Beset by Spacecraft Readiness Issues and a Flagging Launch Schedule, Virgin Looks to Double 2023 Launch Calendar

Virgin Orbit reported its 3rd quarter results, announcing it managed to raise $25 million to continue operations for its unorthodox rocket launch offering. 

Unfortunately, the company also dropped its forecasted launch tempo for quarter 4, announcing that it expects only 3 more launches this year - half of its most optimistic projections earlier this year. The report highlights a few of the running problems with Branson’s rocket launch company, notably its slow rate of launches, dwindling backlog, licensing delays, and outpaced spacecraft readiness. 

Virgin received $25 million in additional funds from Virgin Group while bringing in revenue of $30.9 million during the period. Overall, it reported an adjusted EBITDA loss of $42.9 million through the 3rd quarter, 31% greater than the same period last year. In order to stanch the financial bleed, Virgin emphasized that it will be “opportunistic” in the capital markets” while doubling down on cutting cost and increasing efficiency wherever possible. It ended the quarter with $71.2 million in cash on hand. 

For next year, Virgin Orbit aims to at least double its 2022 launch rate, as well as expand its backlog of launches and spaceport availability. Its backlog of contracts could definitely use some replenishment after a 12% drop last quarter, though a bright spot was found in a multi-year deal with satellite company Spire. Virgin isn’t down and out by any means, but 2023 could be an important year for a company that still seems to be finding its sea legs in a rapidly crowding satellite launch services market. 

FMI: www.virginorbit.com