Virgin Galactic Holdings Inc. shares experienced a surge in the after-hours session on Wednesday after the space-tourism company announced a narrowing of its quarterly loss and a significant increase in revenue.
Improvements in Financial Performance
In the third quarter, Virgin Galactic reduced its losses to $105 million, or 28 cents a share, compared to $146 million, or 55 cents a share, in the same period last year. This improvement can be attributed to lower operating expenses and a rise in interest income.
The company reported a substantial revenue growth, reaching $1.73 million in the most recent quarter, compared to $767,000 in the third quarter of 2022. The increase in revenue can be attributed to income generated from commercial spaceflights and membership fees paid by future space tourists and astronauts.
Looking ahead to the current quarter, Virgin Galactic provided a higher-than-expected revenue forecast, although it acknowledged the uncertainty that lies ahead. Despite this, Chief Executive Michael Colglazier expressed confidence in the company’s achievements, stating, “With six spaceflights successfully completed in under six months, Virgin Galactic has demonstrated the repeatability of our spaceflight system and also showcased the overwhelmingly positive experience of our astronauts.”
Robust Cash Position and Future Plans
Virgin Galactic assured investors that its cash position remains strong, with $1.1 billion in cash and equivalents as of September 30th.
The company also provided an update on its future plans. The Galactic 06 spaceflight mission is scheduled for January, while the spaceship factory in Phoenix, Ariz., is set to open in mid-2024. Moreover, Virgin Galactic reaffirmed that the production schedule for the new Delta Class spaceship remains on track, with plans for revenue service in 2026.
In order to focus on the Delta spacecraft, Virgin Galactic announced layoffs on Tuesday.
Overall, Virgin Galactic’s improved financial performance and positive outlook suggest promising developments ahead for the space tourism company.