Sidus Space (SIDU) 15 Aug 232023 Q2 Earnings call transcript

Greetings, and welcome to the Sidus Space Second Quarter 2023 Results and Business Update Call. At this time, all participants are in a listen only mode. A brief question-and-answer session will follow the formal presentation [Operator Instructions].

As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Walter Pinto, Managing Director, KCSA. Mr. you, Thank Pinto.

begin. You may

everyone. the Thank call. us morning, for you Space second for Sidus conference today quarter Good joining XXXX earnings

Joining Chief company CEO; us the Craig, today and Founder is and Officer. Financial Carol Burchfield, Teresa from

During operational Many statements based our today's actual expenses factors and a made statements could liquidity on on call. These to subject to ability assumptions, are result forward-looking and cause to call, are supply make the expectations include estimate sales risks cycles. demand, statements. may as launch we forward-looking from current and results materially customer differ including providers and extended These needs, this delays, factors chain and uncertainties.

thank be to call. some filings and remarks, the today, call. please reason of will the get at the Exchange these your And within more and to the email prepared company the can with discussed Commission, not to on about each For this questions to submitted disclaims for undue time of answering statements who of company's question obligation are statements. call. found please Listeners submitted refer We be during this conclusion put team our site questions want allotted the frame uncertainties, At for we update Web information any sidus@kcsa.com. may on today's If their that ahead forward-looking everyone our at reliance morning's we do any which Securities risk our risks not to cautioned be sidusspace.com. the factors specifically in forward-looking

Carol, turn to to like yours. over time, is floor Carol. At this the call I'd the

Walter. you, Thank

virtually our milestones achieved business. several second the XXXX, quarter facets of During across all key of we

Earth. bringing space down Our mission is to

satellite satellite production, a company, are in-orbit focused services, planning, hardware critical on and manufacturing, support. launch mission multidisciplinary engineering and defense-as-a-service mission operations design, data-as-a-service We space

base. further satellite progress technology, geospatial architecture or Through driven fronts for method a we quarter, emission to a to government coincident customer for for printed collecting provide US XD meet on and diverse constellation processing on-orbit our to customizable we commercial commercial advanced requirements. expect source and adaptable During hybrid the AI several and our intelligence second made spaceborne produce multi-censored advanced

XX existing provider months, of that our to Bandwagon, its approximately that SpaceX. announced mission that XXXX, Recently, Over Those rideshare inclinations LizzieSat dubbed will complement of multi-launch nine place scheduled The a more deliver sun with missions, based The SpaceX sensors. have our planned to collect orbits. mission. valuable to positioning in the and exciting, in executed with originally because on to SpaceX more broadly even of addition five that order satellites contract satellites modify XXX the missions with Bandwagon have transporter a the from contract and degrees. current our data we missions. our with series cadence nine payloads altitudes opportunity synchronous transporter and the been manifested existing launches space at XXX launch transporter XX next flying desired has it line start satellites launching missions gone We SpaceX, launch of will for addition in be our of kilometers will Bandwagon we the since at for the to will have multiyear is which SpaceX missions

to of we orbits frequency the actually increase more similar revisit believe polar provide resides opportunity generating the latitudes these over same and rate customers. orbits, Earth for imagery to the us orbits dissimilar customers. equatorial of our option our the in in XX translates valuable to LizzieSat's and improve LizzieSats mid degree the XXXX, rate multiple place in and higher Earth most location, This data The gives especially where more population inclination revenue refresh

on launches these taking missions. In now are to these focus data margin initiating forward towards on to revenue payloads margins to developing the year-over-year. are streams line gross streams, we quarter steps the and our higher margin our saleable of by new, of revenue. revenue our period-over-period our result significantly and during driven in we margin XX% closer increase gross doubled the The nearly move with increase we the margin satellite All high developing as in of second XXXX, get was an expanded

towards as June XXXX, over was ended satellite than illustrating months we year the have six revenue new the our model. meaningful to business A full XXX% key higher taken For XX, expected advancing to a this is steps factor achieving XXXX, scalable ability as model. growth create development satellites, revenue is space recurring critical high in-house infrastructure, well data the rapidly business a our provide to of LizzieSat, our this XD printed margin,

different smaller from satellite. for industries medium from it is sensors multiple and satellites to LizzieSat be satellite customers multiple and allows served single and that QSat Our sized a therefore

positives the the in same the collection also of reducing By modalities customers customers same satellite for data Earth the been use, In sensor it the experience multiple piece by many source of co-incident is combining deploy. of platform, Earth single planning from across that single similar addition providing at and to by revenues, the collection the time. at approach has companies same special, -- satellite timelines imaging same services we because sensor value datasets. increase data from our single cost time what the traditionally same and that breaks we moment reducing costly to the imaging several of false on sensors This mold are

datasets. payloads eyes time ears about in market large LizzieSat's the is plan both that we'll way just may both or your eyes combination how ears? have platform needs. our as via value and eyes ears, or AIS to that about day an in is imaging simple complex with special markets on our same payloads, same And around you and your collection This combination illustrated co-incident with to the and valuable our is analogy. tailored example, with Now point of and approach best an your Would but just with walk rather how your sound your during

satellites constellation. And production this with toward of made have at very time, progress we meaningful in our the launch multiple LizzieSat

government manufacturing contractors prepares and hardware space agencies the complex for of prime multiple Our experience production our bespoke satellites. multi-mission large years designing of us for and cluster initial of

of as and to combined edge intelligence multi-mission our addition satellites with artificial additional integration and solutions June with sensors plans and enable computing provide in satellite. services multiple in is customers data. service provide or to to sectors to on a industries hyperspectral our the sensor Equipping us these providing Our will and solutions announced on monitoring to constellation was imaging other multispectral rideshare same and LizzieSats

ground coupled meter hyperspectral meter advantage billion provides imagery spectral the sub a with Our $XX.X plan small us is multi distance, sub XX capabilities X with competitive market. serving sampling satellite in

of times expected fraction life however, per to a sensors, low is with data months provide satellite a with and a satellite, $X overhead, a is to of available investment We one can satellite on sold. year. there demand At satellite along cost data from the of a to all available X the that with within provide believe, LizzieSat the year revenue on our cost at each return its and return is including profitability for Our being million data capacity design million of only launch. satellite achieved single expected five fixed within collected full $X.XX be

the what's our at this. our key in intelligence time a available Earth, are of building infrastructure of this to component from provide offer a near real and transmission We than also lower market, price have data back is data to significantly because the current we unique to ability satellites artificial the

of The pursuit impact onboard This interest strategic combination customization. encompassing anomaly real analysis, our AI capabilities, data now image are customer offerings. announced data amplifying we of we data security to for with quarter, we offering successful various an decisions. Exo-Space's satellite shareholder AI Edge the milestone starting access And tailored our hardware bolstered organizations with services advanced making constellation of pivotal a attract the Space's their influence. marks decision insights. integrate privacy, LizzieSat-X. data success. creation FeatherEdge and our steps poised broader immense view This service of industries taking platform constellation approaches in to ushers of based AI Early processing AI AI our novel LizzieSat detection, market and our LizzieSat into on by our collection Exo-Space’s our edge accelerated heightened of processing, a plans AI our how the available and We the and augments time needs, making, distinctive software potential organizations leap collection and market of to The Sidus relationships. combines and proprietary technology important from across help moment industries. informed AI technologies become are value, LizzieSat to as LizzieSat cumulative precision both within and expanding data compression, and make confidence, operate leverage platform holds into adaptable Exo-Space's subscription empowers with elevate as into capability and in techniques integration analytics Through to adaptable FeatherEdge presence this the business integration expansion individual integration, LizzieSat. In FeatherEdge into enriching automated to Sidus to decisive harnessed potential every we company acumen, create our decision the

sell partners, contracts We data such our end with SkyWatch LizzieSat, agreements both the others collected and to through sensor by on their plan storefronts. user monetize imagery and announced existing and as to through

and also analyze mission. long And continue the term success with satellites of techniques multi-spectral ecosystem We to Learning as plan the term of partners begin production factors our that hyperspectral landscape, is and satellites. right believe to from industry important imaging from the amount testing, space important. our reliability production attention first long of offering to our experienced are we we the for most

of months, our hardware successfully us for and satellites, the with same our launches space record provide segment observational grown with climate last resources, industries next provides intelligence with LizzieSat embodies largest a for market foundation track comparison, infrastructure, $X.X to In rockets and in $X.X imaging $XX over natural variety that also the the billion execute our four estimated the solutions pipeline of generating reach this revenue market and imaging XXXX. have defense potential frame, Our future billion we change, markets for representing addressable LizzieSat’s will the provide and customers missions for benefit and technological constellation. industry the market expected complex observation Earth include of unsurprisingly, and that's aforementioned verticals build our will the XXXX. along And agriculture, largest completed segments. along several help characterize of our an and market renewables, building and analysis hyperspectral Earth each necessary go-to-market to data capabilities. consultant, And to the oil multispectral Key by And by an multiple capability the those the largest market size opportunities recently finance. an insurance developments represent by climate opportunity, market time billion combined national updated gas. segments and with across include mining in and production

address markets, both capture To have these vision large a and and business. commercial plan we to government

proven well government, continue that's we commercialization have And government is as has sector. to more as formally win capture talent plan market, the on concentrated to but to become to successful Our strategy across force sales mindfully the now needed growing private business, industries technology a win commercial. the to government as the business available the secure our of this

program. partners and to for establish and Space the quarter, ability Sidus Artemis additional moon evolvable spacecraft, destinations. send umbilical for key quick is significant the orbit, deliver support stage launch the Launch is announced cargo, will partnerships our to while existing or heavy with key continued single to being Artemis and awarded space Earth's for and the The hardware universal mission, super manufacturing NASA's for vendors. to the disconnect and on to relationships contracts hardware SLS to SLS. During foundation several new the that customers exploration we fabrication with mission-critical be Manned vehicle to program deep also awarded, will human flexible NASA's responsible Vehicle the provides which a System a on validating the astronauts of further We subcontract key Orion directly beyond and adapter Sidus's designed were lift be second SLS, and an

programs defense we spanning us Our and only but advantage Moon, an not opportunities Leo Mars to related as beyond. multiple and experience gives NASA decades two pursue with

of Under build was Parsons and also The to programs. will we satellite Government integrated test integration master Airbus support Airbus tables a small In rated machine the Sidus Manifest hardware Parsons. OneWeb’s satellites by producing be Space fabricate of Sidus for contract. portfolio design assembly space will satellites in and the hardware. in satellite selected Systems awarded for harness new terms support by OneWeb. a hardware of to of commercial OneWeb July, US into Corporation's aero, agreement, were subcontract Launch produce manufactured the

for in our integrate additional hardware missions. in to underscore security community, and this we of delivery in playing same continue manufacturing has the contract to a Partnership past June, of Maris-Tech US for partner the Innovation partnership role Sidus successful Space projects first by strong US contracts where many Parsons awarded Israel national support the and execute round we and from and Partnership. they awards the Florida Our two as increasingly other are operate from prime two multiyear position Lulav Israel These and space the this the Sidus Program. resulted as will an In with Space payloads rideshare Florida in projects on NASA's is Government contract vital This time with the received Israeli Innovation Florida of force space the has contractors. projects leading partners under their

two with advancement. of work Israeli for companies Our capacity demonstrates capabilities separate technological and the Sidus's diversity

satellite artificial akey is data-as-a-service high recurring emerging and based in planned benefits research, lander support time, included real missions. Star component initial solution the of collaborating artificial control to mission. bring our platform navigation in intelligence a in are tools. The unique allow each robust nanosatellites and implement market lunar transmit demonstrate and can are space the for offering our solutions will photography, our take space to with GN&C events we missions, planned video of will LizzieSat margin which quality in to companies a be all for GN&C with announced revenue collaboration edge recording, Sidus provide guidance with the still Early and on system their to partnering cameras which and requirements Maris-Tech to Lulav streams. suite developing and two lunar agreement be fourth Lulav high for next Trackers, Space with develop a quarter, intelligence complete transmission to for mission. We lunar and generation customized the images peripheral of The and both US algorithms

the along a testing fourth Solar Tracker space Sidus launch with developed of And our support, recently the its technology over mission another will hosting Mains Star evaluating on-orbit Solar also the announced part Star Star Sidus broader mission experiments We rideshare expected LizzieSat goal revenue host will conduct to program. for timeline Tracker payload of for ability the of example sensor the of by planned Mains five is capabilities as year the on streams. satellite market. payload Tracker with our Solar MEMS provide and

both value solution. another network transfer service This Sidus defensive rapid in expand Space, ground we service And data segment-as-a-service to Space's ground increase additional customers to ATLAS autonomous improving constellation’s quarter, technology data service. high allows and established stations a our and emerging of Space During Leaf leader customers quality reducing access our to to Operations overall data markets. of quality to progresses solution. to with in collection. ground our a Sidus within deliver agreement ground extends of the minutes after provider in solidifies the our leading Space latency signed and our the agreement global as high observation space availability LizzieSat selected May, ATLAS our we ground stations, Earth XX services. and Adding of allows broadening scheduler us network the global existing critical station This station to Leaf satellite

MOU for companies. industries with available in helps services based intelligence is mention will April, announced offering Memorandum a today. a Sidus relationship company with advancements our satellite with latest to Defense platform. of LXHarris. expand as based and the was computing highlight with LXHarris edge customers imagery their in-space partnering another with learning for providers contracting which insights-as-a-service space to We protege In space businesses solution our machine an defense their SkyServe, also selected Technologies larger The through in to of leverage the Venture by and advanced our ability the core artificial Understanding expand satellite signed we Program, And Department insights that footprint provide the solutions analytics Mentor-Protégé most

supporting LXHarris for mission-critical their divisions. components satellite been and for years have other We many building hardware

support the expand grown we Our as and so for do our to over facility has years LXHarris to [indiscernible]. continues manufacturing

to now Moving corporate highlights.

years Board During appointment the and in Board of XX experience welcome of we more April, than quarter, we we our team. pleased Leo strengthened to Riera With management our Funds onto In the Leonardo Management, Investment were to of the Banking and Board. announced Directors.

of Curry appointed aerospace experience as years XX President Ms. wealth the Chain. new her a in Supply recently also and sector, Jessica experience Curry of over Vice brings role. Senior of to We With knowledge

in various industries Field as diverse satellites, servant, National and was an As we found experimentalist by NASA's as focused acquired appointed XXXX, he until of to International. and team well entrepreneur [CurveSky], And with XXXX, Community, Senior Department he a reliable intelligence and that driven of XXXX as scale he the Novick managing experience AI portfolio And on streamlining worked VP of supporting and Mr. research Continuing on high-altitude Department extent has at printed Jared we Intelligence started efforts SRI Novick of US Agencies. of special up US LizzieSat the and research became High community From we Secretary joined and Strategy career career collaborating contributed a the spanning and research Intelligence later XXXX. chain. and Defense operations Laboratory. In Defense the a Foreign organization's Special roles. where capabilities our He operations his in work a in a hybrid his and he of XD scientist to projects Defense and company production special Partners. Projects. Magnetic of civil focusing across of maintaining we're our Office June, supply XXXX the as a in XXXX, part an

Similar meet to XXXX, for and by market our requirement XX, of second XX, value continued may compliance apart before the recently Board financial a regain to XXX XX compliance compliance. After After peers, filed we we requirement. our statement requirements have price September inquiries consideration bid regain it. quarter, became we as we to of I the IPO, the our found We some initial of to Form on we're with days market a and Teresa our our with XXXX requirements want prudent the over inclusion the If have a statement. NASDAQ registration notice for eligible deficiency our company compliance currently compliance from related listing further use Now, publicly to results a turn form one-year the during public NASDAQ filings, other qualify to registration a provide for the trading consecutive industry anniversary share not to the have registration statement SX September day for shareholders period. for of if and I space with market of provided it closing to shelf address We've days call calendar until capital review we filed SX period compliance. the financing received to trends I calendar minimum in XXX plan price. shelf want $X team our for the below held eligibility other from SX of our related price for all received business to company applicable of file. have growth the address our our from optionality also decide public regarding shares a to

overhead taking into in even we company upcoming most We opportunities accelerate remain expected gives growth. And low detail, expenses as lean continue even as to to schedule. advantage our as be Teresa continue approach our us will to launch managing backing in financial focused to grow of arise. significant our the is our continued history with strong our remain and and take they milestones to the account more relative peers to on Having our ability discuss

that, to discuss with Teresa turn will our And over highlights. it to quarter financial I second

a It's our discuss Carol. to be to Thanks, financial here results. quarter pleasure today second XXXX

of results same with quarter year. XX, in Form find QX million can the compared for $X.X Sidus on the $X.X details filed second XXXX You to ended last XX-Q SEC XXXX. revenue achieved our the more Monday, million June period August our for XX,

year-over-year. to revenue the satellite declined of contracts, higher While XXX% primarily due fixed milestone our timing period-over-period, margin price revenue increased

Carol quarter primarily satellite profit mentioned, margin $XXX,XXX XXXX XX% increase approximately was ended of the $XXX,XXX XX% the the approximately mix for of and margin attributed an in As XXXX, The gross X,XXX increase business. or our quarter an for XX, basis compared of June gross profit increase was to second higher to or our contracts in points.

related XXXX growth increased XXXX as approximately company, Second XXXX, million year. and a of the quarter matters, by $X.X million driven period loss million in operating as contracts increase $X.X operating three well of months three to professional an $X.X million various XX, $XXX,XXX, months needs for the million being compared approximate to the such the expenses increase business, of $XXX,XXX legal to ended general three a $XXX,XXX is for to approximate XX, from fees a XX, increase Overall, an months into attributed loss months same three public the to last $XXX,XXX to primarily compared for result as for increased $X.X June of payroll ended reviewing $X.X the business. $X.X supporting our million was XXXX. ended corporate staff to expenses the of the the June expansion June licenses expenses June support our for the to in as The XX,

focused only structure. expenses capital closely on of our managing operating a We sheet. with debt amount small our balance to on Moving remained our

the company million debt cash $X had of $X.X of June million. As of with approximately XXXX, XX,

an common offerings common XX, aggregate Class XX-Q to stock quarter, of stock A the a the approximately XX.X Class additional of proceeds stock the for up shares shares warrant equivalents, A executed June million. company to and our as our approximately warrants million the offering as Gross company During common common and stock. sold $XX.X of from in purchase XX.X million Please approximately XXXX reference were well details. which

are including With development accelerated cadence, launch plan, to back to continue fulfill pace to using to at Carol continued as I We the strategic earlier. that, will hand execute steady mentioned an the proceeds satellite and our a call Carol.

you, Theresa. Thank

will We of portion We now questions the that some we to address. from like move now the to Q&A received call. would submitted investors

the near time profitability data major and of as launch services, manufacturing is, our question a two a we this same are a for those current the result, what is real the from first company step market. valued LizzieSat working as sensors, to the stream space delivering with coincide business by launches and has margin we our your our are high and of work impact as customers at the to to transmission. And is data satellite Earth proposed leading same based coincident the be and three a we These infrastructure vision recurring satellites revenue orbit. So and imaging significantly over into insights. piece data lines, diligently streams multiple the will believe multiple with future Well, our service next potential the the last to revenue build industry year? capable space new introduce our that time stock new core constellation of to And

Jared answer Jared? of benefit advances. of for the part space the is our a years technological few economy strategic planned Senior confident Novick, intelligence computing, question to key provide artificial of these from edge beyond. and our around this second And with I and an as Strategy, your President Vice next one is all it plans hype will Our integration let

AI Carol. capabilities in and immense you, collection processing enhanced data technologies potential Thank provide for particular.

on edge As offerings. on AI and Exo-Space’s mentioned technology are capabilities within on these data level our edge heightened confidence, customization. equip compression, to our automated advanced technologies functionality focused attract will our the processing, precision integrating service accelerated bolstered detection, By with data advanced leveraging and decision These facilitate amplify broader our This capability, organizations and software market market AI interest our of into the making, enriching expanding analysis, acumen, The will call constellation, at hardware customer processing AI elevate Carol LizzieSat services enhanced relationships. and we're will we privacy, will real-time anomaly orbit. image and today, and presence This of collection security making data influence. combination decision allow insights. us and like

Jared. Thanks,

the believe, however, times demand there of being sold. But provide X Next with we including to and question full fixed available annually. to that transmit life is cost each LizzieSat is can our are a satellite, cost on low fraction of to a a available costs much expected the data I capacity, million design launch. satellite is how its data and At and of a our overhead, within single little profitability satellite for satellites And is can of this? data satellite a a year million along five again, earlier, the satellite this $X from with be at the sensors mentioned provide achieved of bit on all only return what investment per with collected months expected data return $X.XX

Earth. Earth. And to of data back what's amount ability for to transfer our systems is from offer building also We onboard of we're number to price the by the the unique data data the significantly at LizzieSat available stations real-time data the available market because our to ground have provide lower infrastructure than the near and current of the in satellites of transmission driven

to and expect process data to with more XXX,XXX useful the between megabytes XXX,XXX satellite that on value data. transfer targeted to of ability collect orbit We day a for of data per per a high

continue Next we with its contractors Well, we've NASA? what directly and do question have and for a currently over been decade, large contracts indirectly to supporting NASA today. is, prime so do through you

of and Lockheed key Orion for significant assembly hardware, our manufactured And integration One pieces manufacturing space testing. ground program. of including several rated the and expertise and areas Martin we complex integration of is equipment of the support assembly

currently assemblies launchpad systems to for cabinets and follow-on delivered the we mobile universal SLS We are electronic and cabinets number then and tested launcher harness the deliver X. programs. for assemblies adapter program Artemis contracted for of a manufactured wire the we and manufactured today Artemis control qualified to harness for and launcher and control wire NASA's NASA's We also developed support a mobile X significant number electronic continue develop of and stage

Blue include name Northrop is SpaceX, Sidus Rockwell which Collins for manufacturer lighting equipment. actively International electronic Space also [indiscernible] systems. and Starliner SLS. Technologies, the And engaged the Center We testing completion developed to Jacobs X to variety and Space assemblies Chaser pneumatic developed NASA's Station in contracts We station integration of customers support Automation, modifications cargo We United have for umbilical provided Aerospace, Kennedy a ground quick which for NASA's upgrades, CST-XXX, Boeing system wire T assemblies for newly contract. who control Alliance, developed Origin, and support of stage for a followed commercial the in number shuttle of propellant servicing well. we of and controls the plus Parsons of systems manufactured the those CSCI, the and multiple vehicle environmental a tested NASA hazardous of base tested fluid and control disconnect International harness thermal LXHarris, and currently assembly the hardware as few. flight which manufactured and the multiple Space - system thermal Ferriton, completed vacuum Grumman, core systems And We in are the a and space Dream We contracts. Launch of vehicle and control Station of

scalable which autonomous by NASA Mars followed for Division us on the And developed a LizzieSat contract pathway believe with provide was technology growth will this provider with spaceflight with a to value to observational space next contract chain NASA's which of satellite a signed the on-orbit Earth data, business satellites decided to expand infrastructure, become When a operations we for we integrate and first to a satellite. includes phase space by deep our by and moving space environment demonstrate up autonomous missions. project, Campaign and time based of strategically satellite NASA contract related we in our the that

have Center. ASTRA at integrate center, NASA operations in will tasked with operations. Center Mission control South Payload Cape Operations support Canaveral We Operations Stennis' to center communication the during the on-orbit the of Sidus this been tightly Control And development Center Mississippi a

to like you us I in second to milestones advancing are for achieved progress bringing Earth. of several all quarter over We earnings The our we conference XXXX the would to joining And in Space's thank call. across demonstrates particularly space with that quarter for key made down Sidus the business, mission second that, customer further production progress. Sidus today we we believe operator the forward diverse XD constellation to I the of ask our now and providing expansion our partners. well positioned We and call. updates creation, We base. of for our and value is on for the advanced hybrid our close appreciate business will look print satellite support investors And

Thank you. teleconference. concludes today's This

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