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Quarterly Report - May 9, 2023
Q1 Revenue: $54.9M (+35% YoY), gross margin 11.6% (+2.4pp YoY)
Financial Metrics
Brief
Rocket Lab reported Q1 revenue of $54.9M, up 35% YoY driven by 3 Electron launches vs 1 last year and steady Space Systems. Gross margin improved to 11.6% from 9.2%, but operating loss widened to $(46.0)M from $(32.8)M due to higher R&D on Neutron. Backlog slightly down to $494M.
Detailed Brief
Financial performance showed revenue of $54.9M (+35% YoY), with Launch Services at $19.6M (3 launches) and Space Systems $35.3M. Gross profit $6.4M (11.6% margin, up from 9.2%). Operating expenses rose to $52.4M, driven by $23.9M R&D (+77% YoY on Neutron) and $28.5M SG&A (+23%). Net loss $(45.6)M. Cash & equivalents $208M, total liquidity $447M; op cash flow $(25.4)M; debt $104M. Operational drivers: 3 Electron launches (up from 1 YoY), backlog $494M (53% in 12 months). Customer concentration: top customers 10-28% AR. Contract loss provision $15M on fixed-price deals.
Key Telemetry
- • Revenue: $54.9M (+35% YoY) from 3 launches vs 1 and Space Systems growth
- • Gross Margin: 11.6% (+2.4pp YoY) despite Launch gross loss
- • Operating Loss: $(46.0)M vs $(32.8)M on higher R&D/SG&A
- • Backlog: $494M (-2% QoQ), Launch $130M, Space $364M
- • Cash Flow: Op $(25.4)M, FCF $(38.1)M; liquidity $447M
Risk Signals
Impact Vector
Investors see revenue growth and margin gains validating Electron cadence and Space Systems scale, but path to profitability distant amid Neutron R&D burn and $46M loss. Sustainable growth via $494M backlog and acquisitions, strong vs competitors in small/medium launch. Risks: high cash burn (~$38M/qtr, 3yr runway), contract losses, SolAero control weaknesses. Catalysts: more launches, Neutron progress; watch debt maturity 2024.