Here is how much money Virgin Galactic lost so far this year
galactic lost $ 138 million in the first nine months of 2019. By far its largest cost — almost $ 100 million — went to research and development, the report said, as the company tested the rocket-powered space plane prior to its first commercial flight, planned for next year.
The company burned through cash faster than in the same period in the year 2018, the report shows, when it lost $85 million.
The numbers were no surprise to analysts, the companies said Sam Korus consequences of an industrial innovation analyst at the ARK, Invest. It was well known that the Galactic was, strapped for cash, before closing a deal on the 25. To merge in October with Social capital Hedosophia, a “blank cheque” investment tool created by venture-capitalist Chamath Palihapitiya, to acquire that trade on the stock exchange for the years before his business, Virgin Galactic.
the transaction is executed as a reverse-merger, was approved by the shareholders in the last month and Galactic began trading under the symbol “SPCE” on 28.
As galactic noted in his quarterly report, the deal gave the company a $430 million cash inflow, which will keep it funded while it completed the examination of the vehicle, SpaceShipTwo, which has been in development for more than a decade.
The company plans to send groups of up to six paying customers on short scenic flights to the edge of space, where you float weightlessly for a few minutes while viewing the cosmos through the level of windows. You’ll also encounter intense G-forces as the plane with a missile on his way to more than 50 miles above the earth.
galactic has said about 600 people already have tickets and agreed to pay between $200,000 and $250,000 for your travels. The company is currently revealed not the new customers, but the new financial filing that more than 3,500 people have expressed an interest in the purchase of tickets. This is a healthy number, said Korus, the ARK analyst, but it is not clear how many actually pony up the cash if tickets will go on sale again.
Many have raised the question of whether enough of the world of the ultra-rich are willing to pay for short rides in the area. And Galactic have. the competition: Amazon founder Jeff Bezos personally financing his own rocket venture, Blue Origin, which is gearing up with its own suborbital space tourism venture The two companies is expected to fly its first passengers in 2020.
Korus added, that he excited of a potential business line for the Galactic: the space-level, ultra-fast flights between the cities here on earth. He said that his research shows as many as 2.7 million people may be willing to stretch to pay up to $100,000 for a long-range hypersonic flight, shaved hours from their normal travel time.
“, The market could scale to $270 billion in revenue annually,” he said.
Galactic has long flights, talking about the implementation of long-range, and Boeing ( in October, invested $ 20 million in the company in the offering, primarily to support the development of hypersonic transit. )
But, Korus added, it is still uncertain whether the Galactic core tourism business will be able to sustain the company until it is a point-to-point business off the ground.
analysts and investors, you will receive more information about the Galactic current operations and Outlook as the company held its first earnings call in February, 2020.