UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) | Delaware | | 85-3608069 | | --- | --- | --- | | (State or other jurisdiction of | | (I.R.S. Employer | | incorporation or organization) | | Identification No.) | | 1700 Flight Way | | | | Tustin California | | 92782 | | (Address of Principal Executive Offices) | | (Zip Code) | | (949) 774-7640 | | | | (Registrant's telephone number, including area code) | | | | N/A | | | | (Former name, former address and former f ...

Virgin Galactic Holdings, Inc. (NYSE:SPCE) Q1 2023 Earnings Conference Call May 9, 2023 5:00 PM ET Company Participants Eric Cerny - VP, IR Michael Colglazier - CEO, President & Director Douglas Ahrens - EVP, CFO & Treasurer Conference Call Participants Gregory Konrad - Jefferies Michael Leshock - KeyBanc Capital Markets Matthew Akers - Wells Fargo Securities Myles Walton - Wolfe Research Kristine Liwag - Morgan Stanley Operator Good afternoon. My name is Joel, and I will be your conference operator today. ...

FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-38202 Virgin Galactic Holdings, Inc. (Exact name of registrant as specified in its charter) | Delaware | 85-3608069 | | --- | --- | ...

Virgin Galactic Holdings, Inc. (NYSE:SPCE) Q4 2022 Results Conference Call February 28, 2023 5:00 PM ET Company Participants Eric Cerny - Vice President of Investor Relations Michael Colglazier - President and Chief Executive Officer Doug Ahrens - Chief Financial Officer Conference Call Participants Greg Konrad - Jefferies Oliver Chen - Cowen Emily Dutchman - Wolfe Research Michael Leshock - KeyBanc Capital Markets Michael Ciarmoli - Truist Kristine Liwag - Morgan Stanley Austin Moeller - Canaccord Operator ...

Business Operations and Financial Performance - The company has incurred significant losses since inception and expects to continue incurring losses in the future, with profitability not guaranteed [18]. - The company incurred net losses of $500.2 million, $352.9 million, and $644.9 million for the years ended December 31, 2022, 2021, and 2020, respectively [124]. - The total investment required for the development of the company's platform and capabilities has reached approximately $2 billion to date [44]. - The company anticipates operating expenses to increase over the next several years as it prepares for the commercial launch of human spaceflight operations [125]. - The company has generated limited revenue from flying payloads into space and has not yet started commercial human spaceflight operations [124]. - The company has a significant backlog of customer demand, with a focus on high net worth individuals seeking a unique spaceflight experience [43]. - The company has a current FAA Reusable Launch Vehicle Operator License allowing test and payload revenue flights from Mojave, California, and Spaceport America, New Mexico [110]. - The company is obligated to pay royalties to Virgin based on a percentage of gross sales, which will increase over time in correlation with the consumer price index [103]. - The company expects to commence commercial operations with a single spaceflight system in the second quarter of 2023, pending the completion of flight testing [129]. - The company is subject to FAA regulations and must comply with commercial space transportation requirements, which may become more stringent after 2023 [108]. Spaceflight Operations and Technology - Virgin Galactic's commercial spaceflight operations are anticipated to commence with a single spaceflight system that has yet to complete flight testing, which poses risks to business operations [18]. - The company has developed a proprietary hybrid rocket propulsion system designed for safety, reliability, and economy, with a maximum speed of over Mach 3 and a flight duration of up to approximately 90 minutes [31]. - The company has completed 300 test flights of its mothership, with over 50 dual tests conducted with SpaceShipTwo, VSS Unity, as of December 31, 2022 [54]. - The hybrid rocket motor used in the spaceship was recognized in 2018 as the most powerful hybrid rocket for crewed flight, and it is designed for high rates of commercial spaceflight [60]. - The company is currently manufacturing additional spaceships based on the VSS Unity design at a substantially lower cost, alongside rocket motors to support commercial operations [90]. - The company has developed extensive vertically integrated aerospace capabilities, including design, manufacturing, and testing, which it believes are difficult to replicate [89]. - The company is upgrading its fuel cartridge production plant to increase production rates and reduce unit costs to support fleet growth and improve per-flight economics [62]. - The company plans to expand its fleet with next-generation vehicles, including Delta class spaceships and motherships, to increase its annual flight rate [42]. - The company is in various stages of designing, testing, and manufacturing additional spaceships and rocket motors to meet expected demand for human spaceflight experiences [29]. Market and Competitive Landscape - The commercial space industry is experiencing explosive growth due to rapidly advancing technologies and increasing private investment, positioning Virgin Galactic to capitalize on these trends [35]. - The commercial spaceflight industry is expected to be highly competitive, with primary competitors including Blue Origin, SpaceX, and Boeing, which may shift focus to suborbital spaceflight [155]. - Many competitors have greater resources, potentially allowing them to offer lower prices or better technology, which could impact the company's market position [156]. - The company's ability to compete depends on pricing, consumer confidence in safety, and the frequency of offerings, with potential adverse effects on financial condition if competition increases [157]. - The market for commercial human spaceflight is still emerging and may not achieve the expected growth potential [128]. Customer Demand and Sales Strategy - As of December 31, 2022, Virgin Galactic received reservations for approximately 800 spaceflight tickets, collecting $103.3 million in deposits and membership fees from future astronauts [26]. - The base price for a seat in the commercial spaceflight program is set at $450,000, with expected future spaceflight revenue of approximately $207 million from tickets sold as of December 31, 2022 [43]. - The company plans to reserve 100 seats within the first 1,000 commercial seats sold for research and scientific experiments [82]. - The company plans to utilize its direct sales organization, the "Astronaut Office," and partnerships with over 20,000 luxury travel advisors to enhance sales of spaceflights [83]. - The company has a commitment to advancing research and science, having carried payloads for research purposes through NASA's Flight Opportunities Program [32]. Risks and Challenges - The company faces risks from adverse publicity stemming from incidents involving its spaceflight systems, which could decrease customer demand and impact financial performance [146]. - Economic instability may lead to decreased consumer confidence and discretionary spending, adversely affecting demand for spaceflight experiences [145]. - The company may require substantial additional funding to finance operations, and unfavorable economic conditions could hinder access to capital [148]. - The company is vulnerable to changes in consumer preferences, which could affect demand for its commercial human spaceflight services [144]. - The company relies on a limited number of suppliers for key raw materials, which may lead to increased costs or delays in manufacturing if supply is disrupted [150]. - Delays in the development and manufacture of spaceflight systems and related technology could adversely affect the company's business and financial condition [139]. - The company must effectively manage growth to avoid operational difficulties, including hiring and training challenges, which could impact financial results [143]. - The company faces operational risks from hazards such as natural disasters and human errors, which could disrupt manufacturing and operations [204]. Regulatory and Compliance Issues - The company is subject to extensive government contracts that may increase costs and expose it to liability for non-compliance, potentially affecting financial results [176]. - The company must secure necessary licenses and authorizations for its spaceflight business, with potential impacts on operations if compliance is not achieved [191]. - Regulatory changes may increase compliance costs and operational complexities, affecting the company's performance and ability to expand [188]. - The company is subject to significant scrutiny and regulatory requirements that could limit its operational flexibility and increase costs [185]. - The company faces challenges in maintaining compliance with evolving privacy and data protection laws, including the GDPR, which could result in substantial penalties [194]. Intellectual Property and Brand Management - The company relies on licenses for critical intellectual property, and termination of these agreements could negatively impact operations and branding [166]. - The Virgin brand is integral to the company's identity, and negative publicity related to the brand could adversely affect business and financial results [161]. - Protecting intellectual property rights may require significant resources, and litigation could disrupt operations and incur costs [171]. - The company may face allegations of intellectual property infringement, which could divert resources and negatively impact financial condition [173]. Cybersecurity and Data Management - Cybersecurity threats pose significant risks, including potential data breaches that could harm operations and lead to reputational damage [179]. - The evolving nature of cybersecurity threats means that existing security measures may not be sufficient to prevent breaches [181]. - The company relies on third-party data management services, which may expose it to additional security vulnerabilities beyond its control [182]. - A significant data breach or failure to comply with privacy laws could adversely affect the company's reputation and result in claims or investigations, potentially requiring operational changes [198].

Virgin Galactic Holdings, Inc. (NYSE:SPCE) Q3 2022 Earnings Conference Call November 3, 2022 5:00 PM ET Company Participants Eric Cerny - Vice President of Investor Relations Michael Colglazier - President and Chief Executive Officer Doug Ahrens - Chief Financial Officer Conference Call Participants Oliver Chen - Cowen and Company, LLC Eric Yan - Wells Fargo Kristine Liwag - Morgan Stanley Greg Konrad - Jefferies Myles Walton - Wolfe Research Samuel Struhsaker - Truist Securities Anthony Valentini - Goldman ...

GALACTIC THIRD QUARTER 2022 EARNINGS UPDATE 11.03.2022 DISCLOSURES FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange ...

Virgin Galactic Holdings, Inc. (NYSE:SPCE) Q2 2022 Earnings Conference Call August 4, 2022 5:00 PM ET Company Participants Eric Cerny - Vice President, Investor Relations Michael Colglazier - Chief Executive Officer Doug Ahrens - Chief Financial Officer Conference Call Participants Greg Konrad - Jefferies Matt Akers - Wells Fargo Oliver Chen - Cowen Kristine Liwag - Morgan Stanley Pete Osterland - Truist Securities Operator Good afternoon. My name is Irene, and I will be your conference operator today. At t ...

NA GALACTIC SECOND QUARTER 2022 EARNINGS UPDATE 08.04.2022 Comments of the Real Property of Concession of Concession of Concession DISCLOSURES FORWARD-LOOKING STATEMENTS This presentation contains certain forward-looking statements within the meaning of federal securities laws with respect to Virgin Galactic Holdings, Inc. (the "Company"), including statements regarding the Company's spaceflight systems, markets, expected flight schedule, timing of commercial launch, completion of new motherships and launch ...

Reservations and Revenue Expectations - As of June 30, 2022, Virgin Galactic received reservations for approximately 800 spaceflight tickets, collecting about $104.8 million in deposits from future astronauts[123]. - Ticket sales for spaceflights are priced at a base price of $450,000 per seat, with approximately $212.0 million in expected future revenue from tickets sold as of June 30, 2022[132]. - The company expects to commence commercial service in the second quarter of 2023, pending the completion of maintenance and enhancements to its vehicles[131]. - The company expects to begin generating revenue from its human spaceflight program, anticipated to launch in the second quarter of 2023[183]. Spaceflight System and Development - The company has developed a fully reusable spaceflight system consisting of a mothership and a spaceship, designed to carry passengers and research payloads into space[125]. - The next generation spaceship, VSS Imagine, is expected to commence test flights in mid-2023, with private astronaut service anticipated by the fourth quarter of 2023[134]. - Research and development expenses focus on advancing the human spaceflight system, including the development of the mothership, spaceship, and hybrid rocket propulsion system[140]. - The operational capacity for commercial flights will initially be limited to a single spaceship and mothership, with plans to expand the fleet to increase annual flight rates[134]. - The company aims to provide affordable and repeatable access to microgravity for scientific research, enhancing opportunities for a broader range of individuals and organizations[127]. Financial Performance - Revenue for the three months ended June 30, 2022, was $0.4 million, a decrease of 37% from $0.6 million in the same period of 2021[152]. - Revenue for the six months ended June 30, 2022, was $0.7 million, an increase of 18% from $0.6 million in the same period of 2021[153]. - Total operating expenses for the three months ended June 30, 2022, were $110.1 million, an increase of 47.8% from $74.5 million in 2021[152]. - Net loss for the three months ended June 30, 2022, was $110.7 million, compared to a net loss of $94.0 million in the same period of 2021[152]. Research and Development Expenses - Research and development expenses increased by $27.7 million, or 80%, to $62.3 million for the three months ended June 30, 2022, compared to $34.6 million in 2021[158]. - Research and development expenses increased by $44.5 million, or 64%, to $114.2 million for the six months ended June 30, 2022, compared to $69.7 million in 2021[159]. Administrative and Other Expenses - Selling, general and administrative expenses increased by $7.8 million, or 21%, to $44.7 million for the three months ended June 30, 2022, from $36.9 million in 2021[156]. - Selling, general and administrative expenses increased by $1.5 million, or 2%, to $81.7 million for the six months ended June 30, 2022, from $80.2 million in 2021[157]. - Customer experience expenses increased by 94% to $0.1 million for the three months ended June 30, 2022, compared to $0.06 million in 2021[154]. Cash Flow and Financial Position - Net cash used in operating activities was $153.0 million for the six months ended June 30, 2022, primarily due to $203.8 million of net losses[173]. - Net cash used in investing activities was $385.5 million for the six months ended June 30, 2022, mainly from $379.3 million in marketable securities purchases[175]. - Net cash provided by financing activities was $358.5 million for the six months ended June 30, 2022, primarily from the issuance of the 2027 Notes[176]. - As of June 30, 2022, the company had cash, cash equivalents, and restricted cash totaling $370.1 million, along with $752.5 million in marketable securities[170]. Interest Income and Expense - Interest income for the three months ended June 30, 2022, was $2.0 million, compared to $0.2 million in the same period of 2021[147]. - Interest income increased by $1.8 million, or 802%, to $2.0 million for the three months ended June 30, 2022, compared to $0.2 million for the same period in 2021[163]. - Interest income for the six months ended June 30, 2022, rose by $2.3 million, or 414%, to $2.8 million from $0.5 million in 2021[164]. - Interest expense surged by $3.2 million, or 52,517%, to $3.2 million for the three months ended June 30, 2022, from less than $0.1 million in 2021[166]. - Interest expense for the six months ended June 30, 2022, increased by $5.6 million, or 43,215%, to $5.6 million from less than $0.1 million in 2021[167]. Tax and Valuation - The company maintains a valuation allowance against its net U.S. federal and state deferred tax assets due to accumulated net operating losses[169]. - The company issued the 2027 Notes with an aggregate principal amount of $425.0 million at a fixed annual interest rate of 2.50%[191]. - As of June 30, 2022, a hypothetical 100 basis point change in interest rates would not have had a material impact on the value of the company's cash equivalents or investment portfolio[192]. - The company does not use foreign currency forward contracts to manage exchange rate risk, as the amount subject to foreign currency risk is not material to overall operations[194].