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Rocket Lab USA Inc (RKLB) Q4 2024 Earnings Call Highlights: Record Revenue Growth and Strategic ...

In This Article:

  • Annual Revenue: $436 million, a 78% increase year-on-year.

  • Q4 2024 Revenue: $132 million, a 121% increase year-on-year.

  • Launch Services Revenue: $42.4 million for Q4; $125.4 million for the full year, a 74% increase year-on-year.

  • Space Systems Revenue: $90 million for Q4; $310.8 million for the full year, an 80% increase year-on-year.

  • GAAP Gross Margin: 27.8% for Q4; 26.6% for the full year.

  • Non-GAAP Gross Margin: 34% for Q4; 32% for the full year.

  • Total Backlog: $1.07 billion, with $386 million in launch backlog and $681 million in Space Systems backlog.

  • Q4 Operating Expenses: $88.4 million GAAP; $74.5 million non-GAAP.

  • Cash and Equivalents: $484 million at the end of Q4 2024.

  • Adjusted Loss: $23.2 million for Q4 2024.

  • Q1 2025 Revenue Guidance: $117 to $123 million.

  • Q1 2025 GAAP Gross Margin Guidance: 25% to 27%.

  • Q1 2025 Non-GAAP Gross Margin Guidance: 30% to 32%.

  • Q1 2025 Adjusted EBITDA Loss Guidance: $33 million to $35 million.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Rocket Lab USA Inc (NASDAQ:RKLB) achieved its highest annual revenue to date of $436 million in 2024, marking a 78% increase from the previous year.

  • The company successfully executed a record number of 16 launches in 2024, maintaining a 100% mission success rate.

  • Rocket Lab USA Inc (NASDAQ:RKLB) signed over $450 million in new contracts in 2024, strengthening its backlog to over a billion dollars.

  • The company made significant progress in its Space Systems segment, including the completion of twin spacecraft for NASA's escapade mission to Mars.

  • Rocket Lab USA Inc (NASDAQ:RKLB) is advancing its Neutron rocket program, with plans to address the medium launch market and support the deployment of an estimated 10,000 constellation spacecraft over the next decade.

Negative Points

  • The timeline for the Neutron rocket's first launch has been pushed to the second half of 2025, indicating potential delays.

  • Rocket Lab USA Inc (NASDAQ:RKLB) faces challenges with supplier dependencies, which have caused some delays in the Neutron program.

  • The company anticipates increased cash consumption in Q1 2025 due to Neutron-related investments and lower milestone payments.

  • There is some uncertainty in the industry regarding defense programs under the new administration, which could impact future contracts.

  • Gross margins in the launch business can be volatile quarter to quarter, influenced by customer mix and mission type.

Q & A Highlights

Q: Can you clarify the timing for the Neutron launch, as it seems to have shifted from mid-2025 to the second half of 2025? A: Peter Beck, CEO: We've adjusted the timeline slightly to allow more time for preparation, but we're only talking about a few months' difference. It's not a significant delay.