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FOURTH QUARTER and FULL YEAR 2024EARNINGS PRESENTATION02.26.2025
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FORWARD-LOOKING STATEMENTSThis presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements contained in this presentation other than statements of historical fact, including, without limitation, statements regarding our spaceflight systems, our estimated target market and anticipated annual growth rate of such target market, scaling of our future fleet, increasing our flight rate, our anticipated number of spaceflights and customers per year, providing repeatable and reliable access to space, development of our Delta Class spaceships and proposed timeline for assembling, testing and commercial service using such spaceships, the potential to develop additional Delta class spaceships in the future and the anticipated costs thereof, development of our next generation motherships and proposed timing of design, build, testing and commercial service thereof, our potential to raise growth capital and the sources thereof, the timing of the design process, tooling development, parts fabrication and assembly of our Delta Class spaceships, expansion plans for a second spaceport and additional spaceports around the world, and our objectives for future operations, growth plans and profitability and the Company’s financial forecasts, including expected free cash flow, potential annualized revenues and adjusted EBITDA and contribution margin, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “strategy,” “future,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to any delay in future commercial flights of our spaceflight fleet, our ability to successfully develop and test our next generation vehicles, and the time and costs associated with doing so, our expected capital requirements and the availability of additional financing, and the other factors, risks and uncertainties included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as such factors may be updated from time to time in our other filings with the Securities and Exchange Commission (the "SEC"), accessible on the SEC’s website at www.sec.gov and the Investor Relations section of our website at www.virgingalactic.com, which could cause our actual results to differ materially from those indicated by the forward-looking statements made in this presentation. Any such forward-looking statements represent management’s estimates as of the date of this presentation. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.USE OF NON-GAAP FINANCIAL MEASURES This presentation references certain financial measures that are not prepared in accordance with generally accepted accounting principles in the United States (GAAP), including, non-GAAP total operating expenses, Adjusted EBITDA and free cash flow. The Company defines non-GAAP total operating expenses as total operating expenses other than stock-based compensation, depreciation and amortization and certain other items the Company believes are not indicative of its core operating performance. The Company defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation and amortization, stock-based compensation and certain other items the Company believes are not indicative of its core operating performance. The Company defines free cash flow as net cash provided by operating activities less capital expenditures. None of these non-GAAP financial measures is a substitute for or superior to measures prepared in accordance with GAAP and should not be considered as an alternative to any other measures derived in accordance with GAAP.The Company believes that presenting these non-GAAP financial measures provides useful supplemental information to investors about the Company in understanding and evaluating its operating results, enhancing the overall understanding of its past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by its management in financial and operational-decision making. However, there are a number of limitations related to the use of non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance, and therefore any non-GAAP measures the Company uses may not be directly comparable to similarly titled measures of other companies.A reconciliation of these non-GAAP financial measures is included in the appendix to this presentation.The Company also provides certain non-GAAP measures, including free cash flow, on a forward-looking basis. The Company has not provided a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures because such a reconciliation is not available without unreasonable efforts, due to the variability of these items and the fact that there is substantial uncertainty associated with predicting any future adjustments that we may make to our GAAP financial measures in calculating our non-GAAP financial measures. DISCLOSURES Fourth Quarter and Full Year 2024 Earnings Update2
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3Fourth Quarter and Full Year 2024 Earnings Update AGENDA•2024 Recap•New SpaceShip Capabilities•Carrier Platform Capabilities and Direction•SpaceShip Program Progress•Financial Overview•Q&A Fourth Quarter and Full Year 2024 Earnings Update
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VIRGIN GALACTIC’S DIFFERENTIATING ASSETS 4Fourth Quarter and Full Year 2024 Earnings Update The SpaceShip Rocket SystemSpaceShip FactoryCarrier Ship Platform Customer Experience
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Fourth Quarter and Full Year 2024 Earnings Update5 •High Altitude Ceiling: 50,000+ feet•Heavy lift: 20,000–35,000 lbs.•Thousands of flight missions•Extendable flight durations CARRIER SHIP CAPABILITIES ARE VALUABLE AND UNIQUE
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NEW CARRIER SHIP PLATFORM DESIGNED TO SUPPORT MULTIPLE MISSIONS Fourth Quarter and Full Year 2024 Earnings Update6 SpaceShip Launch Vehicle For Virgin Galactic “HALE – Heavy” DerivativeFor Government/Research Opportunities*HALE: High Altitude Long Endurance
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7 2024DESIGN Fourth Quarter and Full Year 2024 Earnings Update 2025BUILD 2026FLIGHT TEST UNLOCKING THE GROWTH OF VIRGIN GALACTIC
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8 SPACESHIP PROGRESSFUSELAGE SUBASSEMBLY TOOLING Fourth Quarter and Full Year 2024 Earnings UpdateProprietary Images UPPER FUSELAGE SKIN UPPER AND LOWER FUSELAGE TOOLS AFT SKIN LEFT
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SPACESHIP PROGRESSFEATHER SUBASSEMBLY TOOLING 9Fourth Quarter and Full Year 2024 Earnings UpdateProprietary Images
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10 SPACESHIP PROGRESSBULKHEAD MANUFACTURING Fourth Quarter and Full Year 2024 Earnings UpdateProprietary Images
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SPACESHIP PROGRESSWING SKIN PART DEVELOPMENT PROCESS WING LAY UP 11Fourth Quarter and Full Year 2024 Earnings UpdateProprietary Images AUTOCLAVEFINISHED PART
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12 SPACESHIP PROGRESSOXIDIZER TANK FABRICATION AND LIFECYCLE TESTING Fourth Quarter and Full Year 2024 Earnings UpdateProprietary Images
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RECENT VIRGIN GALACTIC MILESTONES WATCH THE VIDEO: http://www.VirginGalactic.com Fourth Quarter and Full Year 2024 Earnings UpdateFourth Quarter and Full Year 2024 Earnings Update 13 13
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14Fourth Quarter and Full Year 2024 Earnings Update KEY MILESTONES MARCHAssembly starts in PhoenixSUMMER - FALL - WINTERBuilding and Testing SPRINGFirst Glide Test FlightSUMMERFirst Research SpaceflightFALLFirst Private Astronaut Flight 20252026
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FOURTH QUARTER 2024Ended December 31, 2024•Revenue of $0.4 million, compared to $2.8 million in the prior year period, with the decrease driven by the pause in commercial spaceflights to focus efforts on the production of the Delta Class spaceships. •Total operating expenses were $82 million, compared to $117 million in the prior year period, reflecting a shift from R&D to capital investments in manufacturing assets to build multiple spaceships•Net loss of $76 million, compared to $104 million in the prior year period. •Adjusted EBITDA of $(63) million, compared to $(84) million in the prior year period.•Free cash flow of $(117) million, compared to $(114) million in the prior year period.•Raised $29 million in gross proceeds as part of the at-the-market equity offering program. FINANCIAL RESULTS 15 Fourth Quarter and Full Year 2024 Earnings Update15
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FULL YEAR 2024Ended December 31, 2024•Revenue of $7 million for each year, primarily attributable to commercial spaceflights and membership fees related to future astronauts. •Total operating expenses were $384 million, compared to $538 million in the prior year, reflecting cost reduction efforts and a shift from R&D to capital investments in manufacturing assets to build multiple spaceships.•Net loss of $347 million, compared to $502 million in the prior year, reflecting a 31% improvement.•Adjusted EBITDA of $(289) million, compared to $(427) million in the prior year, reflecting a 32% improvement.•Free cash flow of $(475) million, compared to $(493) million in the prior year.•Raised $138 million in gross proceeds as part of the at-the-market equity offering programs. FINANCIAL RESULTS Fourth Quarter and Full Year 2024 Earnings Update16
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FREE CASH FLOW (1)Q4 2024$(117) million Q1 2025 GUIDANCE (2)Expected to be in the range of CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES 1. Virgin Galactic uses Free Cash Flow as a key measure of its performance. Free Cash Flow is defined as cash flows provided by operating activities less capital expenditures. Refer to the appendix of this presentation for a reconciliation to GAAP. 2. For the reasons discussed under the heading "Use of Non-GAAP Financial Measures" on slide 2, the Company has not provided a reconciliation of this forward-looking non-GAAP financial measure to the most directly comparable GAAP financial measure because such a reconciliation is not available without unreasonable efforts.3. Amount includes $32M of restricted cash. CASH FLOW AND BALANCE SHEET $(115) million to $(125) millionDecember 31, 2024 $657M(3) $0$200M$400M$600M$800M 17Fourth Quarter and Full Year 2024 Earnings Update
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Economies of Scale Expected as Fleet Size Grows(Illustrative Economics)SPACEPORT AMERICAInitial FleetExpanded FleetGrowth with Expanded FleetAnnual Revenue1 $450M$990MApprox. 2x Revenue- Variable Spaceflight Costs2 (80M)(165M)Contribution Margin$370M$825M- Spaceline Operation Costs(105M - 120M)(140M - 170M)-Sales, General, & Administrative(95M - 100M)(100M - 110M)-Business Development/R&D/Other(55M - 60M)(85M - 95M)Adjusted EBITDA3 $90M - $115M$450M - $500MApprox. 4x Adj. EBITDAAdjusted EBITDA %20% - 25%45% - 50%Approximate Annual # offlights/astronauts125 flights/ 750 passengers275 flights/ 1,650 passengers# of SpaceShips in Operation2 4Delta #3 and Delta #4# of Launch Vehicles in Operation1 2Additional Launch Vehicle1. Reflects stabilized annual revenue with ticket price at $600K/passenger2. Rocket motor, Astronaut support, fuel, Spaceport landing fees, other3. Adjusted EBITDA excludes stock based compensation. For the reasons discussed under the heading "Use of Non-GAAP Financial Measures" on slide 2, the Company has not provided a reconciliation of this forward-looking non-GAAP financial measure to the most directly comparable GAAP financial measure because such a reconciliation is not available without unreasonable efforts.18Fourth Quarter and Full Year 2024 Earnings Update
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Fourth Quarter and Full Year 2024 Earnings Update APPENDIX 19Fourth Quarter and Full Year 2024 Earnings Update
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Fourth Quarter and Full Year 2024 Earnings Update20 RECONCILIATION OF NON-GAAP MEASURES – Operating Expenses(In thousands)THREE MONTHS ENDEDYEAR ENDEDDecember 31, 2024December 31, 2023December 31, 2024December 31, 2023Total operating expenses$ 82,382$ 117,074$ 383,665$ 538,309Stock-based compensation5,7128,66029,75244,258Depreciation and amortization4,1713,64615,46713,369Special charges -4,398-4,398Non-GAAP total operating expenses$ 72,499$ 100,370$ 338,446$ 476,284
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Fourth Quarter and Full Year 2024 Earnings Update21 RECONCILIATION OF NON-GAAP MEASURES – Adjusted EBITDA(In thousands)THREE MONTHS ENDEDYEAR ENDEDDecember 31, 2024December 31, 2023December 31, 2024December 31, 2023Net loss $ (76,413)$ (103,984)$ (346,740)$ (502,337)Interest expense3,2373,22412,92712,872Income tax expense (benefit)(145)23874453Depreciation and amortization4,1713,64615,46713,369Stock-based compensation5,7128,66029,75244,258Special charges-4,398-4,398Adjusted EBITDA$ (63,438)$ (83,818)$ (288,520)$ (426,987)
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Fourth Quarter and Full Year 2024 Earnings Update22 RECONCILIATION OF NON-GAAP MEASURES – Free Cash Flow (In thousands)THREE MONTHS ENDEDYEAR ENDEDDecember 31, 2024December 31, 2023December 31, 2024December 31, 2023Net cash used in operating activities$ (81,035)$ (95,309)$ (352,703)$ (448,193)Capital expenditures (35,709)(18,368)(121,855)(44,309)Free cash flow$(116,744)$(113,677)$(474,558)$(492,502)
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FOURTH QUARTER AND FULL YEAR 2024 | EARNINGS UPDATE | 2.26.25