- Record revenue of $55.5 million, representing 36% sequential
quarter-on-quarter growth and 392% Year-on-Year quarterly revenue
growth
- Third quarter revenue expected to range between $60 million and
$63 million
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 its fiscal second quarter of
2022, ended June 30, 2022.
“In the second quarter of 2022 our team upheld our track record
of relentless execution, delivering three successful launches, more
than any other small launch provider for the entire year so far.
Electron retains its position as the industry’s reliable small
launch vehicle, delivering satellites to orbit for a range
commercial constellation operators and NASA in the second quarter,
quickly followed by back-to-back national security launches for the
National Reconnaissance Office after the second quarter end,” said
Rocket Lab founder and CEO, Peter Beck. “We continue to push the
boundaries with our launch and spacecraft technology, a strategy
that also saw us successfully launch the CAPSTONE mission to the
Moon for NASA. The highly complex two-phase mission encompassed a
flawless launch on Electron and successful deployment to ballistic
lunar transfer orbit by our in-house designed and built Lunar
Photon spacecraft, paving the way for future deep space missions to
Mars and Venus.”
“We are encouraged by broad-based momentum that continued across
our space systems business which comprised 66% of our revenue in
the second quarter. Space Systems continues to be a significant
growth area, with construction of our satellite constellation
production facility in Long Beach substantially complete. This
production facility will support the manufacturing of contracted
spacecraft builds in backlog for a range of customers including
Varda Space Industries, Eta Space, the University of California,
Berkeley and seventeen 500 kg spacecraft buses for Globalstar as
part of a $143M subcontract awarded to Rocket Lab by MDA in the
first quarter of this year.”
Second Quarter 2022 Business Highlights:
- Launched three successful Electron missions in the second
quarter, more than any other U.S. small launch provider for the
entire year so far. The missions included the CAPSTONE mission to
the Moon for NASA, as well missions that deployed satellites for
four commercial constellation companies; BlackSky, Unseenlabs,
E-Space, and Swarm, three of which are repeat Electron launch
customers.
- Successfully launched the CAPSTONE mission to the Moon for NASA
- the first mission of NASA’s historic Artemis program to return
humans to the Moon. This highly complex two-phase mission
encompassed a flawless launch on Electron and successful deployment
to ballistic lunar transfer orbit by Rocket Lab’s in-house designed
and built Lunar Photon spacecraft. The mission was an impressive
display of capability across launch and space systems, paving the
way for future deep space missions to Mars and Venus.
- Signed a multi-launch contract with HawkEye 360 to launch 15
satellites across three Electron missions between late 2022 and
2024. The first of the three missions is scheduled to be Rocket
Lab’s inaugural mission from Launch Complex 2 in Virginia in
December 2022.
- Completed the first mid-air capture of an Electron booster with
a helicopter, advancing the company’s rocket reusability
program.
- Selected to manufacture Solar Array Panel for NASA’s GLIDE
spacecraft, the first mission dedicated to surveying changes in the
exosphere, the outermost layer of Earth’s atmosphere.
- Commenced construction on the Neutron launch vehicle production
complex in Virginia.
- Surpassed 50 missions with the company’s MAX Flight Software, a
leading off-the-shelf software platform used by aerospace prime
contractors, the U.S. Air Force, U.S. DOD organizations, NASA, and
commercial spacecraft developers and operators.
Since June 30, 2022 Rocket Lab also:
- Launched two successful back-to-back missions for the National
Reconnaissance Office in just over three weeks, demonstrating
responsive launch for the national security community.
- Introduced the Company’s Responsive Space Program to enable
rapid call-up launch and spacecraft capabilities.
- Selected to supply solar power for the United States Space
Force’s new missile warning satellites
Third Quarter 2022 Guidance
For the third quarter of 2022, 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 12% to 15%
- Non-GAAP Gross Margins between 22% to 25%
- GAAP Operating Expenses $41 million to $43 million
- Non-GAAP Operating Expenses $27 million to $29 million
- Expected Interest expenses (Income), net $2 million
expense
- Adjusted EBITDA loss of $8 million to $12 million
- Basic Shares Outstanding 471 million
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 second quarter, to provide our
outlook for the third quarter ending September 30, 2022 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, spacecraft components, satellites and other
spacecraft 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 13-ton payload class launch vehicle.
Since its first orbital launch in January 2018, Rocket Lab’s
Electron launch vehicle has become the second most frequently
launched U.S. rocket annually and has delivered 149 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 second
launch site in Virginia, USA which is expected to become
operational by the end of 2022. 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
strategy, future operations, future financial position, projected
costs, prospects, plans and objectives of management, including
without limitation Q1 2022 guidance, 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 the global COVID-19 pandemic; risks related to
government restrictions and lock-downs in New Zealand and other
countries in which we operate that could delay or suspend our
operations; 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, 2021, which was
filed with the SEC on March 24, 2022, and elsewhere (including that
the impact of the COVID-19 pandemic may also exacerbate the risks
discussed therein). There can be no assurance that the future
developments affecting Rocket Lab will be those that we have
anticipated. You should read this press release with the
understanding that our actual results may be materially different
from the plans, intentions and expectations disclosed in the
forward looking statements we make. All forward looking statements
are qualified in their entirety by this cautionary statement.
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.
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. GAAP
measures for the historical periods disclosed are included in this
presentation. 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 EBITDA
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 to determine adjusted income.
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.
Notes to Editor: All dollar amounts in this press release
are expressed in U.S. dollars, unless otherwise stated.
ROCKET LAB U.S.A., INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS
ENDED JUNE 30, 2022 AND 2021
(unaudited; in thousands,
except share and per share data)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Revenues
$
55,474
$
11,280
$
96,177
$
29,472
Cost of revenues
50,516
8,817
87,484
25,598
Gross profit
4,958
2,463
8,693
3,874
Operating expenses:
Research and development, net
19,165
8,529
32,642
15,607
Selling, general and administrative
18,952
7,068
42,030
13,692
Total operating expenses
38,117
15,597
74,672
29,299
Operating loss
(33,159
)
(13,134
)
(65,979
)
(25,425
)
Other income (expense):
Interest expense, net
(2,432
)
(275
)
(5,421
)
(402
)
Loss on foreign exchange
(3,876
)
(126
)
(3,896
)
(405
)
Change in fair value of liability
classified warrants
—
(2,448
)
13,482
(5,478
)
Other income (expense), net
(23
)
(242
)
3
(133
)
Total other income (expense), net
(6,331
)
(3,091
)
4,168
(6,418
)
Loss before income taxes
(39,490
)
(16,225
)
(61,811
)
(31,843
)
Benefit (provision) for income taxes
2,073
(440
)
(2,315
)
(704
)
Net loss
$
(37,417
)
$
(16,665
)
$
(64,126
)
$
(32,547
)
Net loss per share attributable to Rocket
Lab USA, Inc.:
Basic and diluted
$
(0.08
)
$
(0.21
)
$
(0.14
)
$
(0.41
)
Weighted-average common shares
outstanding:
Basic and diluted
464,719,924
78,961,096
460,630,324
78,893,969
ROCKET LAB U.S.A., INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
AS OF JUNE 30, 2022 AND
DECEMBER 31, 2021
(in thousands, except share
and per share data)
June 30, 2022
(unaudited)
December 31, 2021
Assets
Current assets:
Cash and cash equivalents
$
542,511
$
690,959
Accounts receivable, net
40,183
13,957
Contract assets
4,393
2,490
Inventories
85,683
47,904
Prepaids and other current assets
33,646
19,454
Total current assets
706,416
774,764
Non-current assets:
Property, plant and equipment, net
97,031
65,339
Intangible assets, net
84,503
57,487
Goodwill
58,281
43,308
Right-of-use assets - operating leases
31,365
28,424
Right-of-use assets - finance leases
15,921
—
Restricted cash
4,118
1,116
Deferred income tax assets, net
4,447
5,859
Other non-current assets
2,670
4,550
Total assets
$
1,004,752
$
980,847
Liabilities and Stockholders’
Equity
Current liabilities:
Trade payables
$
14,156
$
3,489
Accrued expenses
11,468
10,977
Employee benefits payable
13,632
8,266
Contract liabilities
90,659
59,749
Current installments of long-term
borrowings
2,866
2,827
Other current liabilities
11,320
10,999
Total current liabilities
144,101
96,307
Non-current liabilities:
Long-term borrowings, excluding current
installments
98,649
97,297
Non-current operating lease
liabilities
30,370
28,302
Non-current finance lease liabilities
15,744
—
Deferred tax liabilities
17
466
Public and private warrant liabilities
—
58,227
Other non-current liabilities
2,417
1,800
Total liabilities
291,298
282,399
COMMITMENTS AND CONTINGENCIES
Stockholders’ equity:
Common stock, $0.0001 par value;
authorized shares: 2,500,000,000; issued and outstanding shares:
468,377,065 and 450,180,479 at June 30, 2022 and December 31, 2021,
respectively
47
45
Additional paid-in capital
1,081,390
1,002,106
Accumulated deficit
(369,137
)
(305,011
)
Accumulated other comprehensive income
1,154
1,308
Total stockholders’ equity
713,454
698,448
Total liabilities and stockholders’
equity
$
1,004,752
$
980,847
ROCKET LAB U.S.A., INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE
30, 2022 AND 2021
(unaudited; in
thousands)
Six Months Ended June
30,
2022
2021
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss
$
(64,126
)
$
(32,547
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
13,737
4,847
Stock-based compensation expense
28,827
2,379
Loss on disposal of assets
25
55
Loss on extinguishment of long-term
debt
—
496
Amortization of debt issuance costs and
discount
1,392
149
Noncash lease expense
1,526
997
Noncash (income) expense associated with
liability-classified warrants
(13,482
)
5,478
Deferred income taxes
251
(612
)
Changes in operating assets and
liabilities:
Accounts receivable
(12,926
)
(19,580
)
Contract assets
(2,286
)
1,201
Inventories
(16,302
)
(5,347
)
Prepaids and other current assets
(8,090
)
2,796
Other non-current assets
2,089
—
Trade payables
1,992
(3,384
)
Accrued expenses
(3,433
)
2,849
Employee benefits payables
3,925
756
Contract liabilities
4,467
5,006
Other current liabilities
(568
)
(930
)
Non-current lease liabilities
(1,640
)
(1,191
)
Other non-current liabilities
27
—
Net cash used in operating activities
(64,595
)
(36,582
)
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchases of property, equipment and
software
(19,070
)
(5,699
)
Cash paid for acquisition, net of acquired
cash and restricted cash
(65,073
)
—
Net cash used in investing activities
(84,143
)
(5,699
)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from the exercise of stock
options and public warrants
3,142
772
Proceeds from Employee Stock Purchase
Plan
2,091
—
Proceeds from sale of employees restricted
stock units to cover taxes
24,002
—
Minimum tax withholding paid on behalf of
employees for restricted stock units
(23,741
)
—
Tax payment for net settled option
shares
(444
)
—
Payment of contingent consideration
(5,500
)
—
Finance lease principal payments
(116
)
—
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
)
Payment of deferred transaction costs
associated with planned reverse recapitalization transaction
—
(2,298
)
Net cash provided by (used in) financing
activities
(566
)
97,369
Effect of exchange rate changes on cash
and cash equivalents
3,858
20
Net increase (decrease) in cash and cash
equivalents and restricted cash
(145,446
)
55,108
Cash and cash equivalents, and restricted
cash, beginning of period
692,075
53,933
Cash and cash equivalents, and restricted
cash, end of period
$
546,629
$
109,041
ROCKET LAB U.S.A., INC. AND
SUBSIDIARIES
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
FOR THE THREE AND SIX MONTHS
ENDED JUNE 30, 2022 AND 2021
(unaudited; in
thousands)
The tables provided below reconcile the
non-GAAP financial measures adjusted EBITDA, gross profit, research
and development, net, selling, general and administrative,
operating expenses, operating loss and 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 June
30,
Six Months Ended June
30,
2022
2021
2022
2021
NET LOSS
$
(37,417
)
$
(16,665
)
$
(64,126
)
$
(32,547
)
Depreciation
4,318
1,798
7,511
3,555
Amortization
3,331
652
6,226
1,292
Stock-based compensation expense
16,869
1,289
28,827
2,379
Transaction costs
96
—
471
—
Loss on extinguishment of debt
—
795
—
795
Interest expense, net
2,432
275
5,421
402
Change in fair value of liability
classified warrants
—
2,448
(13,482
)
5,478
Change in fair value of contingent
consideration
(2,500
)
—
—
—
Performance reserve escrow
1,895
—
3,790
—
Amortization of inventory step-up
616
—
2,618
—
(Benefit) provision for income taxes
(2,073
)
440
2,315
704
Loss on foreign exchange
3,876
126
3,896
405
ADJUSTED EBITDA
$
(8,557
)
$
(8,842
)
$
(16,533
)
$
(17,537
)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
GAAP Gross profit
$
4,958
$
2,463
$
8,693
$
3,874
Stock-based compensation
5,792
305
9,127
604
Amortization of purchased intangibles
751
57
1,316
112
Amortization of inventory step-up
616
—
2,618
—
Performance reserve escrow
114
—
228
—
Non-GAAP Gross Profit
$
12,231
$
2,825
$
21,982
$
4,590
Non-GAAP Gross Margin
22.0
%
25.0
%
22.9
%
15.6
%
GAAP Research and development,
net
$
19,165
$
8,529
$
32,642
$
15,607
Stock-based compensation
(6,350
)
(574
)
(11,376
)
(966
)
Amortization of purchased intangibles
(1,692
)
(376
)
(3,324
)
(739
)
Non-GAAP Research and development,
net
$
11,123
$
7,579
$
17,942
$
13,902
GAAP Selling, general and
administrative
$
18,952
$
7,068
$
42,030
$
13,692
Stock-based compensation
(4,727
)
(410
)
(8,324
)
(809
)
Amortization of purchased intangibles
(780
)
(25
)
(1,378
)
(48
)
Transaction costs
(96
)
—
(471
)
—
Performance reserve escrow
(1,781
)
—
(3,562
)
—
Change in fair value of contingent
consideration
2,500
—
—
—
Non-GAAP Selling, general and
administrative
$
14,068
$
6,633
$
28,295
$
12,835
GAAP Operating expenses
$
38,117
$
15,597
$
74,672
$
29,299
Stock-based compensation
(11,077
)
(984
)
(19,700
)
(1,775
)
Amortization of purchased intangibles
(2,472
)
(401
)
(4,702
)
(787
)
Transaction costs
(96
)
—
(471
)
—
Performance reserve escrow
(1,781
)
—
(3,562
)
—
Change in fair value of contingent
consideration
2,500
—
—
—
Non-GAAP Operating expenses
$
25,191
$
14,212
$
46,237
$
26,737
GAAP Operating loss
$
(33,159
)
$
(13,134
)
$
(65,979
)
$
(25,425
)
Total non-GAAP adjustments
20,199
1,747
41,724
3,278
Non-GAAP Operating loss
$
(12,960
)
$
(11,387
)
$
(24,255
)
$
(22,147
)
GAAP Total other income (expense),
net
$
(6,331
)
$
(3,091
)
$
4,168
$
(6,418
)
Change in fair value of liability
classified warrants
—
2,448
(13,482
)
5,478
Loss on foreign exchange
3,876
126
3,896
405
Non-GAAP Total other income (expense),
net
$
(2,455
)
$
(517
)
$
(5,418
)
$
(535
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220811005658/en/
+ Rocket Lab Investor Relations Contact Adam Spice
investors@rocketlabusa.com
+ Rocket Lab Media Contact Morgan Bailey
media@rocketlabusa.com
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