SpaceNews: Satellite veterans warn of space SPAC downside
NSR outlined how Iridium’s recurring revenue, and corresponding valuation, put it in a very different position from today’s SPACs in a forthcoming SpaceNews commentary.
“The recent spree of space SPACs are marked by unrealistic projections,”.
“Not counting Iridium, the average space SPAC has a $1.8 billion enterprise valuation built on assumptions it can grow [an average of] $29 million in revenue to $3.85 billion within five years.
“Virgin Galactic’s market capitalization as of early March was $8.7 billion. Compared to the Iridium situation, the average enterprise value of current space SPACs is three times higher, the market cap is 1.6 times higher, and revenues are 10 times lower.”