SPCE Virgin Galactic

Michelle Kley Executive Vice President, General Counsel and Secretary
George Whitesides Chief Executive Officer
Jon Campagna Chief Financial Officer
Enrico Palermo Chief Operating Officer
Robert Spingarn Credit Suisse
Adam Jonas Morgan Stanley
Darryl Genovesi Vertical Research Partners
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.

Good afternoon. My name is David and I will be your conference operator today. At this time, I would like to welcome everyone to Virgin Galactic's First Quarter 2020 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator

call and Michelle Secretary conference President, Executive General Counsel at will today's Kley, be Vice Hosting Virgin Galactic.

today's reminder, a call recorded. being As is

I to conference ahead. would turn Kley. Please go now over to like Ms. the

Michelle Kley

you, quarter earnings first Thank Virgin XXXX good Welcome conference afternoon, to and Galactic's call. everyone.

who Chief Chief the Officer, the be the provide who answer will Whitesides, are prepared call Operating call Jon George and remarks. to the today me Officer; On on is Q&A call. will Palermo, Enrico Campagna, Officer with Also with Jon along George Executive Chief of available portion Financial and during questions

Earlier today, financial the first Relations slide Investor website, a we which quarter provides of highlights made for XXXX. of issued and press and an available business our release presentation on overview a our

today’s will we of securities laws. within certain statements federal forward-looking call, During the meaning make

result, current and forward-looking actual based predictions, to from assumptions statements and, Forward-looking that events statements differ communication. future other in a are subject future are statements could expectations materially cause and Many about factors are projections to on events and this as uncertainties. risks

XXXX. our For refer XX-Q we information from the statements, materially forward-looking differ press about Form first please time with by to of results time Exchange may other factors including from for actual and more cause release documents and Commission, issued to Galactic today earnings filed to that Virgin quarter Securities the the

of the put only they as to statements. undue are statements Forward-looking forward-looking not made. on speak date are Readers reliance cautioned

to turn like Whitesides. I'd over to that, With George call the

George Whitesides

everyone. you, Thank afternoon, Michelle. Good

will your unprecedented our an quarter on Today, sincere performance. will safe will quarter, offering you this operations. detail I the will regarding hope highlights and like also achieved the first would I discuss of families COVID-XX First time. and I foremost, our financial then by start our on during my that provide staying and the are activity and provide quarter. milestones on Jon I on impact update you update business during the we for to

our brief and public refresher on results, one dive initiatives only time. detail me believe technology our the represents quarter. first world's human through spaceflight. and focused exciting we that commercial quarter of significant most the in give on into last let exploration is Before company first Virgin our thesis commercial walked of Galactic of And I investment we the a very space

scalable unit over meaningfully operational Our design is reusable economics. nature business strong The by the model efficient, time our reduce delivering highly spaceflight each of features underpinned spaceships. the of cost

advantage, the We from benefit by investment first expect barriers competitors, our in progress today. greatly our technology, achieved we've entry and the mover substantial made to supported new potential by significant which to we've is for reinforced

up while reopened huge business. to signing financial about progress are In from begun And addition, the our our are commercial of later through confident we we will have with flyer I people to strength interest seen not list. yet we have initiative, One our which Small provide call the future our we Step have details validate sales, the seeing in we in

more have have accelerate to highly operating sheet. online we we and from strong cash we remain Over Jon commercialized detail but bringing build a increasing the benefit more expect our debt and Our business we on in into founding. to by our engaged, later, time, we spaceships financials efficiencies. is customer flight seen since Once our on in will our base offering interest product intend rate. and momentum our no go sustained balance and position,

space of and team in place the in management experience decades Finally, a strong we operations have sectors. and aviation flight with

which updates on is Slide achieve at the have COVID-XX pandemic during X, we first has company. of a the I quarter, milestones I top the affected to before the everyone's few minds Turning global through our walk how

their and communities the it employees, our to of safety I And part of our health and make the clear local First, health all we spread COVID-XX the to are our that slow nation's we care our support do believe and workers. families, must want top priorities.

As steps protect community have we support efforts. workforce our such, and taken cautious appropriately to

these accordance in As temporarily efforts, Mojave, operations part in March. of Spaceport we with on and our and directives, applicable government reduced and facilities site suspended America then in initially at

able duties documentation of critical work update, approximately home, period the as Eve two second which and to VMS as well from and enabled drawing continue, to workforce employees releases time, were of for to including vehicle their that thirds education. During Unity, our VSS training analysis, and spaceship and contractors much complete and engineering process

developed third approximately normal that to conform this manufacturing revised some COVID-XX one within during which as limited to period, April, perform our with of unable week, precaution. we our infrastructure workforce accordance plans In duties and ramped up classification critical health in was from each then Correspondingly, operational the operations, home. designation, resumed latest the we we their

our As back of are be of on the working XX% today, over facilities in whose site. to them work requires now employees

those workers protocols, of and For safety are rearranging taking social plans In time disinfecting our continue to the of of return include facial develop tools. universal our thorough to from employees our daily to we the regular active facilities safe we're the surfaces so, undertaking doing being, coverings, and to and ensure to for work employees, home temperature our facilities, and those we who additional able while measures are conducting encouraging distancing follow health which checks, facilities.

testing. both testing PCR also antibody for COVID-XX We're employees and utilizing contractors and

testing have available. this excess capability We have external via companies, test done which

work as to unable from comprise that retained who who the as has vast pleased X, have which work far who We're employees, well to on of substantial our tested XXX even we home. majority employees, As fraction all site, a of of are of those remotely. of to the working so we anyone say have still our May employees are

engineering solutions leverage innovative resources company to approval focused cost workers tested the reading on NASA and Turning team at the what develop designed Hood, can which facing we assist to positive which called Slide also This to FDA. relief Virgin COVID-XX pending to lines. to with Hoods capabilities produced and a Galactic space teams patients from with in hood The into oxygen has with PPB NASA, have We the entered the are and spaceship team our been PPB X, we a partnering efforts. XXX our pressure front has low to agreement under healthcare on problems act provides the rich EUA need. doing

been communities NASA staff on from tested develop and donated hospital air to of with medical build our local a to ease being that are now comfort, We've purifying We've containing also stocks project negative gurney New patient to use, a environment. bed equipment masks, medical powered so separate hospitals. are prototypes California a These by for on We're also or enclosures, Mexico, it, that filtering and donating a it infected room cover gloves. protect to including suits respirators supplies which and pressure wider and functionality. working not does the in air contaminate and specialist

protection proximity workers to additional offer physical machines who COVID-XX. patients closest in important from suffering those frontline are the for These

of pace and federal get by we impact real operations. at the will normal course will be partly to can governments. by back local COVID-XX which believe This we ahead, be Looking determined the influenced

and of the stay example, interstate travel to challenges have potential at efforts the tremendous encouraged responsibly employees to and in orders restrictions. home For of and I'm how by handled protocols. new our COVID-XX operational they changes responding manufacturing

the progression. testament and the update to duration is of to will a we business our of to the continue conduct and Friday's successfully will community that insight. we their on early were able resilience. gain flight and test fact impact better as public The fully pace we too COVID-XX It have the quantify that is But investment and to commitment our severity

we flight are this by can our as as time. as working we glide unique However, during successful efficiently demonstrated Friday, on

Turning to far. progress we and that so highlighting me by briefly in key XXXX demonstrate achieved let pace of Slide our some milestones X, the start

flew moved into member, in first the Instructor, Chief December at space we and a on VMS trading operations Mexico. October, became on We to Following commercial New the our XXXX. of aircraft In crew built Eve the humans America non-pilot our successful company to listed headquarters launch and Beth put to publicly in transferred vehicle our space carrier commercial commercial XXXX, first our space a we February Exchange. vehicle New Moses Spaceport Astronaut Stock York

Readiness also Program Armour. Astronaut the We at our launched partners our of Under with help

of I won't than Company. Many ship milestone benefits. The and spaceship quarter Now ship through specific of go the first the efficiently announced Weight team time, achieved allowing in our just more to the to few. months On and is them, of the expertise We testament our achievements X, significant Slide and first faster a X. Wheels. we all on of a Spaceship major This disclosed our the us end-to-end approximately as on growing manufacturer build so on into of during a milestone but we had XXXX first great accomplished to highlight detail on turning at on the the that fleet completed second our XXXX, to Weight achieved we January experienced integrated modular our well aerospace milestone than use Weight processes Wheels capabilities strength largely faster curve nine as the build Wheels demonstrates reach and vertically these

spaceships. we continued strong progress to X, building Slide quarter, Turning to on our during make the

doors, to slide. Wheels on in milestone, technical a numerous outlined as build Weight as spaceship on feather progress our completing several horn installations, mechanical including achievements the we such landing addition attachment, gear second program areas structure made In of and of other the and in well this also number installing as other actuator feather structural

vehicle of the our preparing its systems first of will ground tests of which and is We system undergo series and spaceships for integrated also before flight. control the commenced structural assembly began testing flight the second spaceship, spaceship the

pandemic. to of the protocols safe. are on processes their and how during we safety COVID-XX We ensure operating will a But to sense can have mentioned, team the new encouraged impact by our I we have responsibilities keep As has continue facility co-workers their not embraced that the reworking I'm of these protocols our yet many pace. full do manufacturing manufacturing

captive opportunity XX, our Mexico, where Spaceport to it VSS our valuable New aircraft This for flights from to America Eve. VMS provided February on relocated a Slide Turning in XX, Mojave first hours Unity, conduct we a carrier space. carry joins during engineers three to and opportunity to familiarization. for to temperatures, It over is than evaluate longer Unity at and an also time high training period provided altitude of pilot VSS missions experienced cold spaceship

that to staff New in Turning America Mexico complete, I'm now flights. pleased operational to bringing personnel to Relocation number XXX operations conduct to of is XX, of test is Spaceport our say total Slide fully our people.

of completed out quarter This second floors the at America. the we and build first Spaceport

be will and which for floor, third the activities. of astronaut preparation completion towards training used progress significant made also We flight

we to individual installation the move We cabin and with customer its the the training home to in third floor, permanent and sharing pod. completed public look spaceship forward community its Specifically, year. in on lounge astronaut this incredible the this investment later training space the its we

presence America continue employees safety Spaceport team with protocols. strict We at under COVID-XX have all to a working

an Turning XX, I'll to on provide update approval Slide FAA process. the

us As have we missions. already launch last our spaceflight to conduct mentioned quarter, I allows commercial license, which

go We that to license. are verifies the commercial paying providing to and our through the fly elements FAA validates final data customers process continuing of with by

cabin on We have and last focused air ventilation. and of four Many February. were circulation, verifying update data ready the and in that quality, of out elements, XX on including which these our completed verification of pressurization since providing the of for elements flights obtaining now XX is cleared validation

the are provide We continuing to plan as we on work elements V&V remaining updates to appropriate. hard and

America, of have with services, Spaceport and Turning hospitality. airspace coordination, started to to relocated various Slide spaceship mission that interfaces we execution, facilities, building the staff and and XX, external we aspects experience ground now Unity familiarity have support, hosting all

I last test complete primary now is our mentioned focus quarter, flight As program. our to

quarter, for spaceport captive progress We well Unity the from this carry completing America. flight aircraft flight as including a continue VSS to to preparations Spaceport Mojave the make ferry VSS Unity carrier first as to five on glide during flights, on first America, from Eve significant VMS

was seen which fly the This commitment the opportunity all components VMS a new brilliantly. performed first glide resilience, Eve configuration to have to may achievement glide you this we and the a challenges believe glide successful The in protocols. major COVID-XX the conducted stringent May airspace. the flight new our a out workforce to XXXX. spaceship aircraft of VSS of As pandemic, Unity during flight creativity, team last week, home a required coming on in spaceship test of base provided required X, I and health carrier and

During the the qualities. glide performance of and Unity, flight, about the designed pilots gather spaceships performed of maneuvers handling VSS to a series data

takeoff the elements of also team profile, some carrier flight spaceflight used to around and against for conduct chance along aircraft. to the pilots and the enhance modeling performed space of capture to VSS of and valuable continue including were spaceship provided airspace gateway a aerodynamic They that program. The the will the release be landing, opportunity spaceflight with an data in from flight pilot verify This and further flight similar and with executed data altitude the high new key to Unity's test a training. test operations earlier in familiarization maneuvers our

flight. repeat of test another but complete, the efforts will least as portion analyzing this we focus on I our test powered flight, Once fly program Once engineers glide want a flight our to the will always, flight data from completing our that and flight we point program. additional finish we our fly flight flag at glide one may is

We updates flight will our to program. continue provide progress we further through as test

prepared As long-term I've is said our this vehicles previously, our get working operations regular and for the perspective engineering from commercial year to company service. a focus and for

soon focused Richard We Branson remain to as flying we can. space as also on

few Turning video link the a flight. images and to XX, a a included XX, to Slide XX brief We've flight. last glide of are week's here also from glide

years. develop applications. and today, the Turning the the to of a partnering feasible of thousands Agreement robust platform vertically with flight with to the civil significant leverage capabilities earlier hours NASA believe development potential advanced will efforts announced Space of training, design, spaceship USs Mach slide the historic have applications. NASA, help engineering XX, speed of with facilitate entered to technologies technically to for we into over we to aerospace vehicles We produce manufacturing can our advance combined technologies, with of NASA coming integrated high Act capabilities we high company, additional and we In

strategies the believe building and national first aviation flying explore providing that mover edge progression Mach significant the technological development new to of also steps and of new the This vehicle crude competitiveness for are solutions inform enable at to We development. apply speed over of We only a improve speeds are to industries aim flight, potential US opportunities there the team X technical at advantage. designing, hypersonic will high drive higher sustainable to travel. and

with tremendous partnering in growth broaden NASA be environmentally with as could of believe we efficient and will to to We that customer high generation this area operation. see excited very responsible this driven, We're alongside consumer travel potential continue now next safe, an speed access invest our transportation. commercial spaceflight to

winged possible station focused with capabilities is and landed concept, design vertically sequencing on not holding enabling Our a that are concepts. vehicle

Small XXXX, offered we registrants the sales. program form Step they company. spacefarer Turning Virgin marked both One and initiatives and the released, we to Small Slide ticket a our milestone an Step to enjoy XX, seats Once This community, the new now on to One Small One offers of with XX, our will as launched customers significant other February who to terms in communication initiative, be reopen advantages are first becoming our enhanced to journey on registrants. Step customer which to relationship also dedicated Galactic astronauts. new will prepare

establishing short a by from We've prospects begin Leap received direct countries, customers. confirm $XXX astronauts time, XX For immediate One to payments pool these would future future relationships the spaceflight on us of depending and us One allows reservation convert have for we expectations. a Small sales the conversion and of this to which company, been customers, augments all the our over can It initiative. funnel positive we If Over over individuals million program ticket deposit the also full of response from exceeded period price. XXX that delighted via provides with qualified status. future with Giant represent a Step to business well of

last of and our overview remains an prospects funnel call Turning strong of XX, the each astronauts to direct during sales which stages. quarter's Slide leads, future provided I in earnings

second milestone making this ambition interior program the successful campaigns Commercial by regular was traditional Service. progress a spacesuits including behind out for reveals supported towards the This program was social customer of rolled cadence and significant we emphasizing XXXX the sales. prospects been and Spaceport spaceflight media. updates in a During and of our to create spaceflight, of we've The pool

interested to And as in flying register we went news through the XXXX, us those encourage we potentially online. flow to with use

we media quarter, promote mission we those who register. steps featured new periodically taking the related content to update strengthen to registrants, social and including active first our the to in send an During exciting launching pipeline campaign continued communications project of

this registrant During roughly the X,XXX previously February increase grew XXXX, X,XXX XX, to our campaign XX, of XX%. reported from XXXX an April of numbers as as current

both signups around email, and executed launch been now helped which community. campaign Small to and applicants. representing our The million films, already signed future One sales up more and the Small We conversions astronauts another have drive are continuing campaign than and new date, drive media short spacefarer primarily the over stability we signed of XXX of One see XXX direct times. social Step stages who've X including This healthy strength rapidly spacefarer number pipeline to Step customers who all viewed and of for registrant customers in promotional growth approaching to pleased four up is our in by have

of we've downturns of our in economic business. and of the as limit customers our think no result strong the major here engagement result a on astronauts from increase the refund many relationships factor a our is of an We seen Importantly, financial strategy, COVID-XX. future impact meaningful as active profile requests helps that

and astronaut astronauts, has care operate communities fully function been In and normally which throughout our able of spacefarer office takes to crisis. this our future registrant addition,

I first detail now financial over Jon our to results. CFO, who call additional Campagna, like quarter will turn would some our the to about provide

Jon Campagna

George. Thanks

Slide strong which XX, cash our balance position March XX we settle on as quarter million reflects public are into a we and and at in company. as Looking cash a of quarter XXXX. as life sheet pleased our with XXX results, ended cash equivalent ongoing our first progress the with We're of

as Revenue full by loss was quarter XXX,XXX, the generated our million for public services. a which company. for Net we represents quarter quarter providing was XX the and engineering first

XX from XXXX. narrowed loss net quarter Our in of fourth million the

exclude costs associated Non-GAAP compensation S-X been preparation based the an stock related R&D with have filing in compensation. been and SG&A statement adjusted And expenses first have transaction registration non-GAAP exclude based expenses stock to adjusted to and of quarter. the

were were SG&A million. GAAP quarter XX quarter the expenses XX Non-GAAP GAAP the XX for for expenses million. expenses the quarter SG&A for R&D were million.

R&D expenses million. quarter were XX for non-GAAP the While

Adjusted quarter in based related of EBITDA adjusted transaction and registration XX associated the with filing includes and EBITDA, first S-X totaled in of stock XX to which negative XXXX. the costs of compared quarter is This million. fourth statement the negative compensation an preparation million

paid for to expenditures fourth the the X and quarter Spaceport in facility of in quarter we in to quarter million was Capital X commercial XXXX, vehicle million operation. prepare as in that investments expenditures primarily consisted capital costs XXXX. first America of for Cash continue compared tooling the first

trading warrants warrants trading so we publicly. the and redemption All public April completed that common cashless all now outstanding a we XX, on XXXX Lastly, units in ceased accordance warrant only shares on agreement. on have day, the with of basis public

I'd XX, more of these on our of items to drivers to the provide context numbers. behind to like some some take run the statement through on to time Turning Slide income line some

quarter providing in by government on minimal we one revenue under and expected, our revenue, engineering as related services contracts. driven First, the was of was

test for pandemic. primary program the our remainder of safety revenue on of the focus our to our of this, is of minimal Because forward Looking COVID-XX and XXXX, we the ensuring with workforce year. the given associated challenges rest flight executing the anticipate the

and vehicle feasibility. achieve continue to be technological Turning sit cost will within currently R&D a our until expensed to R&D, there as reminder, we

achieving passengers change, to have to flight capitalize our anticipate completed cabin. once feasibility, achieving we'll test we subject While space to At technological feasibility for the costs. in begin technological vehicle powered point the of we a

Social XXXX, quarter. expenses for Hedosophia of taken of in decrease to R&D connection with fourth a totaled a primarily quarter during as paid incentive in of that cash certain Our to the XX Capital reductions due as the the million plan XXXX close the million, well disbursement the was cost transaction quarter X compared with

Our the for in quarter quarter well the SG&A a cash with of XX million certain plan of paid the a taken during cost that decrease transaction fourth expenses reductions the disbursement connection of due as primarily XXXX, Capital compared in incentive and were close as million, expenses XX related the transaction to XXXX totaled Hedosophia Social with to quarter.

mentioned and measure As adjusted our of last use costs. our transaction stock EBITDA Adjusted I key performance. as compensation on based excludes we non-recurring call, EBITDA a

compared Our incurring by fourth stock our first the compensation to quarter last the for increased X those quarter to expenses. million based full period million represents and X of year,

recent the expenses including Adjusted in management's result light quarter pandemic, in with developments economic to as EBITDA actions bonuses. of reductions coronavirus in improved the a of associated reduce

Turning primarily slide and in looking previous and at transaction quarter XX statement. reduction million, costs and a The improvement totaled cash the management's a the in over spend. as reduce cash of cash actions an the decrease compared result equivalents quarter related to flow to XX, cash to

burn, our we quarter costs. XXXX ongoing of on are an cash represents incremental providing full approximate of believe with public the cash and a company quarter company not is guidance public related first as first Although indication the burn our specific we

costs. capital for the prior million quarter expenditures were X quarter vehicle investments attributed operational to readiness continuing America to million. primarily and in paid Cash Capital the Spaceport $X from for tooling expenditures by decreased

a current and and in climate, sheet, we or to our to steps executive additional given healthy are reducing and hiring reducing non-essential executive temporarily eliminating compensation continue preserve we director economic the including deferring bonuses engagement. taking maintain While balance liquidity contractor

the contractual on terms and in on of entered handful by shares Galactic within of we into shareholders touch statement Friday. rights Social obligation we Virgin a the our which filed done. with Under resale S-X like Finally, Holding a register Capital had merger, transaction, registration our connection the the quickly to the Hedosophia I SEC of would now of registration closing of agreement to the with have the six months we

final like turn I to back to would the remarks. some over for call now George

George Whitesides

Jon. Thanks

to to Q&A, for talk challenging would we our I beyond. like for and turn about priorities world. is unprecedented and Clearly, the companies and Before individuals time this QX an across

Our our on and test and number one of is The successful the preparing safety priority VSS able. for of we employees, in on our their respect. are milestone flight a Unity which as and communities Friday commercial families, the health in that as was program of focused soon our free operate. We completing we launch completion remain key first flight

As few over progress to weeks, safety successfully I protocols COVID-XX while during on past have to operating our the manufacturing continue tremendous processes earlier, the we and we made facility we pandemic. can work outlined continue ensure

impact base company fly the I their with will to quantify resilient, number which going how remained the put tremendously rapidly spacefarers forward. business. is to has the COVID-XX severity that space money thank challenging during our express with virtually continued fully and underscores us. has to us. community such of team and their This our that like well of past in too to for it as of in early remarkably And expanded an the who customer on unprecedented passion have crisis, encouraged will serve duration would desire face is to It entire have downturns, we customer have the dedication down our times. entire I'm our

speed ourselves the Mach what technologies, I'm about amazing. also I we high be partnership create NASA will will and with technologies. believe in around and leaders civil truly tremendously excited new are our together flight flight high NASA

team months, of is long our the in which Finally, we customer excited our to unveil the coming about announce commercial the cabin. of milestones, expect one awaited

calls. preparing Our sharing look commercial launch future focused you entire space. And to to team on more with access on for earnings forward remains and up opening fully we

to operator very over now hand I'll for Q&A. Thanks the much.


Credit Thank comes the Spingarn first Your of Suisse. line Instructions] you. [Operator with question Robert from

Your line open. is

Robert Spingarn

guys. afternoon, Good

George Whitesides

Robert. Hi,

Robert Spingarn

like you I'd the around timeline we can driven ramp COVID timeline, tell and whether us or situation unprecedented recognizing getting the are to obviously an with that the about but just into in cautioned George, in to it's commercial shift service? what start normal that,

George Whitesides

was ability think to Well, this under would COVID test Rob, The is that really operate eye a was what of start keeping close flight constraints deal off it on I get I health as the Friday. team last essentially big was a we with I that April. to something on because was heartening And off suggested will out safely fact we flight able and allow time to to that get our progressed through to we this that in were operational that able it me updated the that protocols missions. carry create team flight are operate to

I think the big question out? now is how does play that sort of

questions focused is on. of question are front. – an amount that what on really that there's the how But infinite that's think well, nationally I as we

we flight, overall this flight need during feeling and want before effectively of operations. all COVID I and sort bit, this goes basically, powered timeline. I is But safely big powered of test fact give can the of a able we the how do to flight to see think affect at I because projections sense next how flight were if for that we think fly constraints get I one step we good that We're to how program these do more the a need testing to then for get glide think, what was remainder into see goes. confidence that operate least at of a really that we pretty

Robert Spingarn

to have changes? you adjustment current flight – to state the regime, or you cause about Other stop restrictions you current further point? could under at wait to there for lock and Is down type a anything and that have some words, powered that ordered do and do

George Whitesides

well. answer the flawless. as Sands for no. relevant the New Mexico with really range interfaces and operational in really short Authority, Spaceport the Friday's the FAA, The We at question. as partnership well flight, It close White is, good Yeah, were control work worked other authorities, Albuquerque,

been team, government worked a those did make at our lot doing but did the all have when well different practice team, centers And a communication real, entities sure teams, very and for we the relevant We worked that other with to the it just and it of it great smoothly. job. not

our flights Rob to you under of conduct powered license. as know, license, As AST we're able that part

have we regulatory constraint that in So respect. no

communication late what demonstrated amount and and how in Federal government authorities, of flight authorities, have you figure have can an out is but proper between protocols I a April think work is right now expect government and FAA, continued – health to state we into what folks, that we high that local think did to I we March operational in the the we tremendous successfully. did environment COVID conduct us

know year, how go hopefully, we're long pandemic that recede the this that, operations in don't to course to we can does is over of continue through we've but the going I Now, have that environment. what proven

We follow in that restrict Now, impact. the various of to number all things. it's protocols perfect. obviously, on we're said health did people And and which not have other distancing of terms can an site various trying

to really coming want period we So, how forward of to as the the go quickly see monitor able of progress. things over time to kinds we're how those – are that I

out operator testing. done also in right think that I think I on been well, from and an manufacturer COVID the we've we've front fact industrial perspective

it's think lot. a helped I really

terms so excess provider work that environment. going I you they're have folks to good the a We of with masks when our When combine pretty obviously they to coming are when people which then they're and doing feeling that we're that can and quickly in important. and to that work, had work, confidence the increased come in begin facilities testing were really safe able actions else, things who other they is in to capacity back a everything early think identify all sanitary

So anyway, to that we I affect things we'll forward. need major we'll but don't as constraints, any will we and our operations think there be see go have those to how monitor, need things


of Jonas Instructions] Your question next [Operator with line the comes Stanley. from Adam Morgan

is line open. Your

Adam Jonas

as an the to company anyway Space release commercial everyone's the Thanks, Act next families. with spaceflight agreement, And to your thanks, Hope on Agreement we call. healthy or ramp community spending and Does the or of press both on you NASA. change and with said, the doing George see operator like In of area and that the the this growth. the either Question George, our continue and of run you'd today's well couple highlight? of R&D tremendous invest it rates in years, alongside over operations. we'll CapEx everybody

George Whitesides

immediate the in months. Not

progress and a areas, great on think question, does to to technology areas the will us areas key So that knows Mach this mean, I what you've make lead is key framework the that have for sort who vehicle. probably these thermal high of of two anybody technology high establishes interface Mach I and propulsion, research on we're issues long in seen quicker are as allow areas about to And the right. which going us are shared for focusing be releases vehicles,

getting they're Mach our really real And And also teams has spaceship. background advantage see that of interested the NASA our that heartening way been interacting think vehicles from data to of, really can in but well. tremendous high amount are so areas we is I like what's these take operating in that

some relationships built So And they've on technologies. we've the great internal Mach high quite some great centers. a at folks Langley working of other and now with got the up team

sure that lead on serve And the quickly to we're moving so longest as I way think technology make will this areas. a

way. of to things teams first we smart years, them. lead working Because really as we're is one ramp great learned to do over issues efforts our the that that the in have on the this sure about you coming months got focus make that you So a long on that and development area I've and able up in

others and Dr. to Aero forward. partnering the branch and at think Kenyon for grateful to going this go on some us with as together I great we're stuff So we're we create

Adam Jonas

one George. of very are, different and one putting my which investors, to your at Thanks, get sort of Origin, with And investors, down as up. about question space they few people Blue you're than prospective you've and road much competitors, follow least what's current I you to And the commercialization space common Blue you paths. discussions when And at highlighted again, And that? about? obviously just investors farther we but very is two different. how you, totally Kind some But very the you difference and explain some what between experience that folks your offer market are the significant customers the recognize tourism do cases, differences. ask in and time that is Jeff talking have perspective of

You're the Soyuz. now in you only unless town game want go to a on

you the to Thanks. highlight? to So time beyond anything want market

George Whitesides

as of seen that while big constrained market other a is are entities, – that on. the and been Yeah. of it's I different focus choice on you a I and enough we've And going a But big term both I supply think areas areas for funnel dependent the done market pursue the fundamentally come Sure. underscore believer or we've of always couple share architectures, be that really what know, two some for this is to that to is basis of sizing longer growth right. investment the teams What – customer have in working to like that market that.

around chosen have is NASA which a and spaceflight, our folks architecture evolution is think they future moon. we level as both have point-to-point chosen we to spaceship great is Friday, the that us Mach tested is, system winged got that really course, to conducive safety. into take air so, the from last by customer to on landing And The suited vehicle well have high great the good really very planetary to that is What they've XX,XXX at vehicles win that the a a up of of that Blue we an where feet, is interplanetary that which week evidenced primary perspective got area for our launch lander we market. near on the we The the enormous experience vehicle good, term gives fact suborbital system. great architecture a from lunar in and comfort exploration, this very

last Because nice feet really be also first the it'd XX,XXX a technologies feet see. landing. then and to that awesome was It and for altitude we're XX,XXX and the airplane using smooth, ride to up

our on runway know, Chief time first You New in land Mackay, Pilot spaceship Mexico. the the for the Dave

thousands our eventually that's safety we've cabin will simple hybrid fact be very and things. a has in think have the hundreds of motor winged of will of architecture astronauts around underscoring fly. rocket that we will got and a And, that confidence great a people future The be posture. ton windows and – like course, our that able float Just the great to we

ours pursue Blue XX like be to experiences, I going around be there's minutes there's a terrific the always, team say, your and they experiences and that we thing, both. well exploration a on about answer I very XX. going obviously, embark is how great on as Adam. think be Earth, as great it do there's on to planet of back point-to-point with stuff that we is question which lunar I as focus I'd will So wish But think exciting so sort And to that's


line Our next question Darryl Partners. comes with from Vertical of the Genovesi Research

line open. is Your

Darryl Genovesi

think. have so I of XXXX Thanks guess indications I everybody. interest, this time. the or Hi, you George, where for is

no? of for the of How it? said about the sense to? steps what small XXX QX? them these to are during deposit. us think they many of balance? of spoken How give have up Can How those compelled You've Are actually just thinking of sometime you have a call of people about give Or remain next a balance? get that we I'm you've many you said them people phone sort sort to a should

George Whitesides

great question. Yeah, a that's

fact XXX that with is their to getting we're another is I on sign now have great. Having is close The sort registration rapidly is deposits of news through names signed no is just me. so full already as it that folks said things that queue this growing the full The as that plus side to already people we've So working of quick actually XXX no. side X,XXX interest XXX past added headline one the – contracts, we the we to growing folks quickly. good mean, up I that encouraging think can. or the that of

building for I out because Step operations. few we're rapidly Small think do that folks the buy of our the are tickets folks And who first encouraging signing are and that's program the up our the customer years will of who

As you Many folks to conversion. is of have well, work, to team just to we them, and them. is them and commercial are converting these ahead of of doing lot say, of work out the reaching great us, which talking great a many inbound do

and big potential sort now. that of we'll that's So keep to that's what come. pool the course years working great And too. the over of a But we're year targets through doing of we have

Darryl Genovesi

Jon, begin I way out the commercial the chopped lot wood a commercial you just I know thinking general, of service in then to to any margin Jon. relative you're about this you in But difference and start ramp to once Cool one services laid for maybe mean, that the profile, financial do broadly targets of fall? get launched. have still we speaking, some

Jon Campagna

a lot gets it's mean, has spaceships continue – capacity of we've past. of essentially, those built margin I we a add Darryl, the that case We as operations that and our talked that – great costs been higher we have to as in Yeah, no. sort question. the always part about as of to that fixed numbers

to focus margins continue our the plan, definitely achieve it's anticipate. that test to on So higher to we execute spaceships build


Your comes question the from next of Robert with line Spingarn Credit Suisse.

open. is line Your

Robert Spingarn

up through did this those just into figure. on April? I took you've some those you the deposits and Small have wanted how already the I things in apiece, of how One three them. to and a questions trend is few ask about The follow of clarifying this and think across XXX April, I the talked – Step where you said how, $XXXX did QX

crisis the temporarily. how have changed as curious customer may interest Just

George Whitesides

at to see to exactly have look I Yeah, Rob. data maybe our

but I So not off the But sure if on QX. maybe saw we'll we wouldn't can. kind families head, we to see if going we care in much I into surprised know I'm QX. and sure and focused I'm attentions impact be try get are their that's that to not certainly of my some that people's on fine. top homes taking of their data of

number that head don't like see off top effect now. have but we the of some I may right And that, my so

Robert Spingarn

– there Okay, been kind the on some curious works agreed all of actual of and and before, that's you talked just an opportunity you spending together. little a I'm that upon agreement what how the bit on is what a about or who's then NASA revenue kind contract terms, but or

George Whitesides

in together Rob I publicly of think other of then initial resources. to at start. Act of some the the there's we're point months become and resources, government opportunities these public the a the potentially areas agreement Act Space This think accessible. coming where is over gets that terms those sort both a initial bringing of waiting out work the we'll their some It it our together little essentially period bring is I bit our Space Agreement before and future. we see exciting NASA on agencies. And bringing with technology and together years. They're resources, we And how phase play

Robert Spingarn

you're on and spacecraft. plan question wanted on would virus then understanding, and to Okay, on last but on time cost the whether the a second things imagine slowed on for spaceship, down see my was second or that I progress and the bit, not has your plan,

George Whitesides

our question. Yeah, Maybe We've crack at that he who's Enrico COO. can one. a here, take got good

Enrico Palermo

California. Maybe And protocols of Mojave, in summarized we've extends team George implemented really operation has manufacturing I'm new obviously before managed. our throughout how the our happy as here proud and to, that into operation

work Wheels, that we're progress. more But the of manufacturing. been progress business bolstered the can and early And that earlier, was in activities But we're roll Georgia good on safety on our since impact making then flight all made test by Mexico, of the the back forward George and as fabricating the to we're than we of the year. out. early Wheels the continue bolstered protocols said without spaceship. team severity the significant quantify looking includes achievement then of spaceship next too like New technicians bolstered at able length this and we've So the And the it's pandemics that fact briefed Weight by The assembly. moment on we've to to are XX% by Weight that


George call the back like Now, I'd to to remarks. turn closing Whitesides, now CEO some for

George Whitesides

appreciate dialing look progress next All call. quarters thanks, earnings And you well, Thanks during bye. support. right. stay the into everyone call. Bye, forward All We to interest webcasting everybody. we our Appreciate in your safe. right, updating on our and or and


today's call. concludes This conference

disconnect. now may You