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Quarterly Report - May 6, 2024
Q1 Revenue: $92.8M (+69% YoY), gross margin 26% (+14pp YoY)
Financial Metrics
Brief
Rocket Lab reported Q1 revenue of $92.8M, up 69% YoY driven by Space Systems (+70%) and Launch Services (+67%) with 4 Electron launches vs 3. Gross margin expanded to 26% from 12%, reflecting improved production efficiency. Operating loss narrowed to $43.1M from $46.0M; no guidance changes disclosed.
Detailed Brief
Financial performance showed revenue of $92.8M (+69% YoY), with gross profit $24.2M (26% margin vs 12% YoY) due to higher volumes and cost efficiencies. Launch Services revenue $32.7M, Space Systems $60.0M. Operating expenses rose to $67.3M (+28% YoY) from Neutron R&D. Net loss $44.3M, improved from $45.6M. Cash position strengthened to $561M (cash+marketables) post $355M convertible notes issuance, offset by $43M debt repayment and $43M capped calls. Operating cash flow -$2.6M (vs -$25.4M), capex $19.2M.
Operations: 4 Electron launches (built 3 vehicles), backlog $1.0B (down slightly QoQ). Space Systems drove growth via spacecraft manufacturing/components. Neutron first flight mid-2025. Customer concentration: MDA 25% revenue, Lockheed/Northrop AR.
Key Telemetry
- • Revenue: $92.8M (+69% YoY), Launch $32.7M (+67%), Space Systems $60.0M (+70%)
- • Gross Margin: 26.0% (+14.4pp YoY) from higher cadence, efficiencies
- • Backlog: $1.015B (42% in 12mo), down from $1.046B QoQ
- • Cash+Marketables: $561M (up 73% QoQ) post $355M notes
- • Operating Cash Flow: -$2.6M (improved 90% YoY)
Impact Vector
Investors see sustained growth trajectory with revenue/margin gains signaling scale; Space Systems diversification reduces launch dependency. $561M liquidity funds Neutron (mid-2025 flight risk) toward profitability via reusability/high cadence. Competitive edge in small/medium launches, components; backlog supports visibility. Risks: R&D burn, execution delays, debt service. Positive catalysts: launch cadence ramp, Neutron progress.