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Quarterly Report - November 9, 2022
Q3 Revenue: $63.1M (+1,093% YoY), gross margin improved to 13.4%
Financial Metrics
Brief
Q3 revenue reached $63.1M, up 1,093% YoY driven by 3 Electron launches and Space Systems growth from acquisitions. Gross margin improved to 13.4% from -235% YoY amid higher cadence and efficiencies. Operating loss narrowed to $32M; backlog stands at $521M with no guidance changes.
Detailed Brief
Financial performance showed Q3 revenue of $63.1M (+1,093% YoY) and 9M $159.2M (+358% YoY), fueled by Launch Services ($23M Q3) and Space Systems ($40M Q3, boosted by SolAero/PSC/ASI acquisitions contributing ~$31M). Gross profit turned positive at $8.5M (13.4%) vs prior loss, with margins improving on scale; op loss $32M (-51%) vs $52M. Cash position $512M (down from $691M YE21 due to $88M op cash burn, $273M investing incl. $66M acq.); debt ~$102M, current ratio 4.3.
Operationally, 3 Q3 launches (7 YTD) drove rev; Space Systems backlog $398M of total $521M (42% next 12mo). Key drivers: Electron cadence ramp, Photon missions (e.g., CAPSTONE), Neutron dev (production complex groundbreaking), acquisitions adding solar cells/software/capabilities. No launch failures noted.
Key Telemetry
- • Revenue: $63.1M (+1,093% YoY) from 3 launches & acquisitions
- • Gross Margin: 13.4% (+248.9pp YoY) on higher cadence, efficiencies
- • Backlog: $521M (+est. growth QoQ) incl. $398M Space Systems
- • Cash Position: $512M after $88M 9M op cash burn
- • Operating Loss: $32M (-39% YoY narrowing) despite R&D/SG&A investments
Impact Vector
Strong revenue growth and gross margin turnaround signal path to profitability via scale in launches/Space Systems, but persistent op losses and $88M 9M cash burn highlight Neutron dev/inventory ramp risks. $521M backlog supports sustainable growth; acquisitions enhance positioning vs. competitors. Near-term catalysts: more Electron launches, Neutron milestones; risks: execution delays, capex needs may pressure cash runway (~18mo at current burn). Investors eye margin expansion and Neutron for upside.