Astra Announces First Quarter 2023 Financial Results
Astra also announced that 8 Astra Spacecraft Engines™, which were delivered in Q4 2022, operated nominally in space during the first quarter, further demonstrating flight heritage. As discussed during Spacetech Day, Astra also entered into a contract with
"We also commenced operations from our dedicated Astra Spacecraft Engine™ production facility in late
Astra recently entered into an
"We have made significant progress in the development of Launch System 2 and look forward to our first flight of Rocket 4. In the past few weeks, we unveiled our new Rocket 4 production line and a Rocket 4 fit check, a combination of qualification and acceptance tested hardware," continued Kemp.
In Q1 2023, Astra continued to execute on initiatives to manage its financial profile and enable growth of its two core businesses.
“We have reduced quarterly cash burn by approximately
Recent Business Highlights:
-
Announced an agreement with the
U.S. Space Force for an order valued at$11.45 million for a launch of an ESPA-class space vehicle and additional cubesats through the Orbital Services Program (OSP-4) contract -
Announced a contract with
Apex Technology, Inc. to initially provide 5 Spacecraft Propulsion Kits for Apex's satellite bus platform, to be delivered in 2023. The Propulsion Kits disaggregate the four subsystems of the Astra Spacecraft Engine™ module, including the thruster, power processing unit, feed system, and tank. This disaggregation enables satellite builders to take advantage of shorter lead times to access key components of their propulsion system that can be customized for their unique missions -
Completion of dedicated 60,000 square foot Astra Spacecraft Engine™ manufacturing facility in
late-March 2023 - Achievement of Launch System 2 development milestones, including installing the final stage of the new Rocket Production Line, completion of the First Stage Engine TVC campaign, completion of the Upper Stage Engine qualification campaign, and completion of the Factory Acceptance Testing for tank production
-
Ended the quarter with approximately
$62.7 million in cash, cash equivalents, and marketable securities
First Quarter 2023 Financial Highlights:
For the three months ended
-
GAAP Gross Profit was
$0.0 million -
GAAP Net Loss was
$44.9 million -
Adjusted Net Loss* was
$42.3 million -
Adjusted EBITDA Loss* was
$42.3 million -
Capital expenditures during the quarter totaled
$5.0 million -
Cash, cash equivalents, and marketable securities totaled
$62.7 million
_________
*Denotes Non-GAAP financial measure. Refer to “Explanation of Adjusted (or Non-GAAP) Financial Measures” later in this press release for reconciliation of GAAP to Non-GAAP financial measures.
Second Quarter 2023 Outlook
As of
For the second quarter ending
-
adjusted EBITDA loss* to be between
$31.0 million and$35.0 million , - basic shares outstanding to be between 271 million and 273 million shares,
-
capital expenditures to be between
$3.0 million and$5.0 million , and -
cash, cash equivalents and marketable securities to be between
$30.0 million and$33.0 million
_________
*Denotes Non-GAAP financial measure. Refer to “Explanation of Adjusted (or Non-GAAP) Financial Measures” later in this press release for reconciliation of GAAP to Non-GAAP financial measures.
Conference Call Information
In conjunction with this announcement, Astra will host a conference call for investors at
About
Astra’s mission is to improve life on Earth from space® by creating a healthier and more connected planet. Today, Astra offers one of the lowest cost-per-launch dedicated orbital launch services of any operational launch provider in the world, and one of the industry’s first flight-proven electric propulsion systems for satellites, Astra Spacecraft Engine™. Astra delivered its first commercial launch to low Earth orbit in 2021, making it the fastest company in history to reach this milestone, just five years after it was founded in 2016. Astra (NASDAQ: ASTR) was the first space launch company to be publicly traded on Nasdaq. Visit astra.com to learn more about Astra.
Forward Looking Statements
Certain statements made in this press release are “forward-looking statements”. Forward-looking statements may be identified by the use of words such as “anticipate”, “believe”, “expect”, “estimate”, “plan”, “outlook”, and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements reflect the current analysis of existing information and are subject to various risks and uncertainties. As a result, caution must be exercised in relying on forward-looking statements. Due to known and unknown risks, actual results may differ materially from Astra’s expectations or projections, including the following factors, among others: (i) the failure to meet projected development, delivery and launch targets, including as a result of the decisions of governmental authorities or other third parties not within our control; (ii) changes in applicable laws or regulations; (iii) the ability of Astra to meet its financial and strategic goals, due to, among other things, competition and the dedication of our launch resources to the development of Launch System 2 and its ability to continue operating as a going concern; (iv) the ability of Astra to pursue a growth strategy and manage growth profitability without additional funding; (v) the possibility that Astra may be adversely affected by other economic, business, and/or competitive factors; (vi) the ability to manage its cash outflows related to its business operations, (vii) the ability of Astra to develop its space services offering as part of its long-term business and growth strategy and (viii) other risks and uncertainties described herein, as well as those risks and uncertainties discussed from time to time in other reports and other public filings with the
Explanation of Non-GAAP (or Adjusted) Financial Measures
This press release includes information about Adjusted Net Loss and Adjusted EBITDA (collectively the “non-GAAP financial measures”), all of which are non-GAAP financial measures. These non-GAAP financial measures are measurements of financial performance that are not prepared in accordance with
We believe that both management and our investors benefit from referring to these non-GAAP financial measures in planning, forecasting and analyzing future periods. Specifically, our management uses these non-GAAP financial measures in planning, monitoring and evaluating our financial and operational decision making and as a means to evaluate period-to-period comparisons. Our management recognizes that the non-GAAP financial measures have inherent limitations because of the excluded items described below.
We believe that providing the non-GAAP financial measures, together with the reconciliation to GAAP measures, helps investors make comparisons between Astra and other companies in our industry. In making any comparisons to other companies in our industry, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance. Investors should pay close attention to the specific definition being used and to the reconciliation between such measure and the corresponding GAAP measure provided by each company under applicable
We define Free Cash Flow as cash used in operating activities including cash used for capital expenditures.
Adjusted Net Loss differs from GAAP Net Loss in that it excludes the following items: (a) stock-based compensation, (b) loss on change in fair value of contingent consideration, (c) cash earnout compensation cost related to the acquisition of Apollo Fusion and (d) other special items. For the three months ended
We define Adjusted EBITDA as Adjusted Net Loss, excluding the following items: (a) interest income, (b) loss on marketable securities and (c) depreciation and amortization. We are unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.
|
|||||||
Condensed Consolidated Statement of Operations |
|||||||
(Unaudited, in thousands, except per share data) |
|||||||
|
|
|
|
||||
|
Three Months Ended |
||||||
|
2023 |
|
2022 |
||||
Revenues |
|
|
|
||||
Launch services |
$ |
- |
|
|
$ |
3,911 |
|
Space products |
|
- |
|
|
|
- |
|
Total revenues |
|
- |
|
|
|
3,911 |
|
Cost of revenues |
|
|
|
||||
Launch services |
|
- |
|
|
|
11,014 |
|
Space products |
|
- |
|
|
|
- |
|
Total cost of revenues |
|
- |
|
|
|
11,014 |
|
Gross loss |
|
- |
|
|
|
(7,103 |
) |
|
|
|
|
||||
Operating expenses |
|
|
|
||||
Research and development |
|
31,082 |
|
|
|
37,927 |
|
Sales and marketing |
|
2,484 |
|
|
|
4,764 |
|
General and administrative |
|
15,682 |
|
|
|
20,986 |
|
(Gain) loss on change in fair value of contingent consideration |
|
(2,765 |
) |
|
|
15,500 |
|
Total operating expenses |
|
46,483 |
|
|
|
79,177 |
|
Operating loss |
|
(46,483 |
) |
|
|
(86,280 |
) |
Interest income |
|
1,330 |
|
|
|
174 |
|
Other income |
|
260 |
|
|
|
393 |
|
Loss before taxes |
|
(44,893 |
) |
|
|
(85,713 |
) |
Income tax provision |
|
- |
|
|
|
- |
|
Net loss |
$ |
(44,893 |
) |
|
$ |
(85,713 |
) |
|
|
|
|
||||
Basic and diluted loss per share |
|
|
|
||||
Weighted average basic and diluted shares - Class A |
|
214,707 |
|
|
|
208,113 |
|
Loss per share |
$ |
(0.17 |
) |
|
$ |
(0.33 |
) |
Weighted average basic and diluted shares - Class B |
|
55,539 |
|
|
|
55,539 |
|
Loss per share |
$ |
(0.17 |
) |
|
$ |
(0.33 |
) |
|
||||||
Condensed Consolidated Balance Sheets |
||||||
(Unaudited, in thousands) |
||||||
|
|
|
|
|
||
|
|
|
|
|
||
Assets: |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
16,805 |
|
$ |
33,644 |
Marketable securities |
|
|
45,944 |
|
|
69,173 |
Trade accounts receivables |
|
|
6,798 |
|
|
5,327 |
Inventories |
|
|
6,925 |
|
|
6,588 |
Prepaid and other current assets |
|
|
12,437 |
|
|
11,050 |
Total current assets |
|
|
88,909 |
|
|
125,782 |
Property, plant and equipment, net |
|
|
26,432 |
|
|
24,271 |
Right-of-use asset |
|
|
11,903 |
|
|
12,813 |
Intangible assets, net |
|
|
9,566 |
|
|
10,132 |
Other non-current assets |
|
|
1,872 |
|
|
1,701 |
Total assets |
|
$ |
138,682 |
|
$ |
174,699 |
|
|
|
|
|
||
Liabilities and Stockholders' Equity: |
|
|
|
|
||
Accounts payable |
|
$ |
6,901 |
|
$ |
1,799 |
Operating lease obligation, current portion |
|
|
3,779 |
|
|
3,800 |
Contingent consideration |
|
|
31,135 |
|
|
33,900 |
Accrued expenses and other current liabilities |
|
|
42,761 |
|
|
42,043 |
Total current liabilities |
|
|
84,576 |
|
|
81,542 |
Operating lease obligation, net of current portion |
|
|
8,254 |
|
|
9,051 |
Other non-current liabilities |
|
|
2,597 |
|
|
1,796 |
Total liabilities |
|
|
95,427 |
|
|
92,389 |
|
|
|
|
|
||
Total stockholders’ equity |
|
|
43,255 |
|
|
82,310 |
Total liabilities and stockholders’ equity |
|
$ |
138,682 |
|
$ |
174,699 |
|
||||||||
Summary of Cash Flow Data |
||||||||
(Unaudited, in thousands) |
||||||||
|
|
|
|
|
||||
|
|
Three Months Ended |
||||||
|
|
2023 |
|
2022 |
||||
Cash used in operating activities |
|
$ |
(35,999 |
) |
|
$ |
(48,274 |
) |
Capital expenditures |
|
|
(5,031 |
) |
|
|
(20,942 |
) |
Free cash flow (non-GAAP) |
|
|
(41,030 |
) |
|
|
(69,216 |
) |
Cash used in investing activities |
|
|
18,719 |
|
|
|
(115,683 |
) |
Cash provided by financing activities |
|
|
441 |
|
|
|
471 |
|
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures |
||||||||
(Unaudited, in thousands) |
||||||||
|
|
|
|
|
||||
|
|
Three Months Ended |
||||||
|
|
2023 |
|
2022 |
||||
Revenues |
|
|
|
|
||||
Launch services |
|
$ |
- |
|
|
$ |
3,911 |
|
Space products |
|
|
- |
|
|
|
- |
|
Total revenues |
|
|
- |
|
|
|
3,911 |
|
Cost of revenues |
|
|
|
|
||||
Launch services |
|
|
- |
|
|
|
11,014 |
|
Space products |
|
|
- |
|
|
|
- |
|
Total cost of revenues |
|
|
- |
|
|
|
11,014 |
|
GAAP gross loss |
|
$ |
- |
|
|
$ |
(7,103 |
) |
|
|
|
|
|
||||
GAAP net loss |
|
$ |
(44,893 |
) |
|
$ |
(85,713 |
) |
Stock-based compensation |
|
|
5,328 |
|
|
|
17,041 |
|
(Gain) loss on change in fair value of contingent consideration |
|
|
(2,765 |
) |
|
|
15,500 |
|
Apollo cash earnout compensation |
|
|
- |
|
|
|
1,333 |
|
Other special items |
|
|
- |
|
|
|
1,693 |
|
Adjusted net loss |
|
$ |
(42,330 |
) |
|
$ |
(50,146 |
) |
Interest income |
|
|
(1,330 |
) |
|
|
(174 |
) |
Realized loss on investment |
|
|
- |
|
|
|
67 |
|
Depreciation and amortization |
|
|
1,345 |
|
|
|
2,775 |
|
Adjusted EBITDA |
|
$ |
(42,315 |
) |
|
$ |
(47,478 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230515005727/en/
Investor Contact:
investors@astra.com
Media Contact:
press@astra.com
Source: