Virgin Galactic(US:SPCE)2021-08-06 04:20Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $94 million for Q2 2021, compared to a loss of $72 million in the same period of 2020, attributed to changes in the fair value of warrants and increased stock-based compensation [57] - Free cash flow was a use of $66 million, slightly higher than the prior guidance of approximately $60 million, primarily due to accelerated marketing expenses [54] - Cash and cash equivalents stood at over $1 billion at the end of Q2 2021, adjusted for proceeds from a recent equity offering [52] Business Line Data and Key Metrics Changes - Revenue generated in the quarter was $571,000, related to payloads flown on Unity 21 and technical milestones [55] - Total GAAP operating expenses increased to $74 million from $63 million in the prior year, mainly due to higher noncash stock-based compensation [56] Market Data and Key Metrics Changes - The Unity 22 flight garnered over 19 million viewers globally, indicating strong consumer interest and engagement [10][21] - The company has seen an influx of traffic to its website, with over 125,000 people from 190 countries donating to a nonprofit initiative related to space [22] Company Strategy and Development Direction - The company aims to operate a near-daily cadence of spaceflights from multiple locations worldwide, necessitating a significant increase in manufacturing capacity [48] - Plans to build a Delta Class of spaceships capable of turning around in one-week intervals are underway, alongside the development of a next-generation mothership [32][49] - The company is focused on enhancing the customer experience, creating a community for future astronauts, and building a campus for training and accommodations [43][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the significant untapped market for space tourism and the company's ability to attract space enthusiasts [11] - The company is focused on completing its flight test and enhancement programs, expanding its fleet, and capturing consumer demand [60] - Management acknowledged the ongoing pandemic as a potential risk factor but emphasized the robust plans in place for scaling operations [104] Other Important Information - The company plans to open ticket sales for private astronaut flights starting at $450,000 per seat, with additional offerings for families and full flight buyouts [13][25] - The Unity 23 flight is expected to take place in late September, focusing on microgravity research and professional astronaut training [29] Q&A Session Summary Question: What is the capital expense for building out the campus? - The company is in the design phase and has not disclosed specific costs yet, but it will align with the volume of people taken to space [66] Question: When should we expect the Delta Class ships to be ready for commercial service? - The Delta Class ships are crucial for ramping up operations, but specific timelines were not provided [71] Question: What factors will influence the decision for the next spaceport location? - The company will consider various global locations, focusing on unique experiences and community benefits [80] Question: What types of experiments fit within the microgravity experience? - The company aims to open a new market for human-tended microgravity research, which is significantly calmer and more accessible than traditional options [85] Question: How dynamic will the pricing be for tickets? - The starting price is set at $450,000, with a focus on value and repeat experiences for customers [95][100]