Virgin Galactic reports net loss of $159 million in the first quarter.

Virgin Galactic Holdings, the space company has released details of its latest financial results, demonstrating a net loss for the company in the first quarter of 2023 $159 million, compared to a $93 million net loss in the same period last year. Virgin Galactic say this was primarily driven by investments related to the development of the future fleet and enhancements for the current fleet. The firm has a strong cash position, with cash, cash equivalents and marketable securities of $874 million as of March 31, 2023. Net cash used in operating activities totalled $136 million, compared to $66 million in the first quarter of 2022.  Cash paid for capital expenditures totalled $3 million, compared to $2 million in the first quarter of 2022.

Michael Colglazier, Chief Executive Officer of Virgin Galactic said, "We are excited to return to space with the 'Unity 25' mission planned for the end of May, and we are actively readying for commercial service to begin in late June. Concurrently, we are making steady progress on the development of our Delta Class spaceships, the driver of revenue growth and profitability in the business. Our strong cash position, combined with focused cost discipline and strategic investments in our growth initiatives, will enable our business to scale over the long-term."

VSS Unity’s successful glide flight on April 26, 2023, and earlier mated flight with VMS Eve, further validated the enhancements made to the ships during the modification period and cleared them for spaceflight.   On May 8, 2023, the Company announced a planned launch in late May for VSS Unity to return to space carrying Virgin Galactic mission specialists to conduct a final evaluation of the customer experience ahead of commencing commercial service.

VIRGIN GALACTIC HOLDINGS, INC. Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited; in thousands, except per share amounts)
		Three Months Ended March 31,
			2023				2022
Revenue		$	392			$	319
Operating expenses:
Customer experience			318				25
Selling, general and administrative			50,365				37,007
Research and development			109,870				51,827
Depreciation and amortization			3,245				2,852
Total operating expenses			163,798				91,711
Operating loss			(163,406	)			(91,392	)
Interest income			7,330				818
Interest expense			(3,211	)			(2,474	)
Other income, net			30				16
Loss before income taxes			(159,257	)			(93,032	)
Income tax expense			128				25
Net loss			(159,385	)			(93,057	)
Other comprehensive income (loss):
Foreign currency translation adjustment			35				(25	)
Unrealized income (loss) on marketable securities			3,101				(5,780	)
Total comprehensive loss		$	(156,249	)		$	(98,862	)
Net loss per share:
Basic and diluted		$	(0.57	)		$	(0.36	)
Weighted-average shares outstanding:
Basic and diluted			278,450				258,288

VIRGIN GALACTIC HOLDINGS, INC. Condensed Consolidated Balance Sheets (Unaudited; in thousands)
		March 31, 2023				December 31, 2022
Assets
Current assets:
Cash and cash equivalents		$	415,682			$	302,291
Restricted cash			40,408				40,336
Marketable securities, short-term			417,923				606,716
Inventories			22,170				24,043
Prepaid expenses and other current assets			23,608				28,228
Total current assets			919,791				1,001,614
Marketable securities, long-term			—				30,392
Property, plant and equipment, net			60,365				53,658
Other non-current assets			53,357				54,274
Total assets		$	1,033,513			$	1,139,938
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	25,597			$	16,326
Accrued liabilities			59,406				61,848
Customer deposits			102,078				102,647
Other current liabilities			3,749				3,232
Total current liabilities			190,830				184,053
Non-current liabilities:
Convertible senior notes, net			416,255				415,720
Other long-term liabilities			59,647				59,942
Total liabilities			666,732				659,715
Stockholders' Equity
Preferred stock			—				—
Common stock			28				28
Additional paid-in capital			2,154,123				2,111,316
Accumulated deficit			(1,783,180	)			(1,623,795	)
Accumulated other comprehensive loss			(4,190	)			(7,326	)
Total stockholders' equity			366,781				480,223
Total liabilities and stockholders' equity		$	1,033,513			$	1,139,938

VIRGIN GALACTIC HOLDINGS, INC. Condensed Consolidated Statements of Cash Flows (Unaudited; in thousands)
		Three Months Ended March 31,
			2023				2022
Cash flows from operating activities:
Net loss		$	(159,385	)		$	(93,057	)
Stock-based compensation			12,976				10,895
Depreciation and amortization			3,245				2,852
Amortization of debt issuance costs			535				403
Other non-cash items			(236	)			86
Change in operating assets and liabilities:
Inventories			1,873				201
Other current and non-current assets			5,721				2,282
Accounts payable and accrued liabilities			(297	)			1,126
Customer deposits			(569	)			9,228
Other current and long-term liabilities			68				(67	)
Net cash used in operating activities			(136,069	)			(66,051	)
Cash flows from investing activities:
Capital expenditures			(2,767	)			(1,773	)
Purchases of marketable securities			(83,287	)			(204,898	)
Proceeds from maturities and calls of marketable securities			305,791				—
Net cash provided by (used in) investing activities			219,737				(206,671	)
Cash flows from financing activities:
Payments of finance lease obligations			(59	)			(34	)
Proceeds from convertible senior notes			—				425,000
Debt issuance costs			—				(11,248	)
Purchase of capped call			—				(52,318	)
Proceeds from issuance of common stock			32,044				—
Proceeds from issuance of common stock pursuant to stock options exercised			—				49
Withholding taxes paid on behalf of employees on net settled stock-based awards			(1,870	)			(1,932	)
Transaction costs related to issuance of common stock			(320	)			—
Net cash provided by financing activities			29,795				359,517
Net increase in cash, cash equivalents and restricted cash			113,463				86,795
Cash, cash equivalents and restricted cash at beginning of period			342,627				550,030
Cash, cash equivalents and restricted cash at end of period		$	456,090			$	636,825
Cash and cash equivalents		$	415,682			$	601,464
Restricted cash			40,408				35,361
Cash, cash equivalents and restricted cash		$	456,090			$	636,825

Virgin Galactic is an aerospace and space travel company, pioneering human spaceflight for private individuals and researchers with its advanced air and space vehicles. It is developing a spaceflight system designed to connect the world to the love, wonder and awe created by space travel and to offer customers a transformative experience.