Virgin Galactic Holdings Inc. shares rose more than 3% late Tuesday after the space-tourism company reported a narrower quarterly loss and said that demand for its “one of a kind” space flights remains strong.
Virgin Galactic SPCE, -6.90% said it lost $81 million, or 31 cents a share, in the fourth quarter, compared with a loss of $104 million, or 44 cents a share, in the year-ago quarter.
“We remain on track and on schedule to complete our enhancement program and launch commercial service later this year,” Chief Executive Michael Colglazier said in a statement.
“Demand for our one-of-a-kind experience remains strong, and we are currently building our operations to accommodate our growing customer base,” he said.
Fourth Quarter 2021 Financial Highlights:
Cash position remains strong, with cash, cash equivalents, and marketable securities of approximately $931 million as of December 31, 2021. This does not reflect our recent fundraise.
GAAP selling, general, and administrative expenses of $40 million, compared to $33 million in the fourth quarter of 2020. Non‐GAAP selling, general and administrative expenses of $29 million in the fourth quarter of 2021, compared to $21 million in the fourth quarter of 2020.
GAAP research and development expenses of $42 million, compared to $41 million in the fourth quarter of 2020. Non‐GAAP research and development expenses of $36 million in the fourth quarter of 2021, compared to $38 million in the fourth quarter of 2020.
Adjusted EBITDA totaled $(65) million, compared to $(60) million in the fourth quarter of 2020.
Net loss of $81 million, compared to a $104 million net loss in the fourth quarter of 2020.
Ticket Sales Reopen
The commercial space company reopened ticket sales to the general public on Feb. 16. Sales had been closed since October after they were briefly opened following founder Richard Branson’s flight in July.
Virgin said it plans to have its first 1,000 customers on board at the start of commercial service later this year.
Ticket prices start at $450,000 per seat, above the previous price point of $250,000. It is unknown what rival Blue Origin is charging space passengers for their flights.
With the reopening of ticket sales, analysts would like to see an updated detailed flight schedule.
Shares of Virgin Galactic jumped 32% in trading to close at $10.74. The stock has been battered over the past 12 months, dropping 80%, with the company has delayed the beginning of commercial spaceflights to late this year.
Management Stepping down
While Virgin Galactic works to upgrade its space places, there was a shake-up within management in the run-up to earnings. Last week, chairman Chamath Palihapitiya announced he was stepping down to “focus on other public company board commitments.”
Palihapitiya was Virgin Galactic’s first chair and was instrumental in taking a special purpose acquisition company (SPAC) pubic in 2019.
SPACs took Wall Street by storm in 2020. The merger tactic provides companies a route to going public while bypassing much of the regulatory scrutiny of initial public offerings. The market’s SPAC fever has broken, although some of the vehicles remain popular with investors.
