Virgin Galactic (SPCE.US) rose 30% after Wall Street closed today after reporting Q3 2023 results yesterday. The company reported better-than-expected revenue, smaller-than-expected losses and also a smaller-than-expected cash burn.
Virgin Galactic reported a more than 120% year-over-year rise in Q3 revenue to $1.73 million (est. $1.14 million), while a net loss of $104.6 million was less than the $137.7 million expected . Cash of $104.8 million was also lower than expected. However, forecasts for free cash flow in Q4 2023 indicated a higher-than-expected cash burn in the final three months of the year. The revenue forecast for the 4th quarter was raised from “about $1 million” to “about $3 million”. However, the company does not expect to be profitable before its new Delta launch vehicle enters service in 2026.
Virgin Galactic announced earlier this week that it plans to cut about 18% of its workforce and suspend spaceflight from mid-2024 to focus on developing its new launch vehicle, the Delta space plane. This means that the recently launched commercial flights into space will be suspended. The reduction will save about $25 million a year.
Q3 2023 results
- 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: $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 expected -$0.43
Q4 2023 outlook
Virgin Galactic ( SPCE.US ) surged today after reporting better-than-expected earnings. The stock is trading at its highest level since mid-September. The stock price jumped above $2.00 today and even tested the $2.07 resistance zone, but has since pulled back. Source: xStation5
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