INFLECTION POINT(IPAX) - 2024 Q3 - Quarterly Results

Q3 2024 Highlights and Management Commentary Intuitive Machines achieved record revenue, cash, and backlog in Q3 2024, driven by strategic contract wins and a focus on core service pillars and cost efficiency - CEO Steve Altemus emphasized the company's focus on three core service pillars: delivery, data transmission, and infrastructure services, which are foundational to commercial and government lunar exploration[3][5] - CFO Pete McGrath stated a new focus on managing costs efficiently to drive the company towards profitability and achieve financial targets[5] Q3 2024 Key Financial & Operational Metrics (in millions) | Metric | Value | Note | | :--- | :--- | :--- | | Revenue | $58.5 | Up 359% YoY | | Gross Margin | $4.1 | Positive | | Ending Cash | $89.6 | Highest in company history | | Ending Backlog | $316.2 | Highest in company history | - Awarded a $116.9 million contract through NASA's CLPS initiative, marking the company's fourth such award, more than any other vendor[7] - Secured a sole awardee Near Space Network (NSN) data services contract from NASA with a maximum potential value of $4.82 billion[7] 2024 Outlook The company narrowed its full-year 2024 revenue guidance to $215-$235 million and anticipates strong year-end cash and further backlog growth Full-Year 2024 Financial Outlook (in millions) | Metric | Guidance/Projection | | :--- | :--- | | Revenue Outlook | $215 - $235 | | Cash Balance (as of Oct 2024) | $106.9 | - The company expects backlog to grow, driven by potential awards such as Near Space Network 1.2 / 1.3 Direct to Earth, LTVS Phase 2, and additional task orders for OMES and Near Space Network 2.2 - Cislunar Relay[8] Financial Statements Consolidated financial statements for Q3 2024 show significant asset and liability growth, substantial revenue increase, and a net loss primarily due to non-cash expenses Condensed Consolidated Balance Sheets As of September 30, 2024, total assets significantly increased to $224.8 million, with total liabilities rising to $229.3 million, primarily due to earn-out and warrant liabilities Balance Sheet Highlights (in thousands) | Account | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $89,605 | $4,498 | | Total current assets | $168,267 | $31,611 | | Total assets | $224,798 | $85,908 | | Total current liabilities | $95,314 | $81,533 | | Total liabilities | $229,335 | $137,480 | | Total shareholders' deficit | ($495,353) | ($261,435) | Condensed Consolidated Statements of Operations Q3 2024 revenue surged 359% to $58.5 million, with operating loss narrowing, but a $55.5 million net loss for Class A shareholders due to non-cash charges Statement of Operations Highlights - Three Months Ended Sep 30 (in thousands) | Account | 2024 | 2023 | | :--- | :--- | :--- | | Revenue | $58,478 | $12,731 | | Operating loss | ($13,724) | ($24,004) | | Net income (loss) attributable to Class A common shareholders | ($55,543) | $32,629 | Statement of Operations Highlights - Nine Months Ended Sep 30 (in thousands) | Account | 2024 | 2023 | | :--- | :--- | :--- | | Revenue | $173,338 | $48,960 | | Operating loss | ($43,999) | ($53,628) | | Net income (loss) attributable to Class A common shareholders | ($134,966) | $51,678 | Condensed Consolidated Statements of Cash Flows Net cash used in operating activities was $55.6 million for the nine months ended September 30, 2024, largely offset by $147.9 million from financing activities, increasing cash to $89.6 million Cash Flow Summary - Nine Months Ended Sep 30 (in thousands) | Cash Flow Category | 2024 | 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | ($55,622) | ($22,933) | | Net cash used in investing activities | ($5,185) | ($27,668) | | Net cash provided by financing activities | $147,894 | $65,489 | | Net increase in cash | $87,087 | $14,888 | | Cash and cash equivalents at end of period | $89,605 | $40,652 | Non-GAAP Financial Measures & Other Metrics The company utilizes non-GAAP measures like Adjusted EBITDA and Free Cash Flow, alongside record backlog, to provide additional insight into its financial and operational performance Adjusted EBITDA Adjusted EBITDA loss significantly improved to $6.9 million in Q3 2024 and $30.5 million for the nine-month period, reflecting enhanced operational performance Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands) | Period | Net Income (Loss) | Adjusted EBITDA | | :--- | :--- | :--- | | Three Months Ended Sep 30, 2024 | ($80,411) | ($6,913) | | Three Months Ended Sep 30, 2023 | $14,311 | ($22,119) | | Nine Months Ended Sep 30, 2024 | ($181,787) | ($30,456) | | Nine Months Ended Sep 30, 2023 | $7,163 | ($49,936) | Free Cash Flow Free cash flow for the nine months ended September 30, 2024, was an outflow of $60.8 million, primarily due to increased net cash used in operating activities Free Cash Flow Reconciliation - Nine Months Ended Sep 30 (in thousands) | Line Item | 2024 | 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | ($55,622) | ($22,933) | | Purchases of property and equipment | ($5,185) | ($27,668) | | Free cash flow | ($60,807) | ($50,601) | Backlog Contracted backlog reached a record $316.2 million as of September 30, 2024, driven by $235.6 million in new awards, primarily from a new IM-4 CLPS contract Backlog Growth (in thousands) | Date | Backlog Amount | | :--- | :--- | | September 30, 2024 | $316,164 | | December 31, 2023 | $268,566 | - The backlog increase was driven by $235.6 million in new awards, offset by $173.4 million in revenue recognized and $14.6 million in contract value adjustments[30]