Q1 2025 Virgin Galactic Holdings Inc Earnings Call

Good afternoon. My name is luella and I will be your conference operator today at this time I would like to welcome everyone to Virgin Galactic <unk> first quarter 'twenty to 'twenty five earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there.

Luella: My name is Luella and I will be your conference operator today.

Luella: At this time, I would like to welcome everyone to Virgin Galactic's first quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise.

Luella: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone. If you would like to withdraw your question, press the pound. Thank you.

Will be a question and answer session. If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question press the pound key.

Eric Cerny: I will now turn the call over to Eric Cerny, Vice President of Investor Relations. Thank you. Good afternoon, everyone.

Eric Cerny: I will now turn the call over to Eric Cerny, Vice President of Investor Relations.

Eric Cerny: Thank you and good afternoon, everyone welcome to Virgin Galactic <unk> first quarter 2025 earnings conference call on the call with me today are Michael Cole Glaser, Chief Executive Officer, and Doug Aron Chief Financial Officer.

Eric Cerny: Welcome to Virgin Galactic's first quarter 2025 earnings conference. On the call with me today are Michael Colglazier, Chief Executive Officer, and Doug Ahrens, Chief Financial Officer.

Eric Cerny: Following our prepared remarks, we will open the call for Our press release and slide presentation that will accompany today's remarks are available on our Investor Relations website. Please see slide two of the presentation for our Safe Harbor disclaimer. During today's call, we may make certain forward-looking statements. These statements are based on current expectations and assumptions, and as a result, are subject to risk and uncertainty. Many factors could cause actual events to differ materially from the forward-looking statements made on this call. For more information about these risks and uncertainties, please refer to the risk factors in the company's SEC filings made from time to time.

Eric Cerny: Following our prepared remarks, we will open the call for questions.

Eric Cerny: Our press release and slide presentation that will accompany today's remarks are available on our Investor Relations website.

Eric Cerny: Please see slide two of the presentation for our Safe Harbor disclaimer.

Eric Cerny: During today's call we may make certain forward looking statements. These statements are based on current expectations and assumptions and as a result are subject to risks and uncertainties. Many factors could cause actual events to differ materially from the forward looking statements made on this call.

Eric Cerny: For more information about these risks and uncertainties. Please refer to the risk factors in the company's SEC filings made from time to time.

Eric Cerny: You are cautioned not to put undue reliance on forward-looking statements, and the company specifically disclaims any obligation to update the forward-looking statements that may be discussed during this call, whether as a result of new information, future events, or otherwise.

Eric Cerny: You are cautioned not to put undue reliance on forward looking statements and the company specifically disclaims any obligation to update the forward looking statements that may be discussed during this call whether as a result of new information future events or otherwise.

Eric Cerny: Please also note that we will refer to certain non-GAAP financial information on today's call. Please refer to our earnings release for a reconciliation of these non-GAAP financial methods.

Eric Cerny: Please also note that we will refer to certain non-GAAP financial information on today's call. Please refer to our earnings release for a reconciliation of these non-GAAP financial metrics.

Eric Cerny: Turning to our agenda for today's call on page three. Today we'll cover progress in developing our next-generation spaceships, a look ahead at future commercial initiatives, and a financial update.

Eric Cerny: Turning to our agenda for today's call on page three.

Eric Cerny: Today, we will cover progress in developing our next generation space ships, a look ahead at future commercial initiatives and a financial update.

Michael Colglazier: I'll now turn the call over to our CEO, Michael Colglazier. Thanks, Eric. Welcome, everyone, to our first quarter. We open 2025 driving solid progress toward putting our next generation spaceships into commercial service. An enormous amount of work is taking place across our company as well as at our key suppliers. And we continue to expect our first research spaceflight will take place in summer of 2026. private astronaut flights following in fall of 2020.

Speaker Change: I'll now turn the call over to our CEO, Michael Cole Glacier.

Speaker Change: Thanks, Eric.

Speaker Change: Welcome everyone to our first quarter earnings call.

Speaker Change: We opened 2025 driving solid progress towards putting our next generation space ships into commercial service.

Speaker Change: An enormous amount of work is taking place across our company as well as at our key suppliers and we continue to expect our first research space flight will take place in summer of 2026 private astronaut flights following in fall of 2026.

Michael Colglazier: Our company-wide focus on controlling expenses continues as we move with purpose through the remainder of our pre-revenue. year-over-year operating expenses have continued to decrease. Spending has shifted to create the capital asset. drive our business forward. This focus on cost has kept our balance sheet strong, with well over half a billion dollars in cash, cash equivalents, and marketable securities.

Speaker Change: Our company wide focus on controlling expenses continues as we move with purpose through the remainder of our pre revenue phase.

Year over year operating expenses have continued to decrease as our spending has shifted to create the capital assets that drive our business model.

Speaker Change: This focus on cost has kept our balance sheet strong with well over half of $1 billion in cash cash equivalents and marketable securities on hand.

Michael Colglazier: Turning the slide. Progress on our new spaceships is an important topic for all our students. and I will spend time on today's call, providing color across many of the areas that make up spaceship production. We released a short video recap of our progress this morning, and I encourage you to check that out. Since we have far more going on than we can cover in an earnings call or a highlight.

Speaker Change: Turning to slide four.

Speaker Change: Progress on our new space ships is an important topic for all our stakeholders and I will spend time on today's call providing color across many of the areas that makeup spaceship production.

Speaker Change: We released a short video recap of our progress this morning, and I encourage you to check that out.

Speaker Change: Since we have far more going on than we can cover in an earnings call or highlight video I'll also share some new ways. We are going to bring you behind the scenes to follow along with our progress in more detailed ways.

Michael Colglazier: I will also share some new ways we are going to bring you behind the scenes to follow along with our progress in more detailed ways. This slide highlights many of the concurrent workstreams that are underway to deliver our new space shuttle. These include rocket and propulsion systems, avionics, and flight. Mechanical Systems, and the Ongoing Development and Delivery of Carbon.

Speaker Change: This slide highlights many of the concurrent work streams that are underway to deliver a new spaceships. These.

Speaker Change: These include rocket propulsion systems avionics and flight controls mechanical systems, and the ongoing development and delivery of carbon parts, so let's get into it on slide five.

Michael Colglazier: So let's get into it on slide five. Our hybrid rocket motor system is a huge strategic advantage that supports the long service life of our spaceships while enabling quick turnaround time between flights. Our spaceships are built for breakthrough reusability of 500 flights or more, and most of the components within our propulsion system are built for the life of the ship. The Rocket Motor, which is designed to be removed and replaced in a matter of hours. Part of what we expect will allow us to drive single-ship turnaround time down to days versus the weeks or months typically seen with other rockets.

Speaker Change: Our hybrid rocket motor system is a huge strategic advantage that supports the long service life of our spaceships, while enabling quick turnaround time between flights.

Speaker Change: Our spaceships are built for breakthrough Reusability of 500 flights or more and most of the components within our propulsion system are built for the life of the ship.

Speaker Change: The rocket motor, which is designed to be removed and replaced in a matter of hours is part of what we expect will allow us to drive single ship turnaround time down to days versus the weeks or months typically seen with other rockets.

Michael Colglazier: One of the important components of this system is the oxidizer. Last quarter, we shared an image of our first flight-ready tank in production. We have since finished fabrication of... completed acceptance testing, and they're now doing final prep before sending it to the spaceship. where it will be integrated into the fuselage sub-assembly. A rocket systems team is amazingly skilled, and it's exciting to see these systems come together.

Speaker Change: One of the important components of this system is the oxidizer tank.

Speaker Change: Last quarter, we shared an image of our first flight ready tank in production.

Speaker Change: We have since finished fabrication of that tank completed acceptance testing and are now doing final prep before sending it to the spaceship factory, where it will be integrated into the fuselage sub assembly.

Speaker Change: Our rocket systems team is amazingly skilled and it's exciting to see these systems come together.

Michael Colglazier: Turning to page six, I want to recognize great progress from our avionics. Avionics are the electronic and digital platforms that connect with each system on the ship. These systems give our pilots the information and controls they need to safely operate. With our new spaceships, we're taking advantage of the latest in modern avionics to support even greater predictability and repeatability of our flight profile. In addition, by leaning more heavily into off-the-shelf avionics hardware, in combination with our own proprietary software. We are creating systems that require less maintenance and support faster turnaround. The ingenuity and elegance that underpin these systems is incredible.

Speaker Change: Turning to page six I want to recognize great progress from our avionics team.

Speaker Change: Avionics or the electronic and digital platforms that connect with each system on the ship.

Speaker Change: These systems give our pilots the information and controls they need to safely operate their missions.

Speaker Change: But our new spaceships, we're taking advantage of the latest and modern avionics to support even greater predictability and repeatability of our fleet profile.

Speaker Change: In addition by leaning more heavily into off the shelf avionics hardware in combination with our own proprietary software, we're creating systems that require less maintenance and support faster turnaround times.

Speaker Change: The ingenuity and elegance that underpin these systems is incredible.

Michael Colglazier: especially as they are built with multiple layers of redundancy while maintaining lightweight design and robust maintainability. The test bench is in our lab, shown in the image on this slide. provide a platform for us to test and verify our spaceship software far in advance of flight. designed to significantly de-risk and expedite our flight test.

Speaker Change: Especially as they are built with multiple layers of redundancy, while maintaining lightweight design and robust maintain ability.

Speaker Change: Test benches in our lab shown in the image on this page provide a platform for us to test and verify our spaceship software far in advance of flight, which is designed to significantly de risked and expedite our flight test program.

Michael Colglazier: On page 7, you'll see an image of the simulator where pilots are already testing our new flight The partnership between our engineering team and our spaceship pilots is great. The immersive, hands-on testing enabled by the simulator is also designed to de-risk and expedite our flight test program. as it enables our pilots to fly and refine hundreds of incredibly accurate spaceflights. well ahead of our first flight.

Speaker Change: On page seven you'll see an image of the simulator for pilots are already testing, our new flight control system.

Speaker Change: The partnership between our engineering team and a spaceship pilots is great to watch.

Speaker Change: The immersive hands on testing enabled by the Stimulator is also designed to Derisk and expedite our flight test program.

Speaker Change: As it enables our pilots to fly and refined hundreds of incredibly accurate spaceflight stimulations well ahead of our first flight.

Michael Colglazier: As a shout-out to our Flight Controls Team and Pilot Corps, they just received a prestigious Jack Northrup Award. from the Society of Experimental Tests. for Virgin Galactic's presentation of our Fly-by-Wire Spaceship.

Speaker Change: As a shout out to our flight controls team in pilot core. They just received the prestigious Jack Northrop Award from the Society of experimental test pilots for Virgin Galactic presentation of our fly by wire spaceship controls.

Michael Colglazier: On page 8, I'd like to touch on mechanical... These are the important moving parts within the ship, which include landing gear, pneumatics, Vowels, and Actuators, just to name a few. Each of these systems has its own set of design, manufacturing, and test This slide shows various parts of our landing. Mechanical Systems Team already has 95% of the landing gear parts complete and ready for assembly. Pages 9 through 13 highlight some of the many carbon parts that have been built, as well as examples of parts currently in the production cycle. The Outer Surfaces of the Space filled with incredibly strong heat resistant BMI carbon composite are referred to as Here, you see images of wing skins, fuselage skins, and feather boots.

Speaker Change: Okay.

Speaker Change: On page eight I'd like to touch on mechanical systems.

Speaker Change: These are the important moving parts within the ship, which includes landing gear pneumatic systems valves and actuators just to name a few.

Speaker Change: Each of these systems has its own set of design manufacturing and test requirements.

Speaker Change: This slide shows various parts of our landing gear.

Speaker Change: The mechanical systems team already has 95% at the landing gear parts complete and ready for Assembly.

Speaker Change: Pages $19 13 highlights some of the many carbon parts that had been built as well as examples of parts currently in the production cycle.

Speaker Change: The outer surfaces of the spaceship.

Speaker Change: With incredibly strong heat resistant BMI carbon composite are referred to as skins.

Speaker Change: Here, you see images of wing skins, pucelage skins, and feather boom skins, as well as an image of the apt bulkhead.

Michael Colglazier: as well as an image of the aft bulkhead. all of which are key structures that make up the space. The image on page 14 captures some of our wing final assembly tools that are installed in our space shuttle. High Fidelity Precision Tooling, including these examples from the wing, allow for a much more streamlined assembly process. enabling us to shave months off our historical assembly time while assuring the quality and safety of our building. tooling also equips us to make additional spaceships quickly and cost-efficiently as we grow and scale our fleet. Lots of exciting work is still ahead as we bring these new spaceships into service.

Speaker Change: All of which are key structures that makeup the spaceship.

Speaker Change: The image on page 14 captures some of our wing final assembly tools that are installed in our <unk> factory.

Speaker Change: High fidelity precision tooling, including these examples from the wing allow for a much more streamlined assembly process, enabling us to shave months off our historical assembly time, while assuring the quality and safety of our building process.

Speaker Change: This tooling also equips us to make additional spaceships quickly and cost efficiently as we grow and scale our fleet.

Speaker Change: Lots of exciting work is still ahead as we bring these new spaceships into service.

Michael Colglazier: We have detailed program plans for each element of the ship, which allow us to project both schedule and cost with reasonable fidelity. We do not, of course, expect every part of the program to be executed exactly as it should. almost all large-scale areas. experienced bumps in the road that weren't part of the original design. The key to good execution is being able to respond in a nimble fashion whenever these bumps show up. And our manufacturing team, along with our supply chain partners, have demonstrated outstanding ability to adapt around unexpected scenarios. a case in point materialized in our wing subassembly plan last month.

Speaker Change: We have detailed program plans for each element of the ship, which allow us to project, both schedule and cost with reasonable fidelity.

Speaker Change: We do not of course expect every part of the program to be executed exactly as planned.

Speaker Change: Almost all large scale aerospace programs experienced bumps in the road that Werent part of the original design.

Speaker Change: The key to good execution is being able to respond in a nimble fashion whenever these bumps show up and our manufacturing team along with our supply chain partners have demonstrated outstanding ability to adapt around unexpected scenarios.

Speaker Change: A case in point materialized in our wings of Assembly plan last month.

Michael Colglazier: One of the wing parts we expected to arrive at our spaceship factory in April was delayed, requiring us to re-plan the sequence of assembly. because our assembly tools and processes allow for flexibility in the building. We've been able to adjust our wing assembly order around the arrival of the late part. In this case, while wing assembly is now starting later than originally. The nimble adjustments from the team allow us to adapt to the change without impacting the critical path of the overall project. In addition to maintaining a quick and nimble approach across our manufacturing. We build contingency or buffer into our scheduling.

Speaker Change: One of the wing parts, we expect it to arrive at our spaceship factory in April was delayed.

Speaker Change: Requiring us to replant the sequence of assembly.

Speaker Change: Because of our assembly tools and processes allow for flexibility in the build process.

Speaker Change: We've been able to adjust our wing assembly order around the arrival of the late part in.

Speaker Change: In this case, while wing Assembly is now starting later than originally planned the nimble adjustments from the team allow us to adapt to the change without impacting the critical path of the overall project.

Speaker Change: In addition to maintaining a quick and nimble approach across our manufacturing effort, we built contingency buffer into our schedule estimates, which we managed at the corporate level.

Michael Colglazier: which we manage as a corporate. This contingency planning provides us the flexibility to absorb unexpected scenarios in one area of the program.

Speaker Change: This contingency planning provides us the flexibility to absorb unexpected scenarios and one area that the program without disrupting other workflows for macro program timelines.

Michael Colglazier: about disrupting other workflows or macro programs. Turning to slide six. As you can tell, enormous progress is occurring across the country. fascinating and important work, but the volume is too great to do it justice in an earnings call format.

Speaker Change: Turning to slide 15, as you can tell enormous progress is occurring across the company.

Speaker Change: Fascinating and important work, but the volume is too great to do it justice and an earnings call format.

Michael Colglazier: For this reason, starting in June, we will begin publishing an in-depth series across our social media. that showcases how we build our space. We believe this will be an engaging and exciting way to bring along our customers, our investors, and our fans as we build the spaceships that are designed to dramatically reduce the cost of commercial human spaceflight and open the door to wider access to space.

Speaker Change: For this reason starting in June we will begin publishing an in depth series across our social channels that showcases how we build our spaceships.

Speaker Change: We believe this will be an engaging and exciting way to bring along our customers our investors and our fans as we build the space ships that are designed to dramatically reduce the cost of commercial human spaceflight and opened the door to wider access to space travel.

Michael Colglazier: We expect this series to debut on our social channels next month. As I shared at the outset of the call, our entire company is focused on bringing these spaceships into service in a safe, timely, and cost-efficient manner.

We expect the series to debut on our social channels next month.

Speaker Change: As I shared at the outset of the call. Our entire company is focused on bringing these pace shifts into service in a safe timely and cost efficient fashion.

Michael Colglazier: Before I hand the call over to Doug to talk about the financials of our Spaceship Program, let's turn to slide 16 and touch on three commercial initiatives that are being planned now for execution in the future.

Speaker Change: Before I hand, the call over to Doug to talk about the financials of our spaceship program, let's turn to slide 16, and touch on three commercial initiatives that are being planned now for execution in the future.

Michael Colglazier: First, I'd like to share some color on how we plan to reopen sails as we get closer to bringing our new spaceships into service. expect to run a highly bespoke education sales that will onboard new customers in distinct ways. This approach has several intended benefits. Our customers, tailoring the number of new arrivals into our future astronaut community during each wave, allows us to provide a white glove onboarding experience. that will form the foundation of each customer's journey to space. From a yield management perspective, this allows us to adjust our pricing wave by wave.

Speaker Change: First I'd like to share some color on how we plan to reopen sales as we get closer to bringing our new spaceships into service.

Speaker Change: We expect to run a highly bespoke education sales process that will onboard new customers and distinct waves.

Speaker Change: This approach has several intended benefits for.

Speaker Change: For customers tailoring, the number of new arrivals into our future astronaut community. During each wave allows us to provide a white glove onboarding experience that will form the foundation of each customer's journey to space.

Speaker Change: From a yield management perspective, this allows us to adjust our pricing wave by wave.

Michael Colglazier: We expect to open the first wave of spaceflight reservations in Q1 of 2026, which we see as the ideal time to leverage the excitement leading up to the initial flights of our new space shuttle. The specific pricing has not been set, although we expect the price will increase relative to our last price of $600,000. We expect the majority of people who will join in this first wave will be new customers. including both scientists and private. With that said, our experience flying Spaceship Unity has us optimistic about repeat business coming from the approximately 675 customers already on our mission.

We expect to open the first wave of spaceflight reservations in Q1 of 2026, which we see as the ideal time to leverage the excitement leading up to the initial flight of our new spaceships.

Speaker Change: Specific pricing has not been set although we expect the price will increase relative to our last price of $600000.

Speaker Change: We expect the majority of people who will join in this first wave will be new customers, including both scientists and private citizens.

Speaker Change: With that said our experienced client spaceship unity has us optimistic about repeat business coming from the approximately 675 customers already on our manifest.

Michael Colglazier: As a case in point, all three of the private astronauts who flew on our last spaceflight, Galactic 7, have signed on to fly again once our new spaceships are in service.

Speaker Change: As a case in point all three of the private astronauts who flew on our last base play Galactic seven have signed on to fly again once our new spaceships are in service.

Michael Colglazier: Second, we continue to advance the preliminary development work on our next spaceport, and we are midway through our feasibility assessment with the Italian government for a spaceport in southern Italy.

Speaker Change: Second we continue to advance the preliminary development work on our next based part and we are midway through our feasibility assessment with the Italian government for spaceport in southern Italy.

Michael Colglazier: As shared before, we see excellent potential in a spaceport located in either Europe or the Middle East. Moving to page 7.

Speaker Change: As we shared before we see excellent potential and as spaceport located in either Europe or the middle East.

Speaker Change: Moving to page 17.

Michael Colglazier: Third, I want to share a bit more on a carrier ship platform. We've been asked on earnings calls in the past as to whether we plan to develop markets and revenue streams in addition to suborbital space. I have consistently shared that we first needed to focus our company, bring our new production spaceships into service, and deliver cash-positive operations. while we still have much important work ahead of us to deliver our new spaceships in 2026. The progress we have already made is now allowing us to direct energy toward business development. It could eventually lead to incremental revenue.

Speaker Change: Third I want to share a bit more on a carrier ship platform.

Speaker Change: We've been asked on earnings calls in the past as to whether we plan to develop markets and revenue streams. In addition to sub orbital space flight.

Speaker Change: I've consistently shared that we first needed to focus our company, bringing new production spaceship, some service and deliver cash positive operations.

Speaker Change: While we still have much important work ahead of us to deliver our new space ships in 2026 the.

Speaker Change: The progress we have already made is now, allowing us to direct energy towards business development pursuits that could eventually lead to incremental revenue opportunities.

Michael Colglazier: We believe taking a more expansive view of our carrier ship platform may be one of those opportunities. Last quarter we discussed the potential for a carrier aircraft to be adapted for government and research use, given its unique ability to carry heavy payloads to high altitude. The need for an aircraft that can reach high altitude for long durations while lifting heavy payloads. which we refer to as a Hale-Heavier. has existed for many years, and the volume of missions that could leverage this capability has been increasing.

Speaker Change: We believe taking a more expansive view of our carrier ship platform may be one of those opportunities.

Speaker Change: Last quarter, we discussed the potential for our carrier aircraft to be adapted for government and researches given its unique ability to carry heavy payloads to high altitude.

Speaker Change: The need for an aircraft that can reach high altitude long durations, while lifting heavy payloads, which we referred to as a hail heavy aircraft.

Speaker Change: Has existed for many years and the volume of missions that can leverage this capability has been increasing.

Michael Colglazier: Turning to slide 8. Since last quarter, we have connected with leaders within the Department of Defense, national laboratories, and aerospace and defense companies to ascertain the potential product market fit of our carrier aircraft's capabilities with government customers. We've been encouraged by initial feedback, which has identified both existing and emerging missions that could potentially benefit from access to HALE heavy support aircraft. Examples of these missions could include airborne research and development testing. Intelligence, Surveillance, and Reconnaissance Support. Command and Control Node capabilities, and multiple opportunities within the emerging Golden Domain. in the near term.

Speaker Change: Turning to slide 18.

Speaker Change: Since last quarter, we've connected with leaders within the department of Defense National Laboratories, and aerospace and defense companies to ascertain the potential product market fit of our carrier aircraft capabilities with government customer needs.

Speaker Change: We've been encouraged by initial feedback, which is identified both existing and emerging missions that could potentially benefit from access to hail heavy support aircrafts.

Speaker Change: Examples of these missions could include Airborne research and development testing intelligence surveillance and reconnaissance support.

Speaker Change: Command and control capabilities and multiple opportunities within the emerging Golden Dome initiative.

Speaker Change: In the near term, we plan to explore early steps, including cooperative research and development agreements as well as other R&D opportunities within the industry to showcase the missions are existing and future carrier ships could support.

Michael Colglazier: We plan to explore early... including Cooperative Research and Development Agreements, as well as other R&D opportunities within the industry to showcase the missions, our existing and future carrier ships.

Doug Ahrens: With that, I'll turn the call over to our CFO, Doug Ahrens. Thanks, Michael. Good afternoon, everyone. Turning to slide 19 and our financial review of the first quarter. Revenue was approximately $500,000 from future astronaut access fees and event fees. Total operating expenses for the first quarter decreased 21% to $89 million, compared to $113 million in the prior year period. We remain highly focused on managing our expenses across all areas of the company. Consistent with the trend during 2024, we continue to see a reduction in operating expenses as our spending shifts from research and development to capital investments in manufacturing assets that can be used to repeatedly build spaceships.

Speaker Change: With that I'll turn the call over to our CFO Doug Aron.

Doug Aron: Thanks, Michael Good afternoon, everyone.

Doug Aron: Turning to slide 19, and our financial review of the first quarter <unk>.

Doug Aron: Revenue was approximately $500000 from future asphalt access fees in event fees.

Doug Aron: Total operating expenses for the first quarter decreased 21% to $89 million compared to $113 million in the prior year period.

We remain highly focused on managing our expenses across all areas of the company.

Doug Aron: Consistent with the trend during 2024, we continue to see a reduction in operating expenses as a spending shifts from research and development to capital investments in manufacturing assets that can be used to repeatedly build spaceships.

Doug Ahrens: With production of our first two spaceships underway, we have also been capitalizing the components that are being manufactured or purchased. Capital expenditures for the first quarter grew to $46 million, compared to $13 million in the prior year period. adjusted EBITDA improved to negative $72 million in the first quarter compared to negative $87 million in the prior year period. Free cash flow was negative $122 million in the first quarter, within the range of our guidance. Moving to slide 20, we ended the first quarter with $567 million in cash, cash equivalents, and marketable securities. during the quarter, who generated $31 million in gross proceeds to an at-the-market or ATM equity offering program.

Doug Aron: Production of our first two spaceships underway. We've also been capitalizing the components that are being manufactured are purchased.

Doug Aron: Capital expenditures for the first quarter grew to $46 million compared.

Doug Aron: Compared to $13 million in the prior year period.

Adjusted EBITDA improved to negative $72 million in the first quarter compared to negative $87 million in the prior year period.

Doug Aron: Free cash flow was negative $122 million in the first quarter within the range of our guidance.

Doug Aron: Moving to slide 20, we ended the first quarter was $567 million in cash cash equivalents and marketable securities.

Doug Aron: During the quarter, we generated $31 million in gross proceeds through an aftermarket or ATM equity offering program.

Doug Ahrens: The ATM program remains in place both as a potential source of growth capital and as a means to bolster the balance sheet when appropriate. Today you will see some additional SEC filings from us about the program, but those are all just technical filings and they all still relate to the same existing $300 million program we entered in November 2024. The filings are not establishing a new or upsized program.

Doug Aron: The ATM program remains in place both as a potential source of growth capital as a means to bolster the balance sheet when appropriate.

Doug Aron: Today, you will see some additional SEC filings with us about the program, but those are all just technical filings and they all still relate to the same existing $300 million program. We entered in November 'twenty 'twenty for the <unk>.

Doug Aron: Fillings are not establishing a new our outsized program.

Doug Ahrens: Moving to our projection, revenue for the second quarter of 2025 is expected to be approximately $400,000 per astronaut access fee. Forecasted free cash flow for the second quarter of 2025 is expected to be in the range of negative $105 million to $115 million. This projection represents lower spending going forward, as the required peak investment level is now behind us. We further project that cash spending will continue to decline through 2025 as we complete this phase of investment. Moving through the final assembly and testing phase, we expect to continue converting some of our cash on hand into manufacturing assets and spaceships as we bring our initial Delta fleet into service.

Doug Aron: Moving to our projection revenue for the second quarter of 2025, and we expect it to be approximately $400000 for asthma access fees.

Doug Aron: Forecasted free cash flow for the second quarter of 2025 is expected to be in the range of negative $105 million to $115 million.

Doug Aron: This projection represents lower spending going forward as it required peak investment level is now behind us with further projected cash spending will continue to decline through 2025 as we complete this phase of investment.

Doug Aron: Moving to the final assembly and testing phase, we expect to continue converting some of our cash on hand, and the manufacturing assets in space ships as they bring our initial delta fleet into service.

Doug Ahrens: We anticipate that approximately half of our spending in 2025 will be for one time capital expenditures for tooling, manufacturing capacity and the production of our first two new Delta-class spaceships. On our last call, I highlighted that our growth in capital expenditures is reflected in Property, Plant, and Equipment, or PP&E, on our balance sheet. We expect that trend will continue to play out in 2025. At the end of the first quarter, we reported $249 million in PP&E compared to $209 million at the end of 2024.

Doug Aron: We anticipate that approximately half of our spending in 2025 will be for onetime capital expenditures for tooling manufacturing capacity and the production of our first two new Delta class B ships.

Doug Aron: On our last call I highlighted that our growth and capital expenditures as reflected in property plant and equipment or PP&E on our balance sheet and we expect that trend will continue to play out in 2025.

Doug Aron: At the end of the first quarter, we reported $249 million in PP&E.

Doug Aron: Third to $209 million at the end of 2024.

Doug Ahrens: With that, I'll turn the call back over to Michael. Thanks, Doug.

Michael: With that I'll turn the call back over to Michael.

Michael: Thanks, Doug.

Michael Colglazier: Closing on page 21. Q1 demonstrated strong progress advancing the build of our new spaceships and keeping pace with our plans to begin commercial spaceflight in 2026. I'm encouraged by the momentum and responsiveness of the teams across Virgin Galactic and our supply...

Speaker Change: Closing on page 21.

Speaker Change: Q1 demonstrated strong progress advancing the build of our new space ships and keeping pace with our plans to begin commercial space flight in 2026.

Speaker Change: Im encouraged by the momentum and responsiveness of the teams across Virgin Galactic and our supply partners and Im looking forward to showcasing how we build spaceships and our new series that will launch next month.

Michael Colglazier: I'm looking forward to showcasing how we build spaceships in our new series that will launch next week. We are moving through the necessary steps to conclude the pre-revenue phase. The assets we are creating during this phase are tremendous. including the spaceships that will go into commercial service, as well as the IP, tooling, and manufacturing infrastructure that will be used to expand our fleet. We believe these assets will open up a powerful and profitable business model that will benefit from an industry-leading cost structure, fixed-cost leverage as we scale, and an unparalleled customer experience.

Speaker Change: We are moving through the necessary steps to conclude the pre revenue phase of the company.

Speaker Change: The assets, we are creating during this phase of our tremendous including the space ships that will go into commercial service as well as the IP tooling and manufacturing infrastructure that will be used to expand our fleet.

Speaker Change: We believe these assets will open up a powerful and profitable business model that will benefit from an industry, leading cost structure fixed cost leverage as we scale and an unparalleled customer experience.

Michael Colglazier: We're excited to see our new ships come to life in 2025, and we can't wait to begin flying our customers to space in 2026.

Speaker Change: We're excited to see our new ships come to life in 2025, and we can't wait to begin flying our customers to space in 2026.

Luella: Operator, let's open the call. At this time, I would like to remind everyone, in order to ask a question, press star, then the number one on your telephone keypad. We will pause for just a moment to compile the Q&A roster.

Speaker Change: Operator, let's open the call for questions.

Speaker Change: At this time I would like to remind everyone in order to ask a question.

Speaker Change: Star then the number one on your telephone keypad.

Speaker Change: Pause for just a moment to compile the Q&A roster.

Oliver Chen: Your first question comes from the line of Oliver Chen with T.D. Cullen. Please go ahead.

Speaker Change: Your first question comes from the line of Oliver Chen with TD Cowen. Please go ahead.

Oliver Chen: Hi, Michael and Doug. It's really encouraging about ticket sales opening in first quarter 26. How are you thinking about the total addressable market of $300,000 or more previously, and any thoughts you may have there? Second question is the free cash flow is encouraging, especially given that peak investments are behind you.

Oliver Chen: Hi, Michael and Doug.

Speaker Change: Really encouraging about ticket sales opening in first quarter 'twenty six how are you thinking about the total addressable market of 300000 or more a previously in and any thoughts you may have there.

Speaker Change: Second question is the free cash flow is encouraging, especially given that peak investments are behind you. What are your thoughts longer term in terms of the free cash flow burn, reaching below below 100 million or how would you think more medium to longer term there.

Michael Colglazier: What are your thoughts longer term in terms of the free cash flow burn reaching below $100 million, or how would you think more medium to longer term there? And this would love any tactical thoughts as tariffs are impacting some of your material inputs at all. Thank you very much. Thanks, Oliver. How about this, Michael?

Speaker Change: And that's would love any tactical thoughts on tariff as tariffs are impacting some of your material and puts it all thank you very much.

Michael: Thanks, Oliver Hello. This is Michael I'll take the first one and the last one Doug through free cash flow over to you.

Michael Colglazier: I'll take the first one and the last one.

Michael Colglazier: Doug, throw pre-cash flow over to you. So I don't think we have different inputs at the moment, Oliver, as to the macro, you know, $300,000 total addressable market and the growth of that. The analysis that went behind that a couple of years ago, I thought was pretty solid by several of the investment banks that covered the industry. So I don't have any updates to that from proprietary research. I do believe that at the start of this, we are going to see tremendous amount of activity through the sales process. And that's why referral and repeat visitation is so important to us.

Speaker Change: So I don't think we have different.

Speaker Change: Inputs at the moment Oliver as to the macro 300000, total addressable market and the growth of that.

Speaker Change: Analysis that went behind that couple of years ago, I thought was pretty solid by several of the investment banks that covered the industry.

Speaker Change: I don't have any updates to that from proprietary research I do believe that at the start of this we're going to see tremendous amount of activity through the sales process and Thats why referral and repeat visitation is so important to us we put in one note you probably caught.

Michael Colglazier: We put in one note, you probably caught, I just thought, a nice piece of optimism on how powerful our experience is. We had three private astronauts on our last flight. We also had a Turkish government researcher on that flight. All three of those private astronauts have signed up again. It was that meaningful of an experience. So when I see the early years of this, I think we will grow by sales and a heavy amount through referral and a decent amount through repeat. And so the amount we need to tap into the top of the funnel, those 300,000 individuals, is really pretty light at the beginning.

Speaker Change: I just saw a nice piece of optimism on how powerful our experiences we had three private astronauts on our last flight. We also had a Turkish government researcher on that flight all three of those private astronauts who have signed up again it was that meaningful of an experience. So when I see the early years of this.

Speaker Change: We will grow.

Speaker Change: <unk> sales.

Speaker Change: Heavy amount through referral and decent amount through repeat and so the amount we need to tap into the top of the funnel. Those 300000 individuals is really pretty light at the beginning and I think that will grow over time as we scale our fleet up.

Michael Colglazier: And I think that will grow over time as we scale the fleet up.

Michael Colglazier: Doug, before I give it to you, I talked to our head of supply chain a couple times, both in advance of this call and just following along with Terrace. Most of our work, as you'd expect, is U.S. sourced. As you go, you know, multiple layers down the supply chain, some of the raw materials can come from outside of the U.S. Because we've been working on this for a while, we have ordered all the long lead materials in advance. So all of the stock we need for these first two ships is pretty much already in. There are small elements, but relatively de minimis into the economics here, you know, packing and things we ship from, we ship all of our parts, and there's a lot of wood in the crates, and wood is up because wood's coming from Canada, things like that.

Speaker Change: Just before I give it to you.

Speaker Change: <unk> talked to our head of supply chain a couple of times both in advanced as Colin just following along with tariffs most of our work as you would expect as U S sourced.

Speaker Change: As you go multiple layers down the supply chain some of the raw materials can come from outside of the U S. Because we've been working on this for a while we have ordered all of the long lead materials.

Speaker Change: In advance so all of all of the stock we need for these first two ships is pretty much already in there are small elements, but relatively de minimis into the economics here.

Speaker Change: Packing and things we ship from we ship all of our parts and there is a lot of wood and creates what is up because whats coming from Canada and things like that but most of the meaningful.

Doug Ahrens: But most of the meaningful expenditures that could have been subject to Terrace have already Doug on pre-cash flow?

Speaker Change: Expenditures.

Speaker Change: Could have been subject to tariffs have already been purchased.

Speaker Change: Doug on free cash flow yeah. Thanks, a lot Glenn thanks for the question Oliver So yeah. We're pleased that the peak spending is now behind us.

Doug Ahrens: Thanks, Michael.

Doug Ahrens: And thanks for the question, Oliver. So yeah, we're pleased that the peak spending is now behind us. And that's because we've been investing in tooling and it was all the R&D before that. But the we showed a lot of pictures of tools that have been already built and they're in the factory. That's, those are one time investments, right, allow us to make copies of the spaceships now with that. But that's, that's where the peak spending was coming from. So now as we go forward, we still have more investments to do as we finish that and really invest in these remaining two spaceships.

Speaker Change: And that's because we've been investing in tooling and all the R&D before that but we.

Speaker Change: We showed a lot of pictures of tools that have been already built in there in the factory.

Speaker Change: There was a onetime investment so as to allow us to make copies of the spaceships now with that but that's that's where the peak spending was coming from so now as we go forward, we still have more investments to do as we finish that and really invest in these remaining two spaceships, but what that gives us is a trend where the spending required.

Doug Ahrens: But what that gives us is a trend where the spending, the required spending by quarter goes down. So the trend through 2025 is a declining spend trend. And as you noted, yeah, we're still targeting to be below 100 million spend by the fourth quarter of 2025. And then we asked, you asked about long term, we do expect that beyond that, the spending level will continue to decline into 2026. And then we start to cross over. Because in 2026, we have our two spaceships and operations, we start to get cash inflows ahead of the space flights.

Lending by quarter goes down so the trend through 2025 is declining spend trend and as you noted.

Speaker Change: Still targeting to be below $100 million spend by the fourth quarter of 2025 and then we.

You asked about long term, we do expect that beyond that the.

Speaker Change: Spending level will continue to decline into 2026, and then we start to crossover.

Speaker Change: In 2026, we have our toothpaste ships in operations, we start to get cash inflows ahead of the space flights and that's when it turns over to a positive cash flow business model. So we're pleased with what that outlook is looking much longer term I can refer you back to the economic model that we've shared in past.

Doug Ahrens: And that's when it turns over to a positive cash flow business model. So we're pleased with with that outlook.

Doug Ahrens: Looking much longer term, I can refer you back to the economic model that we've shared in past calls, that's still valid. That's still what we are projecting that with two spaceships in service. And with the launch vehicle Eve, we expect to be able to get to a revenue level of $450 million a year in steady state. And that generates 90 million to call it called 100 million of EBITDA. And that can be, you know, all cash flow unless we choose to plow that back into building more assets. So that's the different phases of our cash flow projections all over.

Speaker Change: Calls that's still valid that's still what we are projecting that with two spaceships in service and with the launch vehicle Eve.

Speaker Change: We expect to be able to get to a revenue level of $450 million a year in.

Speaker Change: In steady state and that generates $90 million to call it call it $100 million of EBITDA and that can be.

Speaker Change: All cash flow unless we choose to plough that back into building more assets. So that's the different phases of our cash flow projections Oliver.

Oliver Chen: Thanks a lot. Very helpful. One follow-up.

Oliver Chen: Thanks, a lot very helpful. One follow up on Michael you have an extensive background from Disney and we lead luxury here at TD Cowen would just love your.

Michael Colglazier: Michael, you have an extensive background from Disney and we lead luxury here at TD Kallen. We just love your latest views on anything that's changed or how you're thinking lately about customer engagement, experiential, and the lifestyle brand aspect of what you're doing. Thank you.

Oliver Chen: Your latest views on any anything thats changed or how youre thinking lately about the customer engagement experiential and the lifestyle brand aspect of whats Youre doing thank you.

Michael Colglazier: The only thing I'd add on that note, Oliver, is... It's in sight. And we're really excited as a company to start to make Virgin Galactic a real name in that luxury and aspirational brand space. We have everything we need in what this industry is, what the quality of our product is, the aspiration and exclusivity of the product. And now we're building the incredible machines that will allow us to do it. So we're excited to step in and be a real player here. Virgin Galactic Thank you.

Oliver Chen: Only thing I'd add on that note Oliver is.

Oliver Chen: It is in sight and we are really excited as a company to start to make Virgin Galactic a real name in that luxury and aspirational brand space, we have everything.

Oliver Chen: We need.

Oliver Chen: And kind of what this industry is what's the quality of our product is the.

Oliver Chen: The aspiration and exclusivity of the product and now we're building the incredible machines that will allow us to do it. So we're excited to step in and be a real player here.

Oliver Chen: Best regards.

Oliver Chen: Thank you best regards.

Oliver Chen: Yeah.

Luella: Your next ques- from the line of Greg.

Oliver Chen: Your next question.

Speaker Change: It comes from the line of Greg Conrad again, everyone. If you would like to ask a question press star one on your telephone keypad.

Luella: Again everyone, if you would like to ask a question, press star 1 on your telephone.

Gregory Konrad: Konrad, your line is now open. Good evening.

Oliver Chen: Mr. <unk>. Your line is now open.

Speaker Change: Good evening.

Gregory Konrad: Maybe just to follow up on the the reopening of sales in Q1, you mentioned a first wave, but just given you know how you're thinking about future flight cadence, any color in terms of how you think about the size of that first wave and then what is the ideal backlog just given that flight cadence, you know you were at a thousand before you started flights the first time, like how do you think about the ideal size of backlog given the overall market size? Thanks, Greg. I think having a one to two year backlog is appropriate.

Speaker Change: Maybe just to follow up on the reopening of sales in Q1, you mentioned, a first wave, but just given.

Speaker Change: How youre thinking about future flight cadence any color in terms of how you think about the size of that first wave and then what is the ideal backlog just given that flight cadence.

Speaker Change: We're at a one <unk>.

Speaker Change: Before you started flights to first time like how do you think about the ideal size of backlog given the overall market size.

Speaker Change: Thanks, Greg I think having a one to two year backlog is appropriate I think once.

Michael Colglazier: I think once in and that's consistent with where we've been once your past two years, I think people are waiting a little longer than is helpful. And, you know, technically need a month of backlog, and it's just fine. But I think having a solid backlog is better. I also think having a year's worth of backlog allows for greater flexibility from a yield management standpoint.

Speaker Change: That's consistent with where we've been once you're past two years I think people are.

Speaker Change: Waiting a little longer than it is helpful.

Speaker Change: And.

Speaker Change: Technically need.

Speaker Change: A month of backlog and its just fine, but I think having a solid backlog is better I also think having a year's worth of backlog.

Speaker Change: Allows for greater flexibility from a yield management standpoint.

Michael Colglazier: So what we're trying to do now is we start with waves because we will be putting our new ships into service. We will start them. You know, they're all expected to fly twice a week when we have the carrier ship capacity to do so. And we expect in general to be able to fly 125 flights over the course of the year. So we'll work to, you know, overhit that. But that's that's kind of our targeted numbers. So at six people per ship, 125 flights a year, that's the capacity that we'll, I'll say, target from an annual point until we expand our fleet.

Speaker Change: So what we're trying to do now is we start with waves, because we will be putting our new ships into service, we will start them.

Speaker Change: They are all expected to fly twice a week when we had the carrier ship capacity to do so and we expect in general to be able to fly 125 flights over the course of the year.

Speaker Change: So we will work to.

Speaker Change: Over hit that but thats kind of our targeted numbers. So at six people per ship 125 flights a year.

Speaker Change: The capacity that we will I'll say target.

Speaker Change: From an annual point until we expand our fleet.

Michael Colglazier: So that means we want to have six times 125, that many people signed up on a rolling basis a year in advance. The question really becomes what price point do we want to bring those people in as our flight rate moves forward? That's one of the benefits of WAVES from a business standpoint, is we can look at the value we're creating. I think we'll get continued referral and excitement. I do think that will continue to expand the demand pressure against the existing fleet. And we can think about pricing appropriately there.

Speaker Change: So that means we want to have.

Speaker Change: Six times a 125.

Speaker Change: Not many people signed up on a rolling basis, a year in advance the question really becomes what price point do we want to bring those people in as our flight rate moves forward. That's one of the benefits of waves from a business standpoint is we could look at the value. We're creating I think we will get continued referral and excitement.

Speaker Change: I do think that will continue to expand the demand pressure against the existing fleet and we can think about pricing appropriately there the other thing with.

Michael Colglazier: The other thing with going in WAVES, which is super important to the customer experience. We're not just bringing people up and down to space. This is a life experience. It's a life journey. And we want to bring people in from the moment they sign on in a way that shows them this is something that is unique in the world. And that experience starts from the moment they sign up. If we just kind of throw the doors open and can't handle the volume or ration the volume coming in, it makes it harder for us to give that white glove treatment to each and every individual astronaut that joins in.

Speaker Change: Going in waves, which is super important to the customer experience.

Speaker Change: We're not just bringing people up and down the space. This is a life experience that's a life journey.

Speaker Change: And we want to bring people in from the moment they sign on in a way that shows them. This is something that is unique in the world and that experience starts from the moment. They sign up if we just kind of throw the doors open and can handle the volume.

Speaker Change: Rash and volume coming in it makes it harder for us to give that white glove treatment to each and every individual astronaut to joins in so that's why we do it from a customer standpoint business wise. It allows us to yield manage and stair step pricing up as we go along.

Michael Colglazier: So that's why we do it from a customer standpoint. Business-wise, it allows us to yield manage and stair-step pricing up as we go along.

Gregory Konrad: And then, you know, a follow up, you mentioned you were about halfway through a feasibility study for a second spaceport in Italy, can you maybe talk about what some of those, you know, main gating factors are in terms of establishing feasibility and, and do economics play into that decision in any way, whether that's, you know, funds in from Italy or how that gets funded?

Speaker Change: And then.

Speaker Change: A follow up you mentioned you are about halfway through a feasibility study for a second spaceport in Italy can you maybe talk about what some of those.

Speaker Change: <unk> gating factors are in terms of establishing feasibility and Andrew economics play into that decision in any way, whether thats funds in from Italy, or how that gets funded.

Speaker Change: Sure so the <unk>.

Michael Colglazier: I'll talk to you from our side from the Italian side. What we're doing right now is establishing clarity of what airspace would be needed is a very important element there. So there's an Air Force base that is in the Puglia region of Italy that's been designated by the Italian government as a spaceport region. President Maloney has designated a non-trivial amount of funds into helping move that region into a horizontal, like a Spaceport. So there's good government support in that area. Where we fly is dependent upon lots of factors, and so a lot of what's going on is the specific flight paths, studying the wind and the weather patterns, both across seasons, across days, and intraday, across the hours, because depending upon prevailing winds and other factors, we would fly different flight paths, obviously originating and returning to the same runway, but going in different ways.

Speaker Change: From our side from the <unk> side.

Speaker Change: What we're doing right now is establishing clarity of what aerospace would be needed as a very important element. There. So there is a.

Speaker Change: Air Force base that is in the <unk> region of Italy, that's been designated by the Italian government as a space Port region presence.

Speaker Change: President Maloney as designee.

Speaker Change: Designated.

Non trivial amount of funds into helping move that region into a horizontal.

Speaker Change: A runaway Bay spaceport.

Speaker Change: So theres good government supported in that area.

Speaker Change: Where.

Speaker Change: We fly is dependent upon lots of factors and so a lot of what's going on is.

Speaker Change: Specific slight past studying the wind and the weather patterns.

Speaker Change: Both across seasons across days in an intra day across the hours.

Speaker Change: Because depending upon prevailing wins and other other factors, we would fly different flight paths.

Speaker Change: Obviously originating in returning to the same runway going in different ways that has different implications to what airspace is either available or might need adjustment within the overall Italian aerospace.

Michael Colglazier: That has different implications to what airspace is either available or might need adjustment within the overall Italian airspace. So that's the heaviest one that we're doing right now. I think when it gets down to economics, the runway's already there. It turns into facilities and hangars for ships out of spaceport and a place for us to train our customers along the way, obviously then building the ships that would operate in there. Those are the primary, I'd say, upfront investment elements of the new spaceport. Thank you. You're welcome.

Speaker Change: The heaviest one that we're doing right now I.

Speaker Change: I think when it gets down to economics. The runway is already there it turns into.

Speaker Change: Facilities and hangers for ships out of space, CT and place for us to train our customers along the way obviously than building the ships that would operate in there those are the primary.

Speaker Change: Upfront investment elements of the new spaceport.

Speaker Change: Thank you.

Speaker Change: Good luck.

Speaker Change: Okay.

Speaker Change: Okay.

Myles Walton: Your next question comes from the line of Myles Walton of Wolf. Please go up.

Speaker Change: Your next question comes from the line of Myles Walton.

Speaker Change: Wolfe Research. Please go ahead.

Greg Dahlberg: Hi guys, this is Greg Dahlberg on for Miles. Thank you for the time. I kind of wanted to dig a little bit deeper into the repeat business aspect, just because you guys have been emphasizing the importance here. I was wondering, is there like a maybe a win rate you're assuming in your medium long term planning assumptions for a repeat business? I guess, just trying to gauge what it could look like, you know, when the cadence of flight starts to really kick up. Thank you. I think early days, obviously, Greg, in being able to predict, we have a relatively small number of flights.

Greg Dahlberg: Hi, John This is Greg Dahlberg on for Myles. Thank you for your time.

Greg Dahlberg: I kind of wanted to dig a little bit deeper into the repeat business aspect just because you guys have been emphasizing the importance here.

Greg Dahlberg: I was wondering is there only.

Greg Dahlberg: Maybe a win rate you're assuming in your medium long term planning assumptions from our repeat business I guess I'm just trying to gauge what it could look like.

Greg Dahlberg: When the cadence of flight starts to really kick up thank you.

Greg Dahlberg: Yes.

Speaker Change: I think early days, obviously, Greg.

Speaker Change: And being able to predict we have a relatively small number of flights and.

Michael Colglazier: And so the statistical significance is going to be a bit limited there. So more of what we, you know, as far as statistics go, we have, I'd say in the double digits, you know, low to mid-double digits of people who have flown that have raised their hand and want to do a repeat with us, percentage-wise there. And, but I think it's hard to, you know, really pull that as the statistical data point to go forward. What I look more closely at is how meaningful was the experience? when I have a chance to talk to people who have flown with us, and I get a chance to talk to them afterwards, how meaningful has it stayed?

Speaker Change: So the statistical significance is going to be a bit limited there so more of them as far as statistics go we have I'd say in the double digits.

Speaker Change: Low to mid double digits of people who've flown that have raised their hand and want to do a a repeat with us.

Speaker Change: Percentage wise there.

Speaker Change: And.

Speaker Change: But I think it's hard to really pulled that is the statistical data point to go forward what I look more closely at is how meaningful is the experience when.

Speaker Change: When I have a chance to talk to people, who have flown with us and I get a chance to talk to them afterwards.

Speaker Change: How meaningful has it stayed how relevant is this how important is this in their ongoing life. How much are they talking about its sharing about it.

Michael Colglazier: How relevant is this? How important is this in their ongoing life? How much are they talking about it, sharing about it? And just ask, you know, is this something you would like to do again? And if you'd like to do it again, would you like to do it, you know, with people you know, your friends, your family, buddy group, whatever that is. And the feedback I get is very consistent in, I would love to do this again. And so then I think it depends upon the individual and, you know, where their economic situation stands as to whether this is something that they would like to prioritize sooner or later.

Zach: And Zach.

Zach: Is this something you would like to do again, and if you'd like to do it again would you like to do it with people you know your friends or family Buddy Group.

Zach: Whatever that is.

Zach: And the feedback I get is very consistent in <unk>.

Zach: I would love to do this again and so then I think it depends upon the individual.

Zach: And.

Zach: Where their economic situation stands as to whether this is something that they would like to prioritize sooner or later, so we will see how that all plays itself out but I do think it's.

Greg Dahlberg: So we'll see how that all plays itself out. But I do think it's a meaningful piece. What's probably more meaningful is when you have a customer experience that's this powerful is the referral factor, right? Because all the people that our flown astronauts talk to become potential customers for us. And a lot of our flown astronauts know people within that, you know, kind of 300,000 total addressable market. And that makes more easier customer acquisition process through the referral. Got it. Thank you for the time. You're welcome.

Zach: A meaningful piece, what's probably more meaningful is when you have a customer experience that's as powerful as the referral factor.

Zach: Because all the people that are flown astronauts talk to become potential customers for us and a lot of our flown astronauts no people within that kind of 300000 total addressable market and that makes more easier customer acquisition process through the referral effort.

Zach: Got it thank you for them.

Zach: Youre welcome.

Luella: If there are no further questions...

Zach: If there are no further questions.

Luella: Ladies and gentlemen, that concludes today's call. Thank you all for joining.

Zach: Ladies and gentlemen that concludes today's call.

Zach: Thank you all for joining you may now disconnect.

Luella: You may now.

Zach: Yeah.

Zach: Okay.

Zach: Yeah.

Zach: Yeah.