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Quarterly Report - August 8, 2023
Q2 Revenue: $62M (+12% YoY), gross margin 24%
Financial Metrics
Brief
Q2 revenue rose 12% YoY to $62M, driven by higher revenue per launch and Space Systems growth. Gross margin improved to 23.5% from 8.9%, aided by Launch Services provision release. Operating loss widened to $45M due to higher R&D and SG&A.
Detailed Brief
Financial performance showed Q2 revenue of $62.0M (+12% YoY), with Launch Services at $22.5M (+18%) from higher pricing on 3 launches, and Space Systems $39.6M (+9%). Gross profit $14.6M (23.5% margin, up from 8.9%), boosted by $4.1M Launch provision release; cost of revenues fell 6% to $47.5M. Op expenses rose to $59.8M (R&D +62% to $31M on Neutron; SG&A +52% to $28.7M). Net loss $45.9M. Cash & equiv $197M, total liquidity ~$415M; H1 op cash flow -$31M; debt $104M (D/E 0.17). Operational drivers: 6 Electron launches H1 (vs 4 YoY); backlog $534M (+6% QoQ, 57% in 12mo); customer financing $7M; Virgin Orbit asset buy for Neutron/Space Systems.
Key Telemetry
- • Revenue: $62M (+12% YoY, +13% QoQ) from 3 launches, Space Systems
- • Gross Margin: 23.5% (+14.6pp YoY) via provision release, efficiency
- • Backlog: $534M (+6% from YE2022) with $162M Launch, $372M Space Systems
- • Operating Loss: -$45M (-73% margin) on Neutron R&D, hiring
- • Cash Flow: H1 OCF -$31M (improved YoY); liquidity $415M
Risk Signals
Impact Vector
Investors see revenue growth and margin gains signaling path to profitability via scale, but high R&D (~50% rev) delays breakeven amid Neutron investment. $534M backlog ensures growth sustainability; Electron cadence strengthens smallsat positioning vs rivals. Risks: execution delays, cash burn (~$50M/qtr); catalysts: Neutron progress, HASTE wins, Space Systems contracts. SolAero control issues flagged but remediating.