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Revenue: Reported $92.77 million, up 69% year-over-year, below the estimate of $94.99 million.
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Net Loss: Recorded at $44.26 million, an improvement from the previous year’s $45.62 million, and better than the estimated net loss of $50.10 million.
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Earnings Per Share (EPS): Posted a loss of $0.09 per share, better than the estimated loss of $0.11 per share.
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Gross Margin: Achieved a gross profit of $24.17 million, resulting in a gross margin increase to 26% from 12% year-over-year.
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Operating Expenses: Total operating expenses were $67.25 million, an increase from the previous year’s $52.37 million, reflecting ongoing investments in research and development.
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Cash Position: Ended the quarter with $365.93 million in cash and cash equivalents, significantly up from $162.52 million at the end of the previous year.
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Guidance for Q2 2024: Expects revenue between $105 million and $110 million, with projected GAAP gross margins between 24% and 26%.
Rocket Lab USA Inc (NASDAQ:RKLB) released its first quarter financial results on May 6, 2024, showcasing a substantial year-on-year revenue growth of 69% and a sequential quarterly growth of 55%. The company’s earnings details were disclosed in its 8-K filing. Rocket Lab, a prominent player in the aerospace sector, reported first quarter revenues of $92.77 million, surpassing the analyst estimates of $94.99 million. However, the net loss widened to $44.26 million from $45.61 million year-over-year, with a loss per share of $0.09, slightly better than the estimated $0.11.
About Rocket Lab USA Inc
Rocket Lab is engaged in the aerospace domain, providing comprehensive space mission services including the design, manufacturing, and launch of rockets and spacecraft. The company operates primarily through its Launch Services and Space Systems segments, with significant operations in the United States, and extends its services globally including in Japan and Germany. Rocket Lab’s notable products include the Electron and Neutron launch vehicles and the Photon satellite platform, catering to a diverse clientele across civil, defense, and commercial sectors.
Quarterly Performance Highlights
The first quarter saw Rocket Lab successfully execute four Electron missions, reinforcing its position as the second most frequently launched U.S. rocket. The company also secured significant contracts post-quarter, including a nearly $50 million agreement with the U.S. Space Forces Space Systems Command. These contracts underline Rocket Labs capability and reliability in delivering critical national security payloads.
In its Space Systems segment, Rocket Lab has made notable progress on a $515 million contract with the Space Development Agency, marking a significant step in the constellation build program. This includes the preliminary design completion for 18 spacecraft. The company also reported advancements in its Neutron rocket development, having completed the first assembly of an Archimedes engine, setting the stage for a test campaign in Mississippi.
Financial Standing and Future Outlook
Rocket Lab closed the quarter with over $1 billion in backlog, indicating strong future revenues. The company expects Q2 2024 revenues to be between $105 million and $110 million. Gross margins are projected to be between 24% and 26% on a GAAP basis and between 30% and 32% on a non-GAAP basis. However, the company anticipates an adjusted EBITDA loss of $23 million to $25 million for the next quarter.
The balance sheet remains robust with $365.93 million in cash and cash equivalents, a significant increase from $162.52 million at the end of 2023. This financial stability is crucial as Rocket Lab continues to invest in growth initiatives and capital-intensive projects.
Strategic Developments and Market Position
Rocket Labs strategic developments, particularly in its Neutron rocket program and the expansion of its launch capabilities, position the company well for future growth. The successful test milestones and infrastructure developments at its launch sites underscore its commitment to enhancing its service offerings and market reach.
Overall, Rocket Labs Q1 2024 performance reflects a solid start to the year with robust revenue growth and strategic advancements, despite the challenges of widening net losses. The companys ongoing projects and future revenue guidance suggest a positive trajectory, supported by its strong backlog and continued market demand for its aerospace and defense solutions.
Explore the complete 8-K earnings release (here) from Rocket Lab USA Inc for further details.
This article first appeared on GuruFocus.
