Intuitive Machines, Inc. Q3 FY2024 earnings call

• Intuitive Machines had a strong third quarter with Q3 revenue of $58.5 million, over four times last year's Q3 sales. Cash balance ended at $89.6 million and backlog at $316.2 million.
• Secured the Near Space Network Services contract valued up to $4.82 billion over 10 years, intending to deploy a lunar data relay satellite constellation.
• Made progress on lunar missions: IM-2 completed propulsion system hot fire test, IM-3 undergoing integrated vibration testing.
• Matured LTV vehicle design, delivered prototype to NASA for testing, and hosted Apollo-era moonwalkers to inform design.
• Assumed responsibility for NASA's Lunar Reconnaissance Orbiter and Shadowcam operations, adding technical capability in Arizona.

Q3 revenue was $58.5 million, over four times the previous year's Q3 sales. OMES revenue was $34.1 million in the quarter, contributing approximately 58.3% of the Q3 top line. The LTV contract, which is $30 million for the first year, contributes about $2-3 million per month, representing around 3.4-5.1% of Q3 revenue. Cash balance at the end of Q3 reached $89.6 million, and backlog hit a company record at $316.2 million.

• Narrowed full-year revenue guidance to $215 million to $235 million, trending towards the midpoint.
• Confident cash balance will remain strong based on strong visibility into receivables from contracted milestone payments.

• Potential delays in mission schedules for lunar deliveries and satellite deployments.
• Uncertainty in the LTV contract bidding process as it remains competitive with other vendors.
• Budgetary and schedule uncertainties for NASA's Artemis program that could impact lunar development timelines.

Q: Do you anticipate that LTV could still go to multiple vendors even after NSNS was awarded sole source to you?

A: Yes, discussions with NASA are ongoing about strategy for LTV, with door open for multiple awards.

Q: Can you give more color on program mix for revenue in the quarter and LTV contribution?

A: OMES was mostly 34 million, other programs mix of landers plus LTV; LTV contract is $30 million over 12 months, contributing ~$2-3 million per month.

Q: Expectations for NSNS ramp in fourth quarter and 2025?

A: Initial $150 million verification phase task orders: first $9M (6 months), second $18M (6 months), third $43.5M (6-12 months), fourth $61.5M (12 months), fifth $18M (12 months).

Q: Thoughts on new administration's impact on space industry?

A: Bipartisan support for U.S. focus on moon, commercial space integral to lunar economy.

Q: Milestones to watch for IM-2, LTV contract?

A: IM-2 has Feb launch window; Nova-D design review in March; LTV proposal activities start in May, awarded end 2025.

Q: Cash runway and liquidity?

A: Strong liquidity position, looking opportunistically to add capital, secure through end next year.

Q: Financial commitment and data from Lunar Reconnaissance Orbiter assumption?

A: NASA pays ~$9M for managing, infrastructure built for data warehousing and analytics.

Q: NSNS infrastructure deployment timeline?

A: First satellite deployed on mission three in late 2025/early 2026.

Q: LTV program milestones?

A: Next phase includes preliminary design review, critical design review, design development, qualification, surface checkout.