Author Topic: Virgin Orbit finances and possible listing  (Read 8883 times)

Online meekGee

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Re: Virgin Orbit finances and possible listing
« Reply #20 on: 08/14/2022 06:23 pm »
$-50m quarterly cash burn, $122m left, not much revenue to offset the cash burn.  And VO is modifying another 747. I would guess that the cost to launch would increase substantially soon.
They have $163m of binding orders so not to bad, just need to deliver.
That should be their corporate tagline.
Virgin Galactic maybe. But Virgin Orbit has managed their first 5 successful (consecutive) launches in the span of 18 months, with a sixth attempt coming soon. That's on pace to match Electron's first three years, which was one of the strongest LV debuts we've ever seen. Yes, they're more expensive than Electron for very similar performance, but the cadence is nothing to complain about. Falcon 9 took twice as long to launch five missions.

They should probably consider changing their name at this point. If our little community can misread Virgin Orbit's track record due to negative associations with the other Virgin aerospace venture, then the name is bad for business.
VG is waaaay beyond "need to deliver" land.  They have a dangerous dare-I-say-it non-viable design and no path forward.

VO is the prettier sister - a reasonable design for small payloads.  It is also expensive (like all smallsat launchers) and is not flying often in spite of having a manifest.  I suspect that even though their pricing is in the same ballpark as the competition, their costs are much higher, and they can't launch more often.  Ironically, they should get into "airline-like operations" mode...
« Last Edit: 08/14/2022 06:46 pm by meekGee »
ABCD - Always Be Counting Down

Offline FutureSpaceTourist

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Re: Virgin Orbit finances and possible listing
« Reply #21 on: 10/10/2022 08:18 pm »
https://twitter.com/sciguyspace/status/1579565405127217152

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A UK publication says Virgin Orbit raised less than half of the funding it sought during the SPAC process, may look to raise additional money.

https://www.cityam.com/virgin-orbit-opportunistic-on-the-market-as-it-eyes-on-new-fundraising/

Edit to add: here’s a Space News article from last December

https://spacenews.com/virgin-orbit-raises-far-less-than-expected-from-spac-merger/

« Last Edit: 10/10/2022 08:20 pm by FutureSpaceTourist »

Offline FutureSpaceTourist

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Re: Virgin Orbit finances and possible listing
« Reply #22 on: 11/07/2022 08:12 pm »
https://twitter.com/thesheetztweetz/status/1589726560533159936

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Virgin Orbit $VORB Q3 results

Adj. EBITDA: Loss of $42.9m (up 31% from 21Q3)
Revenue: $30.9m
Cash: $71.2m

Raised $25m via Virgin Group

https://investors.virginorbit.com/news-events/press-releases/detail/59/virgin-orbit-announces-third-quarter-2022-financial-results

Offline su27k

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Re: Virgin Orbit finances and possible listing
« Reply #23 on: 11/08/2022 02:42 am »
https://twitter.com/jeff_foust/status/1589728458216820738

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Virgin Orbit, which at the beginning of this year projected up to six launches this year, notes in the presentation for its quarterly financial results it’s now planning three, counting the upcoming UK launch. “4th launch paced by spacecraft readiness” https://d1io3yog0oux5.cloudfront.net/_c5d55b53cca22ea4149f090a678ed91b/virginorbit/db/2240/20727/earnings_presentation/Q3+2022+VORB+Earnings+Webcast_Final.pdf

Offline ParabolicSnark

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Re: Virgin Orbit finances and possible listing
« Reply #24 on: 11/09/2022 03:11 pm »
Those Q3 financials look pretty bleak, even if they do put adjectives like "strong" in there and compared it to quarters/years with no revenue.

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* Revenue of $30.9 million, compared to $0.0 million in third quarter 2021.
* Net loss of $43.6 million, compared to a net loss of $38.6 million in third quarter 2021.

So your cost of revenue was $74.5 million for the quarter - that's a $0.8 million/day burn rate. Admittedly, that's lower than I expected - probably a result of reduced development spends.

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* Cash and cash equivalents of $71.2 million as of September 30, 2022.
* Binding backlog agreements was approximately $143.1 million.

Given the burn rate, that $71.2 million gives you 89 days of runway without additional revenue. If they're able to complete *all* those contracts, that extends their runway by another 6 months. Given the launch price is about $12 million, that backlog represents the work of 12 open launch contracts.

Even if they get their launch rate to 6x/year in 2023 and they collect full payment of $12 million from the Cornwall launch (they like have half of it banked already for previous milestones), that only gets them to March 2023.

« Last Edit: 11/09/2022 03:11 pm by ParabolicSnark »

Offline ringsider

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Re: Virgin Orbit finances and possible listing
« Reply #25 on: 11/14/2022 10:33 pm »

Given the burn rate, that $71.2 million gives you 89 days of runway without additional revenue.


They announced those numbers for end of Q3 on 9/30/22, i.e. ~6 weeks ago, so they have already burned down about half that money.

That's probably why Virgin Group gave them an (emergency?) convertible loan of $25M on 11/4/22 according to the Q3 earnings results:



$25M is not very much, about 4 weeks of burn down. The 10Q contains this dire warning:

"We have not generated positive cash flows from operations or sufficient revenues to provide sufficient cash flows to enable us to finance our operations internally, and may not be able to raise sufficient capital to do so. As a result of the Company’s assessment of going concern considerations, management has determined that the liquidity condition raises substantial doubt about the Company’s ability to continue as a going concern."

And the news from UK is not encouraging; license delays and rumors circulating that the launch will push into 2023, so any revenue from that launch in Q4 looks increasingly unlikely.

With around 700 employees in CA, are there layoffs coming sometime soon?

Offline Tomness

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Re: Virgin Orbit finances and possible listing
« Reply #26 on: 11/15/2022 12:32 am »
Secret is they needed to Launch things biweekly or at least monthly since Q4 last year. Launch equals Revenue, just don't sell them at a loss.

Offline FutureSpaceTourist

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Re: Virgin Orbit finances and possible listing
« Reply #27 on: 11/23/2022 09:20 pm »
https://investors.virginorbit.com/news-events/press-releases/detail/60/virgin-orbit-announces-cessation-of-offering-process

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VIRGIN ORBIT ANNOUNCES CESSATION OF OFFERING PROCESS

NOVEMBER 23, 2022 4:05PM EST

LONG BEACH, Calif.--(BUSINESS WIRE)-- Virgin Orbit Holdings, Inc. (NASDAQ: VORB) (“Virgin Orbit” or the “Company”) today announced that it evaluated the possibility of conducting an offering of its securities. Due to current market conditions, the Company has elected not to proceed with an offering. Any future capital raising transactions will depend upon future market conditions.

Offline FutureSpaceTourist

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Re: Virgin Orbit finances and possible listing
« Reply #28 on: 11/29/2022 06:05 pm »
https://twitter.com/jeff_foust/status/1597667879029178370

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This decision doesn’t appear to affect other agreements VO has, like a $250M equity purchase agreement with Yorkville, so I’m not sure it’s as dire as some make it out to be.

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