Momentus Inc. Q3 FY2022 earnings call

• Since de-SPAC 15 months ago, Momentus has strengthened engineering and operations, recruited talent, streamlined structures, and improved processes.
• Vigoride 3 deployed 7 of 9 customer satellites, with lessons learned applied to Vigoride 5. Vigoride 5 is on track for Dec launch, with enhanced testing, new MET thruster, and modular payload bay.
• Negotiating contracts with existing and new customers, and bidding on US govt contracts after regulatory compliance.
• Hosted payload with Caltech for space-based solar power, and plans for in-orbit services like debris removal.
• Reducing operating costs to have cash runway through end of 2023, and focusing on govt contracts.

In the third quarter, Momentus recognized $129,000 of revenues and $115,000 in gross profits primarily related to V3 deploying customer satellites. Cumulatively, they had signed contracts for approximately $43 million in backlog as of October 31, 2022, but the backlog declined by $12 million from Q2. They ended Q3 with $82 million in non-restricted cash and cash equivalents. Operating losses for Q3 were approximately $22 million, and non-GAAP adjusted EBITDA was a negative $16 million, which was $2 million better sequentially than Q2. Non-GAAP SG&A expenses were $7 million and R&D expenses were $10 million for the quarter.

• Cash on balance sheet should carry through end of 2023, allowing at least 3 more Vigoride missions.
• Plan to be opportunistic about raising capital, including under the $50M ATM program.
• Focus on bidding for govt programs at NASA and Defense Department organizations.

• Orbital debris is a significant threat to space sustainability, and while FCC has new rules, debris problem could worsen with growing satellite deployments.
• Launch cost pressures due to macroeconomic environment and potential changes in SpaceX pricing structure.
• Competition in space transportation, though few have launched OSVs, but need to stay competitive.

Q: Can you talk about the capabilities Momentus can offer related to the new FCC rule on satellite deorbiting and the market opportunity?

A: Satellite deorbiting requires rendezvous and proximity operations, and Momentus has invested in this capability. The market could be multibillion dollar as satellite deployments are forecasted to triple by 2028.

Q: What are initial thoughts on SpaceX transporter pricing changes?

A: Current launch agreements for next few missions won't be affected, but changes from 2024 may impact, with attempts to pass along costs and expectation of starship reducing costs later.

Q: What did Momentus learn from early Vigoride mission issues?

A: Learned about mechanical issues with solar arrays, implemented resiliency features, redundancy, autonomous deployment, and enhanced testing for Vigoride 5.

Q: What primary endpoint objectives are on the Vigoride 5 mission?

A: Test Vigoride 5 and block 2.2 configuration, test MET thruster, demonstrate modularity and payload hosting capabilities, and show power generation and flexibility advantages.