Virgin Galactic Holdings, Inc.

Good afternoon. My name is Sarah and I'll be your conference operator today. At this time, I would like to welcome everyone to Virgin Galactic's second quarter 2024 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, simply press star one again. I will now turn the call over to Eric Cerny, Vice President of Investor Relations.

Thank you. Good afternoon, everyone. Welcome to Virgin Galactic's second quarter 2024 earnings conference call. On the call with me today are Michael Colglazier, Chief Executive Officer, and Doug Ahrens, Chief Financial Officer. Following our prepared remarks, we will open the call for questions. Our press release and slide presentation that will accompany today's remarks are available on our Investor Relations websites. Please see slide two of the presentation for our Safe Harbor Disclaimer. During today's call, we may make certain forward-looking statements. These statements are based on current expectations and assumptions and, as a result, are subject to risk and uncertainties. Many factors could cause actual events to differ materially from the forward-looking statements made on this call. For more information about these risks and uncertainties, please refer to the risk factors in the company's SEC filings made from time to time. You are cautioned not to put undue reliance on forward-looking statements, and the company specifically disclaims any obligation to update the forward-looking statements that may be discussed during this call, whether as a result of new information, future events, or otherwise. Please also note that we will refer to certain non-GAAP financial metrics on today's call. Please refer to our earnings release for a reconciliation of these non-GAAP financial metrics. With that, I'd like to turn the call over to Michael.

Thanks, Eric. Let's go to slide three. Since our Q1 earnings call in May, we've made strong advancements on the development of our Delta-class spaceships. We will have substantially wrapped up the multi-year design phase of these high-performance ships in Q3 as we pivot the organization's focus to the build and test phases. Designing step function leaks and performance and reliability into these production model ships has required a huge effort by our engineering team. I'm really proud of their work and their progress which is hard to showcase as design progress mostly takes place within software systems and analytic models. To spotlight the magnitude of their endeavor, we released a video this morning that provides an overview of the Delta spaceship design and the performance characteristics that have been planned for these ships. Watch it. It's great, and it gives you a clear view of the future of private space travel. During the second quarter, we've continued to manage the company with tenacious fiscal discipline. We've maintained strength in our balance sheet to provide the resources needed to execute our strategic plan, and we remain on track to launch commercial operations with our first Delta spaceships in 2026 as planned. We closed the second quarter with an incredible spaceflight, Galactic 7, marking the completion of Virgin Spaceship Unity's operational phase and the brilliant conclusion of a nearly decade-long development and testing program. The many space missions flown by this pathfinding ship built incredible knowledge and expertise for the company. I'd like to start the call by focusing on two core assets that we are now leveraging for competitive advantage and growth. First, we've created a customer experience beyond compare. The value perceived by our customers remained off the charts at price points spanning from around half a million to around a million dollars. Second, we've developed a spaceflight system and technology that will revolutionize the operating model and economics of human spaceflight. While the turnaround time between flights of traditional space vehicles has historically been measured in months, Virgin Galactic now has the experience and data needed to target spaceship turn times that are measured in days, which throws open the door to profitable growth and scale. Outstanding product quality that commands a premium price is a huge competitive advantage for any company. We have it, and it will drive the top line of our company's growth. With unprecedented turn times and reusability metrics, Our Delta ships are planned to disrupt the historic cost structure of human spaceflight and deliver strong profit margins. World-class product quality paired with an industry-leading cost structure is a massive advantage. When combined with the production capability we are currently creating with our Delta-class spaceship program, these assets form the basis of a powerful business model and growth engine for Virgin Galactic. There are lots of opinions about Virgin Galactic's business model shared on various social channels and platforms. We find many of those opinions are missing key pieces of information. To improve the quality of information that's readily available to our large retail investor base, we released a video overview of Virgin Galactic's business model today, which can be found on our investor relations website and various social channels and platforms. It's incredibly important to have our investors tracking with our business strategy and our progress in executing the plan. So today, I've asked our CFO, Doug Ahrens, to share a deep look into our business model, including expectations around variable cost and the degree of fixed cost leverage we expect to see as we grow the size of our fleet. I'll come back on the line to discuss progress being made on our production model spaceships, And I'll talk about the shift in focus that will be occurring in the next month as we wrap up our multi-year design phase and pivot our attention more fully to the build and test phases of the Delta program. Doug will return to discuss financial results for the quarter. We will then open the call for Q&A. Doug, over to you.