Core Viewpoint - Virgin Galactic is exploring new revenue opportunities by potentially shifting focus from space tourism to carrying research payloads, leveraging its upcoming Delta-class spaceplane to enhance profitability [1][12]. Group 1: Delta-Class Spaceplane Improvements - The Delta-class spaceplane is expected to enter service in 2026, featuring significant enhancements over the Unity spaceplane, including the ability to fly twice a week instead of once a month [2]. - The Delta-class will increase passenger capacity from four to six, representing a 50% improvement, combined with a ninefold increase in launch frequency, which could lead to a potential 1,250% increase in revenues [3]. Group 2: Revenue Potential from Research Payloads - Virgin Galactic's Delta-class spaceplanes can accommodate up to 20 research payload lockers, allowing for a mix of tourists and research missions, potentially increasing revenue by substituting passengers with research projects [5][6]. - Research missions in suborbital space typically cost less than $5 million, suggesting that carrying four research projects could generate $20 million, significantly more than the revenue from a single tourist seat [8][9]. Group 3: Competitive Landscape - Virgin Galactic faces stiff competition in the space tourism sector, with Blue Origin having completed nine flights carrying 47 tourists, compared to Virgin's seven successful flights [10][11]. - The competitive pressure may necessitate a reevaluation of Virgin Galactic's business model, potentially leading to a reduced focus on tourism in favor of more lucrative research missions [12].

Earnings and Financial Performance - Virgin Galactic reported a significant loss of $72.7 million, or $2.66 per share, in Q3 despite a 49% increase in share count [6] - Revenue for the quarter was minimal at $402,000 due to no commercial flights [5] - Operating costs totaled $82.1 million, down 29% from previous periods [5] - Cash burn rate accelerated to $118 million in the quarter, with $744 million in cash and equivalents remaining [7] Future Plans and Challenges - Virgin Galactic is in the "build phase" of its new Delta-class spaceplanes and shifting to design work on a new mothership [2] - Commercial flights are expected to begin in 2026, but delays could push this timeline to 2027 or later [8] - The company plans to issue and sell $300 million worth of stock to fund additional motherships and Delta-class spaceplanes [10] - This stock issuance could dilute existing shareholders by 150% [10] Stock and Investment Outlook - Virgin Galactic stock closed down for the week despite positive developments in its spaceplane fleet [2] - The company's cash reserves are expected to last until 2026, but cash burn is predicted to rise to $115-$125 million in Q4 [7] - The stock issuance ensures solvency through 2026 but significantly dilutes shareholder value [13] - The company's long-term profitability is uncertain, even in a best-case scenario [14]

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $402,000, driven by future astronaut membership fees, with total operating expenses at $82 million, down from $116 million in the prior year period, primarily due to lower R&D and SG&A expenses [21] - Capital expenditures for the quarter increased to $39 million from $13 million in the prior year, reflecting ramped-up investment in property, plant, and equipment related to the Delta Class fleet [22] - Free cash flow was negative $118 million in Q3 2024, compared to negative $105 million in the same period last year [22] Business Line Data and Key Metrics Changes - The company is in the build phase of its spaceship program, focusing on building tools, fabricating parts, and assembling spaceships, with assembly expected to commence in Q1 2025 [6][12] - The first two Delta spaceships are projected to generate positive operating cash flow, which can be used for organic fleet expansion [24] Market Data and Key Metrics Changes - The company anticipates that the addition of a second mothership and two additional spaceships will significantly enhance its capacity and profitability, with expectations to double revenue and quadruple EBITDA [25][46] Company Strategy and Development Direction - The company is focused on expanding its fleet beyond the first two spaceships to capture economies of scale and enhance profitability [7][18] - The strategy includes targeted use of growth capital to accelerate fleet expansion, with a goal to achieve a fully utilized spaceport by 2028 [27][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the customer experience and business model, planning to accelerate economic expansion through growth capital [9][10] - The company remains on track for commercial operations to begin in 2026, with a strong cash position providing flexibility for growth capital acquisition [10][23] Other Important Information - The company is ramping up hiring in the Phoenix Mesa area in preparation for spaceship assembly, focusing on key personnel to support the build phase [16] - The company has refined its schedules to manage tool deliveries, parts fabrication, and assembly sequences effectively [17] Q&A Session Summary Question: What is the latest thinking on reopening ticket sales? - Management indicated that ticket sales will likely open towards the back half of 2025, as they want to ensure they are supply constrained relative to demand [31][32] Question: Any additional equity issuance for the mothership program? - Management clarified that while they have enough cash to bring the first two Delta ships into service, they see an opportunity to bring in growth capital to accelerate expansion [34][35] Question: Thoughts on tariffs and sourcing risks? - Management believes they are reasonably insulated from tariffs as most efforts are based in the U.S., and partnerships with Bell and Qarbon are progressing well [38][39] Question: What is the timing for the second mothership? - Management confirmed that the second mothership and the third and fourth Delta ships are targeted for 2028, aligning with their growth strategy [58][59] Question: How is Delta Class progressing relative to the initial budget? - Management reported that Delta Class is tracking well against the initial budget, with active spending management contributing to lower cash burn expectations [66][67]

Group 1 - Virgin Galactic reported a quarterly loss of $2.66 per share, which was better than the Zacks Consensus Estimate of a loss of $4.10, and an improvement from a loss of $5.60 per share a year ago, resulting in an earnings surprise of 35.12% [1] - The company posted revenues of $0.4 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 13.55%, and down from $1.73 million in the same quarter last year [2] - Virgin Galactic shares have declined approximately 86% since the beginning of the year, contrasting with the S&P 500's gain of 21.2% [3] Group 2 - The earnings outlook for Virgin Galactic is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The trend of estimate revisions for Virgin Galactic is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is -$4.28 on revenues of $0.27 million, and for the current fiscal year, it is -$18.11 on revenues of $7.29 million [7] Group 3 - The Aerospace - Defense industry, to which Virgin Galactic belongs, is currently ranked in the bottom 46% of over 250 Zacks industries, suggesting that the industry's outlook can significantly impact stock performance [8]

GALACTIC THIRD QUARTER 11.6.2024 ARTIST RENDERING OF FUTURE FLEET AT SPACEPORT AMERICA 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 am ...

Revenue and Financial Performance - Revenue for the three months ended September 30, 2024, was $402,000, a decrease of 77% compared to $1.728 million for the same period in 2023[105] - Operating loss for the three months ended September 30, 2024, was $(81.728) million, compared to $(114.272) million for the same period in 2023[104] - Total operating expenses for the three months ended September 30, 2024, were $82.130 million, down from $116 million in the same period in 2023[104] - Net cash used in operating activities was $271.7 million for the nine months ended September 30, 2024, compared to $352.9 million for the same period in 2023[126][127] - Interest income increased from $28.6 million for the nine months ended September 30, 2023 to $33.8 million for the nine months ended September 30, 2024, primarily due to higher investment returns on marketable securities[121] Research and Development - Research and development expenses decreased by 47% to $23.937 million for the three months ended September 30, 2024, from $44.848 million in the same period in 2023[111] - Research and development expenses decreased from $241.3 million for the nine months ended September 30, 2023 to $124.4 million for the nine months ended September 30, 2024, primarily due to a $48.2 million decrease in materials and consulting costs[113] Cash and Investments - As of September 30, 2024, the company had cash, cash equivalents, and restricted cash of $204.7 million and marketable securities of $539.2 million[124] - Net cash provided by investing activities was $116.4 million for the nine months ended September 30, 2024, consisting primarily of $729.4 million in proceeds from maturities and calls of marketable securities[128] - Net cash provided by financing activities was $106.3 million for the nine months ended September 30, 2024, primarily from net cash proceeds from the sale and issuance of common stock[130] Future Plans and Expectations - As of September 30, 2024, the company has reservations for approximately 700 future astronauts, representing approximately $194 million in expected future spaceflight revenue[98] - The company expects to commence commercial service with its new Delta Class spaceships in 2026[92] - The company anticipates deploying a new mothership for commercial service in 2028, supported by additional engineering resources and growth capital[100] - The company expects expenditures to increase as it scales up manufacturing processes and capabilities to support the expansion of its fleet of spaceships[132] - The company anticipates that costs to manufacture additional vehicles will begin to decrease as it continues to scale up manufacturing processes[133] Operational Developments - The company completed its second spaceflight of 2024, 'Galactic 07,' in June, carrying one researcher and three private astronauts[92] - The company completed a new manufacturing facility in Mesa, Arizona, with final assembly of Delta Class spaceships scheduled to begin in 2025[95] Compliance and Risk Management - Following a 1-for-20 reverse stock split, the company regained compliance with NYSE listing requirements on July 1, 2024[93] - No significant changes to critical accounting policies and estimates during the fiscal quarter ended September 30, 2024[143] - No significant changes to market risks compared to previous disclosures during the fiscal quarter ended September 30, 2024[145] Cost Management - Selling, general and administrative expenses decreased from $144.0 million for the nine months ended September 30, 2023 to $95.8 million for the nine months ended September 30, 2024, driven by a $30.7 million decrease in cash compensation and other employee benefit costs[116] - The company expects to meet its short-term liquidity requirements primarily through its cash, cash equivalents, and marketable securities on hand[138]

Topline United Airlines will be equipping its planes with free in-flight Wi-Fi using SpaceX's Starlink internet service next year, the airline announced Thursday, becoming the latest airline to offer complimentary internet service. WASHINGTON - AUGUST 16: A United Airlines aircraft passes by a Continental Airlines aircraft as it ... [+] taxis to takeoff from the runway of Ronald Reagan National Airport August 16, 2006 in Washington, DC. (Photo by Alex Wong/Getty Images) Getty Images Key Facts United will st ...

Virgin Galactic just sold tickets on its orbital flights at the highest prices ever. Shares of Virgin Galactic (SPCE 6.75%) have fallen about 90% during the past year, tumbling from a high of $65 a share to less than $7. The space stock enjoyed a bit of a bounce after the company on Aug. 7 delivered better-than-expected revenue results for the second quarter. But since then, the stock has retreated. Why is that? From $250,000 to infinity, and beyond It wasn't exactly "infinity." But the biggest single surpr ...

Shares of Virgin Galactic (SPCE) have gained 4.4% over the past four weeks to close the last trading session at $6.85, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $35.67 indicates a potential upside of 420.7%. The mean estimate comprises nine short-term price targets with a standard deviation of $30.04. While the lowest estimate of $6 indicates a 12.4% decline from the curre ...

Financial Performance - Virgin Galactic reported a quarterly loss of $4.36 per share, better than the Zacks Consensus Estimate of a loss of $5.40, and an improvement from a loss of $9.20 per share a year ago, representing an earnings surprise of 19.26% [1] - The company posted revenues of $4.22 million for the quarter ended June 2024, exceeding the Zacks Consensus Estimate by 20.57%, compared to revenues of $1.87 million in the same quarter last year [2] Stock Performance - Virgin Galactic shares have declined approximately 88.5% since the beginning of the year, contrasting with the S&P 500's gain of 9.9% [3] - The current Zacks Rank for Virgin Galactic is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is -$5.40 on revenues of $0.55 million, and for the current fiscal year, it is -$19.67 on revenues of $6.55 million [7] - The estimate revisions trend for Virgin Galactic is mixed, and future stock movements will depend on management's commentary during the earnings call [3][4] Industry Context - The Aerospace - Defense industry, to which Virgin Galactic belongs, is currently ranked in the top 23% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, Rocket Lab USA, Inc., is expected to report a quarterly loss of $0.10 per share, with revenues projected to increase by 72.8% year-over-year [9][10]