Virgin Galactic's Q2 revenue falls short of Wall Street's estimates, with a loss of $134.4 million. The company remains optimistic about upcoming initiatives, including the launch of Galactic 02 and plans to deliver Delta Class spaceships by 2026.
Troy D. Hanson
August 02, 2023
Shares of Virgin Galactic Holdings Inc. fell in extended trading on Tuesday as the private space company reported second-quarter revenue that fell short of Wall Street's estimates.
Disappointing Q2 Performance
Virgin Galactic recorded sales of $1.871 million for the quarter, up from $357,000 in the same period last year. However, analysts surveyed by FactSet had projected revenue of $2.5 million.
The company reported a loss of $134.4 million, or 46 cents per share, in the second quarter, compared to a loss of $110.7 million, or 43 cents per share, in the same period last year. The FactSet consensus was for a loss of 51 cents per share.
Increase in Expenses
Virgin Galactic attributed its net loss primarily to an increase in research and development expenses related to the development of its future fleet. Despite this setback, the company remains optimistic about its upcoming initiatives.
Launch of Galactic 02
Virgin Galactic is targeting August 10 for the launch of its second commercial spaceflight, Galactic 02. This mission aims to deliver a transformative experience for the company's first private astronauts. Following this, Virgin Galactic plans to offer monthly flights to broaden access to space.
Looking ahead, Virgin Galactic expects revenue for the third and fourth quarters to be approximately $1 million each. CEO Michael Colglazier expressed confidence in the company's financial position and reaffirmed their commitment to scaling the business and delivering Delta Class spaceships for commercial service by 2026.