ASTR - Earnings call transcript Q3 2021 | Astra Space Inc

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Operator

Good afternoon and welcome to Astra's Third Quarter 2021 Earnings Conference Call.

Joining us for today's call, Astra's Founder, Chair, and CEO, Chris Kemp, CFO, Kelyn Brannon, and Vice President of Compliance and Deputy General Counsel, Michael Stitcher. After the speakers remarks, there will be a question and answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand -- to turn the call over to Michael for introductory remarks. ahead. go please And

Michael Stitcher

and SEC earnings broadcast Good website Astra And call. being third at we results. Investor market Operator. joining the After you on website. internet the and us This closed, on The financial our for archived our quarter is our and Relations astra.com. available teleconference Relations released is afternoon, website 's you, also over available thank everyone. for investor. the release will Thank be XXXX Investor earnings

During today, substitute items we financial uses our plan, call should and comparable our to we our to financial will considered evaluate certain measures. financial GAAP team measures, believe investors performance. not be reference These which these management for useful measures and non-GAAP non-GAAP non-GAAP financial to as financial be monitor, exclude as measures

subject factors could current from with forward-looking our differ And are to they we encourage actual those as cause uncertainties. measures could, this are, you computing may financial potential, expect, Astra's measures GAAP results items which from by statements companies. A a actual call. a risks financial expressions statement. the our project, Astra's financial Today's contain description measures also financial reconciliation relate performance outlook. methods will our non-GAAP our to future Astra's refer review earnings Astra non-GAAP used a events, statements used that will, in these may most this of These comparable results financial the to with similar their result, of other differ in of these believe, SEC and from should, We as that differ similar When such, in materially number describe measures the along can call forward-looking to expectations. as anticipate, future intend, release. words filings future discussed forward-looking be enable, found in and and estimate, including to call, non-GAAP of materially to

phrases We commercial commercial a also launch, conference orbital this the commercial launch commercial launch, launches FAA we use under mean license. commercial refer revenue an we to in launch conducted call. When launch,

our standing abbreviation launch by Additionally, for vehicles by vehicle, with LV the of of launch an is the in serial title followed asset each number. denoted

our instance, vehicle LVXXXX. current at launch For referenced is

I Chris available Finally, Chairman like for to this now link and the be call recorded With Founder, available CEO. I would will would turn on made website. remind Kemp, via be Astra's Relations Investor that replay like everyone the of to over Chris? to and our that, call section will

Chris Kemp

good our Thank afternoon, for joining you, call. Michael, and us and earnings quarter for thank you third today

launch another small for As speak X-person orbital U.S. with Kodiak, Space Alaska the operations Force. today we LVXXXX test is in our with launch preparing team

well test in test to pre proud as team's of proud working FAA we flight. to issues results Our expect in encountered the rapidly so. identified incredibly next week or this occur LVXXXX -launch an at into manufacturing at guarantee the our and days. in with successful, with bringing Communications we also of production complete determination end submitted Spectrum grit our partnership the to be The and is in to headquarters, addition, system learning launch LVXXXX team. the again pleased that we our and team LVXXXX the these launch test design launching XX as Alameda, success. were we fastest is in Federal Back capital already And manufacturing application while I'm the the our with fastest we is just read and most for incorporate we our that team vehicle is that We're changes I'm believe next which our an last Access. completion we And increasing less California, the efficient Incredibly will might week, have the that LVXXXX, and history. strongly Orbital we nearing efficiencies path difficult. to our incredibly as made of you be together. than will Developing admire changes Commission Last I the with able can't flight current vehicle, V-band underway. of of this shift vehicles the the And production is launch we're that with

with concentrated global that we're in The Constellation will becoming assets our build reiterate, to Services. space our our other where service other provider we focus new and flexible, from leverage application And required launch strategy business, first our FCC that execute requires that scaling And long-term our designed is described space, we providing now. will platform. cost on space Astra and on To launch of and commercial capability provide in Constellation, launch of the capabilities space. segment to and is delivering calling our took the current this Space we sensors, The platform customers' ground services that public this payload year services the operate today's the lowest While and Space was we launches. launch this and production deploy cadence to to the the power greatly platform. to outlined a plan assets services Astra required to we spectrum strategy our dedicated up less customers networks, this cost in reduce frequent, applications, focus and high-margin is secure time this earlier

access next very pleased this first application I'm growth. propulsion to for outstrips begin what in-space This spectrum for report we of us a spectrum we services. will file to V will As is the to and services too they This space prepare goals we our motivated introduce our we stage Apollo to higher-margin V-band And the that believe summer. achieve of from supply. had ignition day, system, test, demand not are also significantly acquired future, launch spectrum of which Fusion its Astra distant successful

to maneuvers in on June was really series a proud on firing Astra's our on Our We Spaceflight forward our in Sherpa, [Indiscernible] to orbit. orbit over facility and customers new playing Last of we look for which represented Earth providing in of attempt was view the engine electric main in-space tested to quarter, spacecraft space, commissioned feet. Spaceflight we're engine deployment, XXX,XXX engine square After a solution a this And successful low and in construction and perform role success. launched the future XXth. products manufacturing propulsion and as by increase our our SpaceX constellation which spaceflight deliver first a our continued to a headquarters critical size for a partners. started

and disruption due COVID and times lead overcame on schedule. kept to staying team labor facilities Our

the have were personally these candidates products, program We expect before later joined I'm high that our before offers management past awe world-class the talent third very of begin and us most employees quarter this is caliber mission. for a facility to world-class interviewed frankly, We this and truly by talent and the in complete are end of Recruiting construction Astra. building added in new quarter expanded using a quarter I year. the team priority extended at engineering, the and manufacturing, that XX this the of inspired

to on of help technicians, culture architects, effective retain achieve and us commercial team experienced my leadership our To tenacity I've summarize, achieving for next unique from first in life the their payload of engineers, and And some partners missions the the placing and in our we shareholders And all is proud us months succeeding milestone of for helped of this best the progress product the commitment our and supporting the truly mission. test sharing Our and and attract our Astra positions and career. I'm to us open customers have look also years talent that's a creating at results launch more thankful and details and program of the of for managers to forward XXX on software and improving our mission space. earth upcoming for orbit. ahead. And I'm a than team all currently upcoming

quarter to Kelyn? our who results like before So will it we Kelyn, turn to over Q&A. discuss I'd begin third financial

Kelyn Brannon

everyone. afternoon, Thank and you, Chris, good

and same leadership are completion accomplished executing Effective onboarding, recruiting, number Operationally, to product test preparations and Alameda for people our key positions. the roadmap, recruit execution facility. talented heard production manufacturing of and time, X Chris, Alameda the in we all as At continue capacity. in and our operational key you and program we on for the successfully the and days. are goals expand from expansion As our of completed our products hire past of launch a months, well we as coming strategic increase enhance latest to enablers

unless reminder, are a I financial all today discuss figures GAAP state I will measure. As adjusted them as a non-revenue

today's to GAAP will You release. in reconciliation from find press non-GAAP a results

quarter third ended Now, results our let's XXth, the financial for review September XXXX.

million, quarter loss and adjusted adjusted EBITDA was quarter Net loss was XX.X within third million our range. guidance a Third XX.X of

the third Net XX% During organization, we of loss sequentially, million increased due was operations next in our a and hires was and our to revaluation merger year. quarter the decrease for million. inherited R&D look sequential with workforce. The benefit our manufacturing GAAP these to from a in quarter, The execute road prepare from Holicity. loss majority warrant map in primarily On basis, $XX.X related our primarily $XX.X to were up our as of operating expenses product on were investments of liabilities Net

We related were the the to of expenditures with ended cash Alameda of cash primarily Third Facility. quarter equivalents quarter $XXX.X capital expansion $X.X and Manufacturing million million. our

million. be and million an to December to $XX Basic Next Cash between and between shares. XXXX. to $XX be be million. XXX loss million outstanding expect XX, expenditures are be shares to Capital We $X.X Depreciation million $XX million $XX million. quarter Stock-based I'll XXX between currently ending for fourth and and to between compensation between $X.XX. amortization $X.X be forecasted provide and million. EBITDA outlook taxes $XX our $XX million adjusted

driven incremental R&D be the expect OpEx we our rocket QX, to of next-generation as space and continued initiatives. focus During we development by services primarily

pace efficiency. we've and the the for made in expect XXXX we expense growth of we XXXX, increase scale from investments into as QX Looking moderate operations our leverage forecast to QX and and operating

back their Before call want work hard team Jason, questions. and And that, for I please turn up the open for Chris, with I to to our can dedication thank Astra. the to call you

Operator

while Bank. thank [Operator And you. Yu first standby roster. compile the we Please question Deutsche from from comes Edison Instructions] our And Q&A

now Your open. line is

Edison Yu

a of spectrum, before I do there X. with but plan maybe update, the that? on about insight that an more high number on believe talks based of before of have factor three that require on tremendous have you all that be pretty a it you some is I of up, to provide put what that more to want or year-end? questions. your capital into guess launch? scheduled them. Would should our expected satellites is Second taking you up. the to the filings you kind maybe amount question, relationship. Can been question the of maybe bit I little plan could a think light for last after little third do press that engine. I still then bit year-end? Firefly some there get And anticipation planning? reports terms shed on we on has that Could a one Is coming Thanks. I that you one where you the about more know in you Thank to of happen more

Chris Kemp

all appreciate those questions. I

So I'll tackle order. in them

of vehicle launch launch, look the Launched the that wrap results up next still Vehicles -- take could that we before and year. next a next plan. this currently is the we have record XXXX current this Regarding plan. that of of a launch, and outcome after our to end But And plan the obviously to change plan launch the at this is

everything do place the in to have and that. is We inventory

Spectrum as summer will extensively the opportunities this services space we That to that something and The second to get. question that regarding about that constellation requires a space putting as we Astra's the result FCC respond we out critical incredibly about licenses. to. took the to Company is as that platform incredibly secure public valuable think of it, came It's spectrum. FCC needed power talked especially was Spectrum and that the was the hard opportunity we

And unfolds several XX our Astra license you FCC in the satellites, only in requires And is outlines we launch first plan that really the on all satellites this anticipate of X so able this it and carefully to phase phases. study constellation of XX rockets. to the of being if where deployment

customers on own So launches a we that it's value of Astra's provides to has a just that one. rockets. service couple believe phase And real in

with and shows revenue if we capital And so we everything where something we it, as Astra, at similar involves study a III service really, as the further the Space XX,XXX just XXX,XXX and X,XXX that team satellites. that allow to and that And up a traction make deploy iterate. to it frankly, better. we can have learn will the from Services. would we between is begin And then start from - and go reiterate, we have, us deploy and and to the then this to you can we phase we've shipped is the strategy up as where II X,XXX license we works satellites working Space extend we constellation, we generating get done with This those where potentially we basic we working, see that platform then Phase constellation

deployment the the have satellites. So entire there's XX,XXX no of contemplate license, the we But in deploy requirement the that constellation. we full to

tell all technology required here, we license, some developed this discussed be were what is you owned, I inconsistent suppliers how So speculating property is not articles supplier, Astra I've things strategy. the read, or to our that by before, or but question I think anything we intellectual can supplier. online with there the And of discuss think then manufacture our you've it reiterate don't I publicly, all finally, on will and I will produce and

as that at can think that about this I say I So point.

Edison Yu

Great, you. thank

Operator

our And Bank next Epstein from Thank of you. question Ron comes from America.

open. Your now is line

Ron Epstein

spread the about thing evening, launch you things, thanks and the question. thing the And Hi, I for to when guys a engine and going take know the satellite electric all a of business, afternoon. able good mean, being being yourself couple then so thin you worry good do spreading or Maybe with When work. to any thin. it's stuff of one I do lot about of stuff, and mason's on too this focus not worry too them?

Chris Kemp

Thanks, question. Ron. That's a great

I in on services and to services long so delivering begin these as recognizing right our earlier, customers times orbit think the But business. to as that a satellite launch deliver on our now you are launch into we I is revenue we can begin things. was focus for there contracts and that know, have explaining lead our

on small spacecrafts, a or months particular orbit that only waiting effort be rocket to strategy Our schedule. a extend the rocket, about deploying and that And not Putting for could direct Fusion But existing launch rocket. a could spacecrafts deliver and to Falcon the a and can like thing. and In the our the other spacecraft propulsion a a is with the will a to way technology a avionics larger to as customer benefit a you from redundancy associated our having leverages will, to cost and customers and put reduce for will of allows to vertically the that numbers be It only the we costs in-space Starship rocket. into further you access provide space many that new if of using and start frankly, we means provide technology, ask system. these Apollo very cargo services and on on integrated the rocket, crafts X the for can up a only provide our develop payloads mission, system you use our spacecraft us able all technology rocket waiting bunch isn't can of larger all kinds having we to space. it eliminates our and that precise well. year investments Astra's means where you a of or means lower think as economics not into services we But rockets

that the see a to the investments we're strategy. It this will dramatically lot strategy I think that really vertically strategy it the technology and developing, -risks of dividends going sense. ways. Hopefully in integrated to you're in we're begin making this leverages de pay make with

Ron Epstein

maybe Then Kelyn. for other million it. What quarter was was financial Got question $XX there In that? a of just income. the

Kelyn Brannon

of remarking got the that to merger with warrants of other and -- that was kind we we that The that benefit warranties income the the Holicity. the

Ron Epstein

it. Got

Kelyn Brannon

bulk PPP $X it. that the is also, the million. of the also, under was loan That And was and forgiven over

Ron Epstein

your can we I X we should think looks should operating How year burn cash quarters. over -- quarter know, Because cashless, just you don't think in in capex including it about burn how through like think free look that terms balances, in of the cash as quarter, capex then or the as two? we cash modeling we if in X burn, at the I the And about out burn? go or cash about a

Kelyn Brannon

Okay. That's a you. great question. Thank

Astra mind the I a So managing is team. myself of our that rest for will spend of management you the and top tell

a do, we next-generation if monthly to XXXX. Rocket first did during laser include have into $XX And I the as primarily a time, which an anyone, cash this And your to we're We're needed markets, or that on the -- on there's QX was tapping launch us X we comfortable Apollo capital a the focus So the keep million gets the for have if an question, one-time acquisition. or that. as item given rockets is there eye to and going beyond, $XX cadence opportunity. in

Ron Epstein

it. Got

Thank Okay. guys. you

Operator

comes next Canaccord. you. our And Moeller Austin Thank question from from

now open. Your line is

Austin Nathan Moeller

Hi, guys. evening. Good

out $XXX in completion cover you launch vehicle that on of enough the do additional Just envisioned you balance. capital think to that is both? a need current similar space cash as program to you'll systems anticipate and Do build do or point million

Kelyn Brannon

to deliver XXXX very to the not XXXX. of of We have get of the we but at comfortable next-generation rocket, position end our in be beginning to also satellites or feel only that to cash able

we're our products of opportunity we're and but looking getting see we out again that, with as comfortable out accelerate. an market, into at traction always we So to look

the capital not and keep will additional on team I or eye there's cash to on opportunity and an sheet. the whether markets Management the balance so put out will And

Austin Nathan Moeller

have different Kodiak And beyond launch Great. then and do the near-term Okay. for think we as latitudes sites, launch facility? about additional any you sites plans

Chris Kemp

the there. Attiq estate think let whose comment I I going over question to busy know and that. on Martin -- real portfolio running our I'm Spaceport they're

Martin Attiq

Absolutely.

sites driven different by have a where strategy customer want globe have And that always orbits we're think that where is. different the So we for I global launch requirements. Spaceport to we demand customer disclosed reaches we've across

as a mid-inclination in are you as well we to get as that number allow work the on orbit mentioned, of So us Spaceports equatorial orbits. to

Austin Nathan Moeller

Fantastic. Okay. the color. you for Thank

Operator

next Barclays. Operator from [ question from And Colin you. Thank Instructions] Canfield comes our

now is line Your open.

Colin Canfield

Hey, a the from like further plans. margins, your metric Thanks financial a that. like like for walk stuff through maybe perspective, comparable we that Chris, Can maybe satellite or Colin. what [Indiscernible] your question. to the a period payback constellation you economics look bit us be think Digging about little you for in thinking mass give unit should us

Chris Kemp

is Maybe to offer that go are I services can to want what deep out. think we're framework you when things, bring the that can services the I too launch as not but do right looking first same build you some the now. But as continue into you, I through that don't a constellation you things for the constellation

then that number what our are a of looking smallest they compute And the simple rocket done early the can storage Amazon way lot Services have they [Indiscernible] for Web so the the services infrastructure. a -- now to what that service, think had is need service service, very with from In highest had it providing days, they they out bootstrap and numbers at of out building existing had satellites a business? this we're customers billions dollars constellation. as I put constellations big think [Indiscernible] Astra service, the to to using and they're same end service. entire a queuing can of satellite the What that is doing technology, they value you right started historically build of the this market provide is we and of the of that so in

never business this this approach been and in approach Astra's it isn't -- has be will Astra's think not either. I our

constellation, or think will will I many is that we to of, this on share can that rockets. be framework comprises something big launch that our one the the -- other spacecraft

that And that But we works. propulsion them or systems that you I to constellation how of deploying I maybe And other the space we've Did our we pieces one us where one help many before, right think X the possible. of XXX big which our begin for launch approach I next that mean, rocket, now we fly sure of Spacecraft deploy first in this other version is of And as soon and will an shared the make just these because the spacecraft. space our much we we last do The using do It can like challenging in the and will our me all work vehicles you technology quickly as tested you X.X, numbers X.X where that our Astra about vast already -- We build gives and of Rocket them. as now believe in get out the to fly spacecrafts dividends, best to maybe go fly to the fly of can give pay possible. if lower in performance that? it I'm remember, more If is maybe a want is and the around got larger as fly capacity, X.X current further will team teams month build the in capabilities. of on rockets phases. will so and Space will rocket a boundary, get engine would the X, start our can even what version prove as X. kilograms the to we phases prefer think about them it gives others highest satellite, And X.X, will we ensure and to we when better. space. we X.X economics iterate integrated System vertically variable of get raft get version the next challenge think But how the on there

Colin Canfield

That's good for now.

propulsion little and just side, and the bit shifting think talent, you team, leaving for Thompson to the can your guys? bench a I Chris about, you means the Phantom what talk of propulsion

Chris Kemp

propulsion, question responsible it To on we amongst work team literally that engine that which thousands of that your propulsion team been working have have first and had pretty for time the In-space space other the I'm sure today. answer about that the members made the that In-space been we talent systems tested adventure on

I think for in that never the been years SpaceX. Mike brought propulsion stronger. [Indiscernible], worked has that. and and was We number Origin team and He before on BEXXX, who Blue SpaceX a in of engines Maryland Blue Origin

We think structural are actively is our the engineers technology Company, the country things. really hard to across work the recruiting investing but he so you background, Chris to Mike across liquid in engineering on electric the side -- did on bring of and it's [Indiscernible] at in from talent I He everywhere look working propulsion if based our work engines. and on

think Mueller I at Tom focused engines was on over SpaceX. largely

Colin Canfield

question that. last And it. me. from Appreciate then Got

and you're you a vehicle best that talk for about bit or you from cost can cost out terms your aside weighing or decisions where launch? where have your design and leverage maybe of bring down in the ways material design vehicle for can you thinking on little If scale, the you're

Chris Kemp

can a and now of rocket have machine make this in one about machine in XD there's we feeding bunch metal a of investments in We're quarter a factory. that And we look no bought vehicle. going unroll feet just come whole in new to a haven't that parts that investing that in aluminum square line the so to XX-hours we by and We in large to out. step printer machining center to next into space going into morning still aluminum talked just and the really a and factories. production weld composite day parts we and building our And got over we're it. are there our us new Well you will XXX,XXX a parts begin making take of allow robotic rolls be this at

of to rocket vehicle, we covering techniques X-series, the of will X-series to of the Rocket a on that but cut on a remove from rocket. examples, to around stay taking probably the will going from go glued There's arm we when size roughly production robotic which that be to putting have labor. and spraying a processes quirks the some which lot is we're now Rocket introducing be same going the rocket, So a hundred the new hours

to in amount that we see need out order Astra. build labor number factory control. launchers software field, As areas. you're running look our what reduce And optimize we these in the at parts puts and the that have the much to of rockets. What looks we've then see look of the start together in are rockets how how did and people investments the economics, in people to into launch automation going at going reduce to duty at is got costs, Astra and costs. at incredible goes that looks about three making you and the the all you've talent in parts And emission labor the We them deployed out what you're you're the we're field, labor investments operation. going see working to and to that great our the reduce it once

and And so it robots have writing these them us which doing robots, are people. they're are programming allows to to take and turn into better CNC tasks -- repetitive it's machines, folks that than automation programming people

economics our the customers. strategic so people, the better and it delivering more play our I to them making here of in we're investments because role helps levels love of And

Colin Canfield

for the thanks color. Perfect,

Operator

would to I the turn like you. call Thank over Chris now back closing remarks. to Kemp, for CEO

Chris Kemp

be get schedule and not that Astra that as launch team we're in this is country what have wrap and an -- up our start that that we as can, And orbital going your capability, we a thing of has to we're as flight think we're as coming easy. this, there had And stay that's building easy. fraction is We're never today. competitors. and to No everyone the we attempted It anywhere is I in means a we of the patience of We're back but rocket long-term joining that as Company up. we quickly. the testing that appreciate time LVXXXX, much an up in we or able and on. to to going really the launch be successful, operated its we'll can will I getting will our Well, to more system information out light to of as journey world. the work really easy our Kodiak has operations ever build this focused appreciative of building performance scale the doing been launch demonstrate has what And to be us the for support up built cost soon any and once investors. This

our can't working, orbit you getting get basically all because the look on getting we to launching worry and services the about until competitors on of to we exciting team is Starship them too and rockets to business, because to if business at us focused we that orbit. we the market. from becomes business doing making launch once very started world, over once If start other we're And economics what And Space very our complementary going the the will we don't on can stay get distracted spacecraft get to that. orbit, services focused and

really So that's appreciate today. the questions and all focused we're all

Operator

concludes conference Thank today's This you. you for call. Thank participating.

disconnect. now may You

Astra Space Inc - Ordinary Shares (ASTR) 12 Nov 212021 Q3 Earnings call transcript