame the we launching And to stress season to Pole the that greatest importance I of South time of the It's is isn't year, most quarter launch of day. extent, the will want the that that have December season

And so delays. won't get major I'm that in any as long as we region, have we confident off

we're the ship what happens but then date as to a And opportunities. of pad. Europa tracking terms the the not so already or And that potential to we'll mission for Europa mission rollout absolute window. the deconflicted will on actually One, see take season planetary date of Cape. launch launch in is we've priority disclosed, NASA's

we of November to launch out on the time focus so January frame our chose And and attempts. move for December,

Operator

Andres your is open. Sheppard, line

Andres Sheppard-Slinger

I -- maybe to there. wanted wanted to maybe follow just on I Steve, the question last up

briefly, milestones QX missions get now throughout about maybe closer us the that touched kind 'XX think you to you are how IM-X additionally, I mission? year for you that IM-X for this of are the can -- launch? the know the remind needed then as So on important we what timeline maybe it should And

Stephen Altemus

NASA have mods movement that in just the comments, selection. and finalized Steve As on for mentioned site accounted landing with IM-X based on schedule mission his IM-X we contract

dates the delivery to NASA and dates to payload mission on right moving for moving right. payload delivery For the X

we seasons we those sites would where X be hit Mission to Mission able and specific modifications on tried landing to again, those the So X. up for to line

not quarter. milestone is final What financial XX% of for towards the about as a the the to the into of X in standpoint So the in know, affect first plan affect we you lot our that close CLPS there's pushed payments, and the Mission a that that we X year-end Mission and XXXX, from parties new financials knowing of date. did variability year outside can end of year book contract

there. approach took And so we conservative a

that year. our this And don't we forecast, so book have for

January expect don't go impact in financials I the were to So if XXXX. we an to for even

principle We're launch agree. For on modification. fourth did the XXXX. November again, at that moving and NASA landing -- the Again, did into in looking October, landing the launch and today, quarter the finalizing -- of we're but XXXX, time the moving agree season frame. in

Andres Sheppard-Slinger

as just quick maybe follow-up. And a

of pertains As kind to it you expect what some margins for give us contract we on maybe of year? should progressing. can wondering OMES, how is this And I'm color if that specifically, kind

Stephen Altemus

take Well, first We as then the as But continuation and again. it, did the know, of for that we talk I'll for schedule actually appropriations restructured project fresh cancellation NASA. the was put continue on was in, call for the a with up also, it ramp line get as at review OSAM back to back language a the chain it flying on review coming that was in gave or were language you look how And budget we've at briefed it. a to they appropriations got the wanted language embattled. part schedule -- end that to contract, in back we budget. it What the and the the give box funds in we some was together we and they itself plan you and on was least, said their that necessary Steve But item the how last margins you what about we there success. got back the with up to worked it OSAM that or might bill its authorization was path NASA at that, year XXXX that interest that mission project. OSAM see. to go launch might reaffirmed puts on into at review can got We OMES of say It the to new it they contractor a opportunity a save asked down. look But you would project,

service balance in So currently there margins projections. the for that of high us We single-digit type a on us look of as of very probably gave at the that's year margins what sign, the and sense positive and our the that a confidence be runout contract. on revenue gives would OMES

Steven Vontur

Nothing end. expectations year, else the We running That the I but half second further overall first of just bit to at our the half tad there the for the were as of we think year. Steve the a during hot add-- may covered still into consistent margin get tail off fairly year. the with

Operator

Our will next Li Laura from coming be Bank. question Deutsche of

Laura Li

So the my you you any forward, line question diversifying is, about looking future? do a in on DoD potential Or set do of beyond have work? how NASA think like like

Stephen Altemus

proposals our signed We business for work. organization SEOPS have submitted recently several through development called group into We've with do the payloads. contract to an rideshare DoD a

-- to that so business the into exploration in for the some out script and And but of we've surface interest class increased I necessarily mentioned gained into orbits orbits DoD. payloads take out some we to the not rideshare

commercial exciting. next of We expecting and we So then one, a And took we're a PDR also with a to on with entity to that phase project that's another started it. have pretty work subcontract the DoD. that

there continue traction and grow. small gaining bits, that are to we expect So to business in we

Steven Vontur

year. One Laura, JETSON also last we're thing, added started execute the power contract low we late on continuing that to

So full that's swing another AFRL contract. still in

Stephen Altemus

contract for JETSON satellite at Steve, Thanks, power. the correct. Yes, reminder. a AFRL low nuclear for

moving And there. so ahead we're

Operator

Andrew of Canaccord will Steinhardt Genuity. question next be Our coming from

Andrew Steinhardt

Just quick of questions. a couple

Can First, to about VIPER been speaking the you with any potentially Mission? that? what color Nova-D around is guys -- provide over have moving you NASA

Stephen Altemus

Intuitive cargo in and by been need international the put Again, launch vehicle, we terms together other to of NASA. speaking operations to then the lander, partners have led I Machines, about universities, services the we the together piece. coalition the companies putting the and Nova-D, So spoke heavy a

companies have several expressed interest universities. space several and agencies, We countries, from different and several agencies

We request that information for in important in the and timeframe We a the when in the. -- we together, of scientists interest see lunar that NASA comments and constraints notice to But science important and -- late that are write what is our it's we're for respond are. greater cancellation. express probably imagine our are detail. what what the So upon putting all think letter NASA's I the for from we'll we'll in we'd is have aim immediately think and mission. to gather their expectations back that XXXX did

up commercial the giving deliver opportunity and thing. That it's that rover see try to complete, probably do we'd the think to like to commercially nearly fly. this a do XX% attempt good I more pick and is sector it science than rover or to and that an is that,

have we'll the and some feedback. more information come think time that and once September feedback RFI the submit on in get to that frame. finalize we We the So that government will

Andrew Steinhardt

Near September. missed it keeping eye an I was [ for be expectations follow-up. I'll a IM-X on just sorry, time already what that out a -- I'm received I frame if it for in timing are but quick guess are what And -- ] Network your if Space contract covered, services? for the

Stephen Altemus

satellites. for August occur information in for the frame. time August relay Earth-to-Moon and September We the time the Yes. received to in information September frame were awards from NASA --official data that the NSNS Communications the Direct-to-Earth contract

August. waiting CLPS we're this those month CP-XX, for next So the then award, we the expect in patiently. And

Operator

from our next question, Company. One Benchmark moment of coming for Josh be which the will Sullivan

Joshua Sullivan

and an of about, along? is going you're some you to that, Or the NSNS other contracts the talking budget of as not think the at year here, think? election far help government you is do September timing to do as flush move Looking this these typical related

Stephen Altemus

and oral discussions. with range. range each We've year, asked those both -- those Items X.X. We've for into been competitive those had Well, and had quite selections for last CLIN of and brackets been proposal have the Josh, made Contract particular, and CLINs, proceed awaiting was Line those, discussions and proposals a the award. already NSNS that had we submitted that we're a CLIN moved Items, the contract, There's Both patiently of have I were government competitive Both submitted. been We one Line to Contract to X.X oral forward. final on deliberation. think, in then for

So in program and be is that government we the award I the contract know moving September, us And forward notified an earnest. said, August forward, in respectively. like is would the made moving

potential awards. the will the that continuing election believe I of So or the don't resolution affect a

Joshua Sullivan

And then the program. just one training maybe lunar on

far viable commercial the vector bid, seeing you to competitive as well As model as from be the have requirement SEOPS interest? are for a Would commercial relationship demand a as what LTV?

Stephen Altemus

is leg a delivery, into I'd orbits. nontraditional call focus that more SEOPS the for what payloads is putting not exotic orbits necessarily out or primary of in their in transport LTV factor

manned I so can about that really what opportunity. surface a with accommodate the months the And whether rideshare. data are. of interests their -- operate we operations and NASA crew. year, commercial science We're with that on interesting LTV doing rover, valuable And will is X as the both they're them collecting see or crude -- do autonomously

The other we over the our moon. deploy where stations is companies support completely interest. science science or power to that collect X several commercial it's commercially. on have year, And actually we've And stations pallets pallets design navigation talked of and technique that can or months commercial agencies space and for an a the to turned endeavors

cultivating And and for for so that to we're the LTV. the do while market ready designs the actually demonstrations, doing the we think that development get we're

we can that we deploy that market that the And to will 'XX come commercially. so monetize by 'XX, in the LTV the bear time so time frame,

Operator

for to this like Altemus now turn at back And Steve no I time. call questions Intuitive I show remarks. CEO, to Machines the further would closing

Stephen Altemus

key thank you support that in everyone, very forward and appreciate week the much. today's an you, Thank excellent our to quarter company. call. we'll I Well, we growth have that continued and discussions appreciate for coming look you award for joining it

Operator

you today's call. concludes participating. Thank conference for This

disconnect. now may You

Intuitive Machines (LUNR) 13 Aug 242024 Q2 Earnings call transcript