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🚀 Q3'21 Space Earnings

🚀 Q3'21 Space Earnings

November 12, 2021

The Space Scoop

Week Ending 11.12.2021

Happy Friday and a warm welcome to our new readers! We're declaring this week "NewSpace Earnings Week" as 9 space companies reported earnings: Virgin Galactic, Viasat, Gilat, EchoStar, Momentus, Spire, Astra, MDA and BlackSky. Redwire was supposed to be included in the list, but rescheduled last minute.

We also saw 1 Merger, 1 Acquisition, 1 IPO and 1 Capital Raise. Godspeed.

Market Max-Q 📈

Viasat To Acquire Inmarsat for $7.3B

Viasat is acquiring Inmarsat, a provider of global mobile satellite communications services. The definitive agreement was announced Monday. The deal is comprised of $850M in cash, ~46.36M shares of $VSAT stock valued at $3.1B, and the assumption $3.4B of net debt. The combined company intends to "integrate the spectrum, satellite and terrestrial assets of both companies into a global high-capacity hybrid space and terrestrial network." Chris Quilty, founder of Quilty Analytics, expects "the merger to be transformative for Viasat. But it remains unclear whether other satellite operators will choose to emulate Viasat’s path or aggressively target Viasat’s customers while the company endures a year-long, challenging regulatory approval process.”Viasat also reported Q2'2022 earnings on Monday with revenues growing +27% YoY to $701M, driven by recent acquisitions, strong product sales and service revenue growth across all segments. Adj. EBITDA came in at $155M, +19% YoY, despite planned higher expenses for ViaSat-3 deployment preparation, new market entry and R&D. Markets felt differently as shares finished the day -16.9% lower.

NewSpace Announces Q3'2021 Earnings

Arguably the busiest week for public space companies since we saw the wave of SPAC announcements in Q1'2021, 9 space companies reported earnings, including: Virgin Galactic ($SPCE), Viasat ($VSAT), Gilat ($GILT), EchoStar ($SATS), Momentus ($MNTS), Spire ($SPIR), Astra ($ASTR), MDA (TSX:$MDA) and BlackSky ($BKSY). It would have been 10 if Redwire ($RDW) had not rescheduled last minute. Some highlights below:Virgin Galactic: • 700 of 1,000 reserved seats have been sold at $450K per seat, up from 600 as of Q2'21• Lease agreement for a new design and collaboration center for vehicles to be designed and engineered starting in October• Revenues of $2.6M vs. expectations of $2.2M• Cash and equivalents of $720M• R&D Expenses of $36M vs.$46M in Q3'20• Adj. EBITDA of -$68M vs. -$66M in Q3'20• Net Loss of -$48M vs. -$92M in Q3'20• EPS: -$0.19 per share vs. expected of -$0.25• Shares traded +5.1% higherMomentus:• Fully implemented the majority of 62 NSA compliance tasks • Settled all obligations related to repurchase of co-founders’ $40M shares• Settled all outstanding claims with SEC• Service Revenue of $200K• R&D Expenses of $9.1M• Loss From Operations of -$20.7M• Net Income of -$5.6M, or -$0.09 per share• Cash and Equivalents of $178M• Shares finished -3.3%Spire:• Signed new contracts with EUMETSAT and NOAA for Weather solution to improve prediction products that serve nearly 1B persons• Achieved ARR growth across all solutions: Maritime, Aviation, Weather and Space Services• Revenue of $9.6M, +33% from Q3'20• ARR +51% YoY to $45.2M• 225 ARR Solution Customers under contract for +69% YoY growth• ARR growth was led by Weather & Space Services• Shares were up +1.9%• Upgraded to ‘outperform’ from ‘neutral’ by Baird with a price target of $10 per shareAstra:• Achieved orbital ignition of in-space electric propulsion system, acquired from Apollo Fusion• Applied for V-band spectrum access with the FCC to support the future expansion of product and services offerings• Began expansion of our Alameda production facility, expected to complete the first stage Q4'2021• GAAP Net Loss was -$16.2M• Adjusted Net Loss was -$34.5M• Adj. EBITDA was -$32.9M• CapEx totaled $9.9M• Cash and equivalents totaled $378.7M• Shares: +9.1%BlackSky: • Revised 2021 revenue forecast from $40M to $30-$34M, driven by the timing of new contract start dates and supply chain impacts• Recent awards from the NRO, NGA, and NASA demonstrate emerging partner of choice• Revenue of $7.9M, +49% from Q3'20• Net Loss of $46.9M or -$0.67 per share• Operating Loss of -$48.9M• Adj. EBITDA Loss of -$16.2M• Cash Balance of $198M• Shares closed -13.2% lowerRedwire: • The night before $RDW was expected to report earnings, the company issued a press release rescheduling, which led to the stock falling -16.1% the next day. Later that day, wisely, Redwire gave investors an update: "Management was notified by an employee of potential accounting issues with a business subunit. Management promptly informed the independent Audit Committee of the Board of Directors and commenced an independent investigation." Shares jumped +8.9% though Redwire's new date has yet to be announced.

Planet To Acquire VanderSat for $28M

VanderSat provides advanced earth data and analytics to help "better measure and understand water management and crop health in major markets." VanderSat suite of products report on the daily conditions, regardless of cloud-cover and atmospheric conditions, of Earth's surface including soil moisture, land surface temperature, vegetation optical depth, and biomass. This is $DMYQ's fourth acquisition (BlackBridge, Terra Bella, and Boundless) since 2015 and they plan to provide this advanced agriculture data products to existing customers along with their other offerings. “VanderSat is a mission-driven company with the goal to serve one billion hectares of land in 2024. By joining Planet, our mission and impact will be dramatically accelerated and together, we aim to reach that goal in 2022”, said Dr. Thijs van Leeuwen, CEO of VanderSat. Their team is based in the Netherlands and will expand Planet's European footprint. Planet shares traded -2.5% lower on the news.

Shift4 Signs Payments Deal with Starlink

$FOUR released Q3'2021 earnings on Wednesday and announced a five-year partnership with Starlink, SpaceX’s satellite internet service. Shift4 outlined that it will begin converting Starlink “domestic payment volume” to its services over the next 120 days. The company sees the partnership as a “massive” opportunity, estimating $100B in Starlink subscription payments over the long term. “Starlink is a cornerstone, global client opening up opportunity throughout the globe. By servicing the business globally, Shift4′s total addressable market expands in all the verticals we serve,” the company said. Jared Isaacman, founder, CEO and now astronaut, was apart of the Inspiration4 private mission led by SpaceX in September. “SpaceX has a restaurant and a few other hospitality venues in the works in Starbase, TX, and you can count on our new Skytab point-of-sale powering commerce at those establishments." Shift4 shares finished the day +16.1% higher on the news.

Mynaric Goes Public

The German-based Mynaric develops and manufactures laser technologies for aerospace communications networks in government and commercial markets. On Friday, it became a publicly traded company, raising $70M at a $356M market cap by offering 4M ADR shares at $17.48. $MYNA's technology and products are designed "to provide the backbone for connectivity to link satellites, high-altitude platforms, unmanned aerial vehicles, aircraft, and the ground with secure wireless data transmission." The company aims to industrialize laser communication by "focusing on developing standardized and modularized products suitable for a wide array of customers and applications." Production is currently ramping up and they are expecting to increase production output from 11 terminals in 2020 to 50 terminals in 2021, with an annual production rate of up to 2,000 units going forward. Mynaric was founded in 2009 and recorded $3M in revenue for the 12 months ended June 30, 2021. While the company is growing, it is highly unprofitable with a -258% LTM gross margin. Shares finished the day +16.3% higher.

In Other News 🛰️

SPAC TG Acquisition Corp IPOs

(SEC)

$TGVCU, a blank check company, began trading late last week. It intends to focus their search for businesses in the "space technology, financial technology and TMT industries" with an enterprise value of less than $1.25B.

HawkEye 360 Raises $145M Series D Round

(Company)

The round was led by Insight Partners and Seraphim Space, which invested $25M, and brings the total capital raised to date $302M. The funding will expand satellite constellation and complementary infrastructure.

ICEYE Partners With McKenzie Intelligence Services

(Company)

The agreement will support MIS in its delivery of property loss numbers. ICEYE will provide flood hazard analysis before, during and after large-scale flood events, including flood depth at the individual building level combined with satellite imagery generated by SAR.

Telesat To Become A Public Company Next Week

(SpaceNews)

The Canadian satellite operator expects to complete its merger with Loral Space ($LORL), a major shareholder, on November 19th following a two-day closing process. Shares will trade on the NASDAQ and Toronto Stock Exchange under ticker symbol $TSAT.

Nanoracks Announces New Chief Executive Office

(Company)

Dr. Amela Wilson most recently served as SVP and General Manager at Mercury Systems, where she oversaw five company sites and over 500 employees. Former CEO and Co-Founder Jeffrey Manber will remain Chairman of the Board.

Quick Links 🔗

• Yahsat ($YAHSAT:UH) Reports $43.3M Profit Through Q3'21• Ursa Space Joins AWS Network• Planet ($DMYQ): Initiated as 'Buy' With $17 Price Target, Shareholder Meeting Scheduled for December 3rd, and Virtual Investor Day Set for November 18th• Space Investment Has Moved Past Max-Q, Can it Continue to Ascend?• Three Space Stocks For Adventurous Investors • Orbital Assembly: Launches New Raise on NetCapital and Announces Partnership with LEOCloud Services• Spaceflight Inc To Launch 13 Payloads On First Multi-Orbit Space Tug Mission• Alternative Rocket Builder SpinLaunch Completes First Test Flight• SatelliteVu Gains £1M in Funding From UK Space Agency• Virgin Orbit ($NGCA) Announces Third LauncherOne Mission of 2021• Capella Space To Become First Commercial SAR Supplier For U.S. SDA's NDSA• Rocket Lab ($RKLB) Appoints Andrew Bunker as VP of Government Operations & Business Strategy• NASJAQ Interviews Cosmic Shielding Corporation CEO • MDA (TSX: $MDA) Awarded Initial Design Study Contract For Canadian Lunar Rover by CSA• Astroscale and New Zealand Government Sign Agreement To Study Advanced Concepts for Orbital Debris Removal• Verisk ($VRSK) and Ball ($BLL) To Collaborate On Satellite Data Analytics

Earnings Calendar 📅

• $RDW: Rescheduled• $ASTS: November 15th - After Market Close• $RKLB: November 15th - After Market Close• $ACCMF: November 25th - Not Disclosed*Company confirmed dates only.

🚀 Q3'21 Space Earnings