The launch of Virgin Orbit, which took off in a big way from Cornwall, England on Monday, fell through, with the company saying an “anomaly” had occurred that prevented the rocket from reaching orbit.
The “Start Me Up” mission got a lot of attention. This is not only his sixth launch for the company, but also the first-ever spaceflight from the UK and billed as his first orbital launch attempt from Cornwall, a new spaceport in south-east England. rice field. (Other UK-based rocket companies, such as Orbex and Skyrora, are racing to be the first to launch vertical rockets from British soil.)
But an anomaly could prove to be a very costly mistake for the company, which has been on a precarious financial footing since going public in 2021. End of 2021. Virgin Orbit said he only got $228 million in total revenue from the merger, well below the $483 million the company projected would make from the deal.
This shortfall was followed by a decrease in cash reserves. As of Sept. 30, he had $71 million in cash on hand, according to the company’s latest quarterly earnings report. The company then received his $25 million investment from Richard Branson’s Virgin Group and his $20 million investment from Virgin Investments Ltd.
The company’s previous financial projections have also raised eyebrows. It’s not uncommon for earnings calls to contain fanciful forecasts, but some of the forecasts released by Virgin Orbit have allowed even the most ambitious imaginations to run wild. In 2021, the company estimates he will reach $2.1 billion in revenue by 2026. Considering the average cost of each LauncherOne is about $12 million, the vehicle would need to be flown 175 times a year. Remember, SpaceX, the world’s leading launch provider, achieved his record 61 annual launches last year. Virgin Orbit essentially said it would be three times as successful as SpaceX in just five years.
This is not to say that Virgin Orbit is not successful. In fact, four of his six launch attempts so far have been successful. It’s not a mocking speed. But as it’s becoming clear, at some point, all launches have to start making money. Otherwise, it’s just burning cash, and there’s not much to show for it.
