Virgin Galactic (SPCE) 8 Nov 232023 Q3 Earnings call transcript

Good afternoon. My name is Sarah, and I will be your conference operator today. At this time, I would like to welcome everyone to Virgin Galactic's Third Quarter 2023 Earnings Conference Call. [Operator Instructions]I will now turn the call over to Mr. Eric Cerny, Vice President of Investor Relations.

you. Thank everyone. afternoon, Good Galactic's XXXX Virgin Conference Third to Earnings Quarter Call. Welcome

are: call Chief Chief with the Michael Financial me Ahrens, On Doug today Colglazier, and Executive Officer. Officer;

call Doug, prepared will Following Michael and from open remarks the for questions. we

press harbor today's are accompany disclaimer. website.Please Slide available that presentation the Relations remarks X Investor and of presentation our for Our release see will slide on our safe

from forward-looking result, may factors are time. please assumptions materially refer call, differ we made the cause make subject on to uncertainties, a about risk the based and filings current the today's to statements. in could statements certain and this information During call.For time These risks and more to on expectations as and factors uncertainties. company's made are to forward-looking risks Many these SEC events actual statements from

will to I during on specifically forward-looking You undue or discussed be disclaims are whether information, otherwise. of future Please obligation events that new now the statements, company statements earnings to reconciliation any put refer cautioned ahead. release call these update to a certain metrics.With metrics on non-GAAP the we to today's to as call. for a note also this of financial and Michael. may the result not reliance call, Go that non-GAAP our would financial like Please that, refer to over turn forward-looking

I'll headlines:First, the of industry.We're works demonstrated going our we to in important set call important a spaceflight everyone. has our ground suborbital with third afternoon, space on today, operating cover to adjustments in and key Good making basis. milestones travel a which, repeatable company lead the are on that near-term in the system Galactic several have X achieved with course we successfully quarter, combination lot some Virgin open define so model the

human I value our capital bring Delta cash our from crossover resources our the the enable restructuring including operating focus approximately more astronaut customer forward in We the economics announced shared our and spaceflight.Second, X been ships. program high insights Virgin and initial ships. from This experience customer an the our for is is in early unit Virgin from positive and has $X.X we the first expected an look are entire Delta that on and into generation.And completed built and astronauts, of product cash actions spaceship, end spaceship on exceeding specifically call.Turning under virgin of our advances potential unrivaled robust, billion, love ships class review will XXXX. to X overwhelmingly provides Xx planned, is to of each X during As the these unprecedented customers fourth, realizing new experiential will the enable Delta yesterday, of first near-term spaceflights of to we capacity today's will Unity. and our steady-state service our model, VSS company flights. discuss backlog expect achievement is Galactic fly experience enable program then marketable operations. progress time we in We'll positive behind we these our Galactic turn it.Third, up our securities to our experience We'll demand quarter of redirect months position our The being with This per and profit as Delta talk to our in ships Delta adjustments to our month I'll revenue with class expectations. meaningful, our about towards metric Galactic on into start overview sharing industry to Slide and the X. details breakthrough ships sufficient and headlines X forecast to agenda flow these

Finally, quarter financial results in the our greater detail. we'll of spending Delta program discuss share expected the and profile for

your on X. incredible planned. call mission prepared that the will community the monthly questions.Turning to success, open we our X are Slide future space Galactic graduating missions the Following an Since Each we call, cadence astronaut astronaut and was our remarks, had now customers Virgin our for we we last completed into from earnings community.

Our capture commonality meaning their The X. with. our following a X is experience Slide way.Moving our and point in this that to of for read though, today's the an and in I'll sliver have customers the spaceflight on they extremely just to astronauts of on has traveling quotes experience unique Virgin Galactic away been just space, customers are of of ways dramatically spaceflights, their motivation impacting that page background our X are that positive call. astronauts to their them from some come overall

any and feel. was wild another The And at my I first the my quote life, it and you explain." me thought Galactic astronaut, my of difficult level second better is were most my youngest It people that. day to it of our life. going knew kind sensational XX it "I from said, XX from who told going the then very of be. astronaut. the it to a you and experience best has to always was get to that, astronaut, be streams." it's is the was "I to a is, of life, and from exceeded a than "This it's been shared, you day knew Galactic The the things that when But have going can't most who always on experience shocked extraordinary

than more connected be. much you would You are expect to everything to so

a convert truly carry we part way company. our our experience of a their best the delivering for on lifetimes. initial starstruck"Vastly Based with a is that feedback, part customers still and our astronauts for to the Earth, ambassadors part part are into Universe, expectations incomparable those will them of a the of I'm ship, team, of was it a incredible, the of the exceeding like felt customers You

journey, the high will and very have We been overall customer early results the our X. exceeding to Slide continue to learn expectations.Moving but adjust

overall Our paying is off journey in people way and to the and astronaut's space focus the experience. the which on bring very we

awaiting X seat, Galactic an including drawn cabin training adjustments Our combined emotions of because with is has training space this away has process of of the natural and while of seats This have and their Unity experience spaceflight a release phase months customers. standout accomplishment the brilliance, completed. human for runway XX-minute setting and early Spaceport establishes the in with altitude been and flights light instructor place power the during paying will a differentiation to has boost ground-based experience, that objectives business its records The to tears New The the for a our made completely has climb turn We the took deep be new stunning motor earth opportunity program mothership, our attached The we incomparable we taken all astronauts the that customer Starting takes guests was our Mexico, training guide of rocket our XX, of facility open our State will time huge and Virgin where instructors build X to the valuable missions alike. X successfully advantage. hit been process. built of important habitat Delta up experience.Our and human that took within tremendous Galactic breath is spaceflights all from all, friends our on a to of and point. spaceflight to Unity's inform at off back view raw are astronaut and the experiential learnings impact stunning Unity program an that fact emotion, systems. return of been with magical by the land and the have incredible to observe and a proving space to beauty on it our to astronauts. is family the to It's smoothness reusable system the VSS note America primary the we demonstrate feature and and experience. for literally has spaceflight the showcase the same efficacy to with with value

who We powerful success been and a entire turnaround Virgin company, these call made through spaceship that.These of Galactic I'd benefits this teammates effort our Virgin The in accomplished to additional our times. credibility spaceflight have X. consistently plan collaborative of deliver increased our on like metrics, industry-leading built have fast have customer mothership possible.Moving has flights benefit we the to Slide and both our spaceflight. reusability Galactic airplane-based of work have incredible has of the out the but as demonstrated flights done mothership confidence from system, the clearly and

our regard, so spaceships step the time to it program ships, is X. or Delta the ship will industry; to on X that our also function clear focused which on goal in per that page, capacity.In per basis. flights revenue our metrics increase we per this with Slide to are Delta of to X, primary capability Slide fast table look flight referenced Taking on a RPF, why at unlock or be is FPM, month our makes Our a the next and turn a importance bring

potential to if revenues.As leads it of earlier flights and spaceship or $X.X million has an I experience, depending mix. the per million seats revenue flight current those Unity's are program. customers, showcase provide X a upon to per $X.X month product astronauts, Delta demonstrate average our flight for our to is Unity private system, modest of learnings around X, X at astronaut a of model, has our and our metrics Our objectives mentioned Unity, prices research flying X

competitive a the revenues. Our unities XX% cost to above relatively than is material seats X offerings, per ships month monthly flight modest Unity will more have Unity. with the flights Delta step surpassed support total

revenue flight week $XXX,XXX expectation ship at $X.X operation, which turning up Delta ships the per ships using of would X, million.With potential per Unity. XXx have our our $X.X month a makes per recent of Delta a steady monthly flight is metric $XXX,XXX a most current twice or seats, for revenue to that per Delta ship So research seat the Delta million in of pricing state for to

for generation, elements and Because plan, As a economic of high have $XX to service. more lifecycle generation generation, ship our VSS previously, we we and model as that ground-based shared bring engines. type the basis will ship each of Delta new or leapfrog vehicle around as used powerful past breakthrough production.Our directly into each support move Delta program to Imagine we to ships million to not class their And ship expect the the million steady we are $XX temperature capacity class fleet. cost of carbon-composite state Delta to XXX in revenue flights. be Delta and Delta a are space third VSS our ship Imagine we production to will our expect fourth choosing

continues we've to made of XXXX.The our being service milestones, Phoenix. factory XXXX program X Phoenix builds and class to have schedule, shows our top beginning in underway and already beginning advancing on ships flight-based Slide track through Delta in we image has with the arrive and factory is to out. Our started begin our come from Ground Bell on progress been well fit-out on spaceship and XXXX. to in interior and assemblies expect of testing begin is primary track key that will suppliers, on Qarbon, in spaceship Construction QX April midway Tooling to in major in revenue Delta laid with is XXXX. online

key build-out Delta test be test ships. We into our of verify durability making testing and will and this to our in infrastructure, This the and test accelerating XXXX. our factor we'll ground installation our in several of flight in program ships. investments has ability the Build-out infrastructure conducting continue and of longevity half and are of first a begun upfront is extensive

assets periods. incur will We important test for onetime during these expenses those

our configure The on Bird allow a controls, California, at new Copper X, seat systems known updated right. Slide avionics, our systems.As testing here flight asset County, design The can headquarters will first to cabin our design this shown is interior, underway engineering our the lower and along in including test Bird the as the on and Orange already with see and lower of the electrical in effort test mock-up. Copper of us is image you left

key amount to is our and mechanical will The systems flight a elements verify article ships Each Iron known us test as test.Moving to the turn enable be dedicated in our second Bird, our that driving of validating and Delta test improved performance well test an for Slide XX. the times of will needed Southern final and our and reduce it of and testing California system static also verifying as of designs. test systems time ground assembly, cycle these are as will located the

to and response this continue term environment, unrest as flow. to We capital in positive has reach our In actions Virgin rates taken persists existing to markets expands. geopolitical Galactic high sufficient interest is runway cash several ensure expect uncertainty near to important cash

As also defining new been parallel a work Virgin growth company X that pursuing streams. a has is industry, Galactic

Unity's Both of financial company Our technology as for have with flight near program. in deliver our reduce will quarterly these growth our our Spaceline been to term within Programs and XX that have remaining spaceline expected cadence platform Delta our consumes developing spaceship, the and while of while we our and both space said, Delta of execution company.That successful our fight the operations resources Unity's to demonstrating substantial This with and production monthly shifting by production ships, Galactic place is a Operations all critical to missions. areas teams spending necessitates net customer increasing space have a revenue move model:First, our efficient towards per X changes we will been been company's profitable decreasing missions. experience Unity will the the operating and around and take remaining Engineering class, to we is flight safe, teams this our cadence program. cadence growth planned are versus resources built our January a

seat revenue revenue to that greater and to per Galactic in an that revenue. in which the expect We the mix revenue Unity by XX driven Galactic approximately the This had per million, flight average the increase been the for in realized Xx in occupied third includes and part flight additional quarter. that of XX due part $X instructor is previously research than a is range by million $X.X astronaut customer to be

price. who flight the been become mid pausing seats interested have to seats customers have our $X price in are closer we space priced earlier to we participating making point at of premium in in These openings when we in Unity as available spaceflight they those are XXXX. Additionally, manifest, to spaceflight an be a than million $XXX,XXX.Second, available, will prior

XXXX during the process, teams final is of support be and up America again America fleet. are last total skilled our before our mid Spaceport as Flight New effort. provides have This on shared effort support manage our Mexico Delta of our to in So complete This Delta to highly us from expected mothership to spaceline we optimize allows the to our efficient, coincide our of start workforce. capital the can it the assembly first it and Delta cost timing spaceship next expenditures the mothership also to of work, the teams maintenance of operations timing which the allows better Spaceport allows teams engineering ships. the with the hands-on service. bulk testing and our us Test.Third, experience next pivoting moved for as operations Delta our in with technical ramp resequenced ships for ships to our flight to with time those will revenue build call, and invaluable turn Flights It

the motherships first We to Phoenix. enter the in coming additional next off will our service the of of XXXX, X support which line spaceships timing in expect

a Galactic, Spaceline. as President expertise NASA Virgin his execution of company into deep role and Our test will during and Eve the first existing following we expanded flow Mike revenue our from the ships performing both the meaningful take Galactic XXXX where their flight enhancement entire will support fourth, in cash Delta revenue program its is carry program, Moses, Delta will of positivity.And well Virgin X it of and mothership, program, focus and Eve, towards service on successful with

to entirety be our this engineering our service, exciting these to under with facing scale aligning company project into and will X readying bringing position operations first focus our quarter, our non-customer our adjustments our billion levels. $X.X cash development and We nearly technical cash to operating we entry These positivity on company service ships marketable of in near-term industry.With our Delta on on full our impacts to the team to to of lead and and and of flow into crossing continue fleet flow-positive securities have support be manifest staffing to operations, XXXX. end achieve cash adjustments Mike, a of flight our and plans, to and the model sufficient over production

on Regarding manifest seats minimal have carried. cadence, impacts, impact these with total and Unity's fewer will low changes flight astronaut

in Virgin early our support ways Virgin who our this manifest, the to plan subset size decision spaceline coworkers make in are to with excel talented, of areas.Our and to customers time at of has before will Internally unfortunate However and some have a achieving difficult part and our their flights. reduce professions our extension required it a their the staff teammates Galactic, are operations teams the us deeply of Galactic and that our at is purpose-driven friends. longer

to cash With our that wonder year, the across our mission, now, XXXX taking announced the approximately and ensure deliver actions Virgin let's the By to needed will we continues taking have yesterday, employees. space to call flow have follow.Doug, reach and with over place generations access been bringing with expect management who we of the existing the customer full-time headcount Galactic to to efforts restructuring resources you. customers along enter turn to to these base to the of positive on XXX

Thanks, everyone. afternoon, Michael. Good

operations economics. important results. remarks, information In some his Turning the to Michael about opening Page company's related and financial XX and provided our the

spaceline called operations trends I'd to some expect financial context near expense the relating term forward. long and additional share As and I'll like going outlook.First, to both category to term a our new follow-up, explain what

the quarter guidance the results financial third for quarter. the and provide fourth I'll review Second, for

production million with operating in sheet expenses. flow some fees. to of period, on million in expenses were membership expenses increase net $XX guidance the of $XXX by $XXX the in year period, million quarter to the prior our negative securities. and negative expenses expenses due remapping third lower second a certain decrease cash with million in plays and first outside billion, $XX built able capital projections then motherships, compared spaceships production balance from capitalized period. and were operating of the the I'll marketable operations.We were increase to Operations, quarter, be expenses. the from the about than to the with in more we that longer-term Note spaceline foresee equivalents, the R&D lower spending, our new cost million Free cash $XXX expense expenses economics has some $XXX period, to Delta or that period, shift cannot million will remapping attributable million expand Spaceline primarily how was and We loss a And certain expansion Slide overall Spaceline primarily during our negative SG&A. describe the closer in lower astronaut of into sequential some It our the be of of order commercial the R&D prior year what reported primarily operates fourth, the with We approximately operations to an million the compared $XXX and negative of to of million, was followed prior both income current of reflected the by attractive feasibility our in expectations better EBITDA revenue In system. period. cash spaceflights to somewhat timing XXXX. year to to were $XXX we million just totaled share million marketable cash, to as a represents. and rather previewed updated Third, $XX indicate expenses compared driven million Total space the in for assets the increase securities $XXX achievement the for spaceflight increase that path million but vendor Slide for the to the which assets discussion results. and our million important period Adjusted a Virgin the million, quarter an XX. at $X.X operations the I'll class previously in $XX compared third These of a in for fleet.Let's following in and utilize quarter.Turning is by $XX of million due to technological building were the look portfolio production third Spaceline to conducting an $X towards to our of of those $XXX positive on launch noncapitalizable at fiscal year capitalize provide Expense presentation to results million fixed Spaceline were with Operations the introduction third year returns along not a of earnings operations driven quarter compared XX. $XX cost of service, operations of operating we negative and August remapping presentation Galactic of our category, by category in $X.X generated does costs expense. of Free costs. spaceline At free as quarter, assets, driven in operations, recognized GAAP the of operations million vehicles, interpret as future million spaceline the expenses to taking expected vehicles. last compared $X $XX the such services.While came a $X spaceflights. prior must million to of and million year in unique approximately costs prior to company begun for start call compared payments.Moving I Spaceline flow that due spaceline expenses producers $XXX understand In is flow. spending $XXX end future commercial prior current the to our prior the SG&A year spaceline we primarily on vendor decrease interest of the cash recognize

During equity the offering to our $XXX quarter, Financial part we our proceeds Outlook. of program.Moving million in aftermarket and XX raised gross as Slide

the fourth October; in occurred expect we to X by XX, driven commercial quarter, be and For $X XX, week. Galactic Galactic which million, spaceflights; occurred approximately last which revenue primarily

Our and million. for between million $XX be $XX to capital expenditures are projected the quarter fourth

expect our to the the for tooling million the the that approximately and already third spaceships.We quarter a impacted effort charge over of will range in reduction construction of current double This both well realized and of reduction just which of restructuring provide account $X cost flow beginning mentioned $XXX I'd fourth to cash forecasted increase capital outlook. cost restructuring class $XX approximately Michael XXXX In we Phoenix, our expenditures payments to in assembly some our estimate of primarily as mentioned. as capital We that for with our to the be connection and to of in is quarter million approximately timing negative due the free relative around one-time quarter, base. quarter, vendor our facility financial for an Delta of expenditures, cost be $XXX first expect in the like underway, context annual million the spaceship longer-term million XXXX.Now to the of the favorably to building third

XX. Slide Let's move to

create to is business it to multiyear and initial system. began prove life consider our first model, out our our research cycle development clarity, spaceflight economic phase with For helpful and a

cadence our that have commercial Unity spaceship, monthly a and by We mothership with spaceflights regular on conducting demonstrated Eve. successfully

investment initial upfront on investment engineering to or mostly multiple deliver are we basis potential vehicle. production profit-generating class ongoing relatively continuing has such nonrecurring We factory predominantly period and additional significant a upfront period assets vehicles, Each are then and build our criteria XXx are on at which is these expected fixed to spaceships, costs of for have capacity produce NRE performance capital as a system. our the based and of spaceflight system.A have gone by cost available nonrecurring in low phase that namely the operating specified.Through to engineering of Delta followed revenue spending of spaceships, to the toward the spaceflight assets XXXX per expected vehicles, tooling of of a monthly expense the the vehicles to the are development as tied recurring a

As we be engineering these development achieve class costs Delta to certain of the the vehicles milestones in begin in XXXX, capitalized.

in guidance assets, specific XXXX.While sub-assemblies, fixed that such will cash we're for factory, are growth. we expected primarily addition, our space-up CapEx This chart illustrative as multiple assembly assets, drive the is chart giving purposes, test to not spaceport tooling, in and investing shift is how years. In this facilities for future spending shows to flow

structure. reduce of current to XXXX spaceline and to going future of forward. in operating operations the end You can headcount to and in slight decrease XXXX. we generally front of our expense to see in reduced level.Other Spending will compared is that more cadence revenue that discussed cost spending of because footprint spending that taking the spending to expenses the reductions weighted meaningfully our Because Earlier, below streamlining X-year XXXX our we're the enable planned be growth. average for forecasted expected XXXX actions is be lower CapEx our our investments fixed assets contribute to

class sheet approximately $X.X completion our Delta reduce we paved the expected Given with to way in strength to cash, marketable the with to like with XXXX now securities spending, our flow insights capital.I'd of and of upon billion our the available, about in provide economics cash cash positive free have future balance our spaceships. more equivalents, the combined actions existing

strong along on returns. growth drive flow breakeven and top shareholder shown By X as the XX%. call, to We our XX. a previous phase, the capitalize milestone margin on contribution growth clearly exceed to cash XXXX, line offering from mentioned journey, is cash-positive Page our intend entering chart we on be we our spaceflight to the While project that to we on expect product unique high-margin

anticipate inflows this profile, point, cost $XX we free million we we we this cash will exceed to spaceflights our service. expect Given cross a are investments Delta $XX capacity when cash spaceships margin the projected manufacturing will over to X in XXXX, by base.Importantly, in have have class incremental to from Delta at million that ships in upfront At we XXXX, of overall to positive cost produce flow completed each.

Given the less payback expected added that fleet. our to each than period vehicle expect we flight we a months of rate and these new capacity revenue ships, for X of

also to motherships the required of accommodate Additional expanded fleet be spaceships. will

economics, positive expected and equivalents focused of billion compelling cash cash is mentioned spaceships.As we the free marketable achieve to our delivery on of $X.X Delta Given be securities, these flow. are class balance earlier, to singularly sufficient cash,

management, comments. necessary order While in not or at-the-market support further some we assets additional We intend call in accessing which like for project Michael current cost the motherships, approximately a sheet. cash strengthen mitigating sufficient million we to achieve would generating revenue utilize left with capital meet back are risk the that, required to balance To capital Delta associated equity to the to in closing summarize, to further class investment to with the build additional our assets we objectives. the the free near hand I'll focus ships have on our offering, term, markets on revenue-generating $XXX longer-term flow.With positive

positivity associated VSS we With system and up cross works To cash ships ships Delta is prioritize to expectations. exceeding the of marketable basis, steady-state tightly balance bring we to repeatable bring our service.Our to Delta expected X delivering while against greater cash into Unity. expenditures billion to Doug. experience our capacity the reducing $X.X as sufficient we call, than astronaut with in is the from approximately recap today's end-of-quarter our new Delta program VSS Unity, and XXXX be X flow XXx expect of securities into Delta high key these flying on first Thanks, very spaceflight and service resources as a first our items each manage ship revenue into

these model, of All steady-state. which at support and our factors generative is highly cash business profitable

high work of the to incremental are While fans relatively capacity And thank investment.I'd contribution to have for meaningful, our as each I'd ships. to across long needs also double be work the like and and teammates and are to digit sincerely costs for the felt ticket the term. costs lives friends the our the company Galactic CapEx high leverage, will our recognizing loss as ensure our modest upfront expand been given to our spaceport is prices coworkers. delivering, thank and relatively low, future that ways bring for on and margins, spending to they shareholders, capital our their are fleet like relation part support for expected return our while Virgin some high ongoing in operating of company's excellent customers, incredible long we with we Variable

placing all and and executing are we stepping we'll questions. Q&A on safely, We to of begin focus Delta program.With portion successfully Operator, forward efficiently, ready the that, call. the turn the now, to are

with the comes Matt line question Akers of [Operator first Your Instructions] from Wells Fargo.

years? that done Eric more Could discuss there is the you details milestones or out the far? this for plans of This Yan next around you so Delta updates couple Matt. to works on if you've And are year for any laid

Eric. Sure,

much first remarks, we've we've our that on prepared particular as from done learnings of advantage monthly begun out is a we're a spaceflight going we In our way.We've in primarily our Unity flying of we're rate, in from them. of different that to along those the have basis that, the through a shifts shared that all designing assets and also systems, we've the designs the test the into are the taking Delta verify we the process system see adapting turn clearly learned plan, year benefits our system. test has from churn on the things that lot this building This been improved working transitioning Delta also carbon-composite build to for I building executing about asset and think, confirm us designs led process. That in times schedule. initial to big design is part on a the

software of way. parts those companies of And we the are you the with initial have us, the will X we be to so particular as our in do our working the be You to in around same the actually off assembly the a final our begun, Iron it's platform our in we fabrication us in using will Bird, started those ships to going and that's and then year, happen factory they line quarter occupy the been the April partners with parts Page out put probably that spaceship tools, majority of are spaceship efforts will along referencing Phoenix of Bell think then that but to see done.If own shell year XXXX, Bell this and building parts with coming core the that in first has ships. image end then and bring our and next interwoven I tooling building can from factory the Bird up. interior factory, plan Copper systems somewhere tightly an of starting the of and We've attachment, done, heard begin Textron, these the that in partners, in Qarbon, the the build already all systems closely key do those we're that

as flight shared tracking the and XXXX, path 'XX testing in So putting service that's to these previously our us in all puts and into on that revenue

Okay. That's have the or it in Also on the like specific very a Delta you Is to wanted Got more ask year? if now? helpful. timing half first the later it. launch more

power without but power as call Flight captive testing. we're start to today, space. to say start Nothing releasing they'll more specific we'll flight XXXX I will see we flying the do them include, you're flight, up will we then going glide we move carry test what for the they'll where flights then rockets, towards in call to flights, with of and what our

that all XXXX. So be happening seeing in you'll

with Greg from of question the line Your next Konrad Jefferies. comes

in Unity to I mid flight in introduction I you into activity XX and and one question, the mentioned Just of start flights is the with XXXX? between about And flight? be think mean to there Delta mid XXXX XX, going talked Galactic you service and commercial XXXX pausing is XX any Unity clarification last

getting we've we model incredible the new as about, Unity line familiar are safety, electric and what and a you color demonstrate kind the vehicle flight repeat industry whether success And fact never we ships people startup Obviously, to really customer doing. have chance Unity to can showcase is are them. both to similar, what are something work, unlike human flying reasons Because a on for Yes, of had citizens had that business importantly, with or how this private just that experience. the more space do. we're is the the something are sharing the chance business the

we that, consumptive do very Unity is it but it. So all resource demonstrating as is

move, of ships big and with both done here of market standpoint. skilled very XX technical and that the we're around January team is we're then cash of better the doing into our be in resources will spending second we the really quarterly that you to redirecting risk side pivoting the in on with or ships, do put engineers. that cost part the been before whether want we're earlier XX Unity to the over is have move So we'll table.So and fly off as operations we And not that the the are to making when process Mexico, hand, probably XX we're are -- is flights our New being from allows our that, reduce when it's have moving of on build and them Unity Delta timing it, to kind quarter. get doing us go take Galactic a and them -- continue do we'll We to we and know a Galactic we teams because as do we we the Delta Galactic specific the of it

And service.So the third allows ramp teams that will at with we tail as experience third of us or not. little as of on of depend of along the the that them will more Unity up starts, fly quarter, beginning building into tail-end these the So we whether the incremental or it say maintain have aren't help whether up that importance end hands really to them the rate the XX I'd or as or upon a folks the Galactic quarter the and beginning ramping bring later quarter second will way. quickly many it our ships we to

today, ships, the to for need going not as value with these going we're will make those a call after and that. Delta after attention whether of or that's it's we Delta team that economic pause drive we drive because then put XX we where on Unity the let program So building our XX company. And and to to will take we're members the

remember think got month cadence? I sense. kind correctly. Xx or per flight makes there comfortable Delta, on you you the of previously That talked that weekly flights maybe with about I What's if expected And then changed higher

bi team do weekly. weekly, be been My Yes. we've to talking week be engineers on our -- But basis. able really twice Previously, that. a on to will internally to we the turn should had direction work these a

that it's And specifically flight.Now, that dialed to flights between cadence, really so, us important built in. X as just very the is in and our and X the do the months designs. the first that piece less been are And designs that enabling progression operating have that's informed each we've of Unity through gone

put that in we don't of the of flights. way been we've it validated the to to work engineers what flights, ships and Unity Our our And they has flights. exactly doesn't That while those like that technical would shows systems, happens have a we in know turn Unity, between design built things work the require. operations to on the learned teams that and specificity be are that they're on the teams so engineer out work the also side, Delta exactly going that that pros design between because maintenance to we as kind of doing

average these to We're talking our Copper flights that. going helpful.And I'm Xx on of you what super putting really the Xx operations way. in designs test when on We're able our super, going month with systems the to validating flight technical about us been Deltas collaborative wait the for lets the our that do that's until not speak we in we're So static to Bird test that way and have kind or it's and be proud test week validate article what been with Bird get articles that heard us confidence to steady-state. engineers then, a a to a teams all along effort have delivered, Iron here. of

I first spaceport XX a each so in spaceport? each a one or about sneaking mean year maybe mean planning flights just thinking of you've in. Delta. for up and talked then you I you capacity about And to are spaceships thinking how the many past last second? I about XxXX, think, for fill for the start kind one just XXX, How

Yes.

great a up point. bringing You're

time great XXX turn of doing X available so, of to each every need spaceship benefit a a that's kind those has steady-state we're probably X, to start of right? got see would right? And on Delta, always we'll as a about what needed on just at probably we've spaceport, the objectives confidence on So X With with flights able X to being round how do we need with the in for this spaceport.And in reducing year the amount now and you do CapEx side. add something put in, with kind and a that's we fifth, basis,

of rates that the year. a out an on be Xx giving the average. a more overhaul, take take month, We'll like a month the a in I'm aerospace will of you of a average We overhaul, month I'm would annual vehicles. XX-ish like intensive sure, year. as see monthly type will year year other you But

little hopefully, that. on bit gives that So of you perspective a

of question from Myles Research. with the line comes Walton next Wolfe Your

pick where maybe. to hoping off was I up that left

sort get OPTEMPO. breakeven getting you're How the assumed you As high cash very, that OPTEMPO flow to in going this to into of XXXX have analysis? and quickly you very

to We're ourselves out. ships time giving XXXX new sort in

given monthly of out technical of gate. monthly the modeling, the a teams. type much of ground internal gone talked have this our assets before about. flights to on ground In several we were through year right the ourselves we skill up. We've our Now test half extensive year, a we'd we've a pretty and we're hit in operations I with and would ramp of and giving note test flight hit the test we ourselves work, cadence whole cadence sure if kind that a Unity,

this it's to So I'm conservative be quickly they'll as but very we that as and moving proud and we that think point. prudent be team, impressed with at can,

ask make obviously, run to to Okay. And has is so the business I one is $X.X -- get not billion the just not understand without I cash require sure the want hand, to what this been you company positivity. cash Is on is flow there, about without to another hand? it? the CapEx to of a and Or way here cash costs is thinking from on to that million get just $X.X basically normal level operating to

likely Yes. to tap to into the mentioned, $XXX don't This is get timeframe. need some in term Doug. sufficient ATM, would we Yes, at point, we we And of million, any what's there. near the remaining

we out XXXX. balance foresee haven't cash positivity to So cash like to put there, get a minimum but by flow is sufficient the we through billion that $X.X

that context of often look do time One we to to you is will how want runway hand. say much have on thing, add probably Myles, I'd to that,

out of XXXX, assets overall things. in. through in into the it's this factory. test cost is into infrastructure XXXX through of the out the we the infrastructure through We're the We've and upfront all move sorts We're the upfront We're all footprint go all and nonrecurring been. less also much As the the company At point, of engineering, than going. through built we all get are tooling and engineering. got chain supply

point in behind are lighter us costs time footprint. And a and so of we're at those all at that

cash us less on from in you may So hand seen have need past. is the than for the

XXXX. And the second just one, The in you're you enters one. planning one other mothership said,

mothership? the is you flights obviously, progress you've is what actually on on of many how of status in terms you think, can made on pretty Delta? more current flights us I limitations remind Can the restrictive of good of achieve. that, the the What's status the because mothership

able we the around as our first Eve and is X and be that. able Eve we to Unity, turn So feel the or flights spaceflights and airplane keep week an mothership, with on in Unity up fly is a we'll more to Eve quickly, do bottleneck with Eve -- Eve, system. as Unity can't

that some be bring probably of Eve board. you [ into Deltas we if the opportunity there's X will factor generally as above Eve. But with the So first on we look think go ], means constraining kind to

So that by cadence Deltas a out, also balances week to on out alone. them Eve probably that balance X as twice they'll of with learning turn we're having out the

Your line Michael from of with Markets. next comes Leshock question the KeyBanc Capital

about on to start fleet, has and you X that or to cadence successful just and capabilities. some flight in thinking in ask influenced of I service how the Unity wanted versus differently design technical really several had flights. of now, now are or class ago that commercial we're I class time Delta you've Delta asking terms maybe for X months production how wanted

initially expected? Xx but anything right than You month now, had have flight that's the a different what else we

entire But go the for bode having the forward. having of rewarding never The fantastic. the in had chance majority super flights this a it's very meaningful. to very, contemplated to been value the of us experience company. here talk will few that I've is It's been as think people astronauts flown. I who have an we Sure. And is We wise, meaningful. the business I've have a for put quotes that well incredibly to just that and today. that's very

scattered of the see planet down. the the out that a the heavier Delta change, and mirrored peripheral being cabin. ship like love the doors outside in the Unity we the that bottom of the All generally in fantastic, to as Unity way through, and to the be French The of those and ships as all cabin is you're forward.We is looking able interior design carry vision ships.Now things been space. our has and has flip becomes amazing into above we we right? around collection to Delta laid want will back. your kind able than out. and glass forward way have be. the vast expanse kind sides use this see the is of on carried It almost the are the will would love like, boat element love I ceiling We Unity So windows the of that. a delivering on lot Unity is it love things There the that are will We of

what's And so Deltas, of capacity come course, system, along out really that. to update that's driving X the Engineering way. changing the as the on the you're the work We're side of the the for elements Delta. composite we with of majority seats, XX% will system so adding the And parts

able of is in not before. then, where turn our than be week confirming charge to to have as a they design, these is we've standpoint, where of they on been much we've than So to credit we They're what Engineer our for Delta able is, before. had really be against. advanced charge kind that pivot ask they And different kind deliver to basis. I'd you different been me, as for extra a what twice them From should ships me just delivering are

more in all so we that going that a by our the But with and today.There that I flight. is on very of biggest to it compelling why I'd can takes specifically we're things on that's specifically. that's how we've say, by month we're and We learning Unity flight, need know we you to the test, what much this things those sharing So, and smaller very design and target type quickly. to verify by month call comfortable around things understanding so that picked, that's don't things here do it turn of those feeling basis, this are value turn that we're think flight

increase per wanted cash private you Or flights versus number? terms you given astronaut research get of mix positive to on in research your Would And the are just free before XX% you flights. I flow then, ask still that to look flight? revenue targeting more higher research to

Yes.

to -- have, mix cost we future, commercially XX%. incredibly I've Gerardi, pleased this been with important. Kellie benefit It's of think, benefits going I and a powerfully our is speaking research. be of been flights. about for listening the Alan I'd term commercially both is while the cadence our Italians, long have we have very this, for the the our early say reasonable and be to -- the in to researchers; very And Stern

-- closer we offering to that that manifest, of at per into of market $XXX,XXX.And we're very customers. a combine it's leaning in per than think on the we you're the are I that.One pricing become market in kind things research where of lean through rate, is meaningfully revenue the mentioned, XX, the we've a been all to seat things pointed in if also our mix of of seat as those our for I place come out seats we've have going moving kind mix And XX be that So so, in, been and million has patient. clearly versus early leaning last rate. When revenue those Deltas, the a existing Galactic kind kind seen a seeing course, and we of we'd want what flights, in to into heavily up Galactic $X the X had we flight the higher of based into had flight. has available has They've to

work in reasonable maintain that efforts we'll use coming position, mix We got a positive all to so commercially a the profitable have balance with to to sure also cash the make to we've and revenue out.

of comes Your question Cowen. line TD the Oliver from with Chen next

there's Doug, as cost. a margin and the on of class well very as helpful Delta Michael lot information contribution

there customer as innovate it customer personalization major upside potential?And contribution and as to are then continue earlier of flight? on sounded well. XX% lifetime of terms ahead that your what in a terms great articulate you customers of any there's experience sensitivities as the enhance On lot the the like as value continue Michael, think you thoughts in experience, margin, thoughts some or the retaining downside And What would of commercially? the you to

Oliver, take this Doug. question. first I'll the is

we into the items much margin, contribution to structure, flying, right? flight. we good know that the So, the a in have costs line sight regarding are consumed it of We already or purchase the build get how because cost

got has more time. So, cost revenue variable we'll is over it drive that of item And in something that and Michael other -- stuff the can things of there astronaut and continue research rocket fuel part efficiencies and that about we depending to flight. variety. motor ticket the the mix have occur we've things.The is -- talked -- the per in of there of manifest pricing on the we or there variation mixed the the and sort That any or standard can see the the some like some

we more you because that $XXX,XXX per downside, when gave XX% that was using that some I'd upside So, there's in ticket than say a price.

upside indicated what we've So, based today seeing there today that the on we're that there's flights coming. are and

upside say I'd downside in more So, that metric. than

to the for Oliver, we information everyone tried today. notes, thanks forward And bring for have good

to value will are Spaceport thing, kind is of retaining some But of we or here. going themselves others They as move value into has worth so it. spaceports.The America move to and at of as those talking think want all is, repeat of customers has those. our are way, -- to we been we've the -- future retaining it community, course. people, astronaut bode And what I'll and think, that group, try and in the the about second, their hard from of been those of people how experience of been and and and a but this is over friends that astronauts kind it direct not they now talked hit they'll to pleased, You to It's learning describe opportunities, people, in to just repeat then I that who experience that, experience repeat. about to graduating long to like lifetime other of future other all help so I share want the value powerful want some they're as so so happy

So, is spaceflights that event around these is X moment what these the learned spaceflights. and last happening in we've the

So, It's opened kind currently, It's There's goes happening. that. celebration it is these with emotional, just fun. are of there's family it's our to and that up of friends -- ceremony are and the who and astronauts flying of course, meaningful.

just this the where side. to that's individual I'll going in company an the of gets keep to an value what hope event, spaceports is, because open it, I'll bigger we ambassador some, hoping more our this call people to forward. I really person, That's not that's customer, ancillary That but next come to us. there's become have it And are is friends them is so, your or a is somebody, witness is get goes to where have to viewing like a is meaningful multiplicative get even in revenue get people of when into around convert to the and that. it watch.But best then we direct then to only it, forward. want and much as out new we at had and chance bringing value level a to move [ a have missionary probably opportunity ] compelling bit, experience It up meaningful those you you've And passionate people for very depth lifetime watch, to our super coming call just you piece this. as emotion of this. to also And about the see do to the bringing the friend easier you friends and through watch and chance And your that family community.So those then, member you

company. astronaut to to value Virgin driving going people of those, the course, value how to for As look but additional the we Galactic we curate graduate also, into astronauts, are that now community, absolutely to

So to very passionate group that to lot like allegiance build we a up, have of we're but deep can the of with starting and a I of just people community kind and what that. interest company engagement of high do

terms of and past, you're open money. what is What's flexible what with well? Last Okay. factory mid disruptions, supply availability spaceship chain timing track ahead and and in and course, the in there time that That's I is the really innovative. using as and to were of mean question, helpful see current the with arrangements environment XXXX. in in and also cost you on of terms that And you're cushion the enough monitoring? in the

chain on are these of and the not out of things we a our I'll whackable of design, of that's long our having design items big lead team more it's now, by bit And what when groups than that call in the a brand-new we've things there's Delta are be little those program the those the going management lead with we've scanning the derivative design it engineers up. per pop got long thing so we team, items a but a done we And whack the on a know work and se supply derivative down side past, see thing, are. this, that, So pros. course,

as really time out out leaders adapting Bell Qarbon, searching incredibly seasoned responsive, And we to need to.We're some they've see and so, to with partners we've the in team be members to spaceflights. of got bring and their been and we've started our working

effort. teams value think build our that really well there helps part as us doing so of important and of that feel kind of it's a and cultural the part those and huge emotion I of team collective feel this, the momentum it's

aerospace I feel And are our there's up, focus going continue right to this we've we on schedules good to day-by-day, into the got popping week-by-week, that project, is buffers the -- that plans month-by-month that. things and but team we're and So an right built always and and the on manage them. right

conclude call. thank There this will This further at joining. are time. for no you questions We conference today's

now You may your disconnect lines.