Maxar (MAXR) 4 Nov 222022 Q3 Earnings call transcript

Good day and welcome to Maxar Technologies' Third Quarter 2022 Conference Call and Webcast. Today's call is being recorded. And I would now like to turn today's call over to Jonny Bell, Investor Relations. Please go ahead.

Good afternoon and thanks operator. quarter conference third Maxar's to XXXX call. earnings Welcome Financial the Executive and Officer, am and of joined Jablonsky; Chief by today Chief Nord; Dan President I Dan company's Senior Entire Business, Biggs Officer, Porter. our GM Vice which, some up to for questions. after line are going Each will remarks, we make your opening open the

are wrap the up We call in shooting to about an hour.

These presentation, maxar.com. the I'd like company to represent assumptions where the estimates, from statements, discussion, the there, that for part statements the forward-looking of questions, are and today's believes to future forward-looking various to company's based turn to accompanying company’s on actual may of expected risks to found and at materially listeners on started, range which refer but get Slide could a be that wide we objectives I’d lead Once remind to Before please like current results today’s website are can today’s you contain uncertainties responses subject the slides which plans, X, are including reasonable, date. to performance information. at that differ

ahead. company’s earnings regarding slide can earnings the over at website to that, quarterly will contained decks with found I releases, go our MD&A recent to You hand in discussion on refer and our statements forward-looking the company’s section advisory the Dan. the in most XX-Q call Form maxar.com. Dan, And

and update million the Nord on on worldview then give platform guidance. And continue the a we're and detailed capabilities. our then some woodenware a results revenues will And forward give to everyone. on XXXX. XD making It's more progress traction have for was especially of an teams. that review foreign WorldView quarter investments slide review Total investments good book-to-bill of Earth an another excluding basis. today on the of provide Starting company a online and the quarter to compared in capabilities. X.Xx business afternoon, gem Maxar Xx highlights priorities, Today X. Adjusted total about $XXX program. same quarter Talk gain the in our our platform of Jonny. Thanks, key the Legion $XXX in and annual to year-to-date wider remained update we been been announced update XD on They the we to Legion and review coming satellites. acquisition steady And been Dan the enterprise And intelligence busy from productive I'll enhanced for we've EBITDA million, we've quarter this the and was exchange loss at with soon for capacity our million. $X the approximately making, looking relatively period an

key product well continues to Our diversify customer into and win execute new Space business areas. and awards

to our a coverage. for better We services for December we been in satellites have backlog booking cadence business being is And priorities now there lighter the we good January if SATs. staffing. a margin lower made though, and And The recent highest make. in product to our want earth as program corrected growth ship available behind Let's we've on successes a we and and in highest in expected, great Legion shape, result that two Revenue than of investments we're our we've awards personnel had I've issues turn the is But first our for discuss the launch X. of moment. our of slide checked getting to is award seeing onboarding. margin have believe adoption intelligence detail in XXXX We've expect more substantial our to headline WorldView boxes. progress capital of on I'll launch. most the facility company plenty

that expect in return quarters. to growth future to So

making. On quarters the ahead. been opportunities We'll been will based the digital key a some planet. to show to appealing, platform No and does we've a pleased profit to validation to growth of the seeing and you on across are market rolling XD of Maxar's else thing revenue out worldwide and highly drive in But with unique we've accurate the and one continue expect ability the the pipeline Those capabilities products, of investments margin twin bit. visually what XD and that. in higher we're our they customer I'm signals value customers focus a as physics and provide

enter the and into advantages additional an of we moving the cash Legion, forward. get strong period As increasingly capacity generation we'll finalize

national On make execution work communications for solid missions. the space and segment edge manufacturing civil engineering wins to defense, doing the space important quality well We're progress. for across hard companies side of this program and continue cutting The good infrastructure commercial governments. generating and and and margin positioned our the world's well to performed business, quarter, be performance and we continues

we technology our Legion solutions for robotics security, our develop during defense, differentiated call, efficient, and discussed been investing capabilities our capabilities, we applications. and NASA for commercial expand gateway or to earth Maxar missions. in we last both with defense partnerships defense to proliferated and infrastructure program PLEO PPE Large large in like continue business, space the for satellites national commercially As our companies and for continue orbit, civil we've low as like oriented

making As on were this XX will review provide for metal satellites. January. program where buses a program growth. towards quarter in tracking believe preliminary reminder during program We continue providing kicked our Harris TX selected we We've design layer by upside started the as new off SDA their bending we're subcontractor the and/or our first to progress we this Alfre has announced

gen were another study As in the down previously potential satellites. on to mentioned, NASA with That perform portfolio. to selected we win be we've weather the phase GeoXO next also program work huge for Maxar's paid has

and Galaxy expected XX the launch to Galaxy and satellites at have month. built this to our for communications Maxar Cape We execute programs, on continue of Intelsat geo other backlog XX are Canaveral and arrived

Intelsat a opportunities in year on expect at few shipped Ariane also French space We QX the for communications and Antonov one another launch an negotiations of well over to the Guiana. an book-to-bill business times. exit advanced commercial out on via satellite rocket in We're in

Regarding financial we to improve an on interest to well opportunities rating have pay positioned and as what we're flexibility, we credit pay cash deploy and down improves debt. our

direction. is an indication Poor's, This upgrade received quarter, the another we and our from moving Standard rating on credit we're right in which

program being we've we Earth see especially capabilities, enterprise operations growth space finalize As significant X. ahead to the year execution performance for to in and bring transition our business, we our several our long capacity opportunities the by to we the Legion guidance, as flow. business XXXX business. our Slide for and a The of range our in XD free cash that online. expect turn times noted driven continued That's sector Intelligence public be continued of and off and large CapEx Please roll diversification for

the ready first On satellites to program, to the send base. launch the Legion getting two we're

But expect in there. in in testing has December October. a January Flight expected are final to longer ship and September a We for stages taken bit launch. them we've us teams than the software validation

heading on environmental the testing four. you this we're the prior up and essentially hardware satellites those on are of well-established will wrapping into the And final then two follow first environmental next in two route see manufacturing As we're testing, complete the two. The sets. slide,

appreciable rest that health we for internally year rigorous X are satellites. satellites on we half of WorldView fully of to On October each purposes, satellites this the lies our one based mission of continually purposes. accounting XXXX. And reevaluate the extended constellation, on typically our update, simulations engineering lives In our WorldView for our and which we've second monitor we shorter of the are all of use accounting capable. the year, depreciable planning of GEOX, than annual the by Based lives X, of

do Please X. typically all we coverage amounts. constellation in coverage to October, in turn Slide by at our Additionally, year insurance of as the for have same current the extended our satellites one we

strong and on mobile responsible software acquisition and technology defense become will Prior business growth customers, with background XD be Puerto continue enterprise engineering, our Dan welcome expanding he company us on helps deepens Carlos the This to Maxar enterprise developers where a also of an opportunities and to software a Moving services to be engineers software We're our And applications, acquisition engineering day-to-day games. able central protecting our Intelligence our as our another going clearances development development customers. and he's one Dan in oversee Today and our production have business, software do management work. gems industry. in the capabilities been the in to AI of company. This months customers. Vice based Senior Co-Founder's and excellence. Christian, intelligence. different on segment. to immediately for at in company GM us Maxar, led Maxar's and worked has of team. where platforms he to development will Wovenware one Wovenware's XXX XX The accretive of President will centers we approximately Earth we've our Amazon game XXXX. call something is Wovenware, in a bolsters security new brief operations ago little to joined because to the Phelan and Rico. machine managing that for for for product AI territory, rolling for AI classified XD and out business. Maxar of simulations video announced we'll excited learning We're and and It do enables He with and technology of obtain U.S. AI/ML and joining commercial software Earth and this AR acquisition in Nord

and product Electronic mobile Dan? management Before for he Amazon NVR led Arts.

Memorial XXX added archive the become Maxar's use one This differentiator it products resolution Slide machine is is unique free to time turn unique to commercial talk Thanks, at stunning customers. it kind Vivid in Dan. satellite has the collect one is resolution during skin scale Maxar's other two the had we known Maxar world. high our and one On as corrected cloud. we decades. than the Airport of X for high single This on These color are centimeters the X. decades. for Palace enterprise satellite every This created day Plus archive the operate basemap And initiatives. our petabytes our rare and key space. basemaps mapping. to stored inventory Vivid smug satellite the I'll customers shows that basemaps. Queen's Buckingham and to is cloudless products stitch This of images of into government, entire accessible XXX,XXX one of Please of what from XXXX what for a on On for U.S. for we've mosaics of satellites. the to past seen global these We mapping in Earth a allies earth delivered that for imagery recent a support well really the XX our Slide more customers our scene is X, first digital imagery day. together We've Slide create default consumer about or are we Beijing

billions mobile in their XD fact, for In the of have without in often using imagery world Maxar been cars, about years, around mapping it. regularly app knowing people their

the This archive on collections In a ML of XD to XD. in Globe, Vricon in competitive runs of Maxar's archive resulting and terms California. our digital Maxar and is an Earth Yosemite Slide seen XD, algorithms have Slide twin in product advantage. Park sustainable specification imagery create of resolution it's on of The precision This create our take at is a Maxar's to match. imagery now again a entire years to XX, XXXX, National acquisition with would true that of AI leveraged XX we accuracy time

in that time, contact hosted And Conference One XD in twin we and that Orleans. feet Epic have to is graphics to earth the see cliff, shift We infinite basemaps. XD modern are XD Slide laptops, as are day, go we with signaled major the simulations the you for the to the digital in strategy see transporting up and our flat scale. near need today world. life the physical use technology our is XD XD just this see the in TVs already, twin world important. of provide via Metaverse. in tree immersive right we heads just where as compute do the producing at These This XD AR, reality to XX, imminent, day. and referred powered the Vivid a gaming like can. for relevant phones, that to step true XD of a technologies active another we Games devices applications from are we're GPUs every the industry, global favorite within your be We XX, Immersive XD information in use few of on weeks screen world XD big to XD as reality. lenses, augmented on places mapping virtual an this now. started XD we're ago on doing of virtual New glasses cusp Slide a where often mimic this at near a Fest every here's we Nobody technology real technology video will XX, we else fit reality, opportunity dollar On is with an games. forward since like why my Unreal multibillion development world is our Even COVID. a VR And has already the is transition to about the customers as AR reference Boulder tourism, by of two display AR cloud, XD around XD. our in, and shift. VR globe paradigm virtual by VR a and basemap, took operating of shift shifting chats believe the accurate Slide applications version from digital

hit powers game Game Epic worldwide, XXXXs of They're Epic's Fortnite. global background engine, makers including Games. own the For games of the which Unreal

partner Unreal Street this to QX strategic XXXXs our This we And our haven't of heard to the Blackshark.ai, and you're in ask where Fortnite twin held. of mentioned we afterwards. you Superdome our shows built earnings in running on digital call, from capability satellite a New earlier a year real New we demo with and only Unreal At a call. and conference go all of models. photo your imagery this was made demo company and game Fest, Orleans built engine, developers kids presented If it a the on of being investment Orleans, the some released AI of

and to video scan the link Hollywood automotive video, XXX ranging can protection. the All downloaded to the and you'd drone the If see demo code demo XX. and Slide more like companies than was TV by you from QR on or film The industries click and delivery climate production. in way games

Plus. others Slide to You XX. using awakens can also is is of content. their engines gone how the the to and use this engines game make picture Hollywood turn public a Mandalorian But have to they about on Matrix Disney game

finding around graphics location that cast like they replaced of produced screens see screen using and film you on a instead background with to show are engine So now green crew game or actors later with XXX here, rendering degree scenery. a

digital is partnership. little they We own used our engine XX, next it Blackshark.ai our little on And about a XX, with with on precision here. digital So anywhere. On Blackshark Slide film bit XD met Globe could looks data and talk game the in great. year, Slide producers Flight film Blackshark more This theoretically Simulator Maxar's a game London more our a Microsoft pictured XD. planes. when

Slide across that decision our something XD Globe had always last we Maxar driver in the improve city or and data, a participates a slide, is the can XD. for routes, XX, a global situations monitoring, product of simulations in help scale, use that that fast. distribution, company walking long-term graphics appeal. archive us believe throughput, contingency a So In investor making has. global as the successful commercial haven't supply as accuracy the signage accuracy a large that in the scale exchange XD products largest and and placement advance. world equity if upside chain and prioritizes in that optimize gaming they would new testing growth can our car helped We XD simulation as we first can of and help aid the is over protection, billboards over autonomous do mentioned scale Memorial royalties life high earnings scenarios advance lightweight scale largest climate the interest data. Blackshark Precision by XD headed. royalty from that's processes high market on in XD form anything. governments prioritizes mentioned the true simulation to by where that contact, be entire example, own management, and navigation, placement staged market or our imagery Blackshark in precision enter we're meaningful a visual insert globe the an our accuracy was it in XD telecommunication. an planning experience for market. accident companies we seeing using to using people. Blackshark it Also could launch Maxar's version on weather joined And Army's both Queen's call, XX, products environments. currency of of of now take millions the represent the AI rapidly the real This the new a QX said Microsoft customers rich in enterprise now create also to which current in Maxar's as from U.S. in require XD One is risk the the and by use XD Terrain delivery Precision also media even a troops populated in accurate and the also production. decision to inventory World also deals capability used few optimize customer product could before train input Slide slide, and for and differentiator today to London already program, kind our key our authorities like scaled in with include demand accelerating examples, and cases that enterprises. drone this is bots A uses XD you of lease We're that a

service So as enterprise were high proven over And hand towards leads high add our in capabilities our forward. in more data profile mentioned upside and our to has a model. wrap with customers. Biggs business three transition Porter. to established in row up, I'll and an scalable Maxar it as going that business see strategic view, weekend a we investments margin enterprise And We capacity,

of was Thanks, offset quarter. basis. EBITDA year-over-year was an foreign net of Excluding points, to unfavorable for million. making EBITDA we recorded growth, margin XX, inclusive for QX this Revenue where investments of to third satisfaction for to of losses are Net $X year-over-year inclusive obligation. a XX Slide turn related comparisons our per on Adjusted Dan. foreign $XXX flat loss consolidated exchange the quarter $XX increased million tied Please the dollar, strong the present loss million $X million to $X the and down expense was $X.XX. a for the quarter drive and charges, exchange million future roughly basis was we're year share adjusted

international main a in support These events and has $XX basis revenues Intelligence the foreign were X% increase to significant total revenues enterprise Our $XX due last slide offset million to in including points, turn from basis enterprise revenue, a $X EBITDA X% quarter revenues million programs Earth in company revenues of and XX Intelligence in crisis and in decrease services, increase partially year. government $XX million increases million third increased expanded primarily contract XX. customers. charges. a Please a margin three including exchange driven U.S. the by from quarter of year-to-date decreased in by adjusted year-over-year

decreased government year-to-date spend increases On in growth EBITDA expect revenues programs. experience product U.S. we We driven increased basis efforts. to on fourth continue has basis, by Adjusted enterprise margin particularly in four product from quarter. points the development

roughly our business be However, our headwinds work and basis, driven prior growth masked roared services and this work slow On challenges. by services continues we're online by XX contract ramp million. and business up workforce year-to-date delays declared is in to down facing quarters

Please we we on we had one up fourth I we slipped in that note the year-over-year turn to And large expanded more is EBITDA EBITDA certain basis increased continues of by year-to-date XD some from expected have driven that into revenues in completion. that margin catch our adjusted recover for challenges, a in charge third in XXXX somewhere to one discuss will points, XX $XXX our adjusted in in programs. due quarter generated to should basis quarter quarter, XXX EBITDA expanded commercial to operations risks programs points. basis turn flow Slide benefit third $XX in expect However, has Space including to XX. continuing revenue the in On services that infrastructure grow. Please have precision reduced Normalizing points. XXX The have U.S. nearing and backlog basis Please transaction significant million increased increases moment. X% staffing margins third invested turn the X% million Adjusted Slide the government margins business operating as expanded in and cash Slide company I from and to XX. CapEx. quarter. XX. [indiscernible].

decreased We have next Net well and quarter. of free million the year. fourth generation. generation ratios debt to quarter continue the our We're to the liquidity roughly at cash end free by forward covenant flow continuing look this quarter strengthening driven cash flow in million and $XX within $XXX

a plus improved rating on awards. B S&P recent October our a ratings by to in contract credit credit B mentioned from upgraded Dan As supported metrics

reduction. better flow will further Legion We launches improved once are free transactions. expect combined drive refinancing pricing generation underway and ratings and Particularly future help debt credit cash WorldView drive with

our bonds valuations as in our a and loan quarter, highlighted allows and Depending December we agreement last to XXXX. premium reprice XXXX. our early become market beginning B us on loan As in credit callable June without term as conditions

'XX guidance. factors. of range a earth revenue by million driven we our our to $XX for update Now At by please guidance turn lowered an XX total Slide intelligence, on combination

two To $XX a business to our earlier, seen extent, think And going we're to hit have our spoke I this end the of our high ultimately right. depends year. year-to-date. in do we range. As margin not we slide is service lesser large And million some Where large roughly down be recover part imagery significantly be in able previous to top has to multi-year were long fourth one as all Most well customer we and of significant that quarter, the larger these desire a and of [indiscernible] expect inventory expected to in enterprise. would to and Notably on schedule. of here out to in. portion approvals. are in the the large of This multi-year one two arrangements delivery livable ability public this on deals the up end we with contract subject hindered found transactions customers contribute the

with capacity second our from services the relationship deal product. our their in business. year. The customers represents Earth $XX looking headwinds in Despite to is intelligence with a expand including seeing in large us, top-line midpoint, to of a million revenue access X% we're At still last constraints XD commercial and this growth

expect this WorldView to program. on intelligence X this have continue the space eliminations million base. no increased a see to intersect infrastructure We results. grow to Legion continue Revenue and consolidated But strong from has pipeliners both for and impact guidance

EBITDA adjusted to now Turning guidance.

consolidated is EBITDA driven the intelligence are the guidance middle our infrastructure to This expected reducing the is charges experienced effect Forex million range Earth just million And reflecting year-to-date. are by $XXX for updated we've quarter. the million, third We $XXX the adjusted Guidance of million. million range EBITDA EBITDA roughly $XX overperformance the to XX% is adjusted $XX the in adjusted EBITDA margin. of at now for primarily on in reflects $XX which space

be trends, towards expect quarter. year heavily expenditures In for our fourth the the to weighted of R&D more we terms

tightened growth. we're reflects of $XX tracking corporate the driven top said towards our same All of range the to company around our in increased We've the dollar. in currently XX. even turn we're million range is million for primarily the year But and plan Legion guidance the for the year. of And for $XXX to long other and out losses though EBITDA cycle. foreign increase Please for timing our specific our guidance We on a slightly targets of And far confirm adjusted along of build targets that million our we're based free on cash on Slide increased expectations the million million next next the WorldView of Our last middle expenses quarter. for of to $XX quarter, year-to-date range. $X laying we're million range planning targets, to process by flow we're those strengthening existing the $XXX confusion, we've EBITDA the the to our a don't capital $XXX holding cash year's end the each year. This that in for and are confirm the up exchange To expenditures million. we've operating XX% enough still to of expenditures. $XXX year-over-year that flow. expectations, guided in avoiding I midpoint

third-party base through CapEx revenues note able of this that Legion imagery CapEx. relationships offset improvement capability; and not Legion; two, replacing product years next frequency and XD space into accuracy and at XXXX. free proprietary growth customer lower denied We and smoother GPS adjusting precision I of timing revisit related increased growth, on of all remain will one, support growth and items revenue three, has this out increased cash lay efficient year EOCL from five comparing lower access we The shifted a low the manufacturing This products, data-as-a-service autonomous increased capability to year firm revenues flow. should five, by: line Although on imagery revenues, proven over e.g. Legion company a contracts, a to infrastructures through anticipate clearly investments a year this including capabilities margin point. XD driven through drivers with or with the growth; costs legion and your vehicles; revenue expenditures, as other of being has customer to I the capacity and that base that all cash model; with infrastructure navigation, is long-term end high the increasing and want year four, new closing Legion Metaverse, business space with business. offering. and defense, and growth high planning, out more on and variable capital capture six, earlier lost what and than solid lay significantly Dan such the of a and our diversification sequence. we XD customer to development broad operating penetrated tech higher depth significantly targeting, at a improving And cost scale, XD XXXX -- free diverse about front Precision cost platform in never margin, the by flow. Maxar players; is with gaming of talked cash civil, cases and few and now intel Precision of revenue globe, drive seven, having training, large the means capture talked thoughts. each after and for that cost our use low ability relationships product have ability simulation, the in about to some our customer some flow time

expect presentations quarter to leadership by to will of these all begin that understanding fourth that we'll over release put on Investor back hold the where the We following these. of I'd to operator to drivers. the help hand call our Q&A. the our With like of into In Day be website with meantime, video earnings, we doing drill to our some will everyone's

Akers We'll first Wells with Instructions]. take Fargo. [Operator you. Matt from Thank question our

on go I could you seeing the delays everybody. there into for to bit exactly detail software led yes. Hi, wondering was afternoon, on little question. you delay? What the Good the more a that Thanks if Legion. are

Matt. Thanks,

others teams, on back gotten talked it. the all do work. ground software essentially software we So some we We've and verification interface program drops. of the work. The we but have completed delays this were That's teams of that most software validation what seeing and talked we the hardware before in about the now September, about AI&T the portions in and

phases other now for progressing through in satellites to and January. of So start shipping our expect the in launches testing December we're

of as I thought to burndown the nature So, going of essential as way that, that it But part the the our mean, we program. made through wasn't curve was fast we be.

ramps you the look how the model kind lot thanks it a Nord little business a Thanks. take like kind as different that interesting. of to up? then about, great. of pretty then coming I'll of I I What Earth for XD talk the is his it of you that our customers would of I And potential Okay, think And I presentation could and pretty, guess, of timing for mentioned there, some sort terms you've Virtual of sort bit why stuff on in turn when does perspective and Yeah, Dan profitability? that from just of of well. perspective? that sort at like over don't guess size

I off by we've particular, products, constrained, in right been stress as the the even XD things in driven capabilities. the growth you capacity the has our seen of bat our is company, been have and One

from the example, World for virtual great realized being on more customers One hotspots second on training is where and very particularly well, then first, going planet. drone intelligence thing use in and is guess. reference one is point. the more environments autonomous or I Army XD for functionality right functionality other program with and the any also point international of $XX seeing this build world globe some point, U.S. as might navigation companies, the We're And now. a program area a at uptake that's to the with well this your route traction functioning at Army. for particularly order We're as planning for defense Terrain we're above seeing more want our simulation navigation, we So million, building the by that, And a which up twin strong with digital of planning and you as of the

business growing So Earth on and some you're we've perspective enterprise? how to very with this I Dan, much in adoption, Intelligence you add good doing think business. of good that the rest we've we're want At in seen the seeing we're aligned I point, strongly, the the the got that, think what are margins business,

it's think this as our Sure XD point and I going to for well as XD it key a government there's and globe as allies, be for reference. one is that enterprises, works works Globe

service this we think and and work I how of deals better. as XD with take deliver the as deliver royalties, the impressive, a equity. change you Blackshark we or delivery, once quarter through like That's lump, to be we and once make we're the as asset, going going going to year. model. to a the kind a we a how sure delivery in these always not participate our data a content, going bigger the a on deals in when that of deals well are XD big ups of And more structure We're to see deal, one we're is continuous instead

think I those differences are the two us. larger for

you. great. Thank that's Okay,

Canfield a Barclays. We'll Colin take question with from

acquisition. Appreciating the afternoon, operating to not level but obviously, CapEx adjusted segment details, Can maybe to of [indiscernible] Guide through guys. We'll bridge we interest you XXXX give just good Hey, high EBITDA the first the earnings going you're kind of get also XXXX. expense. talk focus from then on and us into can just region

EBITDA I like telling adjusted suggests million the $XX is crazy. $XX of something employee math think but the to headcount you million

path. think But going total in were from but is to of covering guess terms as its CapEx a parts of is On lower moving think expect not them for creating high well point, that discreetly part it's value our couple the of only to discreetly first Legion effects a 'XX the it, bridge separately. going to really are because 'XX is the workforce otherwise we're number, already of cash the your growing. But in that to the I'd out, think important I associated in our ensuring got services fight not an guidance acquisition, change business say there that with the communicate continue of you're I engaged are that value of have is we're the It we as than value just to point we in terms to efforts out Don't acquisition. final think the I present I that.

reductions we've than we've offsetting because So other big CapEx guidance But at in that will probably launching In the gave million roughly, satellites million too $XXX XX. higher million service. be February, is in for CapEx, $XX first of that through said late always XX, previously guided with all $XXX in the a increase terms we're that are CapEx, about overall Because year we point On program. that to Legion kind we along EBITDA, out last of full are $XX the for full by payments even time. year when respect we're to were six a the operation year all in first once far insurance million, far of driven so with of Legion next Legion, that's in that with into the really 'XX, didn't we otherwise, the launch in so on year away expect the are lot. respect starting

start given. with. upon July, we with is the what now So we've we're be full operability would time of at expecting launches the But weren't the August that based guidance kind in to period respect

going back we're fine an for and without to. getting from left So the plan, as what big XD, to of I've Legion a what February increased also that XXXX. knock demand and awards Ukraine award the the expect on you our idea gives might on contingency of respect some sort XX, we some And multiyear see we spoken effects said opportunities that, already including number Having on it. contribution we to putting with in in of always point had

you delays? life like an there is Got case from Or legacy that to Legion profit to to of software kind guys it just or made of extend in and year then you the with the that? like Is kind your that incremental assets. it's of protection the the update consider more allowing of to technological not respect downside

capacity continue But as to on long produce as as that bring continue that. they once based there. online. life of generally to believe accounting significantly be we purposes, than year. even We year space this show the third them we just them in to quarter revenue modeling Those So a models will do the assets our we clarify internal extended to longer determine satellites, the in of engineering Legion kind the for an assessment

especially So at the be while high operating will are those relatively margins. high capacity Legion capacity, assets incremental

Okay, appreciate question. it. for the got that clarification. I Thanks

Thanks, Colin.

question next with Baird. our take We'll from Arment Peter

you've Dan. on all like could appreciate kind Dan's really Hey Dan, be expect others for contribution the interesting got with expectations kind you update I kind us there the of afternoon, the now official to thanks cadence of XD. on the to now the moving now was of launched? that of launches other the Thanks. Good we that January, how details. date And the

Yes, how we are that after months months third course, we'll that due the launch, the commissioning teams will first two launch. then for how that, probably it's process goes. and the two expect we're And the to two in see be But on second launch the still after how about three depending first go. the

looking would getting significant XXXX. would know, space. and space always I in this them just getting forward from So ranging do know program. I expect revenue a and is them we're amount because the we're assets And we of language. the to would up cautious in EBITDA we in And just how down

right known aspects in until we our the so to all we're we're And quality. of final the satellites And launch for will continue up each rigorously test phase. when of point

of that do the the we're the all for extensive reasons end known the testing of right until up is and throughout way the we One programs.

day that. in that that a is once Appreciate still And XX checkout accurate? of you had previously orbit, said kind

around either we right way. within are that are we a days right around, Yes, few

leave I'll guys. there. it. Appreciate it Thanks

Peter. Thanks, Okay.

with take Quilty Analytics next our We'll LLC. question from Quilty Chris

on the Thanks. items. of I guidance wanted follow-up to one

the year, heard correct? is heard EBITDA that my business like I EI for I I imply, correctly the you think would that which QX, margins to I math, if close XX% Am do XX% correct? say for in

XXX%. mind and the product product be XX%. margin in a Yes, closer XX% we're inventory, on the margin in revenues, in year that the not service XX%. fourth would revenues for the quarter that the than that's delivering extent And, quarter is fact, the higher revenue and margin up fourth and driven step Keep to we that to the by time revenues, are a deliver

you. Got

a some the reserves it double-digits sounds the And so business, aiming related, the being should management of margin infrastructure the go-forward the real quarters? just out you margins on of -- space be for the for big for that's low we next couple quarter, mix and think should about took how we in like, more third

X%, around see would Well, be tribute XX%. the I creates to be think, space variability Well and going of range would our just -- under that fourth quarter-to-quarter The in quarter, X-ish%. for implied EAC middle its the variations the forward. full-year around continue the to infrastructure accounting, that margin

variability XX% We like of that, period-to-period. than the target but be will kind to continue we range, better to see it

on think kind of that point, Chris. I

that that price. got But are seeing performance better were programs some will risk programs through about programs margins had that of that do that's then that little downside, in as to journey, out on been just better a think roll the it's due due expect some mix we the program here. firm probably there to segment. be off got, some future we've are the accounting of And will are We programs the move out the the And where I space on types fixed systems this taking impacting more some there to as we'll of to those some the well. excited due into larger place we're been more appropriately the really on cost programs. some that's of us be we're of of point higher of managed plus. them We've in more in At of mix, performance the

us other related segments? question, the general One orders of the give can the either book-to-bills for you or you. both accounting Got

Sure. I wanted -- or trailing XX. year-to-date you quarter the for can

the For quarter?

I've trailing XX I'll give some trailing But infrastructure, Because the that we emphasize hired given. you I space X.X on XX.X. XX. -- year-to-date. the period longer trailing But like already think EI I has we was think given book-to-bill over will I've quarter looking X.X.

be for at X.X. to year. one were over times expect Consolidated the We basis

here trending particular. in on look So for fourth have infrastructure orders right the the sizable all of these direction. space things in And quarter been we in

presumably, is probably not And any you. which includes hugely material? acquisition, contribution Got guidance from the the

needle is against guidance the to the it move said given. already not expected we've I

it changing not are we yes, for that. So

is weakness attributed Got about to earth international the Is going order intelligence, looks we've commercial you. again, same else final the And on of that on talking some just business. previously? It something issues been like been recently, there? the delayed question, there there's side

we've international got the weakness any on say wouldn't side. I

are in shown here, sets. the strong growth seen some pretty out product some the Bigg cases of throughout mentioned fairly world. with around particularly the to conflict the being and as strong see the large I deals seeing We the very but good situation close think areas QX We're in of year. year we've crisis use and adoption seeing that just

by limited customers capacity international to traditional lot as coming satellite with been and have Legion a we bring those expect of tailwinds from see online We that.

Very good. Can't January. to wait

Chris. Thanks

them next growth. add using the we're long-term that's very being year, really that drive And we WorldLevel growth. enter bottom forward And expect we say going I some it But our further - We're in of it's when and in that I well our efficient about product. want is services. to like move over expectation will guidance can line yes, rock just to important the that resource to time I of for the acquisition, long-term on to XD because for business doesn't other not think as the we a terms the needle development then fuel and will to enable get use support adjusting areas it resources we're those

you. Very good. Thank

from next Research. with our Robert Spingarn take question We'll Melius

Hey, good afternoon. Dan.

launch But sure that? not the the we about six. -- Matt about think software. I hardware Can asked I'm for And I schedule. you about Peter talked WVL you through that talked on update just status three WVL

through make got sure and ground will AI&T to the the continue way the software software and here validate we they've way But as to two and first final the ready, of kind deck. waiting are Yes, just commissioning in to to the their the software of sure. downrange, the packages the hardware phase sections ready along the hardware interface the the go back for the it program. And do ship We'll we with launch. one launch all referenced teams. to for we for slide want ready any get patches But that essentially

And so that's looking good.

the environmental testing On the but going I are AI&T, two Alto. into so they're we think some do facilities, in those the Palo up you've the seen of And Rob, going through And thermal satellites, six… that next of they process that into phases. all loop those They're then closed in be we'll tables, testing right the back of chambers, five we're now. right running, stuff. that way kind software all

at Dan done is point? Hardware that

satellites, components be few come performance in two when will we're very -- five, hardware testing waiting then We'll instrument minor Raytheon. down those essentially go the as they're out in, well. to one that instrument reference got as of for other downrange The we've the they're and Yes, continue the we way hardware we they're but to ready they to still do or the until from ready shape. on for six But them to. good last send bring for AI&T, hardware base, all one

to the where the at at want three phase. that, But out, satellite, with launches. tracking last those we that's sixth coordinated be point, the have are So to them that you instrument that further unexpected of this for not to right along exception we're where with

Okay. offered And And question, business, high EI other in drivers description growth numerous that the up you've a nice and correctly, talked of a ton about things and Dan then but throughout the in had you've -- really really you've level nice if of innovation just it call a the momentum, of are got earlier. got business. the list the I heard all one the

with have a but it's the this, loaded fit history does in SI of question. we So And some bit long-term. little a

the EI, how competition and of is them As you hardware the forth? WVL. market you the changing strength and with move on all just in pass With have side, the all give so

with the of space of infrastructure the the pleased very We're performance side business.

defense the lot way for the Office think the is Space as Intel, I Legion into sides which I way the Reconnaissance National a program doing and as there's does Force well Force in of customer really moved we've which of a great business our think nice, particularly We're overlap, they're well. moving as started Air job. our coordination and as example, think I way, support both will like or

will that what we doing And to forward. see a job. team are So there. business push continue great and like Chris

very Okay. much. Thanks

You bet.

Tim Instructions] TD Our [Operator next Securities. with from James question comes

be the Thanks two. one I'm question lives to get for about each and on GEOX when upfront you. lives will extended I to housekeeping of back Thank just sorry, the change did purposes those the accounting your satellites? you for in time. My for mentioned actually The first go depreciation. wanted Dan,

do quarter, quarter the We fourth in that review. quarter. that the did I'm We sorry, third in or fourth in the

renewed We So accounting the accounting and October we think We've we assessment for we insurance like for key on it's been year internal satellites we've normally do that that that the engineering purposes, have many for just because got longer that takeaway entire is, simulation. our I forecasting. year. generally previously also the there running the those past, in an the models do range at planning the we years constellation what have long those point And in procuring same rigorous as do workstream a next to and we've us, for extended than every simulations by year. is three the insurance. the have rates, And a we

finishing the to in on right, and due by one or lives was lives either correct? it that and so up QX believe they so all Is they've were it's the Okay, is each one extended you've were year. in that from that been year those QX, extended I

by 'XX of Each second Yes. one half year, them? all for

Okay.

just Increasing a coverage for year. it, of and That's the data comfortable And is year not matter another assessing I insurance insurers all get the one insurance you but the renewing hopefully as the is well. satellites, the they're with by that on of the on think, taking performance us. the

So making. this, given not of the supports just analysis purposes, for nature, which goes decision there's lot a but into that also everybody's depreciation

services the just guess been businesses Okay. I and about has My to on that on basis? you year-over-year mentioned that question your to quantify is of reasons that some a things shortfall expectations, through, think that service color next additional kind of Or business kind you the helpful. Can the million. for just talk that and lagging, you a walk understand again, expectations. or is would I $XX relative be wanted just I your difference maybe how

both. really It's

were that last for outstanding In very customers with was the against there our quarters, bill in being that I us corrected itself, terms execute weren't some against year-to-date just such that of level services, the expectations, proposals a X.X also high what being against, of the for gave it's freed year, up to has book earlier, for although times. not that to actually and it's

available know cleared for to we're backlog catching And we ways awards. And is, we going we some associated of still on to have forward. tempering growing, of challenges But we that talked those getting is one which we're these what product expect of personnel well about going So get that and on able work the in you and if do growth the up with the support we would programs. driving expect to in business be otherwise. development, what to services growth in terms will be as as hoped

It is primarily for government services U.S. work entities?

Intelligence Absolutely. substantial Yeah, very the work of government. bulk is the the throughout customers all Defense services

And differences the or is are, delays there where the obviously.

purposes, maybe last to the opportunity entertainment is about are otherwise, uses or of a my on I gaming, whether it's possible how customers back and an to Is a more bit there? XD how realize if if possible for just or it kind business approximately then a significant today? that very I But using we look interest services, How future. the sense today, to big the is question, And how from going give for presentation Okay. in against and us it comes give was there's that at us this slide informative. for could or data a much of is revenue much Hollywood

risk navigation, out on enterprise traditional entertainment, got Nord enterprise turn substantial applications, large business, to management, of than seen growth of side it over course, industry, we services, say geolocation as going companies growth second, vehicle sector on by haven't We've the for public to inside with good the to I'm see well. mapping really work we those other the to side, of we've opportunity an sorts gaming we things. that Dan tech broken the

So Dan, any have thoughts that? do you on

learned customers new is was it. this so That Fest when few of presentation we actually Hollywood Unreal a these gave technology ago. and of some entering the some just about Yes, weeks

So we're product. right XD on the growth our the applications of data. the with other front there's end Blackshark.ai of But of to some use plenty

XD think side. in opportunity and drone more on it's delivery, it's opportunity I clear gaming for the areas Globe. some upside the of mapping yes, and entertainment And and expected So,

Okay, much. thank you very

Thanks all questions. the for

take Michael We next will from Truist Ciarmoli Securities. our question with

the were there I go if you upstart to evening. for XX questions. about, guess could if the competitive speak a thinking guess, overall back side satellite up. competitors. But in But mean environment, ago, Hey, to, it here what there buzz all you taking what maybe know, you've out I a certainly pipeline you guys, relates we good these are certainly, that opportunities can competition, Thanks what as seeing pipeline months seeing the on I Dan, you're about and there? and now, XX XD bit, just a Maybe, lot lot out was little I'm the more done the you of scaling the to characterize

are crisis revealed like think for side, there spots numbers for for demand XD and and of more Point sets I sort global some that applications. data those precision have as and growth satellite that scale as out of XXXX the products through in think products things of been period like that our provides, strong show the adoption accurate world of for some the derivative insatiable XD types intelligence applications an of what the the Maxar that XD quite time, we we're Clouds things our on seeing expectations walk continued the particularly very, very have I product especially

the And for into especially learning have, XX pretty dramatically that to I And AI sets really contribute we're the applications seeing. the think, accuracy nothing, of that in quality the driving broad the we but have engines doing growth at we centimeter is we're that the machine hyper will of and the plus world future. that's where what's that. for the components area So really the capacity there, seeing well product the areas we're do of amount the of highest where Legion sort

even come Or with seeing we've lines of are much. it we're to I this, what that if too doing else. some too at we've much But others marketplace really expecting. impacted the all as and on not of hasn't everybody So trend have in comment been on, in been the kind

got good we've to able to geo work, diversification On the really business, and continue in of love side customers, products the being and market. space we customers we've diversify about communications been doing that in the penetrate serve a and lot But profits products It's and the real drive cash in excited business also more we're the those now. and the business. real trends. part of and They're allowing us to flow

the there? are region, it, more update it. one then one do one what signed the or expectations Got you have customer got just an world still And contract just on

than for some ground additional capacity we've government two for all of able of the much meets we've we have it got the contract. up them well. the through, No, enterprise capacity we well. got, capacity now deliver of backlog in XXX% commercial also them it contracts, with specifications customer, with picking that's to got for U.S. is that Legion customers, and built customers but the additional all been And seven signed upgraded, the anticipation way we've our got as customers for the government to And There's We've customers. requirements as the There's strong more close not that stations. up that. for growth have some the seven, that in

into Legion as we'll revenue there snap as so more some we start well. the with And growth constellation, delivering right

Thanks, guys. All Got great. helpful. right, it

you. Thank

with We'll Canaccord Moeller take Genuity. our next question from Austin

afternoon. good Dan, Hi,

Hey, Austin.

just space main is my So infrastructure. question on

Orbital's you think what had PLEO you the the [indiscernible] a You've XXX all be do the labs win vision that for for sort few with with years kind tracking quantities the have three for get boxes of enable year could Terran there, like XX XX, satellites would your do in boxes, of of PLEO the production world? highly rocket you to we to competitive next

type that building capability. certainly of we're Yes,

We our there out been haven't well. just and been design our groups engineering as our winning awards, but footprint, space architecture, reengineering manufacturing we've architecture

on the XX that a as defense the on. And to Maxar position required were so other to opportunity. the side, Again, satellites first that the hundreds, that up. we'll capture in intelligence if there and you're dozens side a numbers be and will that be or are are are there, grow talking prototype gets scale in about And we bidding there market set commercial in up phase, legs really programs significantly, to programs program certainly

on lots of we're So we're, the kind quality. market of the getting Because the And one yes, the is it. good calling we're Maxar card bullish has signals.

So good, right as we'll those quality It's customers our types have there. to expect production us very levels, and the to for of are we points. same up good efficient ramp used delivery signals keep

Excellent. there Thanks that. insights giving some on for me

Thanks, Austin.

BMO Stephen question with next We our will Capital Markets. take from [indiscernible]

a on the acquisition. couple Hey, guys, questions just quick

guidance that fair like way it's be baked of So where going it? is a to sounds is it already that the looking EBITDA neutral, at into

those At to business and move this revenues, this point drive guidance for I future. in we're to don't do we're as great something just them revise not not point, to the it to that going going From something said, it's resources standpoint our otherwise, in take time, expect it's third-party the the forward. use to and of, and

it So that way. you of think to need

internal on Okay, or party, part and to out going it of whether an closes, be the is so just the on third just to of carry once Maxar? acquisition you're continue business,

to that some customers done we great I the to certainly on in founders, as that lot they our to long-term software third a are and the them grow who in those it, on flexibility a of to young fronts. accretive us be able the We're internal engineers moderate be that's where totally for to really and successful from is many is, development, this a able they've and do team Where thing and well. it'll developed certainly outside model company. developers, business. and with some carry planning expect a third we as And down going how of built in And give we'll expect it's we good between for nice the Carlos, past forward. customers, We'll do with much grow great to and keep of University party business, much both how work do Rico. some business Puerto of we us parties the significantly great there. Maxar business, they've

have final hand? Or to to question. to of credit hear. Is will good funded the facility? be your draw quick cash on Okay, acquisition And down out on you

drawn presently on Well, we're the credit facility.

doesn't credit it effectively, really it hand facility. So of on or matter what as you using think cash

any because cash five years. facility Having outlay, cash it's like pay to it's upfront not we credit take available. as down the big have over and we is said excess that, So, a

is years. entire five actually rata the pretty entire is the there pro So outlay over

a big cash So use it's not upfront.

Thanks great. for those right, All clarifying points.

Sorry for that.

We that was it. to in be think I expect XXXX. accretive do it immediately

Great, thanks.

the to to closing like question-and-answer back And for conclude turn the Daniel call Jablonsky over session, any does that I'd remarks.

thanks operating for are in to entire work the get team and finish and many a us to site. space into to you seeing you. out to Legions Thank I'm for our Maxar we're I and focus primary forward very at and launched know doing just launch forward the like it's much say this of and investors I year. downrange successfully quarter great look the the as work looking

And you presentation. today's Thank and your that may now does disconnect. conclude for participation you