Rocket Lab has reported fourth-quarter results indicating a net loss of $50.5 million, or 10 cents per share. This represents a significant increase in losses year over year, as the company continues to heavily invest in the development of its Neutron rocket. The full-year loss also widened to $182.6 million. Despite the widening losses, revenue saw a growth of 16% in the fourth quarter, reaching $60 million. The company’s launch business accounted for just $8.5 million of this revenue, with the majority coming from its space systems at $51.5 million.
Rocket Lab’s contract backlog surpassed $1 billion, more than doubling year over year, fueled in large part by a $515 million satellite contract from the Pentagon’s Space Development Agency. The company also reported securing a record number of Electron launch deals in 2023, totaling 25 contracts worth $248 million. However, Rocket Lab’s fourth-quarter revenue fell slightly short of Wall Street expectations, coming in at $60 million, just below the anticipated $62.9 million. Despite this, the company remains optimistic, forecasting first-quarter revenue between $92 million and $98 million.
Progress on Neutron Rocket Development
Since unveiling its plans for the Neutron rocket in 2021, Rocket Lab has been actively working on its development. The company provided updates on key milestones achieved during the fourth quarter, including the production of rocket parts for the first launch, software simulations of launches, and early testing of the Archimedes engines that will power the rocket. Looking ahead, Rocket Lab outlined upcoming milestones for the Neutron rocket, such as further engine testing and structural testing of the nose cone.
In addition to its focus on the Neutron rocket, Rocket Lab announced the expansion of its line of spacecraft products. Building on the success of its Photon satellite bus, the company introduced three new spacecraft models – Lightning, Pioneer, and Explorer. These spacecraft are designed to cater to a range of customer missions, from low Earth orbit communications satellites to deep space exploration of other planetary bodies.
Following the release of its financial results and updates on the Neutron rocket development, Rocket Lab’s shares experienced a 5% decline in after-hours trading. The stock closed at $4.71, reflecting investor reaction to the company’s performance and future prospects. Despite the market response, Rocket Lab remains focused on its mission to compete with industry giants like SpaceX and expand its presence in the space launch market.
Overall, Rocket Lab’s progress with the Neutron vehicle and its financial results paint a mixed picture of the company’s performance. While facing widening losses, Rocket Lab has made significant strides in securing contracts, developing its next-generation rocket, and expanding its product offerings. As the company navigates the challenges of the space industry, it will be crucial for Rocket Lab to maintain its momentum and deliver on its ambitious goals in the coming quarters.