Rocket Lab has announced its plans to get its launch business back on track by the end of the year. The company’s third-quarter results, released on Wednesday, showcased continued strength in its space systems division.
The company reported a net loss of $40.6 million, slightly lower than the expected loss of 9 cents a share, according to analysts surveyed by LSEG (formerly Refinitiv). Although the net loss widened year over year, Rocket Lab remains optimistic about its future prospects.
Rocket Lab’s revenue in the third quarter grew 7% year over year, reaching $67.6 million, in line with analysts’ expectations. The launch business contributed $21.3 million in revenue, despite a mid-September mission failure that temporarily affected the company’s momentum. However, Rocket Lab aims to resume Electron launches by November 28, with a mission for Japanese satellite imagery company iQPS.
According to Rocket Lab CEO Peter Beck, the launch failure was the result of a complex set of conditions and an electrical issue in the rocket’s power supply system. The company has since identified the problem and is implementing corrective measures to prevent future incidents.
Additionally, Rocket Lab has already booked its schedule of Electron missions for next year, with an impressive 22 launches expected in 2024. This reaffirms the company’s strong position in the market and its ability to attract clients.
Rocket Lab’s space systems unit continues to be a significant source of revenue, contributing $46.3 million in the third quarter, a 17% increase compared to the previous year. The company’s contract backlog has also seen growth, increasing by $48.1 million to $582 million.
Looking ahead, Rocket Lab is actively working on its next-generation Neutron vehicle and has achieved significant milestones in both the structure and engines of the rocket. The company projects a revenue range of $65 million to $69 million for the fourth quarter, with expectations of even higher revenue in the first quarter of 2024.
Rocket Lab’s determination to bounce back and its commitment to innovation will likely solidify its position as a key player in the rapidly evolving space industry.
Stocks rose over 4% in extended trading on Wednesday.
FAQ:
Q: What caused the launch failure for Rocket Lab?
A: The launch failure was attributed to a complex set of conditions, including an electrical issue in the rocket’s power supply system.
Q: How many Electron missions does Rocket Lab have booked for next year?
A: Rocket Lab has fully booked its schedule of Electron missions for next year, with 22 launches expected in 2024.
Q: What is Rocket Lab’s revenue projection for the first quarter of 2024?
A: Rocket Lab expects its revenue to range between $95 million and $105 million in the first quarter of 2024.
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