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Quarterly Report - November 15, 2021
Q3 Revenue: $5.3M (-50% YoY), gross margin -235% amid COVID delays, merger costs.
Financial Metrics
Brief
Q3 revenue fell 50% YoY to $5.3M due to lower launch cadence from COVID impacts, partially offset by Space Systems growth. Gross loss widened to $12.5M (-235% margin) from stock comp and low utilization. 9M revenue rose 79% YoY to $34.8M; backlog $183M. No guidance changes.
Detailed Brief
Financials: Q3 revenue $5.3M (-50% YoY) with Launch Services down 88% to $1.1M due to COVID delays, Space Systems up 360% to $4.2M. Gross loss $12.5M (-235% margin vs -18% YoY) from $7.6M stock comp post-merger and underabsorption. Op loss $52.3M (-989% margin) driven by $21.8M stock comp, $34M warrant FV loss. Cash $793M post $730M merger/PIPE; 9M op cash burn $50M. Balance sheet strong: equity $674M. Operations: 4 Electron launches YTD (1 in Q3), backlog $183M (52% in 12M). Neutron dev ongoing; Sinclair integration boosting components.
Key Telemetry
- • Revenue: Q3 $5.3M (-50% YoY), 9M $34.8M (+79% YoY) from higher launch pricing, Space Systems growth
- • Gross Margin: Q3 -235% (vs -18% YoY) due to stock comp, COVID utilization; 9M -25%
- • Net Loss: Q3 $88M (-1,664% margin) incl. $34M warrant loss, $22M stock comp; 9M $120.5M
- • Cash: $793M (+1,400% YoY) post-merger; backlog $183M (+123% YoY)
- • Cash Burn: 9M op CF -$50M (-133% YoY), FCF ~-$61M
Risk Signals
Impact Vector
Strong $793M cash post-SPAC supports Neutron dev, acquisitions (ASI, PSC), runway >12 months despite -$50M 9M burn. $183M backlog signals growth sustainability in launches/spacecraft, but COVID delays hurt cadence/margins. Path to profitability hinges on scaling production, Neutron 2024 debut; competitive edge in small/med launches. Risks: warrant volatility, material weaknesses in controls.