Sidus Space (SIDU) Q2 2024 earnings summary

Executive summary

• Achieved successful launch, commissioning, and operation of LizzieSat-1, a 3D-printed, AI-enhanced, multi-mission satellite, validating technology and business model, with further launches planned for late 2024 and early 2025.

• Expanded pipeline to over 30 active customers and approximately $100 million, with new contracts in geospatial intelligence and lunar operations.

• Entered a joint venture in Saudi Arabia to establish a satellite manufacturing facility, aiming for global expansion.

• Expanded service offerings and partnerships, including a new Mission Control Center and international joint venture plans.

• Revenue declined year-over-year due to timing and mix of contracts, with a shift away from higher-margin satellite business.

Financial highlights

• Q2 2024 revenue was $927,570–$930,000, down $440,000 or 32% year-over-year due to timing of milestone contracts and delayed awards.

• Cost of revenue increased 105% to $1.8 million, driven by higher material expenses and satellite depreciation.

• Gross profit margin was -91% versus 37% in Q2 2023, with a net loss of $4.1 million compared to $3.5 million last year.

• Adjusted EBITDA loss was $3.2 million, up from $2.8 million year-over-year.

• Cash at June 30, 2024, was $1.44 million, with a working capital deficiency of $432,000.

Outlook and guidance

• Two additional LizzieSats are in advanced production, with launches targeted in the next six to nine months, subject to launch provider schedules and regulatory approvals.

• Expects recovery in satellite contract payments and milestone revenues in the second half of 2024.

• Focus remains on expanding the satellite constellation, growing hardware manufacturing, and increasing recurring revenue from data services.