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Virgin Galactic Holdings (NYSE: SPCE) today announced its financial results for the fourth quarter and full year ended December 31, 2021 and provided a business update.

Earnings

The companies cash position remains strong, with cash, cash equivalents and marketable securities of approximately $931M as of December 31, 2021. These figures do not reflect the recent fundraise. GAAP selling, general and administrative expenses were $40M, compared to $33M in the fourth quarter of 2020. Non‐GAAP selling, general and administrative expenses of $29M in the fourth quarter of 2021, compared to $21M in the fourth quarter of 2020. GAAP research and development expenses of $42M, compared to $41M in the fourth quarter of 2020. Non‐GAAP research and development expenses of $36M in the fourth quarter of 2021, compared to $38M in the fourth quarter of 2020. Adjusted EBITDA totalled a loss of $65M, compared to $60M in the fourth quarter of 2020. Net loss for 2021 was $81M, compared to a $104M net loss in the fourth quarter of 2020.

The expected launch of private astronaut commercial services remains on track for Q4 2022.

The long road

The stock price has reacted well as the price has risen 14% since open. However, the price remains way down near all-time lows and 86% off highs. Growth is still out of favour, but this may be the start of a steady recovery. While the price is near initial IPO levels, the risk of more downside is low compared to the long term upside the space industry has.

AlphaPicks owns shares in Virgin Galactic. To buy crypto and shares, register here with our preferred partner, EToro.

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