• Revenue: $58.5 million, up 359% year-over-year.

• Cash Balance: $89.6 million at the end of Q3, highest in company history.

• Backlog: $316.2 million, a company record.

• Gross Profit: $4.1 million, compared to a negative $13.8 million in the prior year.

• Operating Loss: $13.7 million, down from $24.8 million in the prior year.

• SG&A Expenses: $12.3 million, up from $9.9 million in the prior year.

• Operating Cash Used: $17.9 million in the quarter.

• Free Cash Flow: Outflow of $19.3 million.

• Debt: Zero debt on the balance sheet.

• Full Year Revenue Guidance: Narrowed to $215 million to $235 million.

• Warning! GuruFocus has detected 8 Warning Signs with LUNR.

Release Date: November 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Intuitive Machines Inc (NASDAQ:LUNR) reported a significant increase in Q3 revenue, reaching $58.5 million, which is over four times the sales from the same quarter last year.

• The company closed the quarter with a record cash balance of $89.6 million and zero debt, providing strong liquidity for future operations.

• Intuitive Machines Inc (NASDAQ:LUNR) secured a major contract for the Near Space Network Services, valued up to $4.82 billion over the next decade, marking a transformative step in data transmission services.

• The company's backlog reached a record $316.2 million, driven by lunar surface delivery missions and the Near Space Network Services contract.

• Intuitive Machines Inc (NASDAQ:LUNR) is strategically positioned with its three core service pillars: delivery, data transmission, and infrastructure as services, which align with commercial and government lunar exploration goals.

Negative Points

• Operating loss for the quarter was reported at negative $13.7 million, although this was an improvement from the previous year's negative $24.8 million.

• The company experienced a $5 million impairment of property and equipment, impacting overall financial performance.

• SG&A expenses increased to $12.3 million from $9.9 million in the prior year, due to higher public company costs and employee compensation.

• The revenue from the OAMS segment decreased by about $5 million from Q2, with expectations of continued ramp down in the fourth quarter.

• Intuitive Machines Inc (NASDAQ:LUNR) faces competitive challenges in securing the LTV contract, as discussions with NASA are ongoing regarding potential multiple vendor awards.

Q & A Highlights

Q: Do you anticipate that the LTV contract could still go to multiple vendors even after NSNS was awarded sole source to you? A: Yes, we are having discussions with NASA about the strategy for the LTV contract, and whether it will be a single or multiple awards has not yet been determined. The door is open for discussions, and NASA is receptive to that possibility.