US spaceflight company Virgin Galactic Holdings Inc (NYSE:SPCE) took a nosedive in pre-market US trades, dipping 8% following the group’s second-quarter earnings update.
Despite the tepid investor reaction, Virgin Galactic actually posted US$2 million worth of revenues, a strong number for a group that rarely brings in anything.
This was due to the first commercial spaceflight taking off in June, carrying 13 research payloads and three crew members from the Italian Air Force and the National Research Council of Italy.
As of June 30, 2023, the company maintained a strong cash position, holding US$980 million in cash, cash equivalents, and marketable securities, representing a sequential increase of US$106 million.
However, the company faced a net loss of US$134 million in the latest quarter, compared to a US$111 million loss in the same period of 2022, primarily attributed to higher research and development expenses related to future fleet development.
Furthermore, net cash used in operating activities amounted to US$125 million, higher than the US$87 million in the second quarter of 2022, and capital expenditures rose to US$10 million from US$5 million, resulting in a free cash flow of -US$135 million compared to -US$91 million in 2022.
Virgin Galactic shares closed Tuesday at US$4.14 and were set to open Wednesday at US$3.81.