Astra Announces Fourth Quarter and Fiscal Year 2022 Financial Results

Rhea-AI Summary

Astra Space, Inc. (Nasdaq: ASTR) reported its fourth quarter and fiscal year results for 2022, revealing a net loss of $44.3 million. Despite this, Astra achieved significant progress with the Astra Spacecraft Engine™, securing $3.5 million in contract value from its third delivery and a total of 278 cumulative orders valued at approximately $77 million. The company is on track to commence Rocket 4 test flights in 2023 and has completed a dedicated 60,000 square foot manufacturing facility. Adjusted operating expenses decreased to $40.2 million from $44.1 million in the previous quarter, ending Q4 2022 with $102.8 million in cash and marketable securities.

Positive

• Secured 278 cumulative orders for the Astra Spacecraft Engine™ valued at approximately $77 million.
• Decreased adjusted operating expenses from $44.1 million in Q3 2022 to $40.2 million in Q4 2022.
• Completed a dedicated 60,000 square foot manufacturing facility for the Astra Spacecraft Engine™.

Negative

• Reported a GAAP net loss of $44.3 million for Q4 2022.
• GAAP Gross Profit was $0.0 million.

ALAMEDA, Calif.--(BUSINESS WIRE)-- Astra Space, Inc. (“Astra”) (Nasdaq: ASTR) today announced financial results for its fourth quarter and fiscal year ended December 31, 2022.

Astra also announced the successful delivery of its third full Astra Spacecraft Engine^™ program in 2022, realizing $3.5 million of contract value.

In addition, Astra announced 278 cumulative committed orders of the Astra Spacecraft Engine^™ through March 30, 2023, representing approximately $77 million of contract value. A substantial majority of these orders are expected to be delivered through the end of 2024.

Finally, Astra continues to anticipate commencing test flights of Rocket 4 later this year.

"Our team has been intensely focused on execution. In addition to gaining significant traction in our Space Products business, we achieved critical milestones in the development of Launch System 2, including conducting the first full flight duration run of our first stage engine and substantial progress toward completion of the Rocket 4 production line," said Chris Kemp, Astra Founder, Chairman and CEO.

"We also took important steps to enable production of the Astra Spacecraft Engine^™ at scale through the build-out of our dedicated production facility, which we expect will eventually support production of up to 500 units per year, with our production ramp beginning in Q2 2023," continued Kemp.

In Q4 2022, Astra continued to align its resources with the near-term opportunities in Launch Services and Space Products, including rationalization of headcount and reduction in consultant, legal, T&E and equipment rental spend.

“We have continued to refine our operating plan to ensure we have the appropriate resources to support customer deliveries and growth of our two core businesses while maintaining a prudent expense profile," said CFO Axel Martinez. "As a result of these efforts, our Adjusted Operating Expenses decreased from $44.1 million in Q3 2022 to $40.2 million in Q4 2022."

Recent Business Highlights:

• 278 cumulative committed orders of the Astra Spacecraft Engine^™ through March 30, 2023
• Completion of dedicated 60,000 square foot Astra Spacecraft Engine^™ manufacturing facility
• Achievement of Launch System 2 development milestones, including first full flight duration run of first stage engine
• Ended the quarter with approximately $102.8 million in cash, cash equivalents, and marketable securities

Fourth Quarter 2022 Financial Highlights:

For the three months ended December 31, 2022:

• GAAP Gross Profit was $0.0 million
• GAAP Other Income was $5.4 million (including $3.5 million in Astra Spacecraft Engine^™ deliveries)
• GAAP Net Loss was $44.3 million
• Adjusted Net Loss* was $37.3 million
• Adjusted EBITDA Loss* was $36.6 million
• Capital expenditures during the quarter totaled $7.6 million
• Cash, cash equivalents, and marketable securities totaled $102.8 million

_________

*Denotes Non-GAAP financial measure. Refer to “Explanation of Adjusted (or Non-GAAP) Financial Measures” later in this press release for reconciliation of GAAP to Non-GAAP financial measures.

First Quarter 2023 Outlook

As of March 30, 2023, we are providing guidance for the first quarter 2023 based on current market conditions, our focus on the development of Launch System 2, and our ongoing investments to scale our Space Products business. We emphasize that the guidance is subject to various important cautionary factors referenced in the section entitled “Forward-Looking Statements” below and our annual report on Form 10-K for the year ended December 31, 2022, including risks and uncertainties associated with geopolitical conditions and their potential impact on our business as well as our ability to continue operating as a going concern.

For the first quarter ending March 31, 2023, we currently expect:

• adjusted EBITDA loss* to be between $37.0 million and $41.0 million,
• basic shares outstanding to be between 269 million and 271 million shares, and
• capital expenditures to be between $6.0 million and $8.0 million

_________

*Denotes Non-GAAP financial measure. Refer to “Explanation of Adjusted (or Non-GAAP) Financial Measures” later in this press release for reconciliation of GAAP to Non-GAAP financial measures.

Conference Call Information

In conjunction with this announcement, Astra will host a conference call for investors at 1:30 p.m. PT (4:30 p.m. ET) today to discuss fourth quarter and fiscal year 2022 results and our outlook for the first quarter ending March 31, 2023. The live webcast and a replay of the webcast will be available on the Investor Relations section of Astra’s website: https://investor.astra.com/news-and-events/events-and-presentations.

About Astra Space, Inc.

Astra’s mission is to improve life on Earth from space® by creating a healthier and more connected planet. Today, Astra offers one of the lowest cost-per-launch dedicated orbital launch services of any operational launch provider in the world, and one of the industry’s first flight-proven electric propulsion systems for satellites, Astra Spacecraft Engine™. Astra delivered its first commercial launch to low Earth orbit in 2021, making it the fastest company in history to reach this milestone, just five years after it was founded in 2016. Astra (NASDAQ: ASTR) was the first space launch company to be publicly traded on Nasdaq. Visit astra.com to learn more about Astra.

Forward Looking Statements

Certain statements made in this press release are “forward-looking statements”. Forward-looking statements may be identified by the use of words such as “anticipate”, “believe”, “expect”, “estimate”, “plan”, “outlook”, and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements reflect the current analysis of existing information and are subject to various risks and uncertainties. As a result, caution must be exercised in relying on forward-looking statements. Due to known and unknown risks, actual results may differ materially from Astra’s expectations or projections, including the following factors, among others: (i) the failure to meet projected development, delivery and launch targets, including as a result of the decisions of governmental authorities or other third parties not within our control; (ii) changes in applicable laws or regulations; (iii) the ability of Astra to meet its financial and strategic goals, due to, among other things, competition and the dedication of our launch resources to the development of Launch System 2 and its ability to continue operating as a going concern; (iv) the ability of Astra to pursue a growth strategy and manage growth profitability without additional funding; (v) the possibility that Astra may be adversely affected by other economic, business, and/or competitive factors; (vi) the ability to manage its cash outflows related to its business operations, (vii) the ability of Astra to develop its space services offering as part of its long-term business and growth strategy and (viii) other risks and uncertainties described herein, as well as those risks and uncertainties discussed from time to time in other reports and other public filings with the Securities and Exchange Commission by Astra.

Explanation of Non-GAAP (or Adjusted) Financial Measures

This press release includes information about Adjusted Gross Profit (Loss), Adjusted Net Loss and Adjusted EBITDA (collectively the “non-GAAP financial measures”), all of which are non-GAAP financial measures. These non-GAAP financial measures are measurements of financial performance that are not prepared in accordance with U.S. generally accepted accounting principles and computational methods may differ from those used by other companies. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with Astra’s condensed consolidated financial statements prepared in accordance with GAAP. Non-GAAP financial measures are reconciled to their most comparable GAAP measures in the table set forth in this release.

We believe that both management and our investors benefit from referring to these non-GAAP financial measures in planning, forecasting and analyzing future periods. Specifically, our management uses these non-GAAP financial measures in planning, monitoring and evaluating our financial and operational decision making and as a means to evaluate period-to-period comparisons. Our management recognizes that the non-GAAP financial measures have inherent limitations because of the excluded items described below.

We believe that providing the non-GAAP financial measures, together with the reconciliation to GAAP measures, helps investors make comparisons between Astra and other companies in our industry. In making any comparisons to other companies in our industry, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance. Investors should pay close attention to the specific definition being used and to the reconciliation between such measure and the corresponding GAAP measure provided by each company under applicable SEC rules.

We define Free Cash Flow as cash used in operating activities including cash used for capital expenditures.

Adjusted Gross Profit (Loss) differs from GAAP Gross Profit (Loss) in that it excludes inventory adjustments related to Rocket 3.

Adjusted Net Loss differs from GAAP Net Loss in that it excludes the following items: (a) stock-based compensation, (b) loss on change in fair value of contingent consideration, (c) cash earnout compensation cost related to the acquisition of Apollo Fusion, (d) inventory write-downs related to discontinuance of production of Launch System 1, (e) capitalized launch costs write-downs related to discontinuance of production of Launch System 1 (f) impairment charge, (g) employee retention credit, (h) PPP loan forgiveness, and (i) other special items, including related Worker Adjustment and Retraining Notification (WARN), employee safety, licensed technology, and a contract cancellation.

We define Adjusted EBITDA as Adjusted Net Loss, excluding the following items: (a) interest expense and interest income, (b) income tax expense, (c) loss on marketable securities, and (d) depreciation and amortization. We are unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.

Astra Space, Inc. Condensed Consolidated Statements of Operations (Unaudited, in thousands except per share data)
	Three Months Ended						Twelve Months Ended
	December 31, 2022			December 31, 2021			December 31, 2022			December 31, 2021
Revenues
Launch services	$	-		$	-		$	5,899		$	-
Space products		-			-			3,471			-
Total Revenues		-			-			9,370			-
Cost of revenues
Launch services		-			-			28,193			-
Space products		-			-			1,337			-
Total cost of revenues		-			-			29,530			-
Gross profit (loss)		-			-			(20,160	)		-
Operating expenses
Research and development		29,120			36,239			140,666			80,398
Sales and marketing		3,949			1,882			17,401			4,111
General and administrative		24,468			24,040			85,285			74,752
Impairment expense		1,773			-			76,889			-
Goodwill impairment		-			-			58,251			-
Gain (loss) on change in fair value of contingent consideration		(9,049	)		(4,700	)		20,200			(4,700	)
Total operating expenses		50,262			57,461			398,692			154,561
Operating income (loss)		(50,262	)		(57,461	)		(418,852	)		(154,561	)
Interest income (expense), net		602			25			1,748			(1,169	)
Other income (expense), net		5,352			6,169			5,666			31,346
Loss on extinguishment of convertible notes		-			-			-			(131,908	)
Loss on extinguishment of convertible notes attributable to related parties		-			-			-			(1,875	)
Income (loss) before taxes		(44,308	)		(51,267	)		(411,438	)		(258,167	)
Income tax (benefit) provision		-			(2	)		-			(385	)
Net income (loss)	$	(44,308	)	$	(51,265	)	$	(411,438	)	$	(257,782	)
Adjustment to redemption value on Convertible Preferred Stock		-			-			-			(1,011,726	)
Net income (loss) attributable to common stockholders	$	(44,308	)	$	(51,265	)	$	(411,438	)	$	(1,269,508	)
Basic and diluted loss per share
Weighted average basic and diluted shares - Class A		212,732			202,982			210,178			110,837
Loss per share	$	(0.17	)	$	(0.20	)	$	(1.55	)	$	(7.82	)
Weighted average basic and diluted shares - Class B		55,539			56,232			55,539			51,548
Loss per share	$	(0.17	)	$	(0.20	)	$	(1.55	)	$	(7.82	)

Astra Space, Inc. Condensed Consolidated Balance Sheets (Unaudited, in thousands)
	December 31, 2022		December 31, 2021
Assets:
Cash and cash equivalents	$	33,644	$	325,007
Marketable securities		69,173		-
Trade accounts receivable		5,327		1,816
Inventories		6,800		7,675
Prepaid and other current assets		10,838		12,238
Total current assets		125,782		346,736
Property, plant and equipment, net		24,271		66,316
Right-of-use asset		12,813		9,079
Goodwill		-		58,251
Intangible assets, net		10,132		17,921
Other non-current assets		1,701		721
Total assets	$	174,699	$	499,024
Liabilities and Stockholders’ Equity:
Accounts payable	$	1,799	$	9,122
Operating lease obligation, current portion		3,800		1,704
Contingent consideration		33,900		-
Accrued expenses and other current liabilities		42,043		29,899
Total current liabilities		81,542		40,725
Operating lease obligation, net of current portion		9,051		7,180
Contingent consideration, net of current portion		-		13,700
Other non-current liabilities		1,796		899
Total liabilities		92,389		62,504
Total stockholders’ equity		82,310		436,520
Total liabilities and stockholders’ equity	$	174,699	$	499,024

Astra Space, Inc. Summary Cash Flow Data: (Unaudited, in thousands)
	Three Months Ended						Twelve Months Ended
	December 31, 2022			December 31, 2021			December 31, 2022			December 31, 2021
Cash used in operating activities	$	(40,823	)	$	(34,780	)	$	(175,438	)	$	(114,356	)
Capital expenditures		(7,580	)		(19,629	)		(47,623	)		(38,349	)
Free cash flow (non-GAAP)		(48,403	)		(54,409	)		(223,061	)		(152,705	)
Cash used in investing activities		6,729			(19,779	)		(117,359	)		(61,059	)
Cash provided by financing activities		130			914			1,434			489,811

Astra Space, Inc. Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited, in thousands)
	Three Months Ended						Twelve Months Ended
	December 31, 2022			December 31, 2021			December 31, 2022			December 31, 2021
Revenues
Launch services	$	-		$	-		$	5,899		$	-
Space products	$	-		$	-		$	3,471		$	-
Total revenues		-			-			9,370			-
Cost of revenues
Launch services		-			-			28,193			-
Space products		-			-			1,337			-
Total cost of revenues		-			-			29,530			-
GAAP gross profit (loss)		-			-			(20,160	)		-
Inventory adjustments		-			-			10,200			-
Capitalize launch costs write downs		-			-			2,213			-
Adjusted gross profit (loss)		-			-			(7,747	)		-
GAAP net income (loss)		(44,308	)		(51,265	)		(411,438	)		(257,782	)
Stock-based compensation		12,324			19,278			55,904			39,743
Fair value of warrant liabilities		-			(5,234	)		-			(25,681	)
Gain (loss) on change in fair value of contingent consideration		(9,049	)		(4,700	)		20,200			(4,700	)
Apollo cash earnout compensation		-			4,449			675			5,811
Inventory adjustments		-			-			11,212			-
Capitalized launch cost write downs		-			-			2,213			-
Loss on extinguishment of convertible notes		-			-			-			133,783
Impairment expense		1,773			-			76,889			-
Goodwill impairment		-			-			58,251			-
Employee retention credit		-			-			(4,283	)		-
PPP loan forgiveness		-			-			-			(4,850	)
Legal Settlement		-			-			-			750
Other special items		1,974			-			4,770			3,969
Adjusted net income (loss)		(37,286	)		(37,472	)		(185,607	)		(108,957	)
Interest (income) expense, net		(602	)		(25	)		(1,748	)		1,169
Income tax (benefit) expense		-			(2	)		-			(385	)
Realized (gain) loss on investment		-			-			123			-
Depreciation and amortization		1,270			1,431			13,328			5,327
Adjusted EBITDA		(36,618	)		(36,068	)		(173,904	)		(102,846	)

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230330005561/en/

Investor Contact:

investors@astra.com

Media Contact:

press@astra.com

Source: Astra Space, Inc.

FAQ

What were Astra Space's financial results for Q4 2022?

Astra Space reported a net loss of $44.3 million and $0.0 million in GAAP gross profit for Q4 2022.

How many orders has Astra secured for the Astra Spacecraft Engine?

Astra has secured 278 cumulative orders for the Astra Spacecraft Engine™, valued at approximately $77 million.

What is Astra's outlook for Q1 2023?

Astra has provided guidance for Q1 2023 based on ongoing developments in Launch System 2 and investments to scale its Space Products business.

How much cash did Astra have at the end of Q4 2022?

At the end of Q4 2022, Astra had approximately $102.8 million in cash, cash equivalents, and marketable securities.