Michael Colglazier, Chief Executive Officer of Virgin Galactic said, “During the quarter, we successfully completed two spaceflights in two months, including the launch of commercial service in late June with a scientific research mission. Scheduled for next week, the 'Galactic 02' mission will deliver a transformative experience for our first private astronauts, and we expect to continue broadening access to space with monthly flights thereafter. Our financial position remains strong, and we remain focused on scaling the business and delivering our Delta Class spaceships for commercial service in 2026."
Second Quarter 2023 Financial Highlights
Cash position remains strong, with cash, cash equivalents and marketable securities of $980 million as of June 30, 2023, a sequential increase of $106 million from the first quarter of 2023.
Revenue of $2 million, compared to $0.4 million in the second quarter of 2022, driven by commercial spaceflight and membership fees related to future astronauts.
Net loss of $134 million, compared to a $111 million net loss in the second quarter of 2022, primarily driven by an increase in research and development expenses related to the development of the future fleet.
GAAP research and development expenses of $87 million, compared to $62 million in the second quarter of 2022, with the increase primarily driven by investments related to the development of our future fleet. Non-GAAP research and development expenses of $84 million in the second quarter of 2023, compared to $59 million in the second quarter of 2022.
GAAP selling, general and administrative expenses of $51 million, compared to $45 million in the second quarter of 2022. Non-GAAP selling, general and administrative expenses of $43 million in the second quarter of 2023, compared to $36 million in the second quarter of 2022.
Adjusted EBITDA totaled $(116) million, compared to $(93) million in the second quarter of 2022, primarily driven by an increase in research and development expenses.
Net cash used in operating activities totaled $125 million, compared to $87 million in the second quarter of 2022.
Cash paid for capital expenditures totaled $10 million, compared to $5 million in the second quarter of 2022.
Free cash flow totaled $(135) million, compared to $(91) million in the second quarter of 2022.
Generated $241 million in gross proceeds through the issuance of 55 million shares of common stock as part of the Company's at-the-market offering programs.
Recent Updates
On July 13, 2023, the Company announced a planned launch date of August 10, 2023 for the ‘Galactic 02’ mission.
On June 29, 2023, the Company completed its inaugural commercial spaceflight, ‘Galactic 01,' that carried 13 research payloads and three crew members from the Italian Air Force and the National Research Council of Italy.
On May 25, 2023, the Company completed the ‘Unity 25’ mission to space that carried four Virgin Galactic mission specialists to evaluate the end-to-end astronaut training and spaceflight experience prior to commencing commercial operations.
On June 22, 2023, the Company established a new at-the-market offering program to sell up to $400 million of the Company’s common stock. Through June 30, 2023, the Company generated $77 million in gross proceeds from the issuance of 17 million shares of common stock under this program.
Financial Guidance
The following forward-looking statements reflect our expectations for the second quarter and fiscal year 2023 as of August 1, 2023 and are subject to substantial uncertainty. Our results are based on assumptions that we believe to be reasonable as of this date, but may be materially affected by many factors, as discussed below in “Forward-Looking Statements.”
Revenue for each of the third and fourth quarter of 2023 is expected to be approximately $1M.
Free cash flow for each of the third and fourth quarter of 2023 is expected to be in the range of $(120) million to $(130) million.
