Momentus Inc. earnings

Management highlights

- Raised approximately $16.9 million in gross proceeds since the last earnings call. Reduced operating expenses by over 50% year-over-year from Q3 2022 to Q3 2023. - Pursuing strategic alternatives and received interest from potential strategic partners. Engaged in discussions with multiple potential partners under confidentiality agreements. - Operates two Vigoride orbital service vehicles in orbit, demonstrating core technology. Launched Vigoride 5 and 6 missions; Vigoride 6 deployed multiple satellites including for ARCA Dynamics, C3S LLC, etc. - Developed the M-1000 Satellite Bus, a low-cost, flexible, capable bus based on Vigoride. Signed six commercial contracts since mid-August. - Submitted bid to the U.S. Space Force Space Development Agency (SDA) for the Tranche 2 Tracking Layer program. Completed first milestone under an SDA Small Business Innovation Research contract. - Tested the Microwave Electrothermal Thruster (MET) with dual thruster firings, achieving 230 minutes of firing time, using non-toxic water propellant. - Reserved ports on SpaceX transporter missions through end of 2024, including Transporter 10, 11, and 12 missions.

Guidance

- Anticipates Vigoride 7, scheduled for March 2024 on SpaceX Transporter-10 mission, to generate more revenue than Vigoride 6. - Projected award from SDA for the Tranche 2 Tracking Layer bid is mid-January 2024. - Plans to introduce new features for Vigoride and M-1000 in 2024, including a Rendezvous and Proximity Operations demonstration on the Vigoride 7 mission.

Segment performance

In Q3 2023, Momentus recognized $0.34 million in revenue, a 162% year-over-year increase. Operating expenses were $15.3 million, a 30% year-over-year improvement. The company ended Q3 2023 with unrestricted cash and cash equivalents of $9.8 million, and had approximately $5.7 million in outstanding gross debt. Revenue was primarily from customer service milestones related to the Vigoride 5 launch.

Risks & headwinds

- Shortening cash runway, requiring additional capital to bridge to full commercial production at a profit; operations could be curtailed or ceased if capital raised is insufficient. - Uncertainty around the outcome of strategic alternatives discussions with potential partners. - Dependence on successful execution of government contracts (e.g., SDA bids) and continued commercial customer demand.

Analyst Q&A

• Q: When will the SDA choose winners from the Tranche 2 bid?

  A: The projected award from SDA for the Tranche 2 tracking layer bid is mid-January. Momentus was not selected for the Tranche 2 Transport Layer Alpha but is pursuing the Tranche 2 Tracking Layer program.

• Q: What's the ballpark reduction in cost of service with a reusable Vigoride?

  A: A reusable Vigoride could be reused 6 or 7 times, improving unit economics. On the next mission (Vigoride 7 in March 2024), a Rendezvous and Proximity Operations demonstration will be conducted to move toward this capability.

• Q: Details on M-1000 progress and flight heritage?

  A: The M-1000 Satellite Bus is based on the Vigoride orbital service vehicle, leveraging its flight heritage. It has high power, flexible configuration, larger payload capacity, and is well-received by customers. It was used in Momentus' bid to the SDA for the Tranche 2 Tracking Layer program.

• Q: Recent contracts and future growth outlook?

  A: Momentus signed six commercial contracts since mid-August. The company is booking customers for future missions like SpaceX Transporter-11 and 12 in 2024, and is optimistic about future growth due to increased interest in its capabilities.