NASDAQ$RKLB

Rocket Lab Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Rocket Lab's launch and space systems businesses performed strongly, marked by three successful Electron launches and the deployment of over 17 spacecraft with Rocket Lab satellite components to orbit. The company also signed multiple new launch contracts with both new and returning customers.

Rocket Lab reported strong Q2 2023 financial results, exceeding prior guidance for revenue and gross margin. Three successful Electron launches, the acquisition of Virgin Orbit assets, and significant milestones in Neutron rocket development highlighted the quarter.

  • Delivered strong financial results that were above the midpoint of prior guidance for revenue, and well above the high end of prior guidance for gross margin.
  • Launched three successful Electron missions in the second quarter, including the TROPICS constellation for NASA and the first HASTE mission.
  • Acquired assets and production space from the Virgin Orbit bankruptcy auction at favorable pricing, enabling significant savings and schedule acceleration for Neutron production.
  • Strong quarter for space systems with Rocket Lab satellite components or software featured in 17 spacecraft launched to orbit.

Headline financials

Total Revenue

$62M

Previous: $55.5M+11.8%
EPS (adj)

-$0.10

Previous: -$0.08-25.0%
Capital Expenditures

-$23.2M

Previous: -$19.1M-21.9%
Free Cash Flow

-$69.1M

Previous: -$56.5M-22.4%
Net Income

-$45.9M

Previous: -$37.4M-22.6%
Operating Income

-$45.2M

Previous: -$33.2M-36.2%
Gross Profit

$14.6M

Previous: $4.96M+194.3%
Cash & Equivalents

$197M

Previous: $543M-63.7%
Total Assets

$981M

Previous: $1B-2.3%
Stock-Based Comp

$15.3M

Previous: $16.9M-9.5%

Revenue & EPS history

Rocket Lab · Revenue · Quarterly

$62M

Q2 2023+11.8%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Rocket Lab · $62M total across 2 segments · Q2 2023

  • Space Systems (Product)
    $33.3M-9.1%
  • Launch Services (Service)
    $28.7M

Forward guidance

For the third quarter of 2023, Rocket Lab expects revenue between $73 million and $77 million, with Launch Services revenue of approximately $30 million and Space Systems revenue between $43 million to $47 million. GAAP Gross Margins are expected to be between 21% to 23%, and Non-GAAP Gross Margins between 28% to 30%.

Tailwinds

  • Revenue between $73 million and $77 million.
  • Launch Services revenue of approximately $30 million.
  • Space Systems revenue of between $43 million to $47 million.
  • GAAP Gross Margins between 21% to 23%.
  • Non-GAAP Gross Margins between 28% to 30%.

Headwinds

  • GAAP Operating Expenses between $51 million to $53 million.
  • Non-GAAP Operating Expenses between $38 million to $40 million.
  • Expected Interest Expense (Income), net $0.5 million.
  • Adjusted EBITDA loss of $10 million to $14 million.
  • Basic Shares Outstanding of 484 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+1.8%

Avg return

Earnings day

+2.6%

Avg return

5 days after

+3.2%

Avg return

30 days after

50%

11 / 22 earnings

Positive

+27.4%

Q3 2024

Best reaction

-11.2%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-7.2%+38.6%+30.0%
Q4 2025+1.3%-1.0%-16.1%
Q3 2025-6.8%-12.3%+22.4%
Q2 2025+1.1%-2.7%+3.7%
Q1 2025-11.2%+4.5%+25.2%
Q4 2024+3.3%+2.9%-6.1%
Q3 2024+27.4%+28.6%+52.8%
Q2 2024+17.2%+14.2%+26.9%
Q1 2024-0.7%+2.8%+11.0%
Q4 2023+0.4%-0.7%-10.1%
Q3 2023-4.9%-3.8%+6.7%
Q2 2023-2.1%-4.1%-4.1%
Q1 2023+7.0%+7.0%+37.1%
Q4 2022-4.1%-0.4%-13.9%
Q3 2022+3.9%+1.0%-21.7%
Q2 2022+22.6%+14.2%-3.5%
Q1 2022-3.4%-19.3%-26.1%
Q2 2021-9.1%-5.4%-12.0%
Q4 2021-3.7%-11.1%-14.3%
Q3 2021+7.7%+7.9%-12.1%
Q1 2021-1.0%-0.2%+3.1%
Q4 2020+0.7%-3.2%-8.2%
Q3 2020
Q2 2020
Q1 2020

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