Momentus (US:MNTS)2022-11-09 04:22Financial Data and Key Metrics Changes - Momentus reported a cumulative backlog of approximately $43 million as of October 31, 2022, spanning 19 companies in 14 different countries, reflecting ongoing progress and investments [65] - The total backlog declined by $12 million from $55 million reported in Q2, primarily due to the expiration of options [67] - The company ended Q3 with non-restricted cash and cash equivalents of $82 million, expected to last through the end of 2023 [68] - Revenue recognized during Q3 was $129,000, with gross profits of $115,000, primarily related to the deployment of customer satellites [70] - Operating losses for Q3 were approximately $22 million, with adjusted EBITDA at a negative $16 million, showing a $2 million improvement sequentially from Q2 [71] Business Line Data and Key Metrics Changes - The Vigoride 3 mission has deployed a total of seven out of nine customer satellites, with five additional satellites deployed during Q3 [18][19] - The upcoming Vigoride 5 mission is expected to demonstrate improved capabilities and reliability compared to Vigoride 3, with significant upgrades in design and technology [23][26] Market Data and Key Metrics Changes - The FCC's new rule requiring satellite operators to deorbit satellites within five years post-mission is anticipated to create a multibillion-dollar addressable market for satellite deorbiting services [80] - The space economy is projected to grow from approximately $469 billion today to over $1 trillion by 2040, indicating a favorable market environment for space infrastructure services [54] Company Strategy and Development Direction - Momentus aims to enhance its capabilities in satellite servicing, including rendezvous and proximity operations, and plans to introduce a robotic arm for satellite servicing and deorbiting [78] - The company is focused on reducing operating costs to extend its cash runway and is actively pursuing government contracts to support its R&D efforts [49][51] - Momentus is committed to improving its technology and operational processes to boost investor confidence and position itself as a leading player in the space infrastructure market [15][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on regulatory changes and market opportunities, particularly in satellite deorbiting and servicing [81] - The leadership team highlighted the importance of learning from past missions to enhance the reliability and performance of future spacecraft [100] - The company remains optimistic about its growth prospects, driven by increasing demand for space services and favorable regulatory conditions [54][61] Other Important Information - Momentus has signed contracts with NASA and other entities, marking significant milestones in its efforts to expand into government services [41] - The company is preparing for its next Vigoride launch targeted for December 2022, with ongoing improvements based on lessons learned from previous missions [26][62] Q&A Session Summary Question: Can you discuss the new FCC rule and its implications? - Management noted that the new FCC rule creates significant demand for satellite deorbiting services, which Momentus has been preparing for by investing in relevant capabilities [77][80] Question: What are the implications of changes in SpaceX transporter pricing? - Management indicated that while new pricing structures will affect future costs, existing agreements will not be impacted until 2024, and they plan to pass on costs to customers where possible [82][84] Question: What are customer views on the small rocket segment? - Management observed that customers are looking for more flight heritage from small launch providers, but competition is driving down launch costs, making rideshare options more attractive [90] Question: What lessons were learned from the early Vigoride mission? - Management highlighted the importance of designing for resilience and redundancy, which allowed for the deployment of satellites despite challenges faced during the Vigoride 3 mission [96][100] Question: What are the primary objectives for the Vigoride 5 mission? - The primary objectives include testing the vehicle's performance, learning from any encountered issues, and demonstrating new capabilities, particularly with the hosted payload for Caltech [104][106]