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Quarterly Report - May 16, 2022
Q1 Revenue: $40.7M (+124% YoY), gross margin 9.2% (+1.4pp YoY)
Financial Metrics
Brief
Rocket Lab reported Q1 revenue of $40.7M, up 124% YoY, driven by Space Systems growth and acquisitions including SolAero. Gross margin improved to 9.2% from 7.8%, reflecting scale efficiencies. Operating loss widened to $32.8M amid R&D and SG&A investments; no guidance changes noted.
Detailed Brief
Financial performance showed revenue of $40.7M (+124% YoY), with Launch Services at $6.6M (-60% YoY due to lower cadence) and Space Systems at $34.1M (+1,873% YoY from acquisitions and organics). Gross profit rose to $3.7M (9.2% margin, +1.4pp YoY), but operating loss expanded to $32.8M (-81% margin) from $12.3M, driven by $13.5M R&D (+90% YoY) and $23.1M SG&A (+248% YoY, public co costs, stock comp). Net loss $26.7M after $13.5M warrant gain. Cash position $603.1M (down QoQ from $691M), op cash flow -$26.3M, backlog $545.9M (41% next 12mo).
Operationally, one Electron launch in Q1 (revenue value/launch $6.3M, cost $7.5M). Backlog grew to $545.9M via contracts; acquisitions (SolAero Jan'22 adding solar tech, prior ASI/PSC) boosted Space Systems revenue $20M+ pro forma. Neutron production complex groundbreaking; 21st Electron launch cumulative. Warrant redemptions completed, delisted.
Key Telemetry
- • Revenue: $40.7M (+124% YoY) driven by Space Systems $34.1M and acquisitions
- • Gross Margin: 9.2% (+1.4pp YoY) from efficiencies despite stock comp
- • Backlog: $545.9M (+41% expected next 12mo) supporting visibility
- • Cash Position: $603.1M; Op Cash Flow: -$26.3M (-70% YoY burn)
Impact Vector
Strong revenue growth and backlog signal sustainable expansion in Space Systems via tuck-in acquisitions, positioning RKLB competitively in components/spacecraft vs. peers. Path to profitability hinges on Neutron scaling (production started), Electron cadence (target 12-15 builds '22), and margin leverage from volume; current high cash burn ($26M op CF/quarter) supported by $603M runway (>18mo at current), but dilution risks from equity comp. Near-term catalysts: launches, Neutron progress; risks: launch delays, integration, COVID/supply chain.