🚀 Relativity's Financial Woes

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The Space Scoop

Week Ended 11.08.2024

Happy Friday! It was certainly an eventful week, from earnings to the new incoming U.S. administration to [certain] space stocks continuing their tear. Lets dive in.

Market Max-Q

Top Stories

1) Relativity Space is reportedly facing a liquidity crunch.

• Bloomberg has reported that 3D-printed rocket company company is running low on cash and is struggling to raise additional capital to get its next rocket off the pad.

• Relativity was last valued at $4.2B after a 2021 Series E funding round of $650M. The company launched its first rocket, Terran 1, in March 2023 which failed to reach orbit. Not long after, Relativity pivoted further test launches of Terran 1 and decided to solely focus on development of Terran R.

• A spokesperson for the company said it doesn’t comment on speculation or rumors regarding capital. “Relativity Space is fully committed to the development and launch of Terran R ... [and] continues to align itself with strong capital partners,” said  Sarah Lawson.

• Relativity is not the first launch provider to face struggles in this feat. What does the future hold for Terran R? We will find out soon.

2) Apple ($AAPL) announced plans to invest $1.7B in Globalstar ($GSAT) to improve iPhone communications and services.

• Late last week, satellite co GSAT jumped +32% after the company announced it would provide expanded services to Apple, including a mobile satellite services network and a new satellite constellation.

• AAPL agreed to purchase a 20% equity stake for $400M, make an infrastructure pre-payment of up to $1.1B and $232M to refinance debt due in 2029.

• The deal builds on AAPL's $450M investment in satellite services primarily awarded to GSAT in 2022 to expand emergency SOS capabilities for iPhone 14. 

3) Q3 2024 earnings continued this week with 3 SPAC names reporting. Highlights include: 

• $VSAT

  • Revenue: $1B, -8% YoY

  • Net Loss: $(138)M vs. $(767)M

  • Adj. EBITDA: $375M, -23% YoY

  • Backlog: $3.75B, +3% YoY

  • Shares: -8%

• $SPCE

  • Cash & Equivalents: $744M

  • Revenue: $0.4M, -76% YoY

  • Net Loss: $(75)M vs. $(105)M

  • Adj. EBITDA: $(59)M vs. $(87)M

  • FCF: $(118)M vs. $(105)M

  • Shares: -12%

  • Delta Class Spaceships: Production schedule remains on track for commercial service in 2026

• $RDW

  • Total Liquidity: $61M

  • Revenue: $69M, +10% YoY

  • Net Loss: $(21)M vs. $(6)M YoY

  • Adj. EBITDA: $2.4M, -51% YoY

  • FCF: $(21)M vs. $(6)M YoY

  • Backlog: $330M, +30% YoY

  • Shares: -1%

• $BKSY

  • Cash & Equivalents: $65M

  • Revenue: $23M, +6% YoY

  • Net Loss: $(13)M vs. $1M

  • Adj. EBITDA: $0.7M vs. $(0.4)M

  • Shares: +1%

  • CEO: "We believe we have enough capital to fully fund our initial Gen-3 satellite constellation."

• $GSAT

  • Cash & Equivalents: $52M

  • Total Revenue: $72M, +25% YoY

  • Net Income: $10M vs. $(6)M

  • Adj. EBITDA: $43M, +34% YoY

  • Shares: +7%

In Other News

Matter Intelligence Raises $12M Seed Round 

(Payload)

The remote-sensing company founded by former JPL engineers emerged from stealth with funding from Lowercarbon Capital, Toyota Ventures, Pear, Mark Cuban, and E2MC. The startup is building a "novel hyperspectral sensor" that it plans to deploy on a test satellite and then across an entire constellation.

Virgin Galactic Announces $300M Equity Program

(Company)

$SPCE may offer and sell shares of common stock up to $300M from time to time pursuant to the at-the-market program. The net proceeds will be used to further accelerate development and production of next-gen spaceflight fleet -- an additional mothership and third and fourth Delta Class spaceships -- and working capital and G&A matters.

Phase Four Planning Series C Round

(Payload)

The satellite propulsion company is reportedly planning to raise an at least $10M Series C, which former NASA administrator Jim Bridenstine is backing with his first investment in a space company via a special purpose vehicle organized by Artemis Group of $2M. The funds will be used to manufacture Valkyrie, its electric thruster to be used in new LEO spacecraft.

Chart of the Week

U.S. Election & Space Policy: According to Payload, there isn't a stark difference between Republican and Democrat White House NASA budget requests though a GOP president leads to a slightly higher amount. (Source)

Links

• MDA ($MDA) Announces New CFO• Spire ($SPIR) Provides Update on Revenue Recognition Review and Restatement• Momentus ($MNTS) Announces Special Meeting for November 13th, Which Includes Another Reverse Split Vote• Rocket Lab ($RKLB) Completes Its 54th Electron Mission for Undisclosed Customer in Less Than Ten Weeks• Redwire ($RDW) Successfully Returns Third Batch of Pharmaceutical Drug Experiments to Earth• Astranis Partners with Xona Space Systems on Resilient GPS Satellite Design• Lynk Global ($LYNK) Hires Former Intelsat Executive as CEO and Former OneWeb Executive as CFO

Opinion

• The Case for Space Policy Stability in the Next Administration• What Will a Second Trump Term Mean for Space Policy?• AST SpaceMobile ($ASTS): A Strong Buy As the Company Expands Its Coverage• AST SpaceMobile ($ASTS): Competitive Risks Coming to the Fore

Earnings Calendar

• $SATS: Nov 12 - Before Market Open• $RKLB: Nov 12 - After Market Close• $TSAT: Nov 14 - Before Market Open• $LUNR: Nov 14 - Before Market Open• $ASTS: Nov 14 - After Market Close• $SIDU: Nov 14 - After Market Close• $MDA: Nov 15 - Before Market Open

*Company confirmed dates only.