- Earnings call transcript Q3 2022

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Operator

Good afternoon, and welcome to Astra's Third Quarter 2022 Financial Results Conference Call. [Operator Instructions]. I would now like to turn the call over to Andrew Hsiung, Vice President, Strategic Finance and Capital Markets. Please go ahead.

Andrew Hsiung

Thank you, operator. thank quarterly joining results and third for everyone, XXXX quarter call. afternoon, you us for Astra's Good After the market closed, we released our financial results. is website release our results available SEC's the The website Investor Relations at investor.astra.com. on and be related to section quarter can Investor A supplemental found website. our the presentation on our XXXX third results also of Relations being the on is Internet Relations Investor This our be will also website. teleconference and broadcast over available archived and

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

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

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

Chris Kemp

Financial Business with our afternoon, thank and joining for Good also us Andrew. to Thanks, excited Attiq, you Chief today. us everyone, Officer, today. Officer, call the Martinez; Chief and have our on I'm Martin Axel incoming

will third spacecraft financial our we this and for on during our update services engine and call, operational performance guidance launch the QX businesses. review provide During quarter, and review an

necessary with third extending level the we also some which appropriate on will financial our our allow focus the difficult decisions, to quarter, while us near-term during made priorities resources, of runway. Now but

Our selling Engines Astra first delivering operating successful is plan now flight Spacecraft and our and fully rocket. of focused new on the

Astra progress Astroscale, this our Satellites, available margin will gross past the Spacecraft goals leading believe customers in of propulsion increased one conversations committed a Spacecraft orders of GAAP our positive and for order over OneWeb the Maxar Engine each currently time first quarter, the the XXX% we've the Company's achieved made announced validating these We orders quarter, others. the XXX history. achieving of We the from Airbus ongoing toward increase discuss call. during of the of and among Astra is We an market. as with including book today, that Engine in-space we've cumulative last in view systems In

about System X, development more towards I'll moment. which the progress a We continue to in Launch speak make of

and moving production ofAstra We into new Sunnyvale, this the California, plan We this on Financial million and leadership 'XX. dedicated Chief in core equivalents facility a our facility hiring and our marketable cash, , foot cash Engines. square as Counsel. ended of $XXX including to the XX,XXX quarter our securities. Martinez, new Axel strengthened QX team, new as continue quarter build to approximately build-out in We we completing out in General the Officer; with Spacecraft And

resources uncertainty, quarter, This continued core volatility, macroeconomic and of team backdrop the with rates has businesses. inflation market the and geopolitical and interest increasing equity our prioritized on

for in customers, of focusing products to services are first system businesses. We've on focusing launch to to reliable is our a of important in resources revenue space we growth also Specifically, our becoming the successful which flight engines and Rocket development delivering direct X. core reduce investments support reliability services stream near-term launch spacecraft an space Astra, our rapidly to investments decided while and

develop We space the partner opportunities long-term our in remains to part explore development continue to as offerings, it of a strategy. services or business of significant our

provide like an System development to on made update X. I'd Now we've of Launch on the progress the

improved Astra important that we the increased and at capacity an cadence. life satellite space-based X and operators increased support and globally the scale. Rocket to deploying We Earth of announced quarter, design increased to product and operational up point on of a our mid-inclination focused excellence, deliver launch kilograms and system resources technologies Launch new represents to System X over XXX last launch have course to As the we development cycle. delivering reliability low reminder, designing payload with our orbit for an

ground completed provided the part earnings expect which continue infrastructure, Since infrastructure designed stage on Rocket software. this to at last including test XXXX. Rocket in test required loop and latter X, our update flights end the valve test factory, have first-stage commission We launch provisioned and new test to and tooling Alameda you system, upgrades test propellant engine of critical and tanks. of can we X, Launch manufacture we released progress, We and System to including X an first our to stands other view design for call, We begin the astra.com/launchupdateX. the X the system at Rocket

coming better understand and the the including release of in details will months, guide now our our launch the releasing products to customers for continue which weeks features milestones additional X, detail payload service. development capabilities of first our of Rocket allow space rocket on our some to and business. provide I'll user and expect We important

its manufacturing space discussed Astra last produce develop the capabilities to and we products quarter, mass leverages services. satellites and As required for next-generation

call, This adds discuss Spacecraft additional part XXX their into While to orbits, ultimately orders Spacecraft the of them Xst, the maintain committed will we've inclusive Spacecraft to for collisions that last XXX cumulative the committed satellites XXth, announced June part Engine committed Astra deorbit the XXXX, -- since at made them bring up acquired services final XXXX. the of as July launch avoid since our product orders at of completed signifying are We've of progress the Astra helps customer full with for Since Astra Fusion space, the customer the security importance their space our we've critical the their And payloads national life acquisition. Apollo and an to orders tech key of delivers majority engines is being orbits, space programs order. ecosystem. delivery second in delivered the the spacecraft a their XX space end to wanted earnings debris. the I reduce Engine. Engine

conversations We customers. and continue our committed to ongoing based orders see strong with demand on customer

typically As from to contract which to mutually X orders XX months are signing. delivered reminder, customers a over agreed a months is time line,

and Axel? over it our turn I'll to Axel to review guidance. financials Now

Axel Martinez

and Thank good you, Chris, everyone. afternoon,

sustainable including am scaling Astra. and I Chief earnings and work to a Uber on Google hyper-growth scalable learned pleased of bring all companies, build First, join incoming first call am excited technology Financial my from to you as business. Astra, Officer we I've to as I what to

review Let QX now me results. our

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

operating related results today's Spacecraft second million. were from Engine million profit $XX.X products. Engines $X.X continued engines, was investments and now primarily Sales completed quarter. of core press million, to reflecting that release. $XX.X The operating discuss totaling totaled a to one-time driven of in will our attributed GAAP million included Spacecraft expenses Astra expenses GAAP shortly. $X.X to to program. $X.X we Astra This items our find resulted in our quarterly expenses gross will million, last difference GAAP first was million. I compared Astra's R&D marketing in founding, the key investments expenses QX Revenues revenues GAAP in efforts sales engine. $XXX.X launch delivery since technologies, spacecraft in our ongoing Cost ongoing $XX.X and reflecting and of have services reflecting others. as And the of non-GAAP You investments reconciliation by spacecraft million, G&A systems in for million, $X.X among expenses of

one-time talk XXXX. the let's during about items of Now QX, all

of factors resulted substantial about doubt that macroeconomic activities. operating the existing to each segments continue segments. of During in determination were of Company's the X Company ability And from not sustained based decrease that triggers the reorganized quarter, third The certain amount and the the in liabilities as a company assets price, indicating present, going therefore, as reorganization, to carrying and X may reporting assets be the to Company's each reporting on together recoverable. with a segment's result, concern assign share Company's a the

a $X.X trademark million million. a these definite-lived to $XX.X assets. and a As $XXX.X items All goodwill, million charge our recorded plant impairment of to totaled a equipment, property, result, million we related related impairment on $XX.X and charge a impairment long-lived non-cash $X.X million assets; assets of intangible of one-time

was consideration forecasted million, Additionally, inventory contingent in a A change X revenues $XX.X million higher $X estimating result value expenses. related R&D in contingent consideration. as fair also to of Rocket in was a loss included the of value of on fair adjustment

million from Astra a quarter one-time also employee in credit. $X.X benefited third retention the tax

XXXX. payment receive to in half the expect first We of this from the cash credit

for As the a result, total $XXX items were quarter million. one-time

loss was of basis, EBITDA million, on compared non-cash improvement quarter. basis, net was On a million. to third last our these $XX.X quarter a million. $XX.X $X Given net a loss quarter $XXX.X adjusted million one-time loss items third non-GAAP a QX GAAP was adjusted

to to $XXX.X securities spacecraft of with We and outstanding. of no additions continued of quarter the $X.X were our related delivery in capital and business debt and primarily million ended services development investment the quarter million equivalents cash expenditures the our launch engines. cash, Third and marketable

deficiency $X consecutive In our bid manage addition, also of per X, to share carefully as under our we NASDAQ, closing a days. October On as continue received trading various from remained notice we capital, XX Astra for price runway. sources financial evaluate

to which control expenses directly be measures ultimately short-term our volatility, we to strengthen decrease line we share our balance taking believe and cannot add are market capital top reflected we in increase While growth, price. will sheet,

our Next, an for XXst, December I'll outlook ending XXXX. provide fourth quarter

As on our runway financial of operating amidst optimize the spacecraft flight we and the our us our of and volatility. allowing successful market Rocket plan delivery increase fresh to Chris X, focus plan mentioned, engines operating

headcount this As are existing headcount of reduction from have in our approximately a result, beginning reduced be Payroll as of XX%. QX today, XXXX. we expected to by savings realized

As in is entitled is and Form factors referenced with our by section industries. There ongoing in to fourth and important Forward-Looking levels cautionary with the launch chain, discontinue decision Launch the the associated risks our guidance also and of various dynamic it vehicles our a inflation across X.X. XX-K, geopolitical COVID-XX risk Statements uncertainties and the in including reminder, a supply quarter associated product tensions, guidance as companies subject relates pandemic below to System the supported of share to many elevated

However, manufacturing processes factors the and these our of integrated help we that in believe one mitigate investment vertically our risks. factory are

million shares adjusted will we XXX capital million additions be shares Basic and USDXX currently guidance. to quarter, and fourth expect and be future provide XXX we In between million. USDXX EBITDA USDX be the to million. between USDX between and million outstanding loss to Now

cash this space metrics priorities not the our will on on guidance providing our we amortization, As time. and to shift guidance business, focus that products focus services at depreciation manage compensation we near-term and stock-based will our our and on businesses, we launch thus, use be to taxes

Spacecraft the in should production in support On continue committed quarterly Engine, QX, up to began variability shipments you customer expect XXXX. to we ramping beginning until Astra's deliveries

XXXX. Xst, of Engines, XXXX, orders units including cumulative Spacecraft engines. customer we been Fusion in we vast on our continue acquired demand Apollo have committed XX with we today, XXX strong ordered for Astra The of acquisition have the spacecraft to for our engines see and majority July As spacecraft

engines the engines delivery only spacecraft months X XX months reminder, customers. of revenue contract our delivered signing, and As recognizes a to from Astra spacecraft upon typically to are

new spacecraft call remainder of our we to transformative production Chris. to XXXX develop for engines. periods will the the to our Astra, continue expect and be I XXXX scale back as We system over and now further launch turn for

Chris Kemp

you and Thanks, Axel, on glad we're the to team. have

impact with who like individuals. have we ways to difficult the the decision to her I'd Astra Astra become the and as always all helping I'd appreciate very count thank the we've talented by impacted call, public finally, that I to me leadership employees, it work, And a Today, head on been and like made transition. finance part and personally Astra reduction. our contributions a company you've conclude of and as we had Before some whole. a organization's Kelyn thank for through this made hard very the

well Astra questions. months, on product And with on execute focus weeks let's is to our that, improve earth share life core offerings. deliver shipping in we as to developing to positioned operator, I'm mission coming updates call from and open to now on excited the and for space. continue and the our

Operator

And question Deutsche [Operator Edison our from first from comes Instructions]. Yu Bank.

Edison Yu

financial. strategic, more two three, I Had may, if one

on agreement with Gen X and Gen potential X get to the -- constellation? provide color supplied on the could or the some you OneWeb On side, maybe win about us on the remind strategic

Chris Kemp

Sure.

with the I've OneWeb I'm more on to him Airbus Martin that. in room, agreements got So and provide color Satellites, so going let the some

Martin Attiq

Yes. Edison, with OneWeb is we Airbus agreement Satellites announced for the platform. their that

OneWeb yet made going the the and market, have not been going satellite Airbus determination a provided supply on OneWeb X OneWeb they buses, who's who's announced, Gen As in the Satellites supply buses. has folks X know not to or the to -- Gen

don't of further that. add we have so And on anything top to

Edison Yu

any Do made? decision idea you that have be will when

Martin Attiq

don't. I

Edison Yu

Second, strategic.

sounds think, I something like had any don't salvage you anything? I spectrum deemphasizing and of about think kind that the you the there's with I details you there any -- that plan, sort value like past, residual it there recall of now. spectrum, that can of if but the -- seeing Is before. sort sort -- and the mentioned in value you you're that sort of spectrum you had, the had submitted because original of with you wondering wanted of did

Chris Kemp

focus process. the the we is Company, for long a services launch here is launch hand we on for the space And some given of I long-term make of for engines given services, that be should that current enabling of that tried it's But allocation think delivering spacecraft the our engines customers is economic one vision. the and spacecraft space clear clear, services Star space spectrum Well, contracts to have on are have cost capital, for things availability and both technology climate, that that of capital, launches. the of and pretty purchased and the North

of short-term Company And capital the so we're really and in just or prioritizing the the resources for the both over right our year so. goals investment now human next

change, us. funding for we Now you're front programs that or to our right emphasis focus. is, now, what's seeing these and any markets we shareholders do on additional And focus, for secure should should seeing is given of secure we of what But financing for in our focus, you're an could customers what change, want projects.

Edison Yu

just way me, much a quantify know a OpEx? year would on color it's it's in to of tough you're appreciated. Any tough -- be benefit quick restructuring for terms financial one last next then . saving a there, how I the And one. Any

Axel Martinez

Yes. for guidance Well XXXX. so we're not Well, -- question. this point the at thank providing you for

system. Our optimizing At priorities, we XXXX. operations the launch development well is to our new runway in plan, time, structure. is increase focus X is want -- spacecraft the as which the plan our And our of our to right, the mentioned, into our our is Chris engines same continue and to goal to top cost

Operator

of question [Operator Bank comes Ron America. Epstein next Instructions]. from And our from

Ronald Epstein

being Why that. of couple sold? assets guess, a I about questions. Just kind are curious of

-- yes, what's what's sold? So being

Chris Kemp

did their as are know, All the a to they what's we you sold. revaluing markets was companies with Like many just being stock companies revaluation. market, are assets particularly being no what capital Actually, are, assets. happening are

specific to so revaluation. one-time And that -- that the -- for related most was one $XXX charges related the right? just all million to part, the are is

Ronald Epstein

Cassidy And Apollo And looks other so I great it the then happen, when rifts should mean I I think morale. typically He what about to it's key are Mike losing we risks left. people? was that? mean like How not CEO. mean, for there

Chris Kemp

I think development I product the that acquired was speaking I of we stage. yet. Well, Apollo, in mean the They hadn't mean company tested a

seen X.X to product team and transitioned quality, Over been years, has space past becomes a qualified, we've the that's that production that focused on -- and and team scale. engineering

a Maxar, a on And the OneWeb company. so brought we being and going it's into like process stage have the company, company scale to level customers of that a focus with that it see you'll that see Satellites really quality small you're demand development not Airbus early-stage where

we've as So anticipated off question, Mike's going that grown is start go Company people, starting think at to always tripled folks We his your had a the companies, that we we company had like go our mind fifth and the about XXX in people. To who in public, keep and are size now of was really great I fast. I broader over this announced Astra. as that a think intent by time XXX mean Mike, we result, another year. to start-up. the and I of

focus, having it, and I And going X for it's flight we're focus, So energy focusing. frankly. what and I and to here a pretty team of these through around here that about we're I we're intensity think that team frankly, going to new think and we're energize level the delivering that to work spacecraft think, is excited the give And we're flying on customers. doing Rocket engines our have

Martin Attiq

these with see find is you you in strategic if kind to what well of people. incredible very of our been in And this at unique brightest incredible really think the our much plan, I the of too, out team have website. some leadership working can individuals were working add it, have an we since a of people all And we have And incredible part development the [indiscernible] opportunity. beyond goes I that Astra minds

And of so very they're process. all this much part

C And done the something something across at so the was not that was organization. It done this is suite.

And so we it really other. the that reflects commitment each towards have

And feel do. why this like what trying is we're so we to

Chris Kemp

Yes.

contracts When that on to have, one of come employees we frankly, is things to want and add Rocket we Ron. to we Finally, one I fly successfully. customers, back thing, the time talk we the important the have X most time have to and we that to talk deliver

we when out we from a think well do And us choices some set perspective what team strong, here, and we our incredibly made, this, appreciates people talented that so it And at into runway to the understands to the frankly to that. have is have XXXX deliver required looked for which customers. team They is and the fact gets that the tough runway over an team. be I they

going actually commitment team's it's the think our increase of so to the And confidence I to in and mission. leadership level

Ronald Epstein

one, then question. And maybe the the accounting contingent little liabilities? consideration What's more detailed in

Axel Martinez

to out over ship earn that number acquisition. we It's able related to next to Apollo related are the related the an shareholders, That's to units of Yes. year.

Operator

We you, have today's participation. questions for will This Thank call. their no everyone, further queue. conclude in conference

You may now disconnect.

Astra Space Inc - Ordinary Shares (ASTR) 9 Nov 222022 Q3 Earnings call transcript