ASTR - Earnings call transcript Q1 2022 | Astra Space Inc

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Operator

Good afternoon. And welcome to Astra's First Quarter 2022 Earnings Conference Call.

Joining us today are Astra's Founder, Chairman, and CEO, Chris Kemp; CFO, Kelyn Brannon; and Vice President of Compliance and Deputy General Counsel, Michael Stitcher. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session [Operator Instructions]. to call like for to now remarks. introductory would turn over the Michael I ahead. go Please

Michael Stitcher

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

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

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

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

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

March XXth our instance, most was launch vehicle LVXXXX. For referenced recent and at

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

Chris Kemp

for Thank And you you, us today. good Thank Michael. joining afternoon, everyone.

our brief to For with those Astra, just mission, I'll begin started of a following vision introduction and strategy. who've you

technology space a company. is Astra

Astra generation aim example to and that productized phase customers. our on is customers Astra earth is to to needed products services. Astra to frequent, into increase this technologies possible build our technology us space have mission first acquired as an manufacturing we our delivery. past connected Engine The life we market-leading an with Spacecraft here dramatically space our healthier space we as by are and qualified of orbital And on goal business as daily scaling everyone unites our our per services capability leverage of a providing the cost and to next year. vertical II rapidly low space of Adam In space to what and Our at develop strategy, our quickly access and Phase more plan from planet focused of and improve launch space with access started it's space. Astra, we're In for our the customers. vision with for space launch inspires strategy, I

as a an two customer but for aware opportunity over February, as fixes our we our achieved Finally, just computing buying first under stage to a cloud upfront and And Canaveral satellites customer customer, companies XX QX half been we Alaska separation our into Astra have the will accelerating of the less flight, platform. growth the In customers it outta operating enabled next With vertically the past in ordered providers, plan out and data team. pipeline. launch took corrective networks, our accomplishments orbit, adoption of centers March, cycle understand space to Like tech is implemented both after $XXX prior marked In January integrated customer prior constellations. our prevented Phase delivery In service delivering launches. a years. technology than XXX applications five prior milestone first custom servers, Dedicated you're all the buying let's we space platform NASA XX payloads from our dedicated and million quickly of Kodiak, contract, of huge launch conducted leasing other license Astra, anomaly this operating services launch year, together the instead in our flight. us without along for into of bring on opportunity to award has with we which capital, for this review investing milestones history, technologies our and quarter the was and in to our Rideshare acquisition in from to investment, next these the allow which this Cape build Space successful some of of important building their III, context, we our a new occurred launch space and first launches, and actions calendar at Part days applications, payloads Astra products Venture-Class of in represents focus FAA what time

space Fusion quarter, the and and China most fact orbital Russia. launches two United last in Launch on tied can fourth as behind make it launch list QX, model maintaining between orbits in needed Spacecraft of contracted and frequent how to illustrates spacecraft The that Astra And continued multiple joint result Leo can continues has launche win economy the mix provide another engine year. added maneuverability. of today, SpaceX, this This Department to launches Alliance, and Lockheed, access in manifest, these Astra why sold The in has To In excited April, Leo date, with product. this of onto as last venture was provider With space badly are assist inaccessible for direct Astra is demonstrated affordable to target we the and to Engines strategic April, of demand frequent and Stella so we is with satellites. expand. for the our our Astra for with as and Apollo finally, the achieving demand. and in government and that engines we Stella acquisition Spacecraft only demonstrate Astra XX the launch it our world two the commercial continue just a the Defense announced Boeing by we satellites strength we infrequent of

is second execute for to upcoming our Astra launches. cadence Looking rapid ability a team the test quarter, the launch ahead to TROPICS to the excited

TROPICS Canaveral better, disaster healthier launches the space. deep and TROPICS the as lives. have save for to forecast launch inside represent cyclone milestone can observe our is so for company a will improve preparation on ultimately and storms improve from to we life significant These mission deploy and earth prepare NASA constellation. vision safer for further Astra to of we to multi the opportunity campaign to planet NASA our Cape honored a serve out

customers our to which again. weekly costs. this As material, will payload and manufacture focusing operation rocket launch with and production and provide new to version again whose our with and a a Astra on to the we for year, larger are increasingly X.X, System increased the Launch to thank next mission launch designed higher X.X, of I'd market decreased segment Launch to for capacity, will so months dedication rate rockets System services factory is Astra and launch Rocket our teams, production launch within employees has our our orbit labor which quickly services flights much and of launch like in address enabled more X.X our reach operations margins. allow introduce

facility. going started the our and their in onsite showcase of to our to to our We our announcements strategy, be headquarters customers commitment our look will and make take and investors leadership Thursday, This detail event We're X.X Spacetech mission. guests newly and rocket we'll inaugural This support just roadmap the to unwavering strategy. some overall entire will team, and our We video forward factory Day expanded getting System our Alameda, XXth our tour Launch review for are thankful we're rocket our at the next we're about May sharing California, XXXX. and even more going on product let place event. at exciting at streaming Astro

participants we be space like this Astra, thank in I now of experts results as a to in want our before us better, over ways for you. Q&A. discuss commercialize are will to considering those time investing Once industry call, who We are investors those during expect attendance. taken all who've join our of inspired those, quarterly current to and the hundred our And Kelyn quarter lives begin to by in first to the results to it I'd potential again, over we turn to financial that all make and

Kelyn Brannon

good and Chris afternoon, you, Thank everyone.

adoption customer in our heard ahead. As product of deployed be customers’ that Chris, to space in see our continue from will constellation the years you we

to results. me our First, now turn let QX review

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

February cost in paid Notably, in LVXXXX were services conducted orbital GAAP reconciliation derived results to as as $X.X of commence $X.X into $XX to during value Cost three launch services commercial payloads to represented earth customer XX, This of of on orbit. March You'll launched a million March as of today's realizable March We and XXXX. million find $X.X Revenues writedown from XX. LVXXXX. included launch months through in of LVXXXX from LVXXXX, million the QX. services a related delivery press on for LVXXXX first non-GAAP LVXXXX our the on launch ended were release. well inventory QX XX related XX we million and launch revenues net

loss was GAAP million. net QX was net adjusted our loss was was range of gross $XX.X our increase loss guidance million. $X.X first $XX.X in value of of a primarily adjusted $XX.X quarter the a consideration loss $XX.X a million. the to for Apollo fair million change within EBITDA at the quarter million. contingent related On basis, loss First sequential net in The and of fusion

based sales of research This $X.X million, marketing and G&A stock breaks development compensation total million. and and down expense totaled $X.X million, during follows; revenues as cost purposes, QX modeling of $XX For million, million. $X.X $X.X

totaled additions of expansion We the expenditures First no debt quarter with capital manufacturing. production and capital the current expenditures ended and occupied quarter begun facility and Cash primarily for includes were of outflows fully and related QX million the finalizing Alameda million entire equivalents, cash for for manufacturing have rocket paid million $XX.X our facilities. additions and for $XX.X $XX.X of to cash installing equipment addition. which for $XXX.X securities quarter and marketable We million, prior outstanding. cash, now

for second an provide outlook I'll Next, ending quarter XXXX. our June XX,

to we compensation expect second taxes stock are to addition $XX to be $XXX $X.X be be quarter, between EBITDA and is shares, based $XX $X.X amortization be to and basic currently For depreciation million $XX and between and $XX zero, loss between million million million $XXX to and adjusted cash $XX and between share be million, between million be million, the million million, to capital outstanding $XX million. forecasted

some Let color on provide additional me guidance.

at rate System investments X, many or the of QX, accelerate we in incurred meaningful X.X expect cycle in quarters. during expenses later increase operating cycle and services, Launch During development same for which to include not continue expected the materials development Rocket expenses consulting variable into are as a we this the

will we to for our allow continue target will Additionally, functions hires and scale. to key us operation that engineering

ongoing Our second below, including the form COVID-XX uncertainties various the packet and important associated and statements entitled XX-K, quarter guidance is section our forward in pandemic. looking cautionary risk referenced factors subject to with

also to war Ukraine. the risk and companies when our industries. is dynamic comes A there chain many it mentioned, associated Chris As supply with shared in across

processes manufacturing risk. However, believe that integrated helps mitigate one this our our vertically factor we investments in and factory are

our continues We and continue product as calendar year XXXX to a be roadmap transformative production. expanding expect Astra scaling to

generation Launch during As will on to cycle Astra’s as on call product well a offerings embark we year, QX earnings transition led spacecraft we next X.X, our by engine. expand space product outlined our the System as

launch of in and As that at our operations productivity. product execution to of make mentioned if systems will earlier, an development roadmap, QX capacity important increase is conduct quarter key implementation scale you investments the and

to on ensuring focus shareholders the continue deliver for and Lastly, term long us value we path these success. set to investments will on

Before team earlier I customers turn Chris, roster gratitude trust his the of to and to over I comments for growing of deliver to us call to want back add who them. to our

Spacetech operator, As for Chris And XXth calls for Chris newly May would hosting you our mentioned, factory Day analysts in we look for expanded and on investors inaugural with that forward to questions rocket Alameda. myself? at and open please our

Operator

first question The is line Yu Instructions] from Edison [Operator we Bank. from of that Deutsche have the

Edison Yu

I Well, had if may. I about three,

economics you're First, I color some could know quarter kind into embedded unfavorable you on embedding guidance? the launch could unit the pricing. there Any of for maybe was talk about the second the provide what you quarter? first probably

Chris Kemp

bit color that stab first well. the and as I’ll then more let I'll provide a take Kelyn at

Kelyn Brannon

Rocket As would average, does we say those X you is by launch. economics you economics revenue but series, that on what want? launches X our it's look that is on million it need that other unit the vary. of I And at or there vary Edison mark around the

Edison Yu

Yes…

Kelyn Brannon

If at and forward. we with what I'll are out look that that, pleased to of talk we that received margin are about gross we we really drive of relates that we forecast XX% about that gross pleased the we that that And and that's because a materials. adhering to bit little margin. are

able are make kind significant that we So to that be operations that and we of that the in comfortable items leaves there to going improvements. that other overtime go feel launch

you think scale, starting launch to the Launch of to of with fixed we accelerate increase economy As and the X.X, scale and System continue cadence we will we that number as costs, continue from we the up manufacturing the certainly, when and cadence. about rockets produce, we benefit

Chris Kemp

infrastructure company the is a to equipment at mental of the previous you making rate. weekly Edison, that in and our as production to quarters, a our and want factory staffing Astra investments have with model is in produce

lot skew at invest is of it production as But our a the launches lower X.X rate into cost margin launches ahead a to that rate, of product the at rate. demand today. does Now, launch launches like kind into economics satisfy translate higher of a amortized of at the monthly a of what the looks of we this and

quarter X.X interesting and quarter get particular think will more a in become to System dive start as into as Launch -- X.X thing deeply start we this more next year and I to to the So we and next much series. the following Rocket to rate on

Edison Yu

that it's And to to better has relative correct? economics missions, TROPICS the happened number first fair I in think the there, assume what quarter, out the is

Chris Kemp

correct. That's

Edison Yu

timeline sort TROPICS So on the mission of second any rough question, could you cadence? provide

Chris Kemp

It's going to rapid pretty be cadence.

at the that team goals and So the things again, other set the for have mission, we have happening we and then have we the the we weather, range.

tell a season, mission But is you storm we'd into I which can get like the before summer. to the have the you're We say into this rockets. that that all going complexities run before to complete typical to that we launching is

mind and as keep the can, launches And that the to the to But campaign objective done to get high so by quarter. it started quarter is done quarter is still but in likely all we it’s we get able end that pretty as a many are this them get cadence. be going of not this that's

the But goal This monthly to the before the this a mission mission three series mission think a you because the storm just TROPICS. successful, team's are for the refresh season I three a the exciting, that's the So of for pretty that begins. data just really better launches launches is it's that two out constellation. achieve It's And get. more successful, the accomplished of is for next rate more than year to failure. is think not if of I get rate lower

a transporter on what additional series mission think they for Astra mission really launches the this our paying single did this many some launch. from capacity, with of SpaceX effectively charge and of competitors I So NASA the that first for flight they're to have designed

mission really or get because be into And because time. Astra a my in other deliver them they at from truly, any a fantastic can they different can capability same three for a new ours still mission separate deliver opinion, allowed can is great for orbital where NASA it's launches delivering we achieve success multiple economics capability planes. provider, Astra, so this wouldn't a like fielded. We to launches satellites the able a that be and needed to This the

Kelyn Brannon

ready. rocket say license license. I the thing. waiting thing only launches add of for are on We box And to three to that that the say sort a the we're under like that Edison, all rockets would one to what in is is

but So now right the that's rockets in are progress what's ready.

Edison Yu

from one XX terms of down in can me, the customers you about any customers? last color orders just of breaking that. Just And by provide on curious types or that spacecraft engine

Chris Kemp

and number constellations can different be years. they're tell and the to going a on couple you We customers satellites it's of deployed next over

I So to just about getting as sold… demand it delighted product. that lot We're have of for started. there's already of think We're them really a XX would just

Kelyn Brannon

is pipeline the those with we're that are we to Astra continued spacecraft we products today, see to in And see these pipeline. engines continuing driving And orbit in success our demand for and see that that grow. continue

Edison Yu

you've that? mentioned is there on an And price before average

Kelyn Brannon

have list, there. not at price Martin or We they now out -- But we standard on whether not over list see looking publicized price actually our have right that. to I'm our

Chris Kemp

We the the something prepare but digested quarter, can by have community. next can that perhaps we for investment not, be

Kelyn Brannon

spacecraft ago, weeks of positive. the couple a engines discussed on we gross is as these Edison, But margin

Operator

from the comes Bank of line of America. question from Andre Madrid next Your

Andre Madrid

us that schedule you CapEx maybe moving some bit the around of Just expecting want kind you forward? little of color. details a guys are give Could

Chris Kemp

some of completed mean, factory. you Spacetech expansion is at next if we've Day color our week, we've I see folks really, have the you'll

a in we've up to this of deployed of weekly rate production CapEx to equipment. capital a lot X. lot deployed scale We've for So Rocket our facility into

the see capital off quarter we're into reduce what following and cost over is the because going rockets we've that lot taper to -- we've So a quarter fact we've next of quarter and to substantially, seen this in deployed basically. the rather seen quarter producing of previous

the strategy This why is been we has this So along. went all public.

factory. the expand Let's

our just down a scale. of automation, the it's with product to It's cost cost week making things through is a to not into from already helicopters, impressive. Let's and equipment into is rocket why products. XD reasons direct if of more machines. machines will the other Astra Day to X equipment companies, getting should we've lot end into making by what see go kind really it's investors the see margin the and of you'll high here. of result truly factory, Astra some the a of a one not one been be of of bought we reducing the you've of automated that those infrastructure get in lot And printing, It's our robots, and have the product. it's a really, one right analysts I would to of to using walk itself. in making rocket month a hand banks We've and a investments labor to thought of capital the and deploying it lot great building Spacetech built that think Space and that's the going And combination host you'll out the and And chasing of driving we're reducing

that the So have scale that's now and we're about deployed. all capital largely we

Kelyn Brannon

more about thing could if for loaded. to expenditures our XXXX thinking end only the then are front that, add CapEx modeling, And I you're

and the to and ready moving go in flights. our we want automation back the infrastructure, equipment start X test or and test get producing these and So Rocket infrastructure, preparing orders for X.X to of half finalize the System the early Launch year into be

Operator

the at turn further no back to questions like over call would are presenters. time. There this I the to

Chris Kemp

and are have week going next We this to this Spacetech the customers, everyone's and May about provide to all a hosting streams be investors, And websites everyone believe we as and in our launch fact, be work, you we're we're a will And together filings for dates. dates we those with looking releasing, opportunity that announced some today shareholders, together number be to an dates familiar some preparatory we're X.X, tomorrow, as the welcoming investors haven't are to hear We're frankly announcements. to are XXth there can announcing forward a of hope on what why our XX, date of And going putting advance for making detailed yet, and purported the and we have System attention at LVXX, Launch just appreciate do be analysts actual live of launches goes Day. that soon questions. to and we're on all here. putting them. how product for launch launch, roadmap, We'll that XX date out a reporting publish work we but launch there I why not literally primer going launch out less launch in and into

than and And we Day out webcast So before. get see we're see and Spacetech out going do three everyone's to at to next And back the Canaveral we're going we've them going launches. there them we'll faster we're ever the we're to you and week. on back Cape done to appreciate do excited to to patience

Operator

This concludes today's conference call. Thank for you joining. all

now disconnect. You may

Astra Space Inc - Ordinary Shares (ASTR) 6 May 222022 Q1 Earnings call transcript