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Quarterly Report - November 12, 2024
Q3 Revenue: $104.8M (+55% YoY), gross margin 26.7% (+4.6pp YoY)
Financial Metrics
Brief
Q3 revenue reached $104.8M, up 55% YoY, driven by Space Systems growth to $83.9M. Gross margin improved to 26.7% from 22.1%, reflecting better efficiency. Operating loss widened to $51.9M due to higher R&D on Neutron.
Detailed Brief
Rocket Lab reported Q3 revenue of $104.8M, a 55% YoY increase, with Space Systems at $83.9M (+81% YoY) and Launch Services $21.0M (-2% YoY). Gross profit rose to $28.0M (26.7% margin, +4.6pp YoY). Operating expenses increased to $79.9M, driven by $47.7M R&D (+79% YoY) and $32.2M SG&A (+18% YoY), yielding a $51.9M operating loss. Cash position strengthened to $292.5M cash equivalents plus $211.2M marketable securities; 9M operating cash flow -$46.5M improved from -$56.7M YoY. Backlog stable at $1.05B.
Operationally, 11 Electron launches YTD (vs 9 YoY), with 12 through Nov 12. Neutron progress includes AIT facility completion, doubled Archimedes testing, new dual-launch contract. Segments: Space Systems dominant at 80% Q3 revenue, backlog $721M; Launch $326M backlog.
Key Telemetry
- • Revenue: $104.8M (+55% YoY), Space Systems $83.9M (+81% YoY)
- • Gross Margin: 26.7% (+4.6pp YoY) from manufacturing scale
- • Backlog: $1.05B (flat YoY), 50% within 12 months
- • Liquidity: $504M (cash + marketable securities)
- • Launches: 11 YTD (+22% YoY), cost/launch $5.5M (-17% YoY adj.)
Impact Vector
Q3 results show robust revenue growth and margin expansion signaling scalable operations and Space Systems momentum, supporting path to profitability via higher volumes and Neutron (2025 debut). $1B+ backlog ensures visibility; $500M liquidity funds capex/R&D despite -$92M 9M FCF burn (runway >12mo). Risks: Neutron delays, launch failures; catalysts: Neutron cadence, constellation wins position RKLB competitively vs SpaceX in small/medium launches.