CAPE CANAVERAL, Fla. - Sidus Space, Inc. (NASDAQ:SIDU), a company specializing in satellite and Space-as-a-Service solutions, has reported its financial results for the year ended December 31, 2023, alongside a business update.
The company announced a gross margin of 28% for 2023, marking an 8% increase from the previous year. This improvement is attributed to the successful launch and deployment of the company's LizzieSat-1 satellite earlier this month and the beginning of revenue streams from satellite data.
The company's total revenue for 2023 was approximately $6.0 million, a decrease from the previous year's $7.3 million, primarily due to the timing of fixed-price milestone contracts. Despite this, cost of revenue decreased by 26%, and gross profit saw a 14% increase. Selling, general, and administrative expenses rose slightly due to professional fees and employee costs. The net loss for the year widened to $14.3 million, compared to a net loss of $12.8 million in the previous year.
Operational highlights include the completion of LizzieSat vibration testing, integration of FeatherEdge AI into LizzieSat, and the receipt of NASA Stennis ASTRA flight software and hardware. Sidus also secured contracts for data collected by LizzieSat satellites and was awarded a 5-year, $10 million commercial contract to support commercial lunar transportation.
Following the close of the year, Sidus established two-way communications with LizzieSat after its launch from Vandenberg Space Force Base. Additionally, the company completed a contract to deliver onboard computing flight hardware and integrated a NASA Stennis ASTRA engineering unit into LizzieSat.
In terms of corporate governance, Sidus appointed Bill White as Chief Financial Officer. After December 31, 2023, Sidus strengthened its financial position by raising $15.2 million through the exercise of warrants and two equity offerings.
The company's balance sheet reflects cash of $1.2 million as of December 31, 2023, down from $2.3 million the previous year. Accounts payable and other current liabilities increased to $6.7 million from $3.4 million, and the asset-based loan liability rose to $2.6 million from $502 thousand.
This article is based on a press release statement.
InvestingPro Insights
As Sidus Space, Inc. navigates the competitive satellite and Space-as-a-Service markets, its financial health and market performance metrics offer valuable insights for investors. According to recent data from InvestingPro, Sidus Space has a market capitalization of $15.35 million, reflecting the market's current valuation of the company. Despite the positive gross margin reported for 2023, the company's P/E ratio stands at a negative -1.12 for the last twelve months as of Q3 2023, highlighting the challenges it faces in achieving profitability.
The revenue for the last twelve months as of Q3 2023 is reported at $6.95 million, which indicates a substantial growth of 26.64% over the period. However, this growth is contrasted by a quarterly revenue decline of -25.18% in Q1 2023, suggesting variability in the company's revenue streams. Moreover, the gross profit margin for the same period is 21.67%, which, while indicative of some operational efficiency, must be considered alongside the company's significant net losses and cash burn.
Investors should note two critical InvestingPro Tips: Sidus Space is quickly burning through cash, and analysts do not anticipate the company will be profitable this year. These insights may be particularly relevant given the company's recent financial results and future expectations. For those looking to dive deeper into the company's financials and market performance, InvestingPro offers additional tips. There are 12 more InvestingPro Tips available, which can provide a more comprehensive analysis of Sidus Space's potential risks and opportunities. Interested investors can take advantage of an additional 10% off a yearly or biyearly Pro and Pro+ subscription with the coupon code PRONEWS24.
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