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Astra Space Reports A $411 Million Net Loss As Delisting Decision Looms

By Doug Messier
Parabolic Arc
April 3, 2023
Filed under , , , ,
Astra Space Reports A $411 Million Net Loss As Delisting Decision Looms
Astra Rocket 3.0. (Credit: DARPA)

Astra Space (NAS: ASTR) suffered a net loss of nearly $411.4 million on revenue of $29.5 million last year as the company stopped development of its Rocket 3.3 launch vehicle and spun up production of a spacecraft engine for sale to other companies. The company had no revenue in the fourth quarter.

Astra reported its 2022 results last week as the company faces possible delisting from the Nasdaq stock exchange on April 5 for failing to get its stock price price to $1.00 over the past six months. It’s currently trading at $0.41. The company has requested a 180-day extension.

Astra said tests launches of its larger Rocket 4 are set to begin by the end of the year. The booster is being designed to launch 600 kg (1,328 lb) into orbit.

Astra Space Key Financial Metrics
(in thousands of dollars)

2022 Fourth Quarter Net Loss$44,308$51,265
2022 Fourth Quarter Adjusted EBITDA$36,618$36,068
2022 Full Year Net Loss$411,438$257,782
2022 Full Year Adjusted EBITDA$173,904$102,846

Astra Space’s net loss for the fourth quarter was $44.3 million, a year-over-year reduction from $51.3 million. Losses for the full year increased from $257.8 million to $411.4 million. Adjusted EBITDA for the year rose from $102.8 million to $173.9 million.

Revenue for the year totaled just under $9.4 million divided between $5.9 million from launch services and nearly $3.5 million from sales of the Astra Spacecraft Engine.

Astra Space 2022 Revenues
(in thousands of dollars)

RevenueCost of RevenueTotal
Launch Services5,89928,193(22,294)
Astra Spacecraft Engine3,4711,3372,134
Gross Loss:$9,37029,530(20,160)

Astra spent $29.3 million generating that revenue, resulting in a gross loss of just under $20.3 million. The majority of the loss came from launch services, while the spacecraft engine made a small profit of $1.3 million.

The company said it has 278 “cumulative committed orders” for its Astra Spacecraft Engine. Customers for the engines include Airbus OneWeb Satellites, Astroscale, and Maxar Technologies.

Astra said it ended 2022 with approximately $102.8 million in cash, cash equivalents, and marketable securities.

The company provided the following guidance for the first quarter of 2023:

  • adjusted EBITDA loss of $37-$41 million,
  • capital expenditures of $6-8 million, and
  • basic shares outstanding between 269 million and 271 million.

“Our team has been intensely focused on execution. In addition to gaining significant traction in our Space Products business, we achieved critical milestones in the development of Launch System 2, including conducting the first full flight duration run of our first stage engine and substantial progress toward completion of the Rocket 4 production line,” CEO Chris Kemp said.

“We also took important steps to enable production of the Astra Spacecraft Engine at scale through the build-out of our dedicated production facility, which we expect will eventually support production of up to 500 units per year, with our production ramp beginning in Q2 2023,” he added.

Astra Space discontinued development of Rocket 3.3 after the destruction of two of NASA’s Time-Resolved Observations of Precipitation structure and storm Intensity with a Constellation of Smallsats (TROPICS) satellites.

NASA canceled two future launches of TROPICS satellites by Astra and awarded a two-launch contract to Rocket Lab. However NASA said it would still launch other payloads aboard Astra rockets.

Astra’s financials are below.

Astra Space, Inc.
Condensed Consolidated Statements of Operations
(Unaudited, in thousands except per share data)

Three Months Ended December 31, 2022Three Months Ended December 31, 2021Twelve Months Ended December 31, 2022Twelve Months Ended December 31, 2021
Launch services$$$5,899$
Space products  3,471 
Total Revenues  9,370 
Cost of revenues
Launch services  28,193 
Space products  1,337 
Total cost of revenues  29,530 
Gross profit (loss)  (20,160) 
Operating expenses
Research and development 29,120 36,239140,666 80,398
Sales and marketing 3,949 1,88217,401 4,111
General and administrative 24,468 24,04085,285 74,752
Impairment expense 1,773 76,889 
Goodwill impairment  58,251 
Gain (loss) on change in fair value of contingent consideration (9,049) (4,700)20,200 (4,700)
Total operating expenses 50,262 57,461398,692 154,561
Operating income (loss) (50,262) (57,461)(418,852) (154,561)
Interest income (expense), net 602 251,748 (1,169)
Other income (expense), net 5,352 6,1695,666 31,346
Loss on extinguishment of convertible notes    (131,908)
Loss on extinguishment of convertible notes attributable to related parties   (1,875)
Income (loss) before taxes (44,308) (51,267)(411,438) (258,167)
Income tax (benefit) provision  (2) (385)
Net income (loss)$(44,308)$(51,265)$(411,438)$(257,782)
Adjustment to redemption value on Convertible Preferred Stock   (1,011,726)
Net income (loss) attributable to common stockholders$(44,308)$(51,265)$(411,438)$(1,269,508)
Basic and diluted loss per share
Weighted average basic and diluted shares – Class A 212,732 202,982210,178 110,837
Loss per share$(0.17)$(0.20)$(1.55)$(7.82)
Weighted average basic and diluted shares – Class B 55,539 56,23255,539 51,548
Loss per share$(0.17)$(0.20)$(1.55)$(7.82)

Astra Space, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands)

December 31, 2022December 31, 2021
Cash and cash equivalents$33,644$325,007
Marketable securities 69,173 
Trade accounts receivable 5,327 1,816
Inventories 6,800 7,675
Prepaid and other current assets 10,838 12,238
Total current assets 125,782 346,736
Property, plant and equipment, net 24,271 66,316
Right-of-use asset 12,813 9,079
Goodwill  58,251
Intangible assets, net 10,132 17,921
Other non-current assets 1,701 721
Total assets$174,699$499,024
Liabilities and Stockholders’ Equity:  
Accounts payable$1,799$9,122
Operating lease obligation, current portion 3,800 1,704
Contingent consideration 33,900 
Accrued expenses and other current liabilities 42,043 29,899
Total current liabilities 81,542 40,725
Operating lease obligation, net of current portion 9,051 7,180
Contingent consideration, net of current portion  13,700
Other non-current liabilities 1,796 899
Total liabilities 92,389 62,504
Total stockholders’ equity 82,310 436,520
Total liabilities and stockholders’ equity$174,699$499,024

Astra Space, Inc.
Summary Cash Flow Data:
(Unaudited, in thousands)

Three Months Ended December 31, 2022Three Months Ended December 31, 2021Twelve Months Ended December 31, 2022Twelve Months Ended December 31, 2021
Cash used in operating activities$(40,823)$(34,780)$(175,438)$(114,356)
Capital expenditures(7,580)(19,629) (47,623) (38,349)
Free cash flow (non-GAAP)(48,403)(54,409) (223,061) (152,705)
Cash used in investing activities6,729(19,779) (117,359) (61,059)
Cash provided by financing activities130914 1,434 489,811

Astra Space, Inc.
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
(Unaudited, in thousands)

Three Months Ended December 31, 2022Three Months Ended December 31, 2021Twelve Months Ended December 31, 2022Twelve Months Ended December 31, 2021
Launch services$$$5,899$
Space products$$$3,471$
Total revenues   9,370 
Cost of revenues
Launch services   28,193 
Space products   1,337 
Total cost of revenues   29,530 
GAAP gross profit (loss)   (20,160) 
Inventory adjustments  10,200 
Capitalize launch costs write downs   2,213 
Adjusted gross profit (loss)   (7,747) 
GAAP net income (loss) (44,308) (51,265) (411,438) (257,782)
Stock-based compensation 12,324 19,278 55,904 39,743
Fair value of warrant liabilities  (5,234)  (25,681)
Gain (loss) on change in fair value of contingent consideration (9,049) (4,700) 20,200 (4,700)
Apollo cash earnout compensation  4,449 675 5,811
Inventory adjustments   11,212 
Capitalized launch cost write downs   2,213 
Loss on extinguishment of convertible notes    133,783
Impairment expense 1,773  76,889 
Goodwill impairment   58,251 
Employee retention credit   (4,283) 
PPP loan forgiveness    (4,850)
Legal Settlement    750
Other special items 1,974  4,770 3,969
Adjusted net income (loss) (37,286) (37,472) (185,607) (108,957)
Interest (income) expense, net (602) (25) (1,748) 1,169
Income tax (benefit) expense  (2)  (385)
Realized (gain) loss on investment   123 
Depreciation and amortization 1,270 1,431 13,328 5,327
Adjusted EBITDA (36,618) (36,068) (173,904) (102,846)

One response to “Astra Space Reports A $411 Million Net Loss As Delisting Decision Looms”

  1. Thomas Matula says:

    It is amazing looking at the burn rate of these startups relative to SpaceX at the start. It’s no wonder that they are failing.

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