Virgin Galactic Holdings, Inc. · NYSE:SPCE
Virgin Galactic — Q1 2022 Earnings Presentation
18 slides from Virgin Galactic's earnings presentation, May 5, 2022
Slide 1: First Quarter 2022 Earnings Update
FIRST QUARTER 2022 E A R N I N G S U P D AT E 05.05.2022
Slide 2: Disclosures
DISCLOSURES FORWARD-LOOKING STATEMENTS This presentation contains certain forward-looking statements within the meaning of federal securities laws with respect to Virgin Galactic Holdings, Inc. (the "Company"), including statements regarding the Company’s expected spaceship rollout, flight schedule
Slide 3: Michael Colglazier, CEO
MICHAEL COLGLAZIER CEO First Quarter 2022 Earnings Update 3
Slide 4: Agenda
AGENDA • Enhancement Program • Schedule • Future Fleet • Commercial Strategy • Financial Update First Quarter 2022 Earnings Update 4
Slide 5: Vehicle Enhancement Program
VEHICLE ENHANCEMENT PROGRAM • New pylon installed in April • Pylon design attaches to the mothership wing with a “4-point” design, rather than “3-point” • This is intended to increase durability and reliability “4-point” design rather than “3-point” First Quarter 2022 Earnings Update 5
Slide 6: Flight Update
FLIGHT UPDATE VSS UNITY VSS IMAGINE Est. Revenue Generating Spaceflights in Q1 2023 Est. Commercial Service in Q1 2023 Est. Commercial Service mid-2023 Estimated to fly 1x/month Estimated to fly 2x/month Once Unity and Imagine are both flying commercial spaceflights, we expect to fly to space ~3x/mo
Slide 7: Manufacturing Approach and Design Update
MANUFACTURING APPROACH AND DESIGN UPDATE • Designed for higher rate production • Maintain in-house design, engineering, and final assembly • Strategically leverage tier one suppliers for major sub- assemblies making production version of existing ship design First Quarter 2022 Earnings Update 7
Slide 8: Future Fleet Development – Supplier Update
FUTURE FLEET DEVELOPMENT – SUPPLIER UPDATE • Hosted supplier conference with tier-one and tier-two suppliers • RFIs issued • Identifying and onboarding suppliers First Quarter 2022 Earnings Update 8
Slide 9: Future Fleet – Digital Twin Technology
FUTURE FLEET – DIGITAL TWIN TECHNOLOGY Procurement 4 Mission Operations 6 2 Planning 3 5 • Digital twin architecture 1 Build & Test Sustaining Operations provides a digital Design database for each vehicle As Designed As Built As Maintained Model Model Model • It captures all system requirements, ph
Slide 10: Commercial Update
COMMERCIAL UPDATE Sales Customer Journey & Experience Building our Global Brand First Quarter 2022 Earnings Update 10
Slide 11: Q1 2022 Results
Q1 2022 RESULTS FIRST QUARTER Ended March 31, 2022 • Revenue of $310,000, compared to an immaterial amount in the prior year period • Operating expenses were $92 million, compared to $81 million in the prior year period • Net loss of $93 million, compared to $130 million in the prior year period • A
Slide 12: Q1 2022 Results: Free Cash Flow and Cash
Q1 2022 RESULTS CASH, CASH EQUIVALENTS, AND FREE CASH FLOW (1) MARKETABLE SECURITIES $1,400 • Q1 2022: $(68) million $1,200 $1.22 B (3) $1,000 $800 $931 M (2) • Q2 2022 Guidance: Expected to be in the $600 range of $(80) million to $(90) million $400 $200 $- Mar. 31, 2021 Mar. 31, 2022 1. Virgin Gal
Slide 13: First Quarter 2022 Earnings Update
First Quarter 2022 Earnings Update 13
Slide 14: Appendix
APPENDIX First Quarter 2022 Earnings Update 14
Slide 15: Reconciliation to Non-GAAP Measures
RECONCILIATION TO NON-GAAP MEASURES (Amounts in thousands) THREE MONTHS ENDED March 31, 2022 March 31, 2021 Net Loss $ (93,057) $ (129,694) Income tax expense (25) (43) Interest expense (2,474) (7) Depreciation & amortization 2,852 2,869 Stock-based compensation 10,895 22,111 Change in fair value of
Slide 16: Reconciliation to Non-GAAP Measures
RECONCILIATION TO NON-GAAP MEASURES (Amounts in thousands) THREE MONTHS ENDED March 31, 2022 March 31, 2021 Selling, general, and administrative expenses $ 37,007 $ 43,319 Stock-based compensation 7,277 18,038 Non-GAAP selling, general, $ 29,730 $ 25,281 administration expenses (Amounts in thousands
Slide 17: Reconciliation to Non-GAAP Measures
RECONCILIATION TO NON-GAAP MEASURES (Amounts in thousands) THREE MONTHS ENDED March 31, 2022 March 31, 2021 Net cash used in operating activities $ (66,051) $ (48,769) Capital expenditures (1,773) (819) Free cash flow (67,824) (49,588) First Quarter 2022 Earnings Update 17
Slide 18: Reconciliation to Non-GAAP Measures – Q2 2022 Guidance
RECONCILIATION TO NON-GAAP MEASURES – Q2 2022 GUIDANCE (Amounts in thousands) FORECASTED RANGE Net cash used in operating activities $ (78,000) – (86,000) Capital expenditures $ (2,000) – (4,000) Free cash flow $ (80,000) – (90,000) First Quarter 2022 Earnings Update 18
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