Momentus (US:MNTS)2023-05-12 02:49Financial Data and Key Metrics Changes - Momentus reported a cumulative backlog of approximately $33 million in potential revenue as of April 30, 2023, spanning 19 companies and 13 countries [30] - The company ended Q1 2023 with non-restricted cash and cash equivalents of $39 million and approximately $12 million in outstanding gross debt [31] - Losses from operations for the quarter were approximately $21 million, with an adjusted EBITDA of negative $16.1 million, which is about $1 million better than Q1 of 2022 [32] Business Line Data and Key Metrics Changes - The Vigoride 5 mission successfully deployed a customer satellite for Cosmosis and is now transitioning to support a Caltech hosted payload [93] - Vigoride 6 was launched in April 2023 and is carrying payloads for four commercial customers and two NASA satellites, with deployment expected by late July [72][83] - The company has demonstrated improvements in spacecraft production, with Vigoride 6 assembly integration and testing being 36% faster than Vigoride 5 [42] Market Data and Key Metrics Changes - The global space market grew by 8% last year and is projected to reach over $737 billion within a decade, with the in-space transportation market expected to double from about $2 billion to about $4 billion by 2025 [57] - The U.S. Space Force and Defense Department's space budgets average about $15 billion to $20 billion per year over the next five years, providing significant market opportunities for Momentus [58] Company Strategy and Development Direction - Momentus aims to leverage its early mover advantage in the space industry, focusing on flexibility, large payload capacity, and low-cost operations to attract customers [16][18] - The company plans to develop additional features for Vigoride, including a high-speed mission data link and expansion tanks to extend its range, with some features expected to be introduced in 2024 [19] - Momentus is focusing on growing its business with U.S. government departments and agencies, including the defense department and NASA, to capture a larger share of the national security market [52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's long-term strategy and competitive advantages, citing positive feedback from industry veterans and customers regarding the rapid development and deployment of technology [4][38] - The company is actively exploring opportunities to raise additional funds and reduce operating costs to improve liquidity and strengthen its balance sheet [63] - Management highlighted the importance of continuous innovation and the development of new capabilities to meet the evolving needs of the space industry [18][19] Other Important Information - Momentus has successfully operated its microwave electro-thermal thruster (MET) in space, achieving technology readiness level 9, which indicates its viability for various national security and commercial needs [46] - The company is also pursuing partnerships with solar array companies to bring innovative technologies to a broader market [22] Q&A Session Summary Question: Update on Vigoride 6 mission and potential sources of capital - Management confirmed that Vigoride 6 is operational, with payload deployment planned for late July, and they are exploring various sources of capital to support operations and growth [70][36] Question: Revenue recognition from deployments - Revenue is typically recognized upon the delivery of satellites to orbit, with the value of contracts varying based on satellite size and customer agreements [84][86]