Virgin Galactic (SPCE) Q2 2024 earnings summary

Executive summary

• Completed 'Galactic 07' mission, marking the end of Unity's operational phase and achieving record per seat revenue of $900,000.

• Accelerated Delta Class spaceship development, with construction finished on the Phoenix assembly facility and commercial service targeted for 2026.

• Customer experience and perceived value remain high, supporting premium pricing between $500,000 and $1 million per seat.

• Delta ships are expected to disrupt the cost structure of human spaceflight, enabling profitable growth and scale.

• Effected a 1-for-20 reverse stock split in June 2024, regaining NYSE compliance.

Financial highlights

• Q2 2024 revenue rose to $4.2 million, up from $1.9 million in Q2 2023, driven by commercial spaceflight and membership fees.

• Net loss narrowed to $93.8 million from $134.4 million year-over-year, mainly due to lower operating expenses.

• Operating expenses decreased to $106 million from $141 million year-over-year, with R&D at $41.5 million and SG&A at $33.9 million.

• Free cash flow was negative $114 million, an improvement from negative $135 million in Q2 2023.

• Cash, cash equivalents, and marketable securities totaled $821 million as of June 30, 2024.

Outlook and guidance

• Delta Class spaceships remain on schedule for commercial service in 2026.

• Q3 2024 free cash flow is projected between -$115 million and -$125 million.

• 2024 is expected to be the peak spending year, with cash burn peaking in Q4 2024/Q1 2025 before ramping down.

• Plans to expand fleet and spaceports globally, with a second spaceport potentially discussed in 2025 and a 4-5 year timeline for development.

• Recurring cost to manufacture each Delta Class spaceship estimated at $50–60 million after initial development.