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A visual dashboard of Virgin Galactic (SPCE) Q2 earnings

Space tourism company looks to raise cash through stock sale after reporting zero revenues in Q2

A day after announcing a partnership with Rolls-Royce for the design and development of engine propulsion technology for its supersonic aircraft, Richard Branson-led Virgin Galactic (NYSE: SPCE) announced second-quarter results that missed street estimates.

During the quarter, the company posted a loss of $0.30 per share, which was 4 cents wider than the street projection. There were no revenues recorded in Q2. SPCE shares fell over 7% immediately following the announcement. The stock has doubled since the beginning of this year.

virgin galactic Q2 2020 earnings

Looking forward to listening to management/ analyst comments on Q2 results? Stay tuned here for Virgin Galactic Q2 2020 earnings call transcript

Earlier today, the company that pioneered space tourism said it had signed an MoU with Rolls-Royce to partner with the manufacture of Mach 3 jets, which can travel at thrice the speed of sound. Notably, Rolls-Royce comes with the experience of designing the Mach 2 Concorde’ engine.

Virgin Galactic added in a statement that a Mission Concept Review was successfully completed, where representatives from NASA approved the design concept for its supersonic jet. In May, Virgin and NASA had entered into a deal to collaborate on high-speed technologies.

In an update to its space tourism ambitions, the company said it aims to fly its founder Sir Richard Branson sometime in the first quarter of next year. The company expects to complete two flight demonstrations with test pilots and mission specialists ahead of Branson’s space flight.

Stock sale

In a separate SEC filing, Virgin stated that it was looking raise funds by selling roughly 20.5 million fresh shares. Going by the current rates, this would be valued close to $500 million.

The Las Cruces, New Mexico-headquartered firm had also recently rejigged its top-level management. George Whitesides, who served as it’s CEO for about a decade was made the Chief Space Officer. Former President of Disney Parks International, Michael Colglazier, took over as the new CEO on July 20.

Virgin Galactic competes with Elon Musk’s SpaceX and Jeff Bezos’s Blue Origin, both of which are private companies.  

Prior-quarter performance

Virgin galactic Q1 earnings
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