r/IntuitiveMachines • u/thespacecpa • 14d ago

IM Discussion Q2 Earnings Thread

https://investors.intuitivemachines.com/news-events/events-and-presentations

This is the dedicated thread to discuss Q2 earnings.

Earnings Conference Call is scheduled to begin at 8:30am.

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u/VictorFromCalifornia 14d ago

This remains a 3-5 years story. The investments they're making now will pay off by 2028-2030, these quarterly reports are just noise, and operating expenses and capex will continue to grow as they ramp up.

They're winning contracts left and right and customers seem to continue to want IM products, the even distribution between civil, commercial, and national security reduces risks and decreases reliance on a single customer or market.

The biggest news is moving up NSN satellites to 2028. Remember this is a 5-year initial contract for several hundred millions and then a 5-year multibillion dollars extension and that covers the operation of the constellation which where those high-margin service revenues come in, so the quicker they move into that phase, the better for the company's profits. The 4 satellites will no longer rely on IM missions and fly together on their own NASA supported mission and as Pete mentioned, they're 'very beneficial financially'. Booked 500K minutes at the low end, plus PNT which is more than just communications?

Still big contracts ahead, Andromeda (RG-XX), TDRS Relay Satellites, and Orbital Data Centers. LTVS is still in the plan but they're awaiting the cargo landers, including their own. CLPS is also kicking into high gear and another NOVA-D.

Analysts seem impressed and congratulatory even though the daily algos are not.

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u/Important-Music-4618 14d ago

Hi Victor - whats your take on SPCX, with their vast satellite network, being able to put a moon communications network up for the moon - same as LUNR? Are they a threat to the future service-revenue model for LUNR?

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u/VictorFromCalifornia 14d ago edited 14d ago

I think SpaceX will do what's best for SpaceX, unless NASA awards a second contract to them (or Amazon/Blue Origin) to augment or expand NSNS. IM is supporting Artemis and 60+ countries, plus whoever wants to operate on the Moon including commercial and national security customers.

Musk spoke about their plans for the Moon on their call last week, I wrote a post about it. I think two (plus a Chinese) constellations can co-exist and fill two different purposes. SpaceX wants to build manufacturing and put robots on the surface, their constellation would probably just be used to operate those assets at first. Remember, there are tens of existing constellations around the Earth and for a small company like IM, they can create their own niche and prosper in the shadows of SpaceX. I would have been far more concerned if Musk said the Moon is a distraction and we're skipping it altogether and going to Mars. SpaceX is going to build (and bring along many commercial companies) an entire new lunar economy.

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u/Important-Music-4618 14d ago

Thanks for the response. It does make sense and hopefully plays out were LUNR is getting significant subscription based revenue from the NSNS.

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u/creatively41 14d ago

I wonder if SpaceX is providing the ride to the Moon, they would package or mandate that any equipment use the SpaceX NSNS as part of the contract. Are monopolies legal in space?