Rocket Lab Saw Higher Revenues, Launches and Net Loss in 2022
Rocket Lab’s (NAS: RKLB) revenues soared more than 200% last year as the company launched the Electron rocket a record nine times and expanded its space systems business. Rocket Lab also recorded a higher loss as the company dealt with the high cost of obtaining the revenue and invested in the development of the much larger Neutron launcher.
Rocket Lab Key Metrics, 2021-22
(in thousands of dollars, except for launches)
| Metric | 2022 | 2021 | Change |
|---|---|---|---|
| Fourth Quarter Revenue | $51,762 | $27,478 | 88.4% |
| Full Year Revenue | $210,996 | $62,237 | 239% |
| Full Year Cost of Revenue | $192,006 | $64,130 | 199.4% |
| Net Loss | $135,944 | $117,320 | 15.9% |
| Electron Launches | 9-0 | 5-1 | 33.3% |
Rocket Lab’s full year revenue soared 239% to just under $211 million. The cost of obtaining that revenue was $192 million, leaving the company with a gross profit of just under $19 million. The company had a gross loss of $1.9 million in 2021.
Rocket Lab ended the year with a net loss of just under $136 million, a 15.9 percent increase from $117.3 million in 2021.
““Rocket Lab set new company records in 2022. It was our busiest launch year yet with nine Electron launches and 100% mission success,” said CEO Peter Beck. “We also made significant progress on the development of Neutron with hardware in production, the launch pad and production complex sites selected and under construction, and an engine test stand at NASA Stennis already supporting the Archimedes test program.
“It was also a terrific year across space systems, with our strategy to become a full-service space company demonstrated with the successful CAPSTONE mission to the Moon for NASA featuring Rocket Lab developed launch vehicle and spacecraft, and further strengthened with the contract award to develop 17 spacecraft buses for MDA to support Globalstar’s new constellation,” Beck added.
Rocket Lab’s guidance for the first quarter of 2023 included:
- Revenue between $51 million and $54 million.
- Launch Services revenue of approximately $19 million.
- Space Systems revenue of between $32 million to $35 million.
Rocket Lab went 9-0 in launches last year, an improvement from the five successes and one failure it recorded in 2021. The company’s previous high launch total was in 2020 when it launched seven times, including one failure. Electron has a record of 30 successes and three failures.
Rocket Lab launched its first mission beyond low Earth orbit last June when an Electron sent NASA’s Cislunar Autonomous Positioning System Technology Operations and Navigation Experiment (CAPSTONE) CubeSat to the moon.
Rocket Lab’s financials are below.
ROCKET LAB U.S.A., INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS AND YEARS ENDED DECEMBER 31, 2022 AND 2021
(unaudited; in thousands, except share and per share data)
| Three Months Ended December 31, 2022 | Three Months Ended December 31, 2021 | Years Ended December 31, 2022 | Years Ended December 31, 2021 | |||||||||
| Revenues | $ | 51,762 | $ | 27,478 | $ | 210,996 | $ | 62,237 | ||||
| Cost of revenues | 49,932 | 20,793 | 192,006 | 64,130 | ||||||||
| Gross profit (loss) | 1,830 | 6,685 | 18,990 | (1,893) | ||||||||
| Operating expenses: | ||||||||||||
| Research and development, net | 15,018 | 11,968 | 65,168 | 41,765 | ||||||||
| Selling, general and administrative | 24,035 | 19,048 | 89,026 | 58,395 | ||||||||
| Total operating expenses | 39,053 | 31,016 | 154,194 | 100,160 | ||||||||
| Operating loss | (37,223) | (24,331) | (135,204) | (102,053) | ||||||||
| Other income (expense): | ||||||||||||
| Interest expense, net | (892) | (2,751) | (7,799) | (6,128) | ||||||||
| Loss on foreign exchange | (488) | (178) | (4,435) | (567) | ||||||||
| Change in fair value of liability classified warrants | — | 24,130 | 13,482 | (15,294) | ||||||||
| Other income (expense), net | 385 | (215) | 1,010 | (798) | ||||||||
| Total other income (expense), net | (995) | 20,986 | 2,258 | (22,787) | ||||||||
| Loss before income taxes | (38,218) | (3,345) | (132,946) | (124,840) | ||||||||
| Benefit (provision) for income taxes | 1,010 | 6,541 | (2,998) | 7,520 | ||||||||
| Net income (loss) | $ | (37,208) | $ | 3,196 | $ | (135,944) | $ | (117,320) | ||||
| Net income (loss) per share attributable to Rocket Lab USA, Inc.: | ||||||||||||
| Basic | $ | (0.08) | $ | 0.01 | $ | (0.29) | $ | (0.56) | ||||
| Diluted | $ | (0.08) | $ | (0.05) | $ | (0.29) | $ | (0.56) | ||||
| Weighted-average common shares outstanding: | ||||||||||||
| Basic | 473,644,862 | 449,270,950 | 466,214,095 | 209,895,135 | ||||||||
| Diluted | 473,644,862 | 451,945,594 | 466,214,095 | 209,895,135 |
ROCKET LAB U.S.A., INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2022 AND 2021
(unaudited; in thousands, except share and per share data)
| December 31, 2022 | December 31, 2021 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 242,515 | $ | 690,959 | ||
| Marketable securities, current | 229,276 | — | ||||
| Accounts receivable, net | 36,572 | 13,957 | ||||
| Contract assets | 9,451 | 2,490 | ||||
| Inventories | 92,279 | 47,904 | ||||
| Prepaids and other current assets | 52,201 | 19,454 | ||||
| Total current assets | 662,294 | 774,764 | ||||
| Non-current assets: | ||||||
| Property, plant and equipment, net | 101,514 | 65,339 | ||||
| Intangible assets, net | 79,692 | 57,487 | ||||
| Goodwill | 71,020 | 43,308 | ||||
| Right-of-use assets – operating leases | 35,239 | 28,424 | ||||
| Right-of-use assets – finance leases | 15,614 | — | ||||
| Marketable securities, non-current | 9,193 | — | ||||
| Restricted cash | 3,356 | 1,116 | ||||
| Deferred income tax assets, net | 3,898 | 5,859 | ||||
| Other non-current assets | 7,303 | 4,550 | ||||
| Total assets | $ | 989,123 | $ | 980,847 | ||
| Liabilities and Stockholders’ Equity | ||||||
| Current liabilities: | ||||||
| Trade payables | $ | 12,084 | $ | 3,489 | ||
| Accrued expenses | 8,723 | 10,977 | ||||
| Employee benefits payable | 8,634 | 8,266 | ||||
| Contract liabilities | 108,344 | 59,749 | ||||
| Current installments of long-term borrowings | 2,906 | 2,827 | ||||
| Other current liabilities | 22,249 | 10,999 | ||||
| Total current liabilities | 162,940 | 96,307 | ||||
| Non-current liabilities: | ||||||
| Long-term borrowings, excluding current installments | 100,043 | 97,297 | ||||
| Non-current operating lease liabilities | 34,266 | 28,302 | ||||
| Non-current finance lease liabilities | 15,568 | — | ||||
| Deferred tax liabilities | 95 | 466 | ||||
| Public and private warrant liabilities | — | 58,227 | ||||
| Other non-current liabilities | 3,005 | 1,800 | ||||
| Total liabilities | 315,917 | 282,399 | ||||
| COMMITMENTS AND CONTINGENCIES | ||||||
| Stockholders’ equity: | ||||||
| Common stock, $0.0001 par value; authorized shares: 2,500,000,000; issued and outstanding shares: 475,356,517 and 450,180,479 at December 31, 2022 and December 31, 2021, respectively | 48 | 45 | ||||
| Additional paid-in capital | 1,112,977 | 1,002,106 | ||||
| Accumulated deficit | (440,955) | (305,011) | ||||
| Accumulated other comprehensive income | 1,136 | 1,308 | ||||
| Total stockholders’ equity | 673,206 | 698,448 | ||||
| Total liabilities and stockholders’ equity | $ | 989,123 | $ | 980,847 |
ROCKET LAB U.S.A., INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
(unaudited; in thousands)
| Years Ended December 31, 2022 | Years Ended December 31, 2021 | |||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
| Net loss | $ | (135,944) | $ | (117,320) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||
| Depreciation and amortization | 29,947 | 10,851 | ||||
| Stock-based compensation expense | 55,649 | 32,557 | ||||
| Loss on disposal of assets | 923 | 156 | ||||
| Loss on extinguishment of long-term debt | — | 496 | ||||
| Amortization of debt issuance costs and discount | 2,827 | 1,546 | ||||
| Noncash lease expense | 3,199 | 2,010 | ||||
| Noncash (income) expense associated with liability-classified warrants | (13,482) | 15,294 | ||||
| Accretion of marketable securities purchased at a discount | (1,395) | — | ||||
| Deferred income taxes | (576) | (9,979) | ||||
| Changes in operating assets and liabilities: | ||||||
| Accounts receivable, net | (9,430) | (7,789) | ||||
| Contract assets | (7,545) | 1,816 | ||||
| Inventories | (25,964) | (12,072) | ||||
| Prepaids and other current assets | (15,059) | (10,504) | ||||
| Other non-current assets | (7,072) | (4,548) | ||||
| Trade payables | (2,129) | (4,517) | ||||
| Accrued expenses | (3,518) | 3,074 | ||||
| Employee benefits payables | 2,108 | (326) | ||||
| Contract liabilities | 22,661 | 28,057 | ||||
| Other current liabilities | 1,280 | 838 | ||||
| Non-current lease liabilities | (3,686) | (1,801) | ||||
| Other non-current liabilities | 668 | 370 | ||||
| Net cash used in operating activities | (106,538) | (71,791) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
| Purchases of property, equipment and software | (42,412) | (25,699) | ||||
| Cash paid for acquisitions, net of acquired cash and restricted cash | (65,824) | (66,435) | ||||
| Purchases of marketable securities | (259,567) | — | ||||
| Maturities of marketable securities | 21,724 | — | ||||
| Net cash used in investing activities | (346,079) | (92,134) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
| Proceeds from the exercise of stock options and public warrants | 3,874 | 3,147 | ||||
| Proceeds from Employee Stock Purchase Plan | 4,380 | — | ||||
| Proceeds from sale of employees restricted stock units to cover taxes | 31,166 | — | ||||
| Minimum tax withholding paid on behalf of employees for restricted stock units | (31,164) | — | ||||
| Tax payment for net settled option shares | (444) | — | ||||
| Payment of contingent consideration | (5,500) | — | ||||
| Finance lease principal payments | (271) | — | ||||
| Proceeds from long-term revolving line of credit | — | 15,000 | ||||
| Proceeds from long-term secured term loan | — | 98,895 | ||||
| Repayments on long-term revolving line of credit | — | (15,000) | ||||
| Proceeds from Business Combination and PIPE Investment, net of transaction costs | — | 728,255 | ||||
| Repurchase of shares and options from management, net of amount recognized as compensation cost | — | (30,358) | ||||
| Net cash provided by financing activities | 2,041 | 799,939 | ||||
| Effect of exchange rate changes on cash and cash equivalents | 4,372 | 2,128 | ||||
| Net increase (decrease) in cash and cash equivalents and restricted cash | (446,204) | 638,142 | ||||
| Cash and cash equivalents, and restricted cash, beginning of period | 692,075 | 53,933 | ||||
| Cash and cash equivalents, and restricted cash, end of period | $ | 245,871 | $ | 692,075 |
ROCKET LAB U.S.A., INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
FOR THE THREE MONTHS AND YEARS ENDED DECEMBER 31, 2022 AND 2021
(unaudited; in thousands)
The tables provided below reconcile the non-GAAP financial measures Adjusted EBITDA, Non-GAAP gross profit, Non-GAAP research and development, net, Non-GAAP selling, general and administrative, Non-GAAP operating expenses, Non-GAAP operating loss and Non-GAAP total other income (expense), net with the most directly comparable GAAP financial measures. See above for additional information on the use of these non-GAAP financial measures.
| Three Months Ended December 31, 2022 | Three Months Ended December 31, 2021 | Years Ended December 31, 2022 | Years Ended December 31, 2021 | |||||||||
| NET INCOME (LOSS) | $ | (37,208) | $ | 3,196 | $ | (135,944) | $ | (117,320) | ||||
| Depreciation | 4,809 | 2,030 | 16,720 | 7,530 | ||||||||
| Amortization | 3,548 | 1,411 | 13,227 | 3,321 | ||||||||
| Stock-based compensation expense | 12,337 | 8,384 | 55,649 | 32,557 | ||||||||
| Management redemption compensation expense | — | — | — | 9,724 | ||||||||
| Transaction costs | 144 | 1,836 | 649 | 2,495 | ||||||||
| Loss on extinguishment of debt | — | — | — | 795 | ||||||||
| Interest expense, net | 892 | 2,751 | 7,799 | 6,128 | ||||||||
| Change in fair value of liability classified warrants | — | (24,130) | (13,482) | 15,294 | ||||||||
| Change in fair value of contingent consideration | (200) | — | — | — | ||||||||
| Performance reserve escrow | 1,895 | 1,895 | 7,579 | 1,895 | ||||||||
| Amortization of inventory step-up | — | 616 | 2,618 | 616 | ||||||||
| (Benefit) provision for income taxes | (1,010) | (6,541) | 2,998 | (7,520) | ||||||||
| Loss on foreign exchange | 488 | 178 | 4,435 | 567 | ||||||||
| Accretion of marketable securities and cash equivalents purchased at a discount | (1,092) | — | (1,696) | — | ||||||||
| Loss on disposal of assets | 891 | 93 | 923 | 156 | ||||||||
| ADJUSTED EBITDA | $ | (14,506) | $ | (8,281) | $ | (38,525) | $ | (43,762) |
| Three Months Ended December 31, 2022 | Three Months Ended December 31, 2021 | Years Ended December 31, 2022 | Years Ended December 31, 2021 | |||||||||
| GAAP Gross profit (loss) | $ | 1,830 | $ | 6,685 | $ | 18,990 | $ | (1,893) | ||||
| Stock-based compensation | 3,857 | 2,455 | 17,948 | 10,996 | ||||||||
| Amortization of purchased intangibles | 1,710 | 144 | 4,782 | 312 | ||||||||
| Amortization of inventory step-up | — | 616 | 2,618 | 616 | ||||||||
| Performance reserve escrow | 114 | 114 | 456 | 114 | ||||||||
| Non-GAAP Gross profit (loss) | $ | 7,511 | $ | 10,014 | $ | 44,794 | $ | 10,145 | ||||
| Non-GAAP Gross margin | 14.5% | 36.4% | 21.2% | 16.3% | ||||||||
| GAAP Research and development, net | $ | 15,018 | $ | 11,968 | $ | 65,168 | $ | 41,765 | ||||
| Stock-based compensation | (4,442) | (3,039) | (21,127) | (9,973) | ||||||||
| Amortization of purchased intangibles | (9) | (976) | (3,342) | (2,081) | ||||||||
| Non-GAAP Research and development, net | $ | 10,567 | $ | 7,953 | $ | 40,699 | $ | 29,711 | ||||
| GAAP Selling, general and administrative | $ | 24,035 | $ | 19,048 | $ | 89,026 | $ | 58,395 | ||||
| Stock-based compensation | (4,038) | (2,890) | (16,574) | (11,588) | ||||||||
| Management redemption compensation expense | — | — | — | (9,724) | ||||||||
| Amortization of purchased intangibles | (1,494) | (113) | (4,401) | (185) | ||||||||
| Transaction costs | (144) | (1,836) | (649) | (2,495) | ||||||||
| Performance reserve escrow | (1,780) | (1,781) | (7,123) | (1,781) | ||||||||
| Change in fair value of contingent consideration | 200 | — | — | — | ||||||||
| Non-GAAP Selling, general and administrative | $ | 16,779 | $ | 12,428 | $ | 60,279 | $ | 32,622 | ||||
| GAAP Operating expenses | $ | 39,053 | $ | 31,016 | $ | 154,194 | $ | 100,160 | ||||
| Stock-based compensation | (8,480) | (5,929) | (37,701) | (21,561) | ||||||||
| Management redemption compensation expense | — | — | — | (9,724) | ||||||||
| Amortization of purchased intangibles | (1,503) | (1,089) | (7,743) | (2,266) | ||||||||
| Transaction costs | (144) | (1,836) | (649) | (2,495) | ||||||||
| Performance reserve escrow | (1,780) | (1,781) | (7,123) | (1,781) | ||||||||
| Change in fair value of contingent consideration | 200 | — | — | — | ||||||||
| Non-GAAP Operating expenses | $ | 27,346 | $ | 20,381 | $ | 100,978 | $ | 62,333 | ||||
| GAAP Operating loss | $ | (37,223) | $ | (24,331) | $ | (135,204) | $ | (102,053) | ||||
| Total non-GAAP adjustments | 17,388 | 13,964 | 79,020 | 49,865 | ||||||||
| Non-GAAP Operating loss | $ | (19,835) | $ | (10,367) | $ | (56,184) | $ | (52,188) | ||||
| GAAP Total other income (expense), net | $ | (995) | $ | 20,986 | $ | 2,258 | $ | (22,787) | ||||
| Change in fair value of liability classified warrants | — | (24,130) | (13,482) | 15,294 | ||||||||
| Loss on foreign exchange | 488 | 178 | 4,435 | 567 | ||||||||
| Non-GAAP Total other income (expense), net | $ | (507) | $ | (2,966) | $ | (6,789) | $ | (6,926) |
3 responses to “Rocket Lab Saw Higher Revenues, Launches and Net Loss in 2022”
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Meanwhile it looks like they may have lost a lot of cash with SVB failing.
https://news.yahoo.com/comp…
All the Companies Facing Major Troubles After Silicon Valley Bank Crash
Fletcher Peters
Sat, March 11, 2023 at 12:12 PM CST
Rocket Lab USA
Aerospace manufacturer Rocket Lab USA held a good amount of its cash with SVB. The space company held $38 million, or 7.9 percent of its total cash, with SVB, per a filing.
Mmmm no hate-o-gram from Gary, he must be blocked again. Seems to happen annually after the conference in Broomfield.
Possibly another self-implemented ban. He started posting on SpaceNews again a couple of weeks ago from yet another sock-puppet account to get around existing bans. Last week he ramped up into his normal full-speed, duplicating his comments on his blog, and true to form after enough counter-arguments to his posts appeared, he deleted his comments and went dark.
Wash… rinse… repeat…