Release Date: August 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: When do you expect to make a decision on a second spaceport, and could it be tied to growth capital needs? A: Michael Colglazier, CEO: We anticipate that bringing a new spaceport online is a four- to five-year effort, with serious discussions likely starting in 2025. We are actively talking to various entities interested in this. Partnerships, especially with government entities, could potentially be tied to growth capital, similar to our partnership with the state of New Mexico for Spaceport America.
Q: How do you view the free cash flow conversion at scale, and how does CapEx play into that? A: Douglas Ahrens, CFO: The EBITDA generated from operations will be reinvested into the business to accelerate the build of spaceships and motherships. This investment will help us move to profitable columns faster. The cost of additional ships will be variable, with upfront costs already covered, allowing for a great return on investment.
Q: What are the key assumptions behind the 300,000 addressable market growing at 8% annually? A: Michael Colglazier, CEO: The TAM is based on global individuals with a net worth of $10 million or more, growing at 8% annually. We filter this group for those who prioritize experiential travel and have a stated interest in space travel. Our current customer base includes individuals both above and below this net worth threshold.
Q: How stable is the backlog of astronauts, and what movement are you seeing? A: Michael Colglazier, CEO: The backlog is mostly stable, with some attrition from early program participants due to life changes or health issues. We maintain strong connections with our future astronauts and are comfortable with the current backlog size. Sales are not currently open, but we expect numbers to increase when they do.
Q: Are you still targeting 10% of flights for research, and have more agencies inquired about research flights? A: Michael Colglazier, CEO: Yes, we are targeting 10% for research flights initially. The research product has been successful, offering a valuable microgravity environment. We have repeat customers and expect to ramp up research sales as we get closer to specific flight dates. Pricing for research seats is aligned with private astronaut seats at $600,000.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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