Rocket Lab stock is enjoying a growth spurt, and investors are cheering. 50 rockets for Rocket Lab Dubbed the "No Time Toulouse" mission, it will see Rocket Lab launch five Internet-of-Things (IoT) satellites for French company Kinéis. The mission is scheduled to lift off in just one week, on or about June 19. The least interesting of these is that Rocket Lab signed a "preliminary memorandum of terms" with the Commerce Department yesterday, which could see the company awarded up to $23.9 million in direct f ...

Rocket Lab (RKLB 1.60%) is the only company besides SpaceX with re-entry capabilities for spacecraft. And yet, as we sit here today, its shares have a measly valuation of just $2 billion compared to SpaceX's reported $200 billion as a private company. Let's see why Rocket Lab stock is down so much and whether investors should buy at these prices. To inch its way into the space flight business, Rocket Lab began operations with its small payload rocket called Electron. It currently launches around four Electr ...

Rocket Lab isn't profitable yet, but it's on the right path. Small rocket-maker Rocket Lab (RKLB -5.01%) is performing impressively -- accelerating rocket launches faster than SpaceX, growing its revenue 69% year over year, and inching ever closer to profitability. And yet investors may be curious: Why is Rocket Lab stock down more than 50% since its 2021 IPO? Rocket Lab Q1 earnings report Rocket Lab reported earnings on Monday, May 6. The company reported 69% sales growth to $92.8 million, with losses slim ...

Rocket Lab USA, Inc. (RKLB) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Over the past month, shares of this company have returned +21.2%, compared to the Zacks S&P 500 composite's +7.3% change. During this period, the Zacks Aerospace - Defense industry, which Rocket Lab USA falls in, has gained 4.5%. The key question now is: What could be the stock's future direction? While ...

Key PointsRocket Lab stock has rocketed up and down as investors try to make sense of earnings. The company continues to grow earnings but likely won’t be profitable until at least 2026. Investors are back to where they were a year ago, but that could be a buying opportunity.  5 stocks we like better than Rocket Lab USARocket Lab USA Inc. NASDAQ: RKLB is one of the small-cap aerospace stocks to watch in the emerging space industry. Like many small-cap stocks, strong price movement in either direction is com ...

Here's one scenario in which Rocket Lab stock could be worth $8 a share.Rocket Lab (RKLB 2.81%) stock has taken investors on a wild ride this week, slumping on Tuesday's news that the rocket maker had missed Wall Street's sales target in the first quarter, then recovering on Wednesday.Investors might have felt encouraged that Morgan Stanley analyst Kristine Liwag, in a note on StreetInsider, lowered her price target on Rocket Lab stock to $8 a share. Why would investors think a lowered price target is good ...

Rocket Lab is still unprofitable, but has the cash it needs to make a run at profitability over the next two years.Investors weren't too impressed with Rocket Lab's (RKLB 1.26%) first-quarter earnings report Monday, selling shares of the space stock down 2% despite Rocket Lab reporting 69% sales growth in Q1 -- and predicting up to 77% growth in Q2!But one Wall Street analyst firm begs to differ.On Tuesday, investment bank Citigroup repeated its opinion that Rocket Lab stock is a buy. The banker did nudge i ...

Rocket Lab USA, Inc. Q1 2024 Investor Update May 6th, 2024 F45 | Synspective Launch Complex 1 Launched: 13 March, 2024 F46 | National Reconnaissance Office Launch Complex 2 Launched: 21 March, 2024 -- 6 SEC.1 | additional ACCOMPLISHMENTS First launch in q2, 2024 complete | --- | --- | |-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Financial Data and Key Metrics - Q1 2024 revenue was $92 8 million, reflecting 69% YoY growth and 55% sequential growth, driven by strong contributions from both business segments [146] - GAAP gross margin for Q1 was 26 1%, slightly above the high end of the prior guidance range of 24% to 26% Non-GAAP gross margin was 31 7%, also above the guidance range of 29% to 31% [11] - GAAP operating expenses for Q1 were $67 3 million, below the low end of the guidance range of $73 million to $75 million Non-GAAP operating expenses were $56 4 million, below the guidance range of $62 million to $64 million [12] - Cash consumed from operations was $2 6 million in Q1 2024, compared to $42 2 million in Q4 2023, driven by improved net income loss and working capital improvements [46] Business Line Data and Key Metrics - Launch Services segment delivered $32 7 million in revenue from four launches, in line with guidance of $32 million to $33 million, representing 287% sequential growth [192] - Space Systems segment delivered just over $60 million in revenue, towards the low end of the guidance range of $60 million to $65 million, reflecting 17% sequential growth [202] - The average selling price per launch was $8 2 million, well above the target of $7 5 million, driven by a favorable mix of government and complex commercial missions [23] - Q1 ending backlog was $1 02 billion, with Launch backlog at $215 6 million and Space Systems backlog at $799 7 million, down 3% sequentially [45] Market Data and Key Metrics - The company completed its fifth launch of the year, a commercial mission for KAIST Institute of South Korea and a scientific mission for NASA, showcasing unique kick stage capabilities [171] - The company is set to launch two missions for NASA in Q2, deploying 25 satellites across five Electron launchers, with a potential fifth launch for a commercial constellation customer [2][3] - The company has a strong launch manifest for 2024, with 22 missions sold, though some movement in the manifest is expected due to customer delays [207] Company Strategy and Industry Competition - The company is focusing on vertical integration, as demonstrated by the VICTUS HAZE mission, which showcases the ability to provide end-to-end mission solutions [208] - The company is investing in the development of the Neutron rocket, with the first Archimedes engine completed and undergoing testing, targeting a first launch no earlier than mid-2025 [209][211] - The company is expanding its space systems capabilities, including a $515 million contract with the Space Development Agency for 18 spacecraft, and a long-term supply agreement for space solar solutions worth up to $150 million [172][198] Management Commentary on Operating Environment and Future Outlook - Management expects Q2 2024 revenue to range between $105 million and $110 million, with $77 million to $81 million from Space Systems and $28 million to $29 million from Launch Services, assuming four launches [194] - The company is on track for a record year for Electron launches, with 2025 also shaping up to be another record year [16] - Management highlighted the importance of the Archimedes engine for Neutron's development, noting that the engine is the primary driver for the schedule adjustment to mid-2025 [36] Other Important Information - The company has completed the first Archimedes engine, which is now undergoing testing at NASA Stennis, marking a significant milestone in Neutron's development [209] - The company has made progress on the Neutron launch complex, with concrete works for the launch mount completed and propellant tanks soon to be delivered [191] - The company has successfully returned an Electron stage to the production line for re-flying, marking a significant step in the reusability program [17] Q&A Session Summary Question: Neutron Development Timeline - The delay in Neutron's first launch to mid-2025 is primarily driven by the engine development, with additional time taken to ensure the engine is production-ready [36][105] - Management emphasized that rocket programs are notoriously difficult to plan, with many unknowns in the development process [36] Question: Electron Launch Manifest - The company has 22 missions booked for 2024, but some movement in the manifest is expected due to customer delays, making it challenging to achieve all 22 launches [49][230] - Management noted that while it may be difficult to achieve 22 launches, the company has a strong position to make up for any shortfall with other parts of the business [60] Question: Backlog and Pricing Power - The company has a strong backlog of $1 02 billion, with 42% expected to be recognized as revenue within 12 months [45][116] - Management sees some natural pricing support for Electron launches due to the lack of competition from aspirational players [32] Question: SolAero Margins - The company is working towards achieving a 30% gross margin target for SolAero, with progress being made on new contracts and production efficiencies [147][148] - Management expects to reach the 30% gross margin target within two years of acquisition, with some challenges remaining from pre-acquisition contracts [149][150] Question: Neutron Demand - Management is confident in the demand for Neutron, with robust discussions ongoing with potential customers [111] - The company is focused on bringing a launch vehicle to market that is ready to go, rather than engaging in early adopter pricing [112]

Revenue and Growth - Revenue for the three months ended March 31, 2024, was $92.8 million, a 69% increase from $54.9 million in the same period in 2023, driven by space systems growth of $24.8 million and launch growth of $13.1 million[109]. - Revenues for the three months ended March 31, 2024, were $92.8 million, a 69% increase from $54.9 million in the same period of 2023[127]. - The average revenue per launch increased to $8.2 million in the three months ended March 31, 2024, compared to $6.5 million in the same period in 2023, while the cost per launch decreased to $6.1 million from $7.5 million[111]. Backlog and Launch Operations - The backlog decreased from $1,046.1 million as of December 31, 2023, to $1,015.3 million as of March 31, 2024, with $215.6 million related to Launch Services and $799.7 million related to Space Systems[112]. - Rocket Lab has successfully launched the Electron rocket 42 times, delivering over 180 spacecraft to orbit through March 31, 2024[113]. - Rocket Lab's launch services program has achieved 42 successful missions, making it the fourth most frequent orbital launcher globally[102]. - The company built approximately 11 launch vehicles in 2023 and launched 10 vehicles in the same year, indicating a positive growth trend in launch operations[108]. Research and Development - Significant investments will continue in research and development for new products, including the Neutron launch vehicle and advanced configurable spacecraft[121]. - Research and development expenses rose by $14.6 million, or 61%, to $38.5 million for the three months ended March 31, 2024, primarily due to Neutron development[129]. Financial Performance - Cost of revenues increased by $20.1 million, or 41%, to $68.6 million for the three months ended March 31, 2024, compared to $48.5 million in 2023[128]. - Gross profit for the three months ended March 31, 2024, was $24.2 million, representing a gross margin of 26.1%, up from 11.6% in the same period of 2023[126]. - Net loss for the three months ended March 31, 2024, was $44.3 million, compared to a net loss of $45.6 million in the same period of 2023[126]. Cash and Financing - Cash and cash equivalents as of March 31, 2024, totaled $365.9 million, with an additional $195.2 million in marketable securities[134]. - Net cash provided by financing activities was $258.7 million for the three months ended March 31, 2024, primarily from the issuance of convertible senior notes[144]. - Capital expenditures for the three months ended March 31, 2024, were $19.2 million, reflecting ongoing investments in infrastructure[137]. - The company expects to continue investing in product development and market expansion, with potential opportunistic capital raising in the future[135]. Market Risks - The company is exposed to market risks primarily due to fluctuations in foreign currency exchange rates, interest rates, and inflation[147]. - The reporting currency is the U.S. dollar, and a 10% or greater move in exchange rates could materially impact financial results[148]. - The company does not believe inflation has materially affected its business, but significant inflationary pressures could harm profit margins[150]. Operational Strategy - The company aims to improve profit margins and scale its business by increasing production volumes and reducing costs[114]. - Government expenditures and private enterprise investment are expected to remain crucial for funding purchases of Rocket Lab's products and services, supporting growth prospects[115]. - The company has no off-balance sheet arrangements during the reported periods[146].