Q1 2025 Performance Highlights - Rocket Lab achieved Q1 2025 revenue of $122.6 million, a 32% year-over-year increase compared to Q1 2024[10, 11] - The company launched five Electron missions with 100% mission success in Q1 2025 and booked eight new launch contracts for Electron, HASTE, and Neutron[12] - Neutron was onramped to the Department of Defense's NSSL program[13] Neutron Development and Contracts - Neutron was added to the $5.6 billion NSSL program[30] - A new launch contract was secured with the U S Air Force Research Laboratory (AFRL) for a mission scheduled no earlier than 2026[13, 35] - Stage 2 qualification is complete, and Stage 1 qualification is underway for Neutron[39, 42] Space Systems and Acquisitions - Rocket Lab is working to acquire Mynaric, a provider of laser optical communications terminals[61] - The third Pioneer spacecraft for Varda was launched and is successfully operating on orbit[68] Financial Outlook - Q2 2025 revenue is expected to range between $130 million and $140 million[106] - GAAP gross margin for Q2 2025 is expected to range between 30% and 32%, with Non-GAAP gross margin expected to be between 34% and 36%[106] - GAAP operating expenses for Q2 2025 are projected to be $96 million to $98 million, with Non-GAAP operating expenses expected to be $82 million to $84 million[101]

Financial Data and Key Metrics Changes - In 2024, the company achieved its highest annual revenue of $436 million, representing a 78% increase year-over-year, with Q4 revenue of $132 million reflecting a 121% year-over-year growth [8][61] - The launch services segment generated $125.4 million in revenue for the full year, a 74% increase year-over-year, while the Space Systems segment delivered $310.8 million, an 80% increase year-over-year [62][63] - GAAP gross margin for Q4 was 27.8%, and non-GAAP gross margin was 34%, both at the high end of prior guidance ranges [64][65] Business Line Data and Key Metrics Changes - The launch services segment contributed $42.4 million in Q4, while the Space Systems segment delivered $90 million, with the latter showing a sequential growth of over 7% [61][63] - The company completed 16 launches in 2024, maintaining its position as the leading small launch provider globally [10][11] - The backlog at the end of Q4 was $1.07 billion, with $386 million in launch backlog and $681 million in space systems backlog [66] Market Data and Key Metrics Changes - The company signed over $450 million in new contracts in 2024, strengthening its backlog [11] - The market for hypersonic technology is expanding, with a 46% increase in the Pentagon's budget request for hypersonic research to $6.9 billion [22] Company Strategy and Development Direction - The company aims to build a fully integrated end-to-end space company, focusing on launch, space systems, and eventually space applications [15][59] - Neutron is positioned as a critical vehicle to unlock the medium launch market, with plans for over 20 missions in 2025 [17][26] - The introduction of Flatellite aims to enhance the company's capabilities in satellite manufacturing and constellation deployment [56][59] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in launching Neutron in 2025, with no major concerns affecting the timeline [91] - The company anticipates continued growth in both launch and space systems segments, with a potential shift in revenue mix towards launch services as Neutron becomes operational [92][94] Other Important Information - The company expects cash consumption to increase in Q1 2025 due to Neutron-related investments and a lack of significant contractual milestone payments [81] - The ending cash balance was $484 million, providing a strong position for future investments [77] Q&A Session Summary Question: Timing of Neutron launch - Management indicated that the timeline for Neutron has been adjusted to the second half of 2025, allowing for more preparation time [85] Question: Definition of mission success for Neutron - Success for the first Neutron flight is defined as reaching orbit, which is a challenging goal [87] Question: Confidence in launching Neutron this year and revenue mix in 2026 - Management is confident in launching Neutron this year and expects a shift in revenue mix towards launch services as Neutron begins operations [91][94] Question: Cost expectations for Neutron - The first Neutron launch will be an R&D launch with no revenue, but future costs will benefit from reusability [103][106] Question: Advantages of Flatellite in the market - Flatellite is designed for rapid production and cost efficiency, leveraging the company's vertical integration [110][113]