Virgin Galactic Holdings Inc (NYSE:SPCE) revealed a forecast of about $3 million in revenue for the last quarter of 2023, surpassing analyst expectations of $1.58 million.
The space tourism firm owned by Richard Branson reported third-quarter sales of $1.73 million, exceeding analyst expectations of $1.14 million, and a loss of $0.28 per share, narrower than the expected $0.43 loss forecast by analysts.
The results came after the company announced it is reducing its workforce by 18%, or 185 jobs.
As well, Virgin announced a temporary pause in space flights from mid-2024, part of cost-cutting measures as the company prioritizes the development of its new launch vehicle, the Delta spaceplane.
The decision comes as Virgin Galactic faces challenges such as higher borrowing costs and aims to streamline operations. The job reductions are expected to save the company around $25 million annually.
Virgin Galactic told shareholders that profitability is not expected until the introduction of the Delta. The Delta spaceplanes are optimized for faster turnaround times and more efficient reusability, with plans to put them into operation starting in 2026.
Delta is anticipated to bring in up to 12 times more monthly revenue than its predecessor, Unity, according to CEO Michael Colglazier.
Virgin Galactic said it has approximately $1.1 billion in cash and marketable securities as of September 30, which it claims is sufficient capital to bring the first two Delta ships into service and achieve positive cash flow in 2026.
Shares of Virgin Galactic jumped nearly 31% on Thursday morning in New York.