LONG BEACH, Calif. - Rocket Lab USA, Inc. (NASDAQ: RKLB), a provider of launch services and space systems, has announced its preliminary financial results for the fourth quarter ending December 31, 2023. The company highlighted the successful deployment of satellites for Spire (NYSE:SR) and NorthStar's Space Situational Awareness Mission and the return to service of its Electron launch vehicle during the quarter.
According to the unaudited preliminary results, Rocket Lab estimates its Q4 revenue to be between $59.0M and $61.0M, an increase from the $51.8M reported in the same period the previous year. The Space Systems business saw a rise in revenue, estimated between $50.5M and $52.5M, up from $39.7M in Q4 2022. Launch Services revenue, however, is expected to be around $8.5M, a decrease from the $12.0M reported in the prior year.
The company's GAAP gross margin is anticipated to be between 24.8% and 26.8%, with a non-GAAP gross margin estimated at 31.4% to 33.2%. This marks a significant improvement from the GAAP gross margin of 3.5% and non-GAAP gross margin of 14.5% reported in the fourth quarter of 2022.
Operating expenses are also expected to rise, with GAAP operating expenses estimated between $62.5M and $64.5M, up from $39.1M in the previous year. Non-GAAP operating expenses are projected to be between $52.5M and $54.5M, compared to $27.3M reported in Q4 2022.
The company forecasts a net loss of $49.0M to $52.5M, with an adjusted EBITDA loss between $28.0Mand $30.0M. These figures compare to a net loss of $37.2M and an adjusted EBITDA loss of $14.5M in the fourth quarter of the previous year.
Peter Beck, Rocket Lab founder and CEO, expressed excitement about the company's growth trajectory, citing the largest contract award to date and progress in the Neutron development. Rocket Lab anticipates more launches in 2024 than any prior year and boasts a record backlog.
The company's audited financial statements for the year ended December 31, 2023, are not yet available, and the presented financial results are subject to change. The release of the company's full financial results for Q4 and the full year 2023 is scheduled for February 27, 2024.
Rocket Lab's Electron vehicle has been the second most frequently launched U.S. rocket annually since its first orbital launch in January 2018. The company is also developing the Neutron launch vehicle to introduce new technical capabilities and incremental capacity to the market.
The information in this article is based on a press release statement from Rocket Lab USA, Inc.
InvestingPro Insights
In light of Rocket Lab's preliminary financial results for Q4 2023, a deeper dive into the company's financial health and market performance using InvestingPro data can provide investors with a clearer picture. Currently, Rocket Lab holds a market capitalization of approximately $2.42B. Despite the company's anticipation of increased revenues, InvestingPro Tips suggest that analysts are not expecting Rocket Lab to be profitable this year. This aligns with the company's projected net loss and adjusted EBITDA loss for the quarter.
InvestingPro data reveals that Rocket Lab's revenue for the last twelve months as of Q3 2023 stood at $236.36M, with a growth of 26.59%. The company's Price to Book ratio was 4.13, indicating a relatively high valuation compared to the book value of its assets. Additionally, the stock has experienced significant volatility with a strong return of 17.73% over the last three months, yet a substantial decline of 32.43% over the last six months.
InvestingPro Tips highlight two key financial strengths: Rocket Lab holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations, suggesting a solid liquidity position. However, with the company trading at high revenue and Price/Book valuation multiples, investors may want to consider these factors in their assessment.
For those seeking to delve further into Rocket Lab's financials and market projections, InvestingPro offers additional insights. There are six more InvestingPro Tips available for Rocket Lab, providing a more comprehensive analysis for subscribers. As a special New Year offer, InvestingPro subscriptions are currently available at up to a 50% discount. To take advantage of this opportunity, use coupon code SFY24 for an extra 10% off a 2-year InvestingPro+ subscription or SFY241 for an additional 10% off a 1-year subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.