Virgin Galactic Nets Revenue Jumps 400% After First Commercial Space Flight

3rd Aug 2023
Virgin Galactic Nets Revenue Jumps 400% After First Commercial Space Flight

Virgin Galactic’s quarterly finance reports showed the space tourism company has bagged nearly $2 million after completing their first commercial space flight. For Q2 2023, Virgin Galactic reported significant increases in revenue and hefty net losses arising from two launches: a final test flight and their first commercial mission. Revenue reports are expected to continue their upward trend with Virgin Galactic’s next commercial space flight – Galactic 02 – set for 10th August, and their Delta Class fleet poised for 2026. 

In a statement, Michael Colglazier, Chief Executive Officer of Virgin Galactic said, “During the quarter, we successfully completed two spaceflights in two months.” Adding: “Our financial position remains strong, and we remain focused on scaling the business and delivering our Delta Class spaceships for commercial service in 2026.”

Net Losses For Q2

Virgin Galactic’s second-quarter losses showed slightly wider margins than compared to last year. The company reported a comparative net loss increase of $23.7 million – $134.4 million this year compared to $110.7 million last year. This increase is primarily due to expenditure on developing their forthcoming fleet of Delta-class space planes. However, the $450,000 ticket fee is expected to recoup these financial losses by generating around $2.1 million per flight in revenue.

Increased Revenue

Virgin Galactic secured $1.9 million in revenue during the quarter, with the space tourism company trumping last year’s revenue figures of $357,000. According to the report, this rise was: “driven by commercial spaceflight and membership fees related to future astronauts.” Virgin Galactic is expecting the third and fourth quarter of 2023 to be much of the same, hitting approximately $1 million in revenue. The company’s free cash flow is also sitting in a healthy position: in the region of $120 to $130 million. 

A Dip In Stock Prices

Virgin Galactic 01 Mission saw increases in revenue, however, stock prices still fell. Credit: Virgin Galactic

Virgin Galactic’s stock prices slipped during after-hours trading by 3% after closing the day at $4.14 per share. This dip comes after stock prices fell by 10% in late June despite successfully completing the Galactic 01 commercial mission. Nevertheless, Virgin Galactic’s stock prices remain strong and are up by 19% year-to-date regardless of recording net losses. 

Virgin Galactic also saw a rise in cash and securities at the end of quarter, totaling $980 million, compared to the $874 million reported during Q1 2023. The increase was a result of bringing funds through sales of common stock. 

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