Virgo Galaxy (SPCE) reported mixed fourth-quarter results on Tuesday after re-launching ticket sales earlier this month. SPCE stock rose late.
X
Estimates: FactSet analysts see a loss of 35 cents per share versus a loss of 31 cents per share in the year-ago quarter. Revenue is expected to rise to $300,000 from $0.
consequences: A loss of 32 cents per share on revenue of $141,000.
Inventory: Shares rose 3.7 percent to 8.11 in late trading stock market today.
Ticket sales reopen
The commercial space company reopened ticket sales to the public on February 16. Sales have been closed since October after opening briefly following founder Richard Branson’s July trip.
“We plan to have our first 1,000 customers at the start of commercial service later this year, providing an incredibly strong foundation as we begin regular operations and expand our fleet,” CEO Michael Colglazier said in the announcement.
Ticket prices start at $450,000 per seat, up from the previous price of $250,000. It’s not known what competition Blue Origin charges space passengers for their flights.
With ticket sales reopening, analysts would like to see an updated detailed flight schedule.
Andrew Chanin, CEO of ProcureAM, which launched the Procure Space ETF (UFO).
Virgin Galactic said Tuesday that the expected launch of its commercial private astronaut service remains on track for the fourth quarter of 2022.
It had previously targeted the late third quarter to start commercial service, but delays have escalated as Virgin Galactic looks to upgrade its spacecraft.
The company has about 250 seats remaining as part of its Future Astronauts Program, which includes 1,000 seats. It expects the rest of the seats to be filled by the time commercial service begins later this year. But officials will not say whether all 1,000 future astronauts will fly before the delta-class spacecraft enters service.
SPCE stock cash flow concerns
The company expects first-quarter free cash flow to be a loss of $75 million to $85 million. She currently has $931 million in cash on hand.
Virgin Galactic has previously said that ramping up Delta-class spacecraft will determine when the company becomes cash-flow-positive. Virgin Galactic does not see the Delta-class spacecraft begin research flights until 2025 and will not enter commercial service until 2026.
This is later than what some analysts expected. UBS analysts wrote in September that they expect the ship to enter service in 2024.
The Delta vehicles are the same as the Class III vehicles, but they will be manufactured in parallel in order to increase production.
The company is also upgrading the VMS Eve mother ship and the VSS Unity spaceplane. The program is on track for completion in the third quarter of 2022.
Colglazier said during the earnings call that she sees VSS Unity fly monthly after its commercial launch and Class III VSS Imagine flying twice a month.
Spax loses its luster
As Virgin Galactic works to upgrade its space venues, there has been a change within management in the lead up to earnings. Last week, Chairman Shamath Palihapitiya announced that he would be stepping down “to focus on the commitments of the company’s other public boards.”
Palihapitiya was Virgin Galactic’s first chair and was instrumental in the acquisition of Special Purpose Acquisition Corporation (SPAC) in 2019.
SPACs took over Wall Street in 2020. The merger tactic provides companies with a path to an IPO while bypassing much of the regulatory scrutiny of initial public offerings. The SPAC fever has been broken in the market, although some compounds are still popular with investors.
SPCE stock launched a wave of SPACs for the space sector when it debuted on the New York Stock Exchange in October 2019. That paved the way Spire Global (SPIR), momentos (MNTS) And the Astra Space (AST) to the audience.
But at least 22 SPACs have been cancelled Since mid-2021, according to a report by SPAC Research.
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