Rocket Lab, a space company, has released its second-quarter results, meeting the expectations of Wall Street. The company also announced that it has secured contracts for 10 additional launches in 2023 and 2024.
In a statement, Rocket Lab founder and CEO Peter Beck highlighted the strong performance of the company’s launch and space systems businesses during the second quarter. This included three successful Electron rocket launches, the deployment of over 17 spacecraft with Rocket Lab satellite components, and the signing of multiple new launch contracts with both new and returning customers.
Despite reporting a net loss of $45.9 million, or 10 cents per share, which was wider than expected, Rocket Lab experienced a 12% year-over-year revenue growth, reaching $62 million in the second quarter. The revenue breakdown showed that the launch business generated $22.5 million, while the space systems unit brought in $39.6 million. Additionally, the company’s contract backlog increased by $40.1 million to $534.3 million compared to the previous quarter.
During the earnings call, Rocket Lab CFO Adam Spice acknowledged a timing issue with recognizing revenue for certain programs in the space systems business. He expressed confidence in catching up and making up for the discrepancy in the fourth quarter.
Following the release of the results, Rocket Lab’s stock rose approximately 3% in after-hours trading, making it the top-performing pure-play space stock of 2023 with a 77% increase year-to-date.
Looking ahead, Rocket Lab expects its revenue for the third quarter to grow to between $73 million and $77 million.
The company also shared significant milestones in the development of its upcoming Neutron rocket, including the completion of a second-stage tank and construction of a stand for conducting cryogenic tank tests. Construction of Neutron’s launch site in Virginia is set to begin in the third quarter.
Rocket Lab CEO Peter Beck explained that changes in Neutron’s design were influenced by customer demands for greater rocket capability and downrange landings. He emphasized the importance of downrange landings on a barge for achieving full commercialization promptly.
A crucial aspect of Neutron’s progress is the development of Rocket Lab’s Archimedes line of rocket engines. Beck revealed that the company has adopted new manufacturing technologies to reduce engine costs, which are currently progressing well. A comprehensive engine test for Archimedes is scheduled for the end of the year.
Rocket Lab announced the addition of 10 new orders for its Electron rocket since the end of the first quarter. These include bookings from commercial satellite companies BlackSky and Synspective, a government customer, and a confidential customer for a HASTE mission. The launches are expected to take place in 2024.
The HASTE mission involves modified Electron rockets that provide hypersonic test capabilities instead of satellite launches. Rocket Lab conducted its inaugural HASTE mission in June for customer Dynetics’ Leidos, under contract from the Pentagon. The company holds multiple relationships with customers for similar missions and sees a promising pipeline for this type of launch.
CEO Peter Beck emphasized Rocket Lab’s reputation and quality work in hypersonics. He noted that affordable hypersonic capabilities have been lacking in the U.S. for a long time, making Rocket Lab’s offerings highly sought after.
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