Virgin Galactic(US:SPCE)2024-11-06 21:46Revenue 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]