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🚀 Q4'21 Space Earnings

🚀 Q4'21 Space Earnings

February 25, 2022

The Space Scoop

Week Ending 02.25.2022

Happy Friday and a warm welcome to our new readers! Fourth Quarter / Fiscal Year 2021 NewSpace earnings season is upon us, with BlackSky and Virgin Galactic leading the way. Globalstar, MDA and Rocket Lab announced a $470M satellite manufacturing agreement. Private Equity firm AE Industrial Partners acquired a "significant" stake in Firefly Aerospace and Maxar made a strategic investment into Aurora Insight. Lets dive in.

Market Max-Q 📈

Q4 / FY2021 Earnings

NewSpace earnings officially kicked off on Tuesday. Highlights include:1) BlackSky ($BKSY):Fourth Quarter:• Revenue of $11.5M, +79% YoY.• Imagery and software analytical services accounted for 64% of total revenues.• Adj. EBITDA of -$14.4M.• Cash balance of $168.1M.Fiscal Year:• Revenue of $34.1M, +61% YoY attributable to several new government contract awards.• Adj. EBITDA loss of -$44.4M.• CapEx of $63.9M.• 2022 Revenue guidance cut -47% from $114M (initial guidance) to $58-62M.• Shares traded -7.8% lower.2) Virgin Galactic ($SPCE):Fiscal Year:• Cash & equivalents of $931M (as of 12/31).• Adj. EBITDA totaled -$65M vs -$60M YoY.• Net loss of -$81M vs -$104M YoY.• GAAP R&D expenses of $42M vs $41M YoY.• 2021 FCF and EBITDA burn of -$236M and -$244.8M.• The stock rallied +3.5% higher.3) Maxar ($MAXR):Fourth Quarter:• Total revenues of $468M.• Net income of $71M vs -$40M in 2020.• Adj. EBITDA of $112M, +17.9% YoY.Fiscal Year:• Total revenues of $1,770M, +2.3% YoY.• Net Income of $46M.• Adj. EBITDA of $424M, +0.1% YoY.• Adj. EBITDA Margin of 45.0%.• Shares gained +0.7% by the close.4) EchoStar ($SATS):Fourth Quarter:• Consolidated revenue of $498.6M, +1.9% YoY.• Net loss of $80.1M, down from -$2.6M in 2020.• Consol. Adj. EBITDA $159.5M, -4.3% YoY.Fiscal Year:• Consolidated revenue of $1,985.7M, +5.2% YoY.• Net income of $62.7M, up from -$51.9M in 2020.• Consol. Adj. EBITDA $718.9M, +11.8% YoY.• The stock dropped -13.4% on the news.5) Globalstar ($GSAT):Fiscal Year:• Total revenue of $124.3M, down -3.3% YoY.• Service revenue accounted for 85.6% of all revenue.• Loss from operations was -$65.5M, vs -$59.1M in 2020.• Net loss was $112.6M, vs $109.6M in 2020.• Adj. EBITDA of $38.7M.• Cash & equivalents were $14.3M (as of 12/31).• Shares gained +22.9% for the day.

MDA and Rocket Lab To Partner With Globalstar For New Satellites

$GSAT announced a satellite procurement agreement with $MDA, in which the company will acquire 17 new satellites for $327M to "replenish and extend the life of Globalstar’s existing constellation" by 2025. The agreement includes the design, manufacture, assembly and test of the satellites. Globalstar has the option to acquire up to 9 additional satellites each priced at $11.4M. MDA will partner with Rocket Lab ($RKLB), who will lead the development of the spacecraft bus, valuing the subcontract at $143M. $GSAT, $MDA and $RKLB shares rallied +22.9%, +3.4% and +14.6%, respectively.

AE Industrial Partners Acquires CEO's Stake in Firefly Aerospace

The private equity firm behind Redwire ($RDW) and Sierra Space announced Thursday it had reached a definitive agreement to acquire a "significant stake" in Firefly Aerospace from Noosphere Venture Partners. It was previously reported that the Ukranian company founder Max Polyakov was being ousted over "national security concerns" and this officially confirms it. The terms of the transaction were not disclosed.

In Other News 🛰️

AiDash Acquires Neurafarms.ai

(Company)

Following Series B funding, the company has acquired the business and assets of Neurafarms.ai, a geospatial and AI-powered farming solutions provider, for an undisclosed amount.

SkyFi Raises $7.15M Funding Round

(Payload)

The satellite imagery app startup raised from J2 Ventures, Moving Capital, Capital Factory, Bill Perkins and family & friends. The company plans on expanding its team and launching their app officially in Q2'22.

Xplore Secures $16.2M in Venture Funding and Customer Contracts

(Company)

The Space-as-a-Service startup investors include Alumni Ventures, Brightstone Venture Capital, KittyHawk Ventures, Private Shares Fund, Starbridge Venture Capital, Helios Capital, Lombard Street and Gaingels.

Ceres Acquisition Extends SPAC Merger Deadline

(SpaceQ)

$CERWF shareholders voted 65-35 to approve an extension of the deadline to complete a merger, with previously announced Maritime Launch Services, from early March to the end of June.

Maxar Makes Strategic Investment Into Aurora Insight

(Company)

$MAXR will help Aurora accelerate its technology offering and streamline the advancement of radio frequency-enhanced GEOINT Solutions. The terms of the deal were not disclosed.

Quick Links 🔗

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Barclays Upgrades Iridium ($IRDM) to Overweight, Sees +26% Upside

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Post-Launch Investigation: What We’re Doing ($ASTR)

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Relativity Space Plans Rapid Transition to Terran R Engines

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Northrop Grumman ($NOC) Wins $341M Space Force Contract

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SpaceWorks Launches NewSpace Index

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Roth Capital Initiates Coverage on Rocket Lab ($RKLB) With ‘Buy’ Rating and $20 Price Target

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Redwire ($RDW) Delivers Orion Camera System to Lockheed Martin ($LMT) for Future NASA Artemis Missions

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Anahuac Transport Convicted for Supplying Potentially Tainted Rocket Fuel to NASA

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Rocket Lab ($RKLB) Completes Second Orbital Launch Pad at Launch Complex 1 NZ

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$IPOF Keeps Heating Up As SpaceX SPAC Merger Rumors Persist

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Redwire ($RDW) Technology Enabling NOAA Mission for Critical Earth Weather Monitoring

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ntelsat ($INTEQ) Emerges From Bankruptcy as a Private Company

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The Market Beat Podcast With Andrew Chanin of Procure Space ETF ($UFO)

Opinion 🗣️

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This Next Frontier for Tech Investors Is Just Getting Started

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Is Space a New Investable Asset Class?

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Reddit Traders Took Space Stocks to the Moon. Re-Entry Could Be Ugly.

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SPACs, the ‘Poor Man’s Private Equity,’ Made Investors Poorer

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Virgin Galactic ($SPCE): The Epitome of Landing Smoothly

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Planet Labs ($PL): Earth Data for Everything

Calendar 📅

• $RKLB: February 28 - After Market Close• $MNTS: March 8 - After Market Close• $SPIR: March 9 - After Market Close• $MDA: March 17 - Before Market Open• $TWNT: March 22 - Shareholder Merger Vote

*Company confirmed dates only.

🚀 Q4'21 Space Earnings