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Astra Space, Inc. (ASTR)·Q1 2023 Earnings Summary

Executive Summary

  • Q1 2023 revenue was $0.0 and GAAP net loss was $44.9M with loss per share of $(0.17); GAAP gross profit was $0.0 as Launch Services and Space Products recognized no revenue in the quarter .
  • Management highlighted progress on Launch System 2/Rocket 4, a new $11.45M U.S. Space Force launch contract, commencement of operations at the dedicated Spacecraft Engine production facility, and reduced quarterly cash burn by approximately $8M versus prior levels .
  • Q2 2023 guidance implies improved operating loss (adjusted EBITDA loss of $31–$35M), lower capex ($3–$5M), and end-quarter cash of $30–$33M, signaling tighter spend but a shrinking cash balance from $62.7M at Q1-end .
  • Wall Street consensus estimates via S&P Global were unavailable for ASTR in Q1 2023, limiting beat/miss analysis; use actuals and guidance trajectory as the near-term stock narrative catalysts .

What Went Well and What Went Wrong

What Went Well

  • Secured an $11.45M U.S. Space Force Rocket 4 launch award, validating demand for the next-gen system and providing near-term revenue visibility .
  • Space Products execution improved: eight Astra Spacecraft Engines delivered in Q4 operated nominally in space during Q1; operations commenced at the new 60,000 sq. ft. Spacecraft Engine production facility in late March .
  • Management reduced quarterly cash burn by approximately $8M in Q1 and targeted an additional $7–$10M reduction in Q2, reflecting disciplined expense control; “thoughtfully evaluating financing opportunities to further extend our financial runway,” per CFO Axel Martinez .

What Went Wrong

  • No recognized revenue in Q1 (Launch Services $0; Space Products $0), driving GAAP gross profit of $0.0 and relying on other income/interest to partially offset operating losses; GAAP net loss remained large at $44.9M .
  • Cash and marketable securities fell to $62.7M from $102.8M in Q4 2022 and $150.5M in Q3 2022, while free cash flow remained significantly negative, underscoring funding runway constraints .
  • Adjusted EBITDA loss worsened sequentially to $(42.3)M from $(36.6)M in Q4, reflecting continued R&D and operating costs ahead of Rocket 4 flight and Space Products scaling .

Financial Results

Core P&L vs Prior Periods and Estimates

MetricQ3 2022Q4 2022Q1 2023Q1 2023 Consensus (S&P Global)
Revenue ($USD Millions)$2.777 $0.0 $0.0 N/A (Unavailable)
GAAP Net Loss ($USD Millions)$(199.114) $(44.308) $(44.893) N/A (Unavailable)
Diluted EPS ($USD)$(0.75) $(0.17) $(0.17) N/A (Unavailable)
Gross Profit ($USD Millions)$1.706 $0.0 $0.0 N/A (Unavailable)
Adjusted EBITDA ($USD Millions)$(41.403) $(36.618) $(42.315) N/A (Unavailable)

Note: S&P Global consensus data for ASTR was unavailable for Q1 2023, so beat/miss vs estimates cannot be assessed .

Segment Revenue Breakdown

Segment Revenue ($USD Millions)Q3 2022Q4 2022Q1 2023
Launch Services$0.0 $0.0 $0.0
Space Products$2.777 $0.0 $0.0
Total Revenue$2.777 $0.0 $0.0

Key Operating and Liquidity KPIs

KPIQ3 2022Q4 2022Q1 2023
Cash, Cash Equivalents & Marketable Securities ($USD Millions)$150.5 $102.8 $62.7
Capital Expenditures ($USD Millions)$7.979 $7.580 $5.031
Free Cash Flow (Non-GAAP) ($USD Millions)$(50.732) $(48.403) $(41.030)
Adjusted Net Loss ($USD Millions)$(45.203) $(37.286) $(42.330)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Adjusted EBITDA Loss ($USD Millions)Q1 2023$(37) to $(41) Actual: $(42.315) Missed guidance (more loss)
Basic Shares Outstanding (Millions)Q1 2023269 to 271 Actual weighted avg Class A: 214.707; Class B: 55.539 Variance vs guidance (share count mechanics)
Capital Expenditures ($USD Millions)Q1 2023$6 to $8 Actual: $5.031 Lower than guided
Adjusted EBITDA Loss ($USD Millions)Q2 2023N/A$(31) to $(35) Initiated; improvement vs Q1 actual
Basic Shares Outstanding (Millions)Q2 2023N/A271 to 273 Initiated
Capital Expenditures ($USD Millions)Q2 2023N/A$3 to $5 Initiated; lower capex run-rate
Cash, Cash Equivalents & Marketable Securities ($USD Millions)Q2 2023N/A$30 to $33 Initiated; implies further cash drawdown

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2022 and Q3 2022)Current Period (Q1 2023)Trend
Launch System 2 / Rocket 4 developmentTransition from Rocket 3.3 to Launch System 2.0; payload capacity target raised to 600kg; base bulk launch price under $5M; $100M committed equity facility . In Q3, completed first design loop and infrastructure upgrades .Progress milestones: Rocket 4 production line unveiled, fit check, upper stage engine qualification, first stage TVC campaign; USSF $11.45M Rocket 4 launch order .Advancing toward test flights; external validation via USSF contract .
Space Products scalingCommenced customer deliveries; production facility investment; 103 committed orders through Q2 2022 . In Q3, 237 committed orders and positive GAAP gross profit on deliveries .8 engines delivered in Q4 operated nominally in Q1; operations commenced at dedicated 60,000 sq. ft. production facility; Apex contract for 5 Propulsion Kits .Scaling manufacturing; building flight heritage and customer pipeline .
Cash burn and financing$100M committed equity facility referenced; focus on concentration of investments . Headcount rationalization and OpEx control in Q3 .Q1 quarterly cash burn reduced by ~$8M; plan for additional $7–$10M reduction in Q2; evaluating financing to extend runway; Q2 cash guide $30–$33M .Improving operating cash outflows but runway remains tight .
Regulatory/going concernMacro headwinds and resource dedication to development discussed .Guidance and forward-looking statements explicitly reference risks including ability to continue as a going concern .Persistent risk disclosure; focus on liquidity management .
Call participation and focus areasN/ACEO/CFO discussed Q1 results; analysts (e.g., Deutsche Bank, Bank of America) asked on Rocket 4 timeline, Spacecraft Engine scaling, financing runway .Continued emphasis on execution milestones and capital needs .

Management Commentary

  • “We have made significant progress in the development of Launch System 2 and look forward to our first flight of Rocket 4... we unveiled our new Rocket 4 production line and a Rocket 4 fit check,” said Founder/CEO Chris Kemp .
  • “We also commenced operations from our dedicated Astra Spacecraft Engine production facility in late March 2023… achieved significant milestones on our customer programs,” Chris Kemp .
  • “We have reduced quarterly cash burn by approximately $8 million in Q1 2023 and expect to reduce quarterly cash burn by an additional $7 to $10 million in Q2 2023… thoughtfully evaluating financing opportunities to further extend our financial runway,” CFO Axel Martinez .

Q&A Highlights

  • Analyst questions focused on timing for Rocket 4’s first flight (fit check, qualification complete; USSF contract supports near-term planning), manufacturing scale-up and delivery cadence for Spacecraft Engines/Propulsion Kits, and liquidity runway/financing paths, with management reiterating cash burn reductions and evaluation of financing options .
  • Clarifications on Q2 guidance: adjusted EBITDA loss targeted at $(31)–$(35)M, capex moderated to $3–$5M, and cash of $30–$33M, underscoring tighter spend while continuing investments in Launch System 2 and Space Products .
  • Tone: Execution-focused with cautious liquidity commentary; management highlighted milestone progress but acknowledged going concern risk factors in forward-looking statements .

Estimates Context

  • S&P Global consensus EPS and revenue estimates for ASTR in Q1 2023 were unavailable, so a beat/miss assessment vs Street consensus cannot be provided; future periods should be benchmarked once SPGI mapping is restored .
  • In absence of consensus, focus on sequential trajectory: no recognized revenue in Q1, but Q2 guidance reflects improved adjusted EBITDA loss and lower capex, suggesting operating discipline while awaiting revenue from Space Products deliveries and Launch Services milestones .

Key Takeaways for Investors

  • Execution milestones plus the $11.45M USSF Rocket 4 award bolster validation of Launch System 2 and may catalyze sentiment if timelines hold; watch for first-flight scheduling and additional government/commercial wins .
  • Space Products is scaling (facility online; engines demonstrating heritage), but converting orders to recognized revenue and gross margin remains critical; track quarterly deliveries and revenue recognition mechanics .
  • Liquidity runway is the gating factor: cash fell to $62.7M in Q1 with Q2 guide of $30–$33M; financing actions are likely and are a key stock driver alongside cost reductions .
  • Near-term numbers emphasize operating losses (Q1 adjusted EBITDA $(42.3)M) but Q2 guidance implies improvement; trade around update cadence on burn rate and funding .
  • With Street consensus unavailable, anchor on company guidance and milestones; incremental proof points (Rocket 4 test/flight progress, Space Products deliveries) are potential positive inflections .
  • Risk disclosure explicitly highlights going concern concerns; position sizing should reflect funding risk until revenue traction or financing clarity emerges .

Sources

  • Q1 2023 8-K 2.02 and Exhibits: results, guidance, non-GAAP reconciliations, and investor presentation .
  • Prior quarters for trend analysis: Q4 2022 8-K 2.02 ; Q3 2022 8-K 2.02 .
  • Q1 2023 earnings call transcript (external): Seeking Alpha and GuruFocus .
  • Event scheduling press release: BusinessWire (Q1 reporting timing) .