Virgin Galactic Holdings, Inc. · NYSE:SPCE
Virgin Galactic — Q4 2022 Earnings Presentation
15 slides from Virgin Galactic's earnings presentation, Feb 28, 2023
Slide 1: Fourth Quarter and Full Year 2022 Earnings Update
FOURTH QUARTER AND FULL YEAR 2022 EARNINGS UPDATE 2.28.2023 Fourth Quarter and Full Year 2022 Earnings Update 1 VMS Eve flying over Mojave on the February 27, 2023 relocation flight.
Slide 2: Disclosures
DISCLOSURES FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in S
Slide 3: Agenda
AGENDA • 2022 Overview • Commercial Readiness Efforts • Future Fleet Development • Financial Overview VSS UNITY showcasing its new livery at sunrise in Spaceport America, NM Fourth Quarter and Full Year 2022 Earnings Update 3
Slide 4: 2022 Overview
Final Assembly Factory – Phoenix, AZ 2022 OVERVIEW (expected 2024) VMS EVE Flight Frequency Enhancements HORIZONTAL STABILIZERS LAUNCH PYLON Site for Astronaut Campus – Sierra County, NM (expected 2026) Fourth Quarter and Full Year 2022 Earnings Update 4
Slide 5: 2023 Focus
2023 FOCUS COMMERCIAL SPACELINE OPERATIONS Spaceline Missions and Safety Spaceline Technical Operations Customer Operations Fourth Quarter and Full Year 2022 Earnings Update 55
Slide 6: Fourth Quarter and Full Year 2022 Earnings Update
Fourth Quarter and Full Year 2022 Earnings Update 66
Slide 7: 2022 Results
2022 RESULTS FOURTH QUARTER FULL YEAR Ended December 31, 2022 Ended December 31, 2022 • Revenue of $869,000, • Revenue of $2.3 million, compared to $141,000 in the prior year period compared to $3.3 million in the prior year period • Operating expenses were $154 million, • Operating expenses were $5
Slide 8: Cash Flow and Balance Sheet
CASH FLOW AND BALANCE SHEET CASH, CASH EQUIVALENTS, AND FREE CASH FLOW (1) MARKETABLE SECURITIES 1100 Q4 2022 1000 $980M (2) $931M (3) $(135) million . 900 800 Q1 2023 Guidance 700 Expected to be in the range of 600 $(135) million to $(145) million . 500 December 31, 2022 December 31, 2021 1. Virgin
Slide 9: 2023 Focus
2023 FOCUS COMMERCIAL SPACELINE OPERATIONS • Recurring flights of VMS Eve and VSS Unity • Continue to progress development of future fleet to scale business VSS UNITY and VMS EVE together at Spaceport America Fourth on February 27,Year Quarter and Full 2023 2022 Earnings Update 9
Slide 10: Appendix
APPENDIX Fourth Quarter and Full Year 2022 Earnings Update 10
Slide 11: Reconciliation to Non-GAAP Measures
RECONCILIATION TO NON-GAAP MEASURES (In thousands) THREE M ON THS EN DED December 31, 2022 December 31, 2021 Net Loss $ (150,820) $ (80,797) Income tax expense 529 5 Interest expense 3,206 6 Depreciation and amortization 3,117 2,883 Stock-based compensation 11,221 13,101 Adjusted EBITDA $ (132,747)
Slide 12: Reconciliation to Non-GAAP Measures
RECONCILIATION TO NON-GAAP MEASURES (In thousands) T H R EE MO NTH S E ND E D December 31, 2022 December 31, 2021 Selling, general and administrative expenses $ 47,298 $ 38,311 Stock-based compensation 7,887 9,177 Non-GAAP selling, general and $ 39,411 $ 29,134 administrative expenses (In thousands)
Slide 13: Reconciliation to Non-GAAP Measures
RECONCILIATION TO NON-GAAP MEASURES (In thousands) T H R EE MO NTH S E ND E D December 31, 2022 December 31, 2021 Net cash used in operating activities $ (131,242) $ (65,126) Capital expenditures (4,183) (2,183) Free cash flow (135,425) (67,309) Fourth Quarter and Full Year 2022 Earnings Update 13
Slide 14: Reconciliation to Non-GAAP Measures – Q1 2023 Guidance
RECONCILIATION TO NON-GAAP MEASURES – Q1 2023 GUIDANCE (In thousands) F O RECASTED R ANGE Net cash used in operating activities $ (127,000) – (133,000) Capital expenditures $ (8,000) – (12,000) Free cash flow $ (135,000) – (145,000) Fourth Quarter and Full Year 2022 Earnings Update 14
Slide 15: Fourth Quarter and Full Year 2022 Earnings Update
FOURTH QUARTER AND FULL YEAR 2022 EARNINGS UPDATE 2.28.2023
Virgin Galactic Holdings — Q4 2022 Earnings Presentation on 6ix