Astra Space Report $53 Million Net Quarterly Loss, Abandons Rocket 3.3 After Multiple Failures, Delays Next Launch into 2023

Rocket 3.3 lifts off from Kodiak Island on March 15, 2022. (Credit: Astra Space/NASASpaceflight.com webcast)

ALAMEDA, Calif., August 04, 2022 (Astra Space PR) — Astra Space, Inc. (“Astra”) (Nasdaq: ASTR) today announced financial results for its second quarter ended June 30, 2022.

Astra announces that after two of its four Rocket 3.3 flights were successful, the Company will transition to the next version of its launch system and is working with customers to re-manifest all payloads onto the new launch system, designed for higher capacity, reliability, and production rate.

“We have increased the design point of our new launch system to deliver up to 600-kilogram satellites to mid-inclination low Earth orbit over the course of the product lifecycle, which we believe will allow us to service over 75% of the small satellite market, including many of the new mega-constellations,” said Chris Kemp, Astra Co-Founder, Chairman, and CEO.

Astra announced that the base bulk launch price for dedicated launches is expected to remain under five million dollars.

“We have made substantial changes to our operating plan to concentrate and focus our investments on the development and introduction of the upgraded version of our launch system and the increased production of the Astra Spacecraft EngineTM,” said CFO, Kelyn Brannon. “Furthermore, the $100 million Committed Equity Facility with B. Riley Principal Capital provides improved financial flexibility as we execute on these objectives.”

Recent Business Highlights

  • Updated, streamlined plan to invest in delivering higher reliability, higher capacity 600kg Launch System 2.0 to market.
  • Commenced customer deliveries of the Astra Spacecraft EngineTM, with total committed orders since July 1, 2021, up 69% over Q1 2022. This includes committed orders for 14 units acquired with the Apollo Fusion acquisition.
  • Began investing in new production facility to support increased demand for the Astra Spacecraft EngineTM.
  • Held first inaugural Spacetech Day for investors and analysts.

Second Quarter 2022 Financial Highlights:

For the three months ended June 30, 2022:

  • GAAP Gross Loss was $14.8 million.
  • Adjusted Gross Loss* was $2.4 million.
  • GAAP Net Loss was $82.3 million.
  • Adjusted Net Loss* was $53.0 million.
  • Adjusted EBITDA Loss* of $48.4 million.
  • Capital expenditures during the quarter totaled $12.9 million.
  • Cash and cash equivalents and marketable securities totaled $200.7 million.

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*Denotes Non-GAAP financial measure. Refer to “Explanation of Adjusted (or Non-GAAP) Financial Measures” later in this press release for reconciliation of GAAP to Non-GAAP financial measures.

Third Quarter 2022 Outlook

As of August 4, 2022, we are providing guidance for the third quarter 2022 based on current market conditions and expectations and given the dedication of our launch resources to the development of Launch System 2.0. We emphasize that the guidance is subject to various important cautionary factors referenced in the section entitled “Forward-Looking Statements” below and our annual report on Form 10-K for the year ended December 31, 2021, including risks and uncertainties associated with the ongoing COVID-19 pandemic as well as the Russia, Ukraine conflict and their potential impact on our business.

For the third quarter ending September 30, 2022, we currently expect:

  • Adjusted EBITDA Loss* between $45.0 million and $51.0 million.
  • Depreciation and Amortization between $5.5 million and $6.5 million.
  • Stock-based compensation between $12.0 million and $15.0 million.
  • Cash income taxes of approximately zero.
  • Basic shares outstanding between 266.0 million and 270.0 million.
  • Capital expenditures between $6.0 million and $8.0 million.

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*Denotes Non-GAAP financial measure. Refer to “Explanation of Adjusted (or Non-GAAP) Financial Measures” later in this press release for reconciliation of GAAP to Non-GAAP financial measures.

Conference Call Information

In conjunction with this announcement, Astra will host a conference call for investors at 1:30 p.m. PT (4:30 p.m. ET) today to discuss second quarter results and our outlook for the third quarter ending September 30, 2022. The live webcast and a replay of the webcast will be available on the Investor Relations section of Astra’s website: https://investor.astra.com/news-and-events/events-and-presentations

About Astra Space, Inc.

Astra’s mission is to improve life on Earth from space by creating a healthier and more connected planet. Today, Astra offers one of the lowest cost-per-launch dedicated orbital launch services of any operational launch provider in the world, and one of the industry’s first flight-proven electric propulsion systems for satellites, Astra Spacecraft EngineTM. Astra delivered its first commercial launch to low Earth orbit in 2021, making it the fastest company in history to reach this milestone, just five years after it was founded in 2016. Astra (NASDAQ: ASTR) was the first space launch company to be publicly traded on Nasdaq. Visit astra.com to learn more about Astra.