Momentus Inc.

Momentus reported Q3 2023 revenue of $0.34 million, up 162% year over year, driven primarily by customer service milestones on Vigoride 5. Operating expenses were $15.3 million, down 30% year over year, and operating loss was $15.1 million, improving 31% from Q3 2022. Adjusted EBITDA was negative $10.6 million, a sequential improvement of about $4.1 million and $5.5 million better than Q3 2022. The company ended the quarter with $9.8 million of unrestricted cash and cash equivalents and about $5.7 million of outstanding gross debt. Management said it raised approximately $16.9 million in gross proceeds since the last earnings call. For the next mission, Vigoride 7 is targeted for SpaceX Transporter 10 no earlier than March 2024, with seven customers for orbital delivery, two hosted payload customers, and a hosted payload RPO demonstration. Management also said it expects Vigoride 7 to generate more revenue than Vigoride 6.

John Rood framed the quarter around technology progress, commercial traction, and expanding government interest. He emphasized that Momentus believes its Vigoride vehicle and new M-1000 satellite bus are differentiated by flight heritage, flexible configurations, payload capacity, and low-cost production. His tone was optimistic but candid: he repeatedly pointed to growing demand and strategic options, while also acknowledging the company is still dealing with a shortening cash runway.

Eric Williams focused on liquidity, cost discipline, and the going-concern warning. He said cash finished Q3 at $9.8 million, gross debt was about $5.7 million, and the company concluded it could not meet obligations over the next 12 months based on current cash and projected flows. He noted a 30% reduction in headcount toward the end of Q2 2023, Q3 operating cash use of about $12.8 million versus $14.6 million in Q2 and $25.6 million in Q3 2022, and a series of financings totaling $16.9 million in gross proceeds since the last call.

Analysts pressed on the SDA bidding process, reusable Vigoride economics, and the M-1000 bus. Management said Momentus was not selected for the Tranche 2 Transport Layer Alpha award, but it learned from that process and is now bidding on Tranche 2 Tracking Layer, with an award expected in mid-January. On reusable Vigoride, John Rood said the vehicle could potentially be reused six or seven times, which would materially improve unit economics, and that the planned RPO demo on Vigoride 7 is a key step toward that capability. On M-1000, he said customer response has been positive, including an RFI from a constellation provider, and that the product is leveraging Vigoride flight heritage.