Intuitive Machines, Inc.

Ladies and gentlemen, thank you for standing by. Welcome to the Intuitive Machine's second quarter 2024 conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to Steven Zhang, Head of Investor Relations. Please go ahead.

Good morning. Welcome to the Intuitive Machines second quarter 2024 earnings call. Chief Executive Officer Steve Altomus and Interim Chief Financial Officer and Controller Steve Vontour are leading the call today. Before we begin, please note that some of the information discussed during today's call will consist of forward-looking statements, setting forth our current expectations with respect to the future of our business, the economy, and other events. The company's actual results could differ materially from those indicated in any forward-looking statements due to many factors. These factors are described under forward-looking statements in the company's earnings press release and the company's most recent 10-K and 10-Q filed with the SEC. We do not undertake any obligation to update forward-looking statements. We also expect to discuss certain financial measures and information that are non-GAAP measures as defined in the applicable SEC rules and regulations. Reconciliation for the company's GAAP measures are included in the earnings release filed on Form 8-K. Finally, we posted an earnings call presentation on our website. which provides additional context on our operational and financial performance. You can find this presentation on our investor relations page at www.intuitivemachines.com slash investors. Now I'll turn the call over to Steve Altomus.

Thanks, Stephen, and welcome to everyone joining us this morning. The landmark accomplishments achieved up to and during the second quarter were significant milestones that we believe extend our competitive advantage in providing delivery services, data transmission services, and autonomous operations for living and working in space. I refer to them as the three pillars of space commercialization. The company's ability to advance these three services addresses nearly every commercial vision in space, whether that's at the moon, living on Mars, mining asteroids, or people just living and operating in space. It all requires a means to get there, send data, and operate autonomously. And that is Intuitive Machine's trajectory. Revenue for the first half of the year was $114.5 million and more than all of 2023. Revenue this quarter was $41.4 million, more than double the same quarter last year. We are advancing into the year's second half with zero debt on our balance sheet and sufficient cash to fund expected operations for the next 12 months. Intuitive Machines booked nearly $70 million of new backlog so far this year with several sizable opportunities still on the horizon. This successful execution is underpinned by Senate appropriations marking up $174.5 million for the OSAM project in 2025, which we believe stabilizes the company's OMS III contract revenue base and gives us confidence in raising the low end of the full year 2024 revenue outlook from $200 million to $210 million. resulting in a new range of $210 million to $240 million. This equates to 2.6 to 3 times prior year sales. For our second mission, we're making considerable progress with the assembly, integration, and testing of our lander, including successful flight engine qualification. In July, in partnership with NASA, Intuitive Machines finalized the landing site for our next mission. We believe our expertise in reconnaissance and site selection is world class, and with that, we have the ability to identify landing areas potentially holding valuable resources. Collectively, as part of our continued growth cycle, successful flight engine qualification and landing site selection are foundational capabilities that allow us to evolve our systems as we move towards fielding heavy cargo class landers to support delivery and lunar prospecting activities. This complements our developing capabilities that are essential for future delivery services, data transmission services, and autonomous operations. Now that we are in our new Houston Spaceport facility, we have capacity to construct multiple spacecraft simultaneously. For our third mission, we have designed and manufactured the majority of our flight hardware, received supplier components, and are preparing for assembly and integration. As a part of our lunar missions, I want to point out that Intuitive Machines rideshare delivery services are offered to fill excess payload capacity on the launch vehicle in addition to our lunar lander missions, which improves mission profitability. As of the second quarter, Intuitive Machines has sold out rideshare capacity on our second mission. We've secured commercial rideshare delivery services for asteroid mining on our third mission. and satellite deployment services on missions beyond our current NASA contracted missions. This model of creating and maturing commercial services through initial government contracts is one we believe is a winning formula. Now shifting focus to another dimension of our business, we also completed the system requirements review for our Lunar Terrain Vehicles Services Program. This milestone validated Intuitive Machines wheeled vehicle and heavy cargo class lander designs. I am as unique among competitors in the LTV bidding pool as we are the only competing prime contractor with demonstrated experience delivering to transmitting data from and autonomously operating on the surface of the moon. Recall in February of this year, Intuitive Machines delivered both NASA and commercial payloads to the lunar surface providing data services, and autonomously operated for 167 hours on the lunar surface through the IM-1 mission. We continue to develop these services through contracts that support both commercial and government endeavors in space. With respect to our current service capabilities and planned growth, in response to NASA canceling VIPER, citing budgetary concerns and delays, Intuitive Machines submitted a letter to NASA expressing interest in commercializing the NASA Viper Rover system. The improved economics of our heavy cargo class lander, coupled with our demonstrated capabilities, enables Intuitive Machines the unique opportunity to offer to fly Viper as a commercial mission. Viper is designed to autonomously identify and transmit data in search of key resources on the moon's south pole. we recognize the valuable data VIPER could provide to the science community and its importance to US space exploration. The significance of VIPER is underscored by China's continued advancements in lunar exploration. Published this past month, Chinese scientists analyzed soil samples from its 2020 sample return mission and discovered water in its molecular form for the first time. In June, The nation autonomously returned the first ever material samples from the far side of the moon, a capability that requires lunar orbiting data relay satellites. These advancements are part of China's larger push to become the dominant space power. Intuitive Machines believes this is positively impacting policy decisions in Washington that support stable funding and commercial opportunities for Intuitive Machines services. Data transmission is a critical element of NASA's Artemis program. Similar to the satellites that supported China's Far Side Sample Return mission, the Near Space Network Services contract is the keystone for enabling comprehensive data services for navigation, prospecting, and communications around the moon. The award for the NSNS contract is imminent, and we believe Intuita Machines is uniquely positioned to win and deliver orbiting lunar data satellites in support of autonomously operated infrastructure on and around the moon. Intuitive Machines remains laser-focused on establishing itself as a pioneering space exploration company. With the addition of NSNS, Intuitive Machines will be positioned to offer the three key services that enable a robust lunar economy, leveraging contracted revenue, we continue to develop and demonstrate capabilities that allow for higher level of delivery services, data transmission services, and autonomous operations. Consistent with our business thesis, we continue to execute on these three pillars of space services. It's exciting to see the lunar economy unfolding at such a rapid pace. We are in a strong financial position with demonstrated technologies and capabilities that we believe underscore our competitive advantage. With that, I'll turn the call over to Intuitive Machines Interim Chief Financial Officer, Steve Vontour.