NSR in the News

SpaceNews: Satellite veterans warn of space SPAC downside

NSR Research Director Claude Rousseau comments in SpaceNews article on potential space SPAC downside. Rousseau 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,” Rousseau wrote.

“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.”