Skip to content
AnalystLens

Rocket Lab 8-K Report, Financial Results (May 6, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed May 6, 2024
Period End
May 6, 2024
Security
RKLB
In the record · 2020–202610-K810-Q188-K88

RKLB filed 8 annual reports (10-K), 18 quarterly reports (10-Q) and 88 current reports (8-K) between 2020 and 2026.

  1. Material agreement8-K · Sep ’20Sep ’20
  2. Deal closed8-K · Jan ’22Jan ’22
  3. Leadership change8-K · Nov ’23Nov ’23
  4. Material agreement8-K · Jun ’26Jun ’26

01—Abstract

Summary

Summary of the 8-K filed May 6, 2024. Cited figures are marked; the original filing is the authoritative source.

Rocket Lab reported first-quarter 2024 revenue of $92.8 milliona, up 69% year over year from $54.9 million and up roughly 55% sequentially per the company's headline.

Gross profit rose to $24.2 millionb (GAAP gross margin about 26%, non-GAAP gross margin 31.7%, versus 17.9% a year earlier). Operating loss narrowed to $43.1 million from $46.0 million, and net loss was $44.3 million, or $0.09 per share, compared with $45.6 million a year earlier. Adjusted EBITDA improved to a loss of $21.7 million from $26.2 million.

Revenue growth and margin expansion were the main positives, though the company remains unprofitable. The balance sheet changed materially. Rocket Lab issued $355 millionc of convertible senior notes, bought $43.2 million of capped calls, and repaid $43.2 million of its Trinity loan.

Cash, cash equivalents and marketable securities total about $561 milliond, up from roughly $325 million at year-end 2023. Total liabilities rose to $703 million from $387 million, driven mainly by the $344 million net carrying value of the notes. Operating cash burn was small in the quarter ($2.6 million used in operations), but capital expenditures of $19.2 million continue to rise as the company builds out Neutron.

Management cited a backlog above $1 billion and guided second-quarter 2024 revenue to $105 million to $110 million, with adjusted EBITDA loss of $23 million to $25 million. The company also pushed its Neutron medium-lift rocket's first launch target to no earlier than mid-2025, citing the new schedule after the first complete Archimedes engine was assembled. Investors should weigh the strong growth and funded balance sheet against continued losses, the convertible debt, and execution risk on Neutron and the $515 million Space Development Agency program.

02—Key points

Key Highlights

  1. Revenue of $92.8 million rose 69% year over year from $54.9 million, with launch services and space systems both contributing.
  2. GAAP gross margin of about 26% (non-GAAP 31.7%) improved sharply from 11.6% GAAP and 17.9% non-GAAP in Q1 2023.
  3. Net loss narrowed to $44.3 million ($0.09 per share) from $45.6 million, and adjusted EBITDA loss improved to $21.7 million from $26.2 million.
  4. Issued $355 million of convertible senior notes, bought $43.2 million of capped calls, and repaid $43.2 million on the Trinity loan, leaving cash and marketable securities of about $561 million.
  5. Backlog exceeded $1 billion at quarter-end, anchored by a $515 million Space Development Agency constellation contract.
  6. Q2 2024 guidance calls for revenue of $105 million to $110 million and an adjusted EBITDA loss of $23 million to $25 million.
  7. Neutron first launch target moved to no earlier than mid-2025 after the first complete Archimedes engine was assembled and engine testing began at NASA Stennis.

03—Questions

Frequently Asked Questions

  1. How strong was Rocket Lab's revenue growth in Q1 2024?

    Revenue reached $92.8 million, up 69% from $54.9 million in Q1 2023. The company also reported sequential growth of about 55%, which it highlighted in its headline.

  2. Is Rocket Lab getting closer to profitability?

    Losses narrowed but the company is still unprofitable. The operating loss was $43.1 million versus $46.0 million a year earlier, and adjusted EBITDA loss improved to $21.7 million from $26.2 million. Q2 guidance implies a wider adjusted EBITDA loss of $23 million to $25 million.

  3. How did the convertible notes affect the balance sheet?

    The company issued $355 million of convertible senior notes, with a net carrying value of about $344 million. It used $43.2 million for capped calls and $43.2 million to repay its Trinity loan. Total liabilities rose to $703 million from $387 million, while stockholders' equity fell to $479 million from $555 million, partly due to the capped call purchase.

  4. Is Neutron's timeline changing?

    Yes. Rocket Lab now expects Neutron's first launch no earlier than mid-2025. Management said the first complete Archimedes engine is now in testing at NASA Stennis, and test results will determine the launch date.

  5. Does Rocket Lab have enough cash to fund operations?

    Cash, cash equivalents and marketable securities totaled about $561 million at March 31, 2024, up from about $325 million at year-end 2023. Operating cash use was only $2.6 million in the quarter, but capital spending of $19.2 million and ongoing Neutron development will keep cash needs significant.

04—Continue

← View all 8-K filings