Sidus Space (SIDU) Q3 2024 earnings summary

Executive summary

• Achieved 90% year-over-year revenue growth in Q3 2024, reaching $1.9 million, driven by satellite-related contracts, milestone payments, and the successful launch of LizzieSat-1 in March 2024, with additional launches planned.

• Secured major contracts, including a $2 million U.S. Navy Propulsion Program award and exclusive partnership with Lone Star Data Holdings for lunar data storage satellites.

• Expanded regulatory approvals, including FCC and NOAA authorization for LizzieSat 2–5 and micro-constellation deployment in LEO.

• Expanded product offerings across Space-as-a-Service, AI/ML, mission management, and hardware manufacturing, with a vertically integrated model supporting multiple revenue streams.

• SG&A expenses decreased 15% year-over-year to $3.2 million, aided by lower legal, payroll, and insurance costs.

Financial highlights

• Q3 2024 revenue was $1.9 million, up 90% from Q3 2023, with gross profit improving to $38,000 and gross margin at 2% versus -10% last year.

• Adjusted EBITDA loss improved 33% to -$2.5 million from -$3.6 million year-over-year.

• Net loss narrowed to $3.9 million from $4.1 million in Q3 2023; nine-month net loss increased 7% to $11.8 million.

• Cash balance was $1.2 million as of September 30, 2024, with working capital deficiency at $4.6 million.

• Raised $7 million in a public offering, with net cash provided by financing activities totaling $15.4 million for the nine months.

Outlook and guidance

• Anticipates continued growth in pipeline and backlog, with increased revenue recognition as the constellation expands and more satellites are launched.

• Expects additional subscription-based data contracts and higher-margin data-as-a-service revenues.

• Ongoing investments in R&D, AI/ML, edge computing, satellite builds, and ERP system to support future growth.

• Management highlights need for additional capital to fund operations and growth, with recent and planned public offerings to support liquidity.