Virgin Galactic (SPCE.US) surges 30% today after reporting Q3 2023 earnings yesterday after the close of the Wall Street session. Company reported better-than-expected revenue, smaller-than-expected losses as well as smaller-than-expected cash burn.
Virgin Galactic reported an over-120% year-over-year jump in Q3 revenue, to $1.73 million (exp. $1.14 million), while net loss at $104.6 million was narrower than $137.7 million expected. Cash burn at $104.8 million was also smaller than expected. However, forecasts for Q4 2023 free cash flow suggested a higher-than-expected cash burn in the final three months of the year. A revenue forecast for Q4 was boosted from 'about $1 million' to 'about $3 million'. Nevertheless, company does not expect to become profitable before its new launch vehicle Delta is introduced into operations in 2026.
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Open real account TRY DEMO Download mobile app Download mobile appVirgin Galactic announced earlier this week that it plans to cut around 18% of its workforce and suspend space flights from mid-2024 in order to focus on development of its new launch vehicle, Delta spaceplane. This means that recently launched commercial space flights will be paused. A cut will allow for around $25 million in annual savings.
Q3 2023 earnings
- Revenue: $1.73 million vs $1.14 million expected (+124% YoY)
- R&D expenses: $44.8 million vs $88.9 million expected (-54% YoY)
- SG&A expenses: $42.2 million vs $49.4 million expected (-8.4% YoY)
- Free cash flow: -$104.8 million vs -$126.6 million expected
- Adjusted EBITDA: -$87.3 million vs -$120 million expected
- Net result: -$104.6 million vs -$137.7 million
- Loss per share: -$0.28 vs -$0.43 expected
Q4 2023 forecasts
- Revenue: 'about $3 million' vs 'about $1 million' previously
- Free cash flow: -$125-135 million vs -$120-130 million previously
Virgin Galactic (SPCE.US) surged today following release of better-than-expected earnings report. Stock is trading at the highest level since mid-September. Share price jumped above $2.00 earlier today and even tested the $2.07 resistance zone but has pulled back since. Source: xStation5
