Rocket Lab USA, Inc. (Nasdaq: RKLB) (“Rocket Lab” or “the
Company”), a global leader in launch services and space systems,
today shared the financial results for fiscal first quarter 2023,
ended March 31, 2023.
Rocket Lab founder and CEO, Peter Beck, said: “Rocket Lab
started the year strong with three successful Electron missions in
the first quarter across our global launch facilities and to date,
remains the only commercial U.S. small launch vehicle to
successfully deliver satellites to orbit in 2023. At a time when
we’re starting to see a contraction of available small rockets,
we’re also seeing an increase in launch bookings for Electron
launches in 2023 and beyond from new and returning customers across
government and commercial sectors. The development of our larger
rocket Neutron is continuing at pace with launch and testing
facilities expanded, engine hardware being printed at our
headquarters in Long Beach, and vehicle hardware in production for
upcoming structural tests throughout the year that we expect will
keep the program on track. Space Systems also continues its strong
performance, with the majority of our products supporting customer
missions across several launches in the quarter, and major program
milestones reached on Photon spacecraft build programs for
government and commercial customers.”
First Quarter 2023 Business Highlights:
- Delivered financial results that exceeded the high end of prior
guidance for revenue and gross margin.
- Launched three successful Electron missions in the first
quarter for commercial constellation operators HawkEye 360, Capella
Space, and BlackSky.
- Successfully completed the Company’s first launch from its U.S.
launch site, Rocket Lab Launch Complex 2, at the Virginia Spaceport
Authority’s Mid-Atlantic Regional Spaceport on January 24, 2023.
The mission deployed three satellites for radio frequency
geospatial analytics provider HawkEye 360.
- Successfully completed the Company’s fastest turnaround between
launches to date – just seven days between its 34th Electron
launch, “Stronger Together”, from Rocket Lab Launch Complex 2 in
Virginia on March 16, 2023, and its 35th Electron launch, “The Beat
Goes On”, from Rocket Lab Launch Complex 1 in New Zealand on March
24, 2023.
- Rocket Lab remains the only U.S. commercial small launch
provider to successfully deliver satellites to orbit in 2023.
- Secured a multi-mission contract with Capella Space to launch
four more dedicated launches on Electron in 2023.
- Achieved programmatic milestones for the Company’s two Photon
spacecraft to support NASA’s ESCAPADE mission to Mars, and for the
Photon spacecraft for a Varda Space Industries’ mission to
manufacture high-value products in zero gravity. Both Photon
programs include Rocket Lab star trackers, reaction wheels, solar
panels, flight software, and radios – demonstrating the value and
strength of the Company’s vertical integration and in-house supply
chain.
Business Highlights Since March 31, 2023:
- Successfully deployed two satellites to space for NASA’s
TROPICS mission on the first of two dedicated launches on Electron
for the constellation scheduled in May 2023.
- Secured another NASA mission to Electron’s 2023 launch manifest
with its Starling mission. Rocket Lab was selected by NASA to
launch the Starling mission on an expedited timeline due to long
delays and uncertainty with the mission’s original launch
provider.
- Signed multiple new launch contracts on Electron for 2023 for
undisclosed commercial satellite customers previously manifested on
another small launch vehicle, demonstrating Electron’s strong
position as a reliable and dependable ride to orbit for small
satellite operators.
- Introduced Rocket Lab’s new HASTE launch vehicle, a suborbital
testbed launch vehicle derived from the Company’s Electron rocket
to provide reliable, high-cadence flight test opportunities to
support the development of advanced hypersonic systems
technology.
- Announced that the Company will fly a pre-launched 3D printed
Rutherford engine on an upcoming mission in Q3’23, a major step in
evolving the Electron launch vehicle into a reusable rocket.
Second Quarter 2023 Guidance
For the second quarter of 2023, Rocket Lab expects:
- Revenue between $60 million and $63 million.
- Launch Services revenue of approximately $23 million.
- Space Systems revenue of between $37 million to $40
million.
- GAAP Gross Margins between 14% to 16%.
- Non-GAAP Gross Margins between 22% to 24%.
- GAAP Operating Expenses between $55 million to $57
million.
- Non-GAAP Operating Expenses between $41 million to $43
million.
- Expected Interest Expense (Income), net $1 million.
- Adjusted EBITDA loss of $22 million to $24 million.
- Basic Shares Outstanding of 480 million.
See “Use of Non-GAAP Financial Measures” below for an
explanation of our use of Non-GAAP financial measures, and
the reconciliation of historical Non-GAAP measures to the
comparable GAAP measures in the tables attached to this press
release. We have not provided a reconciliation for the
forward-looking Non-GAAP Gross Margin, Non-GAAP Operating Expenses
or Adjusted EBITDA expectations for Q2 2023 described above
because, without unreasonable efforts, we are unable to predict
with reasonable certainty the amount and timing of adjustments that
are used to calculate these non-GAAP financial measures,
particularly related to stock-based compensation and its related
tax effects. Stock-based compensation is currently expected to
range from $14 million to $15 million in Q2 2023.
Conference Call Information
Rocket Lab will host a conference call for investors at 1:30
p.m. PT (4:30 p.m. ET) today to discuss these business highlights
and financial results for our first quarter, to provide our outlook
for the second quarter, and other updates.
The live webcast and a replay of the webcast will be available
on Rocket Lab’s Investor Relations website:
https://investors.rocketlabusa.com/events-and-presentations/events
About Rocket Lab
Founded in 2006, Rocket Lab is an end-to-end space company with
an established track record of mission success. We deliver reliable
launch services, satellite manufacture, spacecraft components, and
on-orbit management solutions that make it faster, easier and more
affordable to access space. Headquartered in Long Beach,
California, Rocket Lab designs and manufactures the Electron small
orbital launch vehicle and the Photon satellite platform and is
developing the Neutron launch vehicle for large spacecraft and
constellation deployment. From its first orbital launch in January
2018 to date, Rocket Lab’s Electron launch vehicle has become the
second most frequently launched U.S. rocket annually and has
delivered 161 satellites to orbit for private and public sector
organizations, enabling operations in national security, scientific
research, space debris mitigation, Earth observation, climate
monitoring, and communications. Rocket Lab’s Photon spacecraft
platform has been selected to support NASA missions to the Moon and
Mars, as well as the first private commercial mission to Venus.
Rocket Lab has three launch pads at two launch sites, including two
launch pads at a private orbital launch site located in New Zealand
and a third launch site in Virginia, USA. To learn more, visit
www.rocketlabusa.com.
+ FORWARD LOOKING STATEMENTS
This press release may contain certain “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements, other than statements of historical facts,
contained in this press release, including statements regarding our
expectations of financial results for the second quarter of 2023,
strategy, future operations, future financial position, projected
costs, prospects, plans and objectives of management, are
forward-looking statements. Words such as, but not limited to,
“anticipate,” “aim,” “believe,” “contemplate,” “continue,” “could,”
“design,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,”
“possible,” “potential,” “predict,” “project,” “seek,” “should,”
“suggest,” “strategy,” “target,” “will,” “would,” and similar
expressions or phrases, or the negative of those expressions or
phrases, are intended to identify forward-looking statements,
although not all forward-looking statements contain these
identifying words. These forward-looking statements are based on
Rocket Lab’s current expectations and beliefs concerning future
developments and their potential effects. These forward-looking
statements involve a number of risks, uncertainties (many of which
are beyond Rocket Lab’s control), or other assumptions that may
cause actual results or performance to be materially different from
those expressed or implied by these forward-looking statements.
Many factors could cause actual future events to differ materially
from the forward-looking statements in this press release,
including risks related to delays and disruptions in expansion
efforts; our dependence on a limited number of customers; the harsh
and unpredictable environment of space in which our products
operate which could adversely affect our launch vehicle and
spacecraft; increased congestion from the proliferation of low
Earth orbit constellations which could materially increase the risk
of potential collision with space debris or another spacecraft and
limit or impair our launch flexibility and/or access to our own
orbital slots; increased competition in our industry due in part to
rapid technological development and decreasing costs; technological
change in our industry which we may not be able to keep up with or
which may render our services uncompetitive; average selling price
trends; failure of our launch vehicles, spacecraft and components
to operate as intended either due to our error in design in
production or through no fault of our own; launch schedule
disruptions; supply chain disruptions, product delays or failures;
design and engineering flaws; launch failures; natural disasters
and epidemics or pandemics; changes in governmental regulations
including with respect to trade and export restrictions, or in the
status of our regulatory approvals or applications; or other events
that force us to cancel or reschedule launches, including customer
contractual rescheduling and termination rights; risks that
acquisitions may not be completed on the anticipated time frame or
at all or do not achieve the anticipated benefits and results; and
the other risks detailed from time to time in Rocket Lab’s filings
with the Securities and Exchange Commission (the “SEC”), including
under the heading “Risk Factors” in Rocket Lab’s Annual Report on
Form 10-K for the fiscal year ended December 31, 2022, which was
filed with the SEC on March 7, 2023, and elsewhere. There can be no
assurance that the future developments affecting Rocket Lab will be
those that we have anticipated. Except as required by law, Rocket
Lab is not undertaking any obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise.
Notes to Editor: All dollar amounts in this press release
are expressed in U.S. dollars, unless otherwise stated.
+ USE OF NON-GAAP FINANCIAL MEASURES
We supplement the reporting of our financial information
determined under Generally Accepted Accounting Principles in the
United States of America (“GAAP”) with certain non-GAAP financial
information. The non-GAAP financial information presented excludes
certain significant items that may not be indicative of, or are
unrelated to, results from our ongoing business operations. We
believe that these non-GAAP measures provide investors with
additional insight into the company's ongoing business performance.
These non-GAAP measures should not be considered in isolation or as
a substitute for the related GAAP measures, and other companies may
define such measures differently. We encourage investors to review
our financial statements and publicly-filed reports in their
entirety and not to rely on any single financial measure.
Reconciliation of the non-GAAP financial information to the
corresponding GAAP measures for the historical periods disclosed
are included at the end of the tables in this press release. We
have not provided a reconciliation for forward-looking non-GAAP
financial measures because, without unreasonable efforts, we are
unable to predict with reasonable certainty the amount and timing
of adjustments that are used to calculate these non-GAAP financial
measures, particularly related to stock-based compensation and its
related tax effects. The following definitions are provided:
+ ADJUSTED EDITDA
EBITDA is defined as earnings before interest, taxes,
depreciation and amortization. Adjusted EBITDA further excludes
items of income or loss that we characterize as unrepresentative of
our ongoing operations. Such items are excluded from net income or
loss to determine Adjusted EBITDA. Management believes this measure
provides investors meaningful insight into results from ongoing
operations.
+ OTHER NON-GAAP FINANCIAL MEASURES
Non-GAAP gross profit, research and development, net, selling,
general and administrative, operating expenses, operating loss and
total other income (expense), net, further excludes items of income
or loss that we characterize as unrepresentative of our ongoing
operations. Such items are excluded from the applicable GAAP
financial measure. Management believes these non-GAAP measures
provide investors meaningful insight into results from ongoing
operations.
ROCKET LAB U.S.A., INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED
MARCH 31, 2023 AND 2022
(unaudited; in thousands,
except share and per share data)
Three Months Ended March
31,
2023
2022
Revenues
$
54,895
$
40,703
Cost of revenues
48,538
36,968
Gross profit
6,357
3,735
Operating expenses:
Research and development, net
23,905
13,477
Selling, general and administrative
28,469
23,078
Total operating expenses
52,374
36,555
Operating loss
(46,017
)
(32,820
)
Other income (expense):
Interest expense, net
(685
)
(2,989
)
Gain (loss) on foreign exchange
134
(20
)
Change in fair value of liability
classified warrants
—
13,482
Other income, net
1,477
26
Total other income, net
926
10,499
Loss before income taxes
(45,091
)
(22,321
)
Provision for income taxes
(526
)
(4,388
)
Net loss
$
(45,617
)
$
(26,709
)
Net loss per share attributable to Rocket
Lab USA, Inc.:
Basic and diluted
$
(0.10
)
$
(0.06
)
Weighted-average common shares
outstanding:
Basic and diluted
476,199,710
456,495,288
ROCKET LAB U.S.A., INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
AS OF MARCH 31, 2023 AND
DECEMBER 31, 2022
(unaudited; in thousands,
except share and per share values)
March 31, 2023
(unaudited)
December 31, 2022
Assets
Current assets:
Cash and cash equivalents
$
208,365
$
242,515
Marketable securities, current
190,357
229,276
Accounts receivable, net
50,690
36,572
Contract assets
12,558
9,451
Inventories
98,453
92,279
Prepaids and other current assets
63,203
52,201
Assets held for sale
11,630
—
Total current assets
635,256
662,294
Non-current assets:
Property, plant and equipment, net
95,981
101,514
Intangible assets, net
76,495
79,692
Goodwill
71,020
71,020
Right-of-use assets - operating leases
34,839
35,239
Right-of-use assets - finance leases
15,458
15,614
Marketable securities, non-current
47,920
9,193
Restricted cash
3,337
3,356
Deferred income tax assets, net
3,500
3,898
Other non-current assets
7,102
7,303
Total assets
$
990,908
$
989,123
Liabilities and Stockholders’
Equity
Current liabilities:
Trade payables
$
22,852
$
12,084
Accrued expenses
8,678
8,723
Employee benefits payable
12,333
8,634
Contract liabilities
125,635
108,344
Current installments of long-term
borrowings
2,934
2,906
Other current liabilities
24,863
22,249
Total current liabilities
197,295
162,940
Non-current liabilities:
Long-term borrowings, excluding current
installments
100,724
100,043
Non-current operating lease
liabilities
33,870
34,266
Non-current finance lease liabilities
15,478
15,568
Deferred tax liabilities
170
95
Other non-current liabilities
3,353
3,005
Total liabilities
350,890
315,917
COMMITMENTS AND CONTINGENCIES
Stockholders’ equity:
Common stock, $0.0001 par value;
authorized shares: 2,500,000,000; issued and outstanding shares:
478,153,075 and 475,356,517 at March 31, 2023 and December 31,
2022, respectively
48
48
Additional paid-in capital
1,125,976
1,112,977
Accumulated deficit
(486,572
)
(440,955
)
Accumulated other comprehensive income
566
1,136
Total stockholders’ equity
640,018
673,206
Total liabilities and stockholders’
equity
$
990,908
$
989,123
ROCKET LAB U.S.A., INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED
MARCH 31, 2023 AND 2022
(unaudited; in
thousands)
For the Three Months Ended
March 31,
2023
2022
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss
$
(45,617
)
$
(26,709
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
7,033
6,088
Stock-based compensation expense
14,036
11,958
Loss on disposal of assets
5
5
Amortization of debt issuance costs and
discount
709
690
Noncash lease expense
988
731
Noncash income associated with
liability-classified warrants
—
(13,482
)
Change in the fair value of contingent
consideration
300
2,500
Accretion of marketable securities
purchased at a discount
(1,147
)
—
Deferred income taxes
420
(1,558
)
Changes in operating assets and
liabilities:
Accounts receivable, net
(14,116
)
(5,644
)
Contract assets
(3,109
)
(3,668
)
Inventories
(6,712
)
(9,132
)
Prepaids and other current assets
(10,035
)
(1,071
)
Other non-current assets
103
772
Trade payables
11,305
805
Accrued expenses
403
(3,245
)
Employee benefits payables
1,294
475
Contract liabilities
17,292
10,652
Other current liabilities
2,305
4,266
Non-current lease liabilities
(891
)
(783
)
Other non-current liabilities
49
11
Net cash used in operating activities
(25,385
)
(26,339
)
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchases of property, equipment and
software
(12,674
)
(6,242
)
Cash paid for acquisitions, net of
acquired cash and restricted cash
—
(65,588
)
Purchases of marketable securities
(76,394
)
—
Maturities of marketable securities
78,099
—
Net cash used in investing activities
(10,969
)
(71,830
)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from the exercise of stock
options and public warrants
771
1,379
Proceeds from Employee Stock Purchase
Plan
1,202
1,025
Proceeds from sale of employees restricted
stock units to cover taxes
3,078
20,841
Minimum tax withholding paid on behalf of
employees for restricted stock units
(1,915
)
(8,756
)
Payment of contingent consideration
(1,000
)
—
Finance lease principal payments
(78
)
(45
)
Net cash provided by financing
activities
2,058
14,444
Effect of exchange rate changes on cash
and cash equivalents
127
(574
)
Net decrease in cash and cash equivalents
and restricted cash
(34,169
)
(84,299
)
Cash and cash equivalents, and restricted
cash, beginning of period
245,871
692,075
Cash and cash equivalents, and restricted
cash, end of period
$
211,702
$
607,776
ROCKET LAB U.S.A., INC. AND
SUBSIDIARIES
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
FOR THE THREE MONTHS ENDED
MARCH 31, 2023 AND 2022
(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 March
31,
2023
2022
NET LOSS
$
(45,617
)
$
(26,709
)
Depreciation
3,713
3,193
Amortization
3,320
2,895
Stock-based compensation expense
14,036
11,958
Transaction costs
165
375
Interest expense, net
685
2,989
Change in fair value of liability
classified warrants
—
(13,482
)
Change in fair value of contingent
consideration
300
2,500
Performance reserve escrow
1,838
1,895
Amortization of inventory step-up
—
2,002
Provision for income taxes
526
4,388
(Gain) loss on foreign exchange
(134
)
20
Accretion of marketable securities
purchased at a discount
(1,165
)
—
Loss on disposal of assets
5
5
Employee retention credit
(3,841
)
—
ADJUSTED EBITDA
$
(26,169
)
$
(7,971
)
Three Months Ended March
31,
2023
2022
GAAP Gross profit
$
6,357
$
3,735
Stock-based compensation
3,813
3,335
Amortization of purchased intangibles
1,710
565
Amortization of inventory step-up
—
2,002
Performance reserve escrow
57
114
Employee retention credit
(2,130
)
—
Non-GAAP Gross profit
$
9,807
$
9,751
Non-GAAP Gross margin
17.9
%
24.0
%
GAAP Research and development,
net
$
23,905
$
13,477
Stock-based compensation
(5,022
)
(5,026
)
Amortization of purchased intangibles
(9
)
(1,632
)
Employee retention credit
631
—
Non-GAAP Research and development,
net
$
19,505
$
6,819
GAAP Selling, general and
administrative
$
28,469
$
23,078
Stock-based compensation
(5,201
)
(3,597
)
Amortization of purchased intangibles
(1,434
)
(598
)
Transaction costs
(165
)
(375
)
Performance reserve escrow
(1,781
)
(1,781
)
Change in fair value of contingent
consideration
(300
)
(2,500
)
Employee retention credit
1,080
—
Non-GAAP Selling, general and
administrative
$
20,668
$
14,227
GAAP Operating expenses
$
52,374
$
36,555
Stock-based compensation
(10,223
)
(8,623
)
Amortization of purchased intangibles
(1,443
)
(2,230
)
Transaction costs
(165
)
(375
)
Performance reserve escrow
(1,781
)
(1,781
)
Change in fair value of contingent
consideration
(300
)
(2,500
)
Employee retention credit
1,711
—
Non-GAAP Operating expenses
$
40,173
$
21,046
GAAP Operating loss
$
(46,017
)
$
(32,820
)
Total non-GAAP adjustments
15,651
21,525
Non-GAAP Operating loss
$
(30,366
)
$
(11,295
)
GAAP Total other income (expense),
net
$
926
$
10,499
Change in fair value of liability
classified warrants
—
(13,482
)
(Gain) loss on foreign exchange
(134
)
20
Non-GAAP Total other income (expense),
net
$
792
$
(2,963
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230509006186/en/
+ Rocket Lab Investor Relations Contact Colin Canfield
investors@rocketlabusa.com
+ Rocket Lab Media Contact Murielle Baker
media@rocketlabusa.com
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