Thread by @trengriffin

1/ What are the unit economics of a NASA private astronaut mission?

ARPU = $ ?
CAC = ~$0
Gross Margin = ?

Is this a financially attractive business?

See: papers.ssrn.com/sol3/papers.cf…

https://twitter.com/thesheetztweetz/status/1390857104685256706

2/ What are the likely unit economics for NASA's space tourism competitors?

"Bezos has said Blue Origin will price New Shepard flights similarly to its competitors. Virgin Galactic’s flight is priced at $250,000 per seat." observer.com/2021/04/jeff-b…

3/ "If you get even one person who's hell-bent on gaining market share.... For example, if I were [one space tourism provider] and I decided that I had to have 60% of the market, I think I could take most of the profit out of [the business]." theinvestmentsblog.blogspot.com/2014/09/munger…

4/ Virgin Galactic forecasts by 2023 it will ferry ~1,500 passengers a year on flights offering a few minutes of weightlessness. At ~ $350,000 a ticket, that’s just under $600M in revenue. It projects EBITDA margins of 46%, for a 2023 EBITDA of $274M."
google.com/amp/s/mobile.r…

5/ When you read about "EBITDA margins," do you think about how much DA there is and how that might impact cash returns to shareholders?

If DA isn't a real expense, what exactly is it?

H/t Mauboussin for the table below

6/ How much does an intangible like software being expensed rather than capitalized like the hardware it runs on impact DA?

acquirersmultiple.com/2020/11/maubou…