NASDAQ$RKLB

Rocket Lab Corp · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Rocket Lab's third quarter results were announced, with a focus on Electron's return to service and progress in Space Systems and Neutron development.

Rocket Lab reported its Q3 2023 financial results, highlighting two successful Electron missions before an anomaly, advancements in Neutron development, and continued progress in Space Systems, including a $143 million Globalstar contract. The company is focused on Electron's return to service and has secured multiple HASTE hypersonic missions.

  • Launched two successful Electron missions in Q3, supporting the Electron reusability program.
  • Confirmed FAA authorization to resume Electron launches from Launch Complex 1 following a September anomaly.
  • Electron's return to flight scheduled for a launch window opening November 28, 2023.
  • Continued growth in Electron bookings for 2024, with the launch manifest fully allocated into early 2025.

Headline financials

Total Revenue

$67.7M

Previous: $63.1M+7.3%
EPS (adj)

-$0.08

Previous: -$0.07-14.3%
Capital Expenditures

-$44.3M

Previous: -$27.4M-61.5%
Free Cash Flow

-$84.9M

Previous: -$62M-36.8%
Net Income

-$40.6M

Previous: -$34.6M-17.2%
Operating Income

-$38.9M

Previous: -$32M-21.4%
Gross Profit

$15M

Previous: $8.47M+76.8%
Cash & Equivalents

$141M

Previous: $333M-57.7%
Total Assets

$950M

Previous: $1B-5.1%
R&D Expense

$25.4M

No prior period
Stock-Based Comp

$14.1M

Previous: $14.5M-2.7%

Revenue & EPS history

Rocket Lab · Revenue · Quarterly

$67.7M

Q3 2023+7.3%vs Q3 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Rocket Lab · $65M total across 2 segments · Q3 2023

  • Space Systems (Product)
    $48.5M+42.6%
  • Launch Services (Service)
    $16.5M-2.9%

Forward guidance

For Q4 2023, Rocket Lab anticipates revenue between $65 million and $69 million, with Space Systems revenue between $48.5 million and $52.5 million, and Launch Services revenue of approximately $16.5 million. GAAP Gross Margins are expected to be between 24% to 26%, and Non-GAAP Gross Margins between 30% to 32%.

Tailwinds

  • Revenue between $65 million and $69 million.
  • Space Systems revenue between $48.5 million to $52.5 million.
  • Launch Services revenue of approximately $16.5 million.
  • GAAP Gross Margins between 24% to 26%.
  • Non-GAAP Gross Margins between 30% to 32%.

Headwinds

  • GAAP Operating Expenses between $61 million to $63 million.
  • Non-GAAP Operating Expenses between $50 million to $52 million.
  • Expected Interest Expense (Income), net $2 million.
  • Adjusted EBITDA loss of $23 million to $27 million.
  • Basic Shares Outstanding of 487 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 Q3 2023

Historical avgQ3 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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