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Quarterly Report - August 11, 2022
Q2 Revenue: $55M (+392% YoY), gross margin 9% (-13pp YoY)
Financial Metrics
Brief
Rocket Lab reported Q2 revenue of $55M, up 392% YoY, driven by Space Systems growth and higher launch cadence. Gross margin declined to 9% from 22% YoY amid acquisition costs and stock comp. H1 operating cash flow was -$65M with cash at $543M; backlog reached $531M.
Detailed Brief
For Q2 2022, Rocket Lab achieved revenue of $55.5M, up 392% YoY from $11.3M, with Launch Services at $19.1M (3 launches) and Space Systems at $36.4M boosted by acquisitions (SolAero, etc.). Gross profit was $5.0M (9% margin) vs. $2.5M (22%), operating loss widened to $33M from $13M due to R&D ($19M) and SG&A ($19M) rises from stock comp and expansions. Cash position stood at $543M (down from $691M YE2021), H1 OCF -$65M, debt ~$102M (D/E 0.14), current ratio 4.9.
Operationally, 3 Electron launches completed (total 4 H1), backlog grew to $531M (42% in 12mo). Acquisitions (SolAero Q1) added $28M revenue Q2; Neutron production complex groundbreaking. No guidance changes noted; provision for contract losses $5.5M remains.
Key Telemetry
- • Revenue: $55M (+392% YoY), Launch $19M (+151%), Space Systems $36M (+893%)
- • Gross Margin: 8.9% (-12.9pp YoY) from acquisitions, stock comp
- • Backlog: $531M (up from prior, 42% in 12mo)
- • Cash: $543M (-$148M H1), OCF H1 -$65M (-$19M capex)
- • Operating Loss: $33M (-153% YoY), net loss $37M
Risk Signals
Impact Vector
Strong revenue acceleration via acquisitions and launches signals growth sustainability, with $531M backlog supporting visibility amid Neutron development for profitability path. Margins pressured by integration costs/stock comp but improving scale could enhance unit economics/positioning vs. competitors. Cash runway >12mo ($543M vs. ~$130M annual burn) mitigates risks; catalysts include Neutron progress/launches, risks execution/delays/inflation.