Sidus Space sinks on weak earnings; CEO calls quarter ‘pivotal’ for future

Quotes on the micro-cap space-as-a-service company Sidus Space tumbled more than 12% in after-hours trading yesterday, May 15, following the release of disappointing first-quarter financial results, which showed a sharp decline in key metrics.

Yesterday, Sidus Space dropped more than 12% to $1.59 per share after the market had already closed, before extending the decline in premarket trading today, when it slid almost 9% in the first minutes.

After the closing bell yesterday, the company reported that its revenue for the first quarter had plummeted more than 77% year over year to $238,000, while the net loss grew 68% to $6.4 million.

In the press release, the company attributed the revenue drop to its transition away from legacy services to new commercial models (without specifying what those entail), and the growing net loss to strategic investments and depreciation.

Sidus founder and CEO Carol Craig expressed confidence in future revenue growth. She argued the first quarter was a pivotal one in this regard, highlighting the launch of the third LizzieSat satellite and progress in deploying new technologies. Craig also emphasized growing commercial and defense interest in the company’s products. Notably, Sidus extended a potentially $120 million lunar satellite manufacturing contract with Lonestar Holdings, a startup aiming to deploy data centers on the Moon.

Craig, a fan of sci-fi writers Isaac Asimov and Ray Bradbury and a former U.S. Navy pilot, founded Sidus Space in 2021. The company is building a constellation of hundreds of its LizzieSat satellites, which allow clients to integrate their own sensors and technologies to collect the specific space-based data they need. This model provides Sidus with recurring service revenue.

The company has already launched three satellites, each reportedly more advanced and cost-efficient than the previous one. 

Sidus stock is down over 63% for the year to date and off more than 46% over the last 12 months.

According to MarketWatch, the single Wall Street analyst covering Sidus Space has a “buy” recommendation, with a target price of $10 per share, 5.5 times current quotes.