Astra Space Reports A $411 Million Net Loss As Delisting Decision Looms
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 | 2021 | |
|---|---|---|
| 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)
| Revenue | Cost of Revenue | Total | |
|---|---|---|---|
| Launch Services | 5,899 | 28,193 | (22,294) |
| Astra Spacecraft Engine | 3,471 | 1,337 | 2,134 |
| Gross Loss: | $9,370 | 29,530 | (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, 2022 | Three Months Ended December 31, 2021 | Twelve Months Ended December 31, 2022 | Twelve Months Ended December 31, 2021 | |||||
| Revenues | ||||||||
| 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 | 36,239 | 140,666 | 80,398 | ||||
| Sales and marketing | 3,949 | 1,882 | 17,401 | 4,111 | ||||
| General and administrative | 24,468 | 24,040 | 85,285 | 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 | 57,461 | 398,692 | 154,561 | ||||
| Operating income (loss) | (50,262) | (57,461) | (418,852) | (154,561) | ||||
| Interest income (expense), net | 602 | 25 | 1,748 | (1,169) | ||||
| Other income (expense), net | 5,352 | 6,169 | 5,666 | 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 | 202,982 | 210,178 | 110,837 | ||||
| Loss per share | $ | (0.17) | $ | (0.20) | $ | (1.55) | $ | (7.82) |
| Weighted average basic and diluted shares – Class B | 55,539 | 56,232 | 55,539 | 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, 2022 | December 31, 2021 | |||
| Assets: | ||||
| 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, 2022 | Three Months Ended December 31, 2021 | Twelve Months Ended December 31, 2022 | Twelve 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 activities | 6,729 | (19,779) | (117,359) | (61,059) | ||||
| Cash provided by financing activities | 130 | 914 | 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, 2022 | Three Months Ended December 31, 2021 | Twelve Months Ended December 31, 2022 | Twelve Months Ended December 31, 2021 | |||||
| Revenues | ||||||||
| 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”
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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.