Virgin Galactic says its quarterly loss expanded in Q4

on Feb 27, 2020
Updated: Mar 11, 2020
  • Virgin Galactic says its quarterly loss expanded in Q4.
  • Virgin Galactic posts $529,000 in revenue in the fourth quarter versus $800,000 reported in Q3.
  • Virgin announced a quarterly loss of $55 million (EBITDA) in Q4 versus $46.9 million expected.

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Virgin Galactic announced a greater quarterly loss in its financial results on Tuesday than previously estimated by the experts. On a positive note, however, the spaceflight company said its customers showed a greater interest in its future flights in the recent quarter.

In the conference call with the company’s shareholders following the Q4 earnings report, CEO George Whitesides was reported quoting that for fiscal 2020, Virgin Galactic is targeting safer flights as the primary goal rather than generating higher revenue. The company, he said, plans on giving Sir Richard Branson (founder of Virgin Galactic) a safe visit to space this year.  

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Virgin Galactic’s Performance In The Stock Market

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Virgin Galactic was reported to have closed Tuesday at $34.04 per share. In extending trading, however, the company lost another 5% in the stock market. All in all, Virgin Galactic saw a 0.7% decline in its stock on Tuesday. Later on Wednesday, however, the spaceflight firm extended its loss and closed at $28.75 that marks just under 150% gain in 2020 so far. Its performance in 2019, on the contrary, wasn’t as impressive with a less than 2% annual gain in the stock market.

As of Wednesday, Virgin Galactic has also started accepting deposits for its next batch of space flights. The company said that clients can reserve a ticket with a deposit of $1,000. Those with reservations, it added, will be offered the first chance to visit space once tickets are sold later in 2020. The fully-refundable $1,000 deposit, as per Virgin Galactic, will help a great deal in the identification of the clients that are most excited to get on board the next space flight. Virgin’s premium pricing strategy will be revealed later this year.

In his comment on Wednesday, CEO Whitesides also hinted at a higher price than $250,000 for the next batch of space flights.

Virgin Galactic’s Financial Performance In The Fourth Quarter

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Virgin Galactic announced a quarterly loss of $55 million (EBITDA) in the recent quarter versus $46.9 million estimated by FactSet. Its revenue in the fourth quarter was reported at $529,000 that came out significantly short of $800,000 noted in the third quarter.

Since December 2018, registrations of interest count to 7,957 in total. The count was capped at a much lower 3,557 registrations only three months ago. While targeting to be profitable in 2021, Virgin Galactic currently faced a $210.9 million of net loss in 2019. Since 2004, over $1 billion of investments have been made in Virgin Galactic.

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