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| Statement |
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| Our increase in gross profit and adjusted gross profit primarily represents the fact that we are working on larger programs and that our mix of contracts have better margins |
| And now that we have 10 in orbit for Tranche 0 and we've been very pleased with their performance, we have a lot more street cred than we had before |
| We had an excellent quarter with year-over-year revenue growth of 58%, increasing revenue to $43.9 million from $27.8 million |
| We believe that our experience and track record with T-0 and Tranche 1, we're trying to be on tranche 1 of the transfer layer and a partnership with Lockheed Martin help differentiate us and position us well for SCA's awards outside of the transfer layer |
| Our team is successfully executing on converting our pipeline and to sign contracts resulting in a new record-breaking backlog inclusive of our $160 million surge of orders announced in October |
| We are starting to see the benefits of our investments in capacity, equipment, and automation with initial -- with improvements in operating efficiency |
| We remain excited about finishing the full year on a strong note and hope we can announce new awards heading into 2024 |
| And we're seeing, as we go -- as time goes on, margins will continue to improve as we bring more and more components and modules in-house |
| And we're excited, everyone here at Terran Orbital was very excited going into the year-end and 2024 is going to be an amazing year for us |
| I am pleased to report our margin performance has significantly improved |
| It's great that the customers are now finding us |
| So, we have Mac Jan and his team have done a great job, and they are very actively running around the world, bidding on things at a very rapid pace |
| It's very exciting |
| I am pleased with our continued growth in revenue, which was $43.9 million for the third quarter of 2023, a 58% increase over the same period in the prior year |
| So, we're feeling pretty good about other SDA programs in the future |
| So, we're optimistic that our 16.5% is really the [indiscernible] point for our future margin expectations |
| So, we are doing very well in the bidding process with a number of opportunities |
| So, Astra deliver is great |
| As we move to become EBITDA positive by next year, this is an important metric and it shows great progress |
| Overall, I am proud of what we've accomplished and where we are heading |
| We feel pretty good margin profile going forward |
| We are proud of the decade-long track record of not missing the satellite launch, and we took this action now to protect -- to protect the program schedule |
| It's amazing |
| Our third quarter adjusted gross profit increased over 270% from $12 million -- to $12 million from $3.2 million in the comparable period |
| And so just leading out our backlog, tacking on new programs, higher margins than what we've seen on some of our legacy program |
| Matt has been Terran Orbital Corporate Controller for the past last two years and has done an amazing job |
| During our town hall, we were pleased to highlight the team's recently announced contract wins across three several programs and two continents, our active engagement on 80 opportunities relating to more than 2,800 satellites for 40 different customers [indiscernible] valued at over $2.7 billion, and our current expectation that we will have sufficient cash to cover capital investments and operations until becoming cash flow positive, which is expected in 2024 |
| Our year-to-date adjusted gross profit margin of $16.5 million is now in line with our previously disclosed year-end targets, and we expect gradual improvement in future periods |
| We now produce over 85% and growing of all our components in-house, which lowers our costs and speeds up our delivery |
| We're seeing more and more large opportunities from both commercial and government entities from around the world |
| Statement |
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| The decrease in revenue guidance is primarily related to the removal of Rivada, the delayed start in awarding of certain larger programs and the potential for challenges we're working through on other programs |
| Adjusted EBITDA was negative $13 million for the quarter compared to negative $13.9 million in the same period in the prior year |
| Regarding the proposal from the cofounders and their recent letter after the fact when you announced the reduced revenue guidance |
| And for 20 years, we've never missed the revenue target, and this is the first |
| The reality is propulsion has been with Astra has been quite -- been a challenge |
| As we have mentioned earlier, we're providing conservative guidance -- and the reason for that 130 number, which would imply a lower Q4 revenue is the fact that there's certain challenges on certain programs, and the ultimate resolution of those challenges aren't known at this time |
| Just there are other some external circumstances that have popped up that have delayed things |
| So, it was not a big surprise at the end of the day for us that we weren't winning |
| One thing to point out is as we start building these quantities, the costs start to go down significantly |
| So, as we stood to replicate these things over and over again, the recurring costs go down dramatically |
| So that was -- and it's not us winning |
| So, we never want to make that mistake again |
| but globally for any country who has been able to do it, but we're going to start slow |
| Mathieu Riffel And I never ever want to get caught again with having to go out with -- to raise my revenue target and then have to lower them again |
| Overall, adjusted EBITDA loss is largely a function of increased expenses related to the ramping of our business development capabilities in back office across the company to serve as the foundation of supporting our multibillion-dollar backlog and pipeline in the coming quarters and years |
| On the Alpha award, we knew we can't win everything, and there are other players out there |
| We do -- we didn't expect to win in a row |
| I know you mentioned that the Tranche 1 deliveries are delayed now into Q1 and potentially Q2 |
| I know it's not easy, given how |
| But yes, we did -- a lot of diligence was done on all sides, and we had extreme confidence on their ability to fund |
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