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Momentus Inc. (MNTS)·Q3 2023 Earnings Summary

Executive Summary

  • Q3 2023 revenue was $0.339M, down sharply sequentially from $1.705M in Q2 but up year-over-year from $0.129M; adjusted EBITDA improved to $(10.6)M vs $(14.4)M in Q2 and $(16.2)M in Q3 2022 .
  • Liquidity tightened: cash and cash equivalents fell to $9.750M, and management disclosed substantial doubt about going concern absent additional capital; the company raised ~$16.9M gross via September/October offerings and a November warrant inducement .
  • Operational progress continued: cumulative 18 customer satellites deployed, ongoing hosted payload services (Caltech), six new commercial contracts since mid‑August, and SDA SBIR work (potential value >$1.9M) .
  • No formal numerical guidance was provided; management expects Vigoride‑7 to generate more revenue than Vigoride‑6 and is pursuing strategic alternatives, while noting failure to bridge to profitable production could result in curtailed or ceased operations .

What Went Well and What Went Wrong

What Went Well

  • Commercial traction: six new contracts (C3S, Aarhus, FOSSA, RIDE!, SatRev, AVS) signed since mid‑August, expanding 2024–2025 pipeline . “We recently announced six contracts to provide hosted payload services and orbital transportation missions” — CEO John Rood .
  • Non‑GAAP profitability trend: adjusted EBITDA improved to $(10.6)M (Q3) from $(14.4)M (Q2) and $(16.2)M (Q3’22), reflecting reduced OpEx and cost actions . CFO: “Adjusted EBITDA was negative $10.6 million…$5.5 million better vs Q3 2022” .
  • Technology/mission progress: continued MET in‑space testing (~230 minutes firing), cumulative 18 deployments, SpaceX rideshare ports reserved through end‑2024, and Vigoride‑7 RPO demo planned .

What Went Wrong

  • Sequential revenue decline: Q3 service revenue of $0.339M vs $1.705M in Q2; gross profit fell to $0.220M vs $1.317M sequentially .
  • Going concern risk and cash runway: unrestricted cash $9.8M; management disclosed substantial doubt absent more capital and noted operations could be curtailed or ceased if bridge to profitable production is not achieved . “If any capital raised…is insufficient…operations could be curtailed or ceased” — CEO .
  • Government bid setback: Momentus was not selected for SDA Tranche 2 Transport Layer Alpha; management is re‑bidding on Tranche 2 Tracking Layer (18 satellites) and remains optimistic but timeline/certainty remain risks .

Financial Results

Quarterly Comparison (USD Millions unless noted)

MetricQ1 2023Q2 2023Q3 2023
Service Revenue$0.022 $1.705 $0.339
Gross Profit$0.022 $1.317 $0.220
Operating Expenses$20.389 $20.211 $15.286
Loss from Operations$(20.367) $(18.894) $(15.066)
Net Loss$(20.825) $(18.835) $(15.159)
Net Loss per Share (Basic/Diluted)$(0.24) $(0.20) $(7.20)
Adjusted EBITDA (Non‑GAAP)$(16.095) $(14.412) $(10.591)
Cash and Cash Equivalents (end of period)$38.630 $21.298 $9.750

Notes: Q3 EPS reflects reverse split completed during the quarter .

Year-over-Year (Q3 2023 vs Q3 2022)

MetricQ3 2022Q3 2023
Service Revenue$0.129 $0.339
Operating Expenses$21.755 $15.286
Loss from Operations$(21.640) $(15.066)
Net Loss$(21.339) $(15.159)
Adjusted EBITDA (Non‑GAAP)$(16.154) $(10.591)

Margins

MetricQ1 2023Q2 2023Q3 2023
Gross Margin %100.0% (0.022/0.022) 77.2% (1.317/1.705) 64.9% (0.220/0.339)
Adjusted EBITDA Margin %N/M (neg.) N/M (neg.) N/M (neg.)

Calculated from cited revenue and gross profit figures.

Segment Breakdown

  • Not applicable; Momentus reports service revenue aggregate, not segmented .

KPIs and Operational Metrics

KPIQ1 2023Q2 2023Q3 2023 / Current
Customer Satellites Deployed (cumulative)9+ (Qosmosys deployed; missions ongoing) 15 (Vigoride‑6 deployments incl. NASA LLITED) 18 cumulative deployments
MET Thruster In‑Space Firing Time>140 minutes (35 firings) Continued testing ~230 minutes; ~6.5 km orbital raises
New Commercial Contracts SignedFOSSA (two), Hello Space, Lunasonde, SatRev Additional hosted payload; pipeline building Six contracts since mid‑Aug (C3S, Aarhus, FOSSA, RIDE!, SatRev, AVS)
SDA SBIR Contract ValueSelection announced $0.746M initial; option +$1.196M expected (> $1.9M total) > $1.9M total expected; first milestone completed
SpaceX Rideshare CapacityPorts reserved through 2024 initiated Reserved ports through end‑2024 (Transporter‑10/11/12) Ports reserved through end‑2024 reiterated

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY/QuarterNone providedNone provided; management expects Vigoride‑7 to generate more revenue than Vigoride‑6Narrative only (maintained no formal guidance)
Backlog DisclosureOngoingBacklog disclosed historicallyCompany moving away from backlog metric; focusing on near‑term metricsPolicy change
Operating Expenses (trend)Near‑termN/AContinued burn-rate reductions from headcount cuts; sequential operating cash use downLowered trend (qualitative)
Liquidity/Going ConcernNext 12 monthsN/ASubstantial doubt disclosed; pursuing capital and strategic alternativesNew risk disclosure

No formal numerical ranges for revenue, margins, OpEx, OI&E, tax rate, or dividends in Q3 materials.

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3)Trend
AI/Tech initiatives (MET, TASSA)MET reached TRL9‑like readiness; >140 min firing; TASSA demo planned MET ~230 min firing; patent approval for TASSA; majority of performance reqs demonstrated Positive tech validation; cost/lead‑time benefits highlighted
U.S. Government/SDASelected for SDA SBIR; bid Tranche 2 Transport Layer Alpha (50 sats) Not selected for Alpha; submitted Tranche 2 Tracking Layer bid (18 sats); optimistic on mid‑Jan award Mixed: near-term setback; continued pursuit
Product strategy (M‑1000 bus)Announced; positioning for $11.9B→$20.8B market by 2030 Strong interest; leveraging Vigoride heritage; used in SDA bid Building commercial/government traction
Launch aggregation/SpaceXReserved ports through end‑2024 Confirmed reserved ports; November Transporter‑9 deployer mission executed Execution continues
Reusable Vigoride & RPORPO demo planned on Vigoride‑7 Reusable Vigoride could be reused 6–7 times; March 2024 RPO demo targeted Long‑term unit economics improving; near‑term demo approaching
Capital & strategic alternativesEngaged Deutsche Bank; reducing OpEx ~$16.9M raised; multiple strategic discussions ongoing Liquidity actions intensified
Regulatory/debris mitigationFCC 5‑year deorbit rule opportunity Continued emphasis on capabilities fitting national security needs Tailwinds sustained

Management Commentary

  • “We recently announced six contracts to provide hosted payload services and orbital transportation missions…We have executed four missions and deployed 18 customer satellites…” — CEO John Rood .
  • “Momentus has raised approximately $16.9 million in gross proceeds since our last earnings call…we continue to face the headwinds of navigating a shortening cash runway.” — CEO .
  • “Although…we were not selected [for SDA Tranche 2 Transport Layer Alpha]…we’re taking another swing…for the Tranche 2 tracking layer program…we’re optimistic about our prospects here.” — CEO .
  • “We ended Q3 2023 with unrestricted cash and cash equivalents of $9.8 million…our 10‑Q will include language…substantial doubt about our ability to continue as a going concern.” — CFO Eric Williams .

Q&A Highlights

  • SDA competition outcome and pipeline: Management acknowledged not winning Tranche 2 Transport Layer Alpha and emphasized lessons learned and optimism on Tracking Layer bid (decision targeted mid‑January) .
  • Reusable Vigoride economics: Reuse potential of 6–7 times, with RPO demo planned to validate rendezvous/proximity capabilities; future addition of robotic arm and shielding for longevity .
  • M‑1000 bus traction: Leveraging Vigoride heritage; receiving RFIs from constellation providers; differentiated on power, payload capacity, flexibility, and low cost .
  • Sales momentum: Contracts signing pace accelerated; booking across Transporter‑10/11/12 manifests; focus on fuller payloads to improve mission economics .

Estimates Context

  • S&P Global consensus estimates for Q3 2023 revenue/EPS were unavailable due to data access limits; as a result, we cannot assess a beat/miss versus Street for Q3. S&P Global consensus for forward quarters was also unavailable. Values retrieved from S&P Global were unavailable.

Implication: With sequential revenue down and non‑GAAP losses improving, estimate revisions will likely focus on liquidity risk and execution of near-term missions. Consider monitoring sell-side updates post‑Q3 disclosures.

Key Takeaways for Investors

  • Liquidity risk and strategic optionality are the dominant stock drivers near term; management disclosed going concern risk and is actively raising capital and evaluating strategic alternatives .
  • Sequential revenue volatility underscores dependence on mission timing and mix (hosted payloads vs transport); Q4/early 2024 missions (Transporter‑10 and Vigoride‑7) are critical catalysts .
  • Non‑GAAP profitability trend is improving (adjusted EBITDA), aided by OpEx reductions; sustaining this requires stronger revenue cadence and contract conversion .
  • Government pipeline remains a swing factor: loss of the Alpha award was a setback, but Tracking Layer bid and SBIR work provide potential upside if awarded .
  • M‑1000 bus could broaden TAM and enhance economics via higher power/payload and faster production; early customer interest is encouraging .
  • Technology differentiation (MET, TASSA, RPO) continues to be validated; if successful, a reusable Vigoride model could materially improve unit economics and margins over time .
  • Keep focus on cash runway, capital markets actions (September/October offerings, November warrant inducement), and any strategic transaction announcements; these will likely overshadow near-term operational updates in driving the equity narrative .
Citations: 
Q3 2023 8-K earnings release and financials **[1781162_0001781162-23-000057_mnts-20230930xearningsxex9.htm:0]** **[1781162_0001781162-23-000057_mnts-20230930xearningsxex9.htm:1]** **[1781162_0001781162-23-000057_mnts-20230930xearningsxex9.htm:2]** **[1781162_0001781162-23-000057_mnts-20230930xearningsxex9.htm:3]** **[1781162_0001781162-23-000057_mnts-20230930xearningsxex9.htm:4]** **[1781162_0001781162-23-000057_mnts-20230930xearningsxex9.htm:5]** **[1781162_0001781162-23-000057_mnts-20230930xearningsxex9.htm:6]** **[1781162_0001781162-23-000057_mnts-20230930xearningsxex9.htm:7]** **[1781162_0001781162-23-000057_mnts-20230930xearningsxex9.htm:8]** **[1781162_0001781162-23-000057_mnts-20230930xearningsxex9.htm:9]** **[1781162_0001781162-23-000057_mnts-20231114.htm:2]** **[1781162_0001781162-23-000057_mnts-20231114.htm:3]** **[1781162_0001781162-23-000057_q3presentationforfiling-.htm:0]** **[1781162_0001781162-23-000057_q3presentationforfiling-.htm:4]** 
Q3 2023 earnings call transcript **[1781162_MNTS_3367072_0]** **[1781162_MNTS_3367072_1]** **[1781162_MNTS_3367072_2]** **[1781162_MNTS_3367072_3]** **[1781162_MNTS_3367072_4]** **[1781162_MNTS_3367072_5]** **[1781162_MNTS_3367072_7]** **[1781162_MNTS_3367072_8]** **[1781162_MNTS_3367072_9]** **[1781162_MNTS_3367072_10]** **[1781162_MNTS_3367072_11]** **[1781162_MNTS_3367072_12]** 
Q2 2023 8-K and call **[1781162_0001781162-23-000040_a20230630-8kearningsxex991.htm:0]** **[1781162_0001781162-23-000040_a20230630-8kearningsxex991.htm:1]** **[1781162_0001781162-23-000040_a20230630-8kearningsxex991.htm:2]** **[1781162_0001781162-23-000040_a20230630-8kearningsxex991.htm:3]** **[1781162_0001781162-23-000040_a20230630-8kearningsxex991.htm:5]** **[1781162_0001781162-23-000040_a20230630-8kearningsxex991.htm:6]** **[1781162_0001781162-23-000040_a20230630-8kearningsxex991.htm:7]** **[1781162_0001781162-23-000040_a20230630-8kearningsxex991.htm:8]** **[1781162_0001781162-23-000040_mnts-20230814.htm:0]** **[1781162_0001781162-23-000040_mnts-20230814.htm:1]** **[1781162_MNTS_3384583_0]** **[1781162_MNTS_3384583_1]** **[1781162_MNTS_3384583_2]** **[1781162_MNTS_3384583_3]** **[1781162_MNTS_3384583_4]** **[1781162_MNTS_3384583_5]** **[1781162_MNTS_3384583_6]** **[1781162_MNTS_3384583_9]** **[1781162_MNTS_3384583_10]** **[1781162_MNTS_3384583_11]** **[1781162_MNTS_3384583_12]** 
Q1 2023 8-K and call **[1781162_0001140361-23-024166_brhc20052786_8k.htm:0]** **[1781162_0001140361-23-024166_brhc20052786_8k.htm:1]** **[1781162_0001140361-23-024166_brhc20052786_8k.htm:2]** **[1781162_0001140361-23-024166_brhc20052786_ex99-1.htm:0]** **[1781162_0001140361-23-024166_brhc20052786_ex99-1.htm:1]** **[1781162_0001140361-23-024166_brhc20052786_ex99-1.htm:2]** **[1781162_0001140361-23-024166_brhc20052786_ex99-1.htm:3]** **[1781162_0001140361-23-024166_brhc20052786_ex99-1.htm:4]** **[1781162_0001140361-23-024166_brhc20052786_ex99-1.htm:5]** **[1781162_0001140361-23-024166_brhc20052786_ex99-1.htm:6]** **[1781162_0001140361-23-024166_brhc20052786_ex99-1.htm:7]** **[1781162_0001140361-23-024166_brhc20052786_ex99-1.htm:8]** **[1781162_0001140361-23-024166_brhc20052786_ex99-1.htm:9]** **[1781162_0001140361-23-024166_brhc20052786_ex99-2.htm:0]** **[1781162_0001140361-23-024166_brhc20052786_ex99-2.htm:1]** **[1781162_MNTS_3251058_0]** **[1781162_MNTS_3251058_1]** **[1781162_MNTS_3251058_2]** **[1781162_MNTS_3251058_3]** **[1781162_MNTS_3251058_4]** **[1781162_MNTS_3251058_5]** **[1781162_MNTS_3251058_6]** **[1781162_MNTS_3251058_7]** **[1781162_MNTS_3251058_8]** **[1781162_MNTS_3251058_10]** **[1781162_MNTS_3251058_11]** **[1781162_MNTS_3251058_12]** 
Capital raises (Registered Direct and Warrant Inducement) **[1781162_0001140361-23-046715_ef20011872_8k.htm:1]** **[1781162_0001140361-23-046715_ef20011872_8k.htm:3]** **[1781162_0001140361-23-046715_ef20011872_8k.htm:4]** **[1781162_0001140361-23-052530_ny20014110x2_ex99-1.htm:0]**