Sidus Space Inc (NASDAQ:SIDU), a Space-as-a-Service satellite company, reported revenue growth of 164% for the third quarter as it continues to take “meaningful steps” toward the inaugural launch of its LizzieSat Constellation.
Revenue for the three months to September 30, 2022 was $1.32 million, up from $500,000 in the comparable period last year, the company said.
“We saw significant progress implementing our Space-as-a-Service strategy including launch agreements for our proprietary LizzieSat with SpaceX, securing propulsion technology from Dawn Aerospace that will allow for more precise missions and additional time in orbit, and enabling critical space weather data collection in partnership with Mission Space,” said Sidus Space CEO Carol Craig in a statement.
READ: Sidus Space to implement Dawn Aerospace’s propulsion technology into LizzieSat
“Our manufacturing division continues to expand relationships throughout the industry as represented by our continued momentum with large purchase orders," she continued.
“We are excited to execute on the massive opportunity offered by the emerging space economy and are confident our vertically-integrated offerings position us well to capture significant market share. As we near our one year anniversary as a public company, I am thrilled with the acknowledgment our team is receiving as they continue to scale up to meet increasing demand for our products and services, as we prioritize progress toward profitability and creating value for our shareholders,” Craig added.
On a year-to-date basis, the company has generated gross profit of 25%, while cost of revenue has benefited from variation in types and lengths of contracts and an increase in its higher margin Satellite-as-a-Service business line.
Sidus Space said it had cash of $4.4 million as of September 30, 2022, adding that it has continued to invest in expanding operations and in equipment related to the satellite side of its business.
Strengthened balance sheet
On August 10, 2022, to further improve its balance sheet and enable growth, the company entered into a common stock purchase agreement that enables it to raise up to $30 million of additional equity as funding needs arise.
During the quarter, it raised $3.54 million through the issuance of shares under the agreement.
“Sidus once again grew revenue during the quarter as compared to the previous year, and we continue to make solid progress on our fiscal 2022 plan as well as a number of our strategic initiatives,” said Sidus CFO Teresa Burchfield.
“We signed several new and significant contracts and partnerships, and we expect these agreements to generate future revenue streams driving increased annual recurring revenue.”
Sidus Space, located in Cape Canaveral, Florida, operates from a 35,000-square-foot manufacturing, assembly, integration, and testing facility focused on commercial satellite design, manufacture, launch, and data collection.
The company has a broad range of Space-As-a-Service offerings including space-rated hardware manufacturing, design engineering, satellite manufacturing and platform development, launch and support services, data analytics services and satellite constellation management.
Sidus Space has a mission of "bringing space down to Earth" and a vision of enabling space flight heritage status for new technologies while delivering data and predictive analytics to domestic and global customers.
Contact the author at jon.hopkins@proactiveinvestors.com