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Astra Space, Inc. (ASTR)·Q4 2022 Earnings Summary

Executive Summary

  • Q4 2022 showed execution progress amid a revenue pause: GAAP gross profit was $0.0M and no GAAP revenue was recognized, while $5.4M of GAAP Other Income included $3.5M of Astra Spacecraft Engine deliveries; adjusted EBITDA loss improved to $36.6M from $41.4M in Q3, reflecting expense control .
  • Cash, cash equivalents and marketable securities fell to $102.8M from $150.5M in Q3 and $200.7M in Q2 as free cash outflow narrowed sequentially to $48.4M (vs. $50.7M in Q3, $54.7M in Q2) .
  • Operationally, Astra reported 278 cumulative committed Spacecraft Engine orders (~$77M contract value), delivered its third full engine program in Q4, and hit key Rocket 4 milestones including the first full flight-duration first-stage engine run; test flights anticipated later in 2023 (as of Mar 30, 2023) .
  • Q1 2023 outlook guides adjusted EBITDA loss to $37–$41M, capex $6–$8M, and 269–271M basic shares outstanding, emphasizing continued Launch System 2 development and Space Products scale-up .
  • Wall Street consensus (S&P Global) for Q4 2022 was unavailable for ASTR, so no beat/miss vs estimates assessment can be made (SPGI mapping error) [SpgiEstimatesError].

What Went Well and What Went Wrong

  • What Went Well

    • Space Products traction: 278 cumulative committed Astra Spacecraft Engine orders (~$77M contract value), with a majority expected to be delivered by end of 2024; third full program delivered in Q4. CEO: “gaining significant traction in our Space Products business” .
    • Expense discipline: Adjusted operating expenses decreased from $44.1M in Q3 to $40.2M in Q4; adjusted EBITDA loss improved QoQ to $36.6M from $41.4M .
    • Rocket 4/Launch System 2 progress: first full flight duration run of first-stage engine, upper-stage engine qualification, and production line progress; test flights anticipated later in 2023 (as of Mar 30, 2023) .

  • What Went Wrong

    • Revenue recognition pause: No GAAP revenue recognized in Q4; customer delivery value recognized in “Other Income” ($5.4M total, including $3.5M of Spacecraft Engine deliveries) .
    • Cash burn and liquidity: Cash, equivalents and marketable securities declined to $102.8M; free cash flow negative $48.4M; company highlighted going-concern risks among cautionary statements .
    • Impairment and special items through the year reflect business reset away from Launch System 1; while not all in Q4, the year included significant write-downs and impairment (context for investor risk) .

Financial Results

MetricQ2 2022Q3 2022Q4 2022
Revenue ($USD Millions)$2.682 $2.777 (Space Products) — (GAAP revenue not recognized; $3.5M delivery recognized in Other Income)
GAAP Gross Profit (Loss) ($M)$(14.763) $1.706 $0.0
GAAP Net Loss ($M)$(82.303) $(199.114) $(44.308)
Adjusted Net Loss ($M)$(53.0) $(45.203) $(37.286)
Adjusted EBITDA ($M)$(48.402) $(41.403) $(36.618)
GAAP EPS (Loss per share, diluted)$(0.31) $(0.75) $(0.17)
Free Cash Flow ($M)$(54.710) $(50.732) $(48.403)
Capital Expenditures ($M)$12.9 $5.5 $7.6
Cash, Cash Equivalents & Marketable Securities ($M)$200.7 $150.5 $102.8
Adjusted Operating Expenses ($M)$48.4 (non-GAAP OpEx) $44.1 $40.2

Notes: Q4 2022 customer delivery value was recognized in “Other Income” ($5.4M total, including $3.5M of Spacecraft Engine deliveries); no GAAP revenue recognized in the quarter .

KPI and Segment Context

KPIQ2 2022Q3 2022Q4 2022
Astra Spacecraft Engine cumulative committed orders (units)103 237 278
Contract Value (approx.)——~$77M
Programs Delivered (quarter)Commenced customer deliveries Two full programs delivered (cumulative) Third full program delivered in Q4
Rocket 4 milestonesTransition to Launch System 2.0; 600kg target payload Completed first design loop; test infrastructure provisioned First full flight duration run of first-stage engine; test flights anticipated in 2023

Guidance Changes

MetricPeriodPrevious GuidanceCurrent/ActualChange
Adjusted EBITDA Loss ($M)Q4 2022$(42) to $(45) (guided on Nov 8) $(36.6) actual Raised vs guidance (less negative than guided)
Capital Additions/Capex ($M)Q4 2022$5 to $7 $7.6 Slightly above range
Basic Shares Outstanding (M)Q4 2022268–270 Weighted avg: Class A 212.7, Class B 55.5 (total ~268.3) In line
Adjusted EBITDA Loss ($M)Q1 2023—$(37) to $(41) New
Capital Expenditures ($M)Q1 2023—$6 to $8 New
Basic Shares Outstanding (M)Q1 2023—269–271 New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2022)Previous Mentions (Q3 2022)Current Period (Q4 2022)Trend
Launch System 2 / Rocket 4Transition to Launch System 2.0; 600kg target; focus investments Completed first design loop; upgraded test stands and tooling First full flight-duration run of first-stage engine; production line progress; test flights anticipated later in 2023 Improving execution milestones
Space Products (Astra Spacecraft Engine)103 committed orders; began deliveries; production facility investment 237 committed orders; two full programs delivered; 60k sq ft facility near completion 278 orders (~$77M); third program delivered; production ramp beginning Q2 2023 Strong order momentum; scaling production
Expense DisciplineConcentrate spend on Launch System 2.0 and Engines; CEF for flexibility ~16% headcount reduction to lower OpEx starting Q1 2023 Adjusted OpEx down to $40.2M; improved adj. EBITDA QoQ OpEx down, EBITDA trend improving
Liquidity/Cash BurnCash & investments $200.7M $150.5M; FCF $(50.7)M $102.8M; FCF $(48.4)M; going-concern cautionary language emphasized Cash trending down; burn improving slightly
Customer Delivery RecognitionRevenue $2.7M (Q2) Revenue $2.8M (Q3) Engine delivery value recognized in Other Income ($3.5M); no GAAP revenue Accounting presentation shift

Management Commentary

  • CEO strategic focus: “Our team has been intensely focused on execution… significant traction in our Space Products business… first full flight duration run of our first stage engine and substantial progress toward completion of the Rocket 4 production line.”
  • Space Products scaling: “We… enable production of the Astra Spacecraft Engine at scale… dedicated production facility… support up to 500 units per year, with our production ramp beginning in Q2 2023.”
  • CFO on OpEx discipline: “Adjusted Operating Expenses decreased from $44.1 million in Q3 2022 to $40.2 million in Q4 2022.”

Q&A Highlights

  • Operational progress and backlog: Management reiterated 278 cumulative engine orders (~$77M contract value) and noted typical delivery cycles are approximately one year from contract signing, varying by customer .
  • Cost actions and one-time items: CFO discussed ~$5.3M of Q4 one-time adjustments (including ~$3.8M severance) and called out the QoQ improvement in adjusted EBITDA (Q4: $(36.6)M vs Q3: $(41.4)M) .
  • Guidance clarifications: Q1 2023 guide framed by continued investment in Launch System 2 and scaling Space Products; adjusted EBITDA loss $(37)–$(41)M and capex $6–$8M .
  • Rocket 4 timeline: Management highlighted the first full flight-duration first-stage engine run and anticipated test flights later in 2023 (as of Mar 30, 2023), positioning for subsequent commercialization steps .

Estimates Context

  • S&P Global consensus estimates for Q4 2022 were unavailable for ASTR (tool returned missing CIQ mapping), so we cannot determine beat/miss vs consensus for revenue or EPS (or present estimate counts). As a result, sell-side comparison is not provided [SpgiEstimatesError].

Key Takeaways for Investors

  • Expense execution is visible: adjusted OpEx down to $40.2M and adj. EBITDA loss improved to $(36.6)M, a positive signal for cash burn trajectory near term .
  • Liquidity remains the critical watch item: $102.8M in cash and marketable securities with FCF of $(48.4)M in Q4 — runway requires continued OpEx control and ramp of engine deliveries .
  • Space Products is the near-term growth engine: 278 engine orders (~$77M) and third program delivered in Q4 underpin 2023–2024 delivery visibility; monitor conversion and production ramp in Q2 onward .
  • Launch System 2/Rocket 4 progress de-risks the medium-term launch thesis: first-stage engine full-duration run and expected test flights are near-term catalysts; subsequent reliability proof will be key to customer uptake .
  • Accounting/recognition nuance matters for prints: with engine delivery value recognized in Other Income (not revenue) in Q4, headline revenue can understate operational progress; investors should track deliveries and cash conversion alongside GAAP .
  • Guidance pace implies sustained investment: Q1 2023 adjusted EBITDA loss $(37)–$(41)M and capex $6–$8M signal continued development spend before revenue normalization .
  • Stock catalysts: concrete Rocket 4 test-flight milestones and evidence of Spacecraft Engine production ramp/deliveries are likely the primary near-term share price drivers .

Supporting detail and cross-references:

  • Q4 2022 8-K press release incl. exhibits (financial highlights, reconciliations, investor update slides) .
  • Q3 2022 8-K press release (context and guidance for Q4 2022) .
  • Q2 2022 8-K press release (transition to Launch System 2.0 and baseline KPI/financials) .
  • Q4 2022 earnings call transcript (external): InsiderMonkey and GuruFocus links for Q&A themes and management commentary .