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Rocket Lab Announces Third Quarter 2022 Results and Guidance for Fourth Quarter 2022

November 09, 2022 04:15 PM Eastern Standard Time

Rocket Lab USA, Inc. (Nasdaq: RKLB) (“Rocket Lab” or “the Company”), a global leader in launch services and space systems, today shared the financial results for its fiscal third quarter of 2022, ended September 30, 2022.

Rocket Lab founder and CEO, Peter Beck, said: “This quarter recorded historic achievements for Rocket Lab. We continued our small launch industry-leading cadence of a successful mission every month in Q3, and following another successful launch early in Q4 we have now conducted nine orbital missions in 2022, beating our previous annual launch record. The development of our large Neutron rocket was accelerated this quarter with the selection of the NASA Stennis Space Center as the site for Archimedes engine testing and development, eliminating the need to build a site from scratch and speeding up our development time to first launch. Neutron hardware was also produced for the first time this quarter, including full-scale prototypes of the rocket’s Archimedes engine and seven-metre diameter tank section.

“Our space systems business growth is continuing, highlighted by our single largest satellite separation systems order in company history totalling $14 million. Since July 1, our space solar power business has also executed more than 50 contracts or modifications to existing contracts, and early in the fourth quarter we’ve booked more than $13 million in new business, with the majority of those bookings generated by space systems.”

Third Quarter 2022 Business Highlights:

• Launched three successful Electron missions in the third quarter: two for U.S. Government national security customer the National Reconnaissance Office, and a third for commercial constellation operator Synspective.

• Selected NASA Stennis Space Center as the site for Neutron engine testing and development, fast-tracking the program’s development to first launch by eliminating the need to build a new engine testing site from scratch.

• Progressed the development of the Neutron launch vehicle and its reusable Archimedes engines, with early prototypes produced including 3D-printed components and a seven-meter diameter Neutron tank section, and capital investment in long lead time tooling including structural moulds and rocket-building robots for automated tape laying.

• Secured the first of two awards to provide motorized lightbands to customers supporting the U.S. Department of Defense’s Tranche 1 Tracking Layer (T1TL) constellation.

• Awarded a contract to supply solar power for three Next Gen OPIR GEO (NGG) satellites for the U.S. Space Force (USSF), continuing the long-standing support of solar power products for missile-warning satellites for the USSF.

• Awarded a research agreement with the United States Transport Command (USTRANSCOM) to explore cargo transport use for Electron, Neutron, and Photon.

• Introduced Rocket Lab’s Responsive Space Program to enable rapid call-up launch and spacecraft capabilities.

• Completed the construction of a high-volume manufacturing line for satellite reaction wheels capable of producing up to 2,000 units per year, with production now underway for an undisclosed satellite mega constellation customer.

Since October 1, 2022 Rocket Lab also:

• Reached a new Company record of nine successful orbital missions within a calendar year.

• Successfully launched two dedicated Electron missions, including an environmental monitoring satellite through General Atomics and the U.S. Space Force’s Space Systems Command for the National Oceanic and Atmospheric Administration (NOAA), plus a climate monitoring satellite for the Swedish National Space Agency via OHB Sweden. The missions took Rocket Lab’s total Electron launch tally to 32 missions.

• Marked the arrival of the Electron rocket at Launch Complex 2 (LC-2) in Virginia as Rocket Lab prepares for the Company’s first mission from U.S. soil. Electron processing is underway and launch preparations have begun for the inaugural LC-2 launch scheduled for December 2022.

• Signed a contract with an undisclosed satellite constellation operator for another mission from LC-2 in January 2023, weeks after the expected first Electron lift-off from LC-2. The short turnaround between missions is expected to be one of the fastest launch turnarounds by an active orbital small launch provider from U.S. soil.

• Secured our second award to provide motorized lightbands to Lockheed Martin for the U.S. Department of Defense’s Tranche 1 Tracking Layer (T1TL) constellation, with the combination of the Q3 and Q4 awards representing the largest program award for satellite separation systems in Rocket Lab history, totalling over $14 million.

• Selected by NASA to build solar panels for the agency’s CADRE mobile robot program to build and operate shoebox sized mobile robots that will explore hard-to-reach places on Moon, Mars, and beyond.

• Fourth Quarter 2022 Guidance

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• For the fourth quarter of 2022, Rocket Lab expects:

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• Revenue between $51 million and $54 million

• Launch Services revenue of approximately $17 million

• Space Systems revenue of between $34 million to $37 million

• GAAP Gross Margins between 5% to 7%

• Non-GAAP Gross Margins between 16% to 18%

• GAAP Operating Expenses $39 million to $41 million

• Non-GAAP Operating Expenses $28 million to $30 million

• Expected Interest expenses (Income), net $1 million expense

• Adjusted EBITDA loss of $12 million to $16 million

• Basic Shares Outstanding 474 million