Rocket Lab Announces Fourth Quarter and Full Year 2023 Financial Results, Issues Guidance for the First Quarter 2024 Including Sequential Revenue Growth Greater than 50 Percent
- Rocket Lab achieved a 16% year-on-year revenue growth in 2023.
- The Company expanded GAAP and non-GAAP gross margins by 12.0 and 6.9 percentage points, respectively.
- Rocket Lab secured a $515 million contract from the Space Development Agency to build 18 satellites.
- The company set a new annual launch record with ten Electron missions flown in 2023.
- Rocket Lab issued $355 million in convertible senior notes to strengthen its balance sheet.
- The company successfully completed two Electron missions and progressed in Neutron development.
- Rocket Lab provided guidance for Q1 2024, including revenue, gross margins, operating expenses, and adjusted EBITDA loss.
- None.
Insights
Rocket Lab USA, Inc.'s fiscal fourth quarter and full-year financial results reflect a company on an upward trajectory in the competitive space launch market. The reported 16% year-on-year revenue growth and improved gross margins are indicative of operational efficiency and an ability to scale effectively. The expansion of GAAP and non-GAAP gross margins by 12.0 and 6.9 percentage points, respectively, suggests a robust cost management strategy and possibly an improved pricing power or cost structure in the company's operations.
The $515 million contract from the Space Development Agency is a significant development, as it not only marks the largest contract for the company but also positions Rocket Lab as a prime contractor, which could lead to further opportunities in the government and defense sectors. The successful issuance of $355 million in convertible senior notes indicates investor confidence and provides the company with capital to pursue strategic growth investments or mergers and acquisitions, which could further enhance shareholder value.
However, the projected Adjusted EBITDA loss of $28 million to $30 million for Q1 2024 raises questions about the company's short-term profitability and cash flow management. Investors should monitor how the company plans to bridge the gap between growing revenues and managing losses to achieve long-term financial sustainability.
The space sector is becoming increasingly crowded, with several players competing for government, commercial and scientific contracts. Rocket Lab's record of 25 new orbital and suborbital missions signed in 2023, along with the ten Electron missions flown, highlights the company's growing market presence and operational capabilities. The development of the Neutron rocket and the Archimedes engine represents a strategic move to diversify Rocket Lab's offerings and address a wider range of payload sizes, potentially opening up new market segments.
Infrastructure developments, such as the establishment of a Space Structures Complex and progress at Launch Complex 3, are critical for long-term competitiveness. These facilities are expected to support the production of carbon composite structures and components, which are essential for cost-effective and efficient spacecraft manufacturing.
Competition from other launch providers and the entry of new technologies could impact Rocket Lab's market share and pricing strategies. The company's ability to innovate and maintain a competitive edge in launch cadence, cost and reliability will be key factors in its ongoing success.
Rocket Lab's progress in the aerospace industry is evident from the milestones achieved, such as the successful ocean splashdown and recovery of Electron's first stage. This advancement in their reusability program is a critical step towards reducing launch costs and increasing launch frequency, a competitive advantage in the aerospace market. The commissioning phase at the Archimedes Test Complex for Neutron engine hot fires signifies progress towards the development of the Neutron rocket, which is expected to cater to medium-lift payloads and further enhance Rocket Lab's service offerings.
The successful re-entry of the Rocket Lab-built in-space manufacturing satellite for Varda Space Industries is a testament to the company's capabilities in pioneering new space technologies. Such achievements not only bolster Rocket Lab's reputation as an innovator but also signal potential for future revenue streams from novel space-based applications and services.
Understanding the technicalities of the space launch industry, such as the significance of synthetic aperture radar (SAR) satellites and the importance of space situational awareness missions, is crucial for stakeholders. These technologies are critical for earth observation and national security, representing areas of growth for companies like Rocket Lab that can provide reliable access to space.
Rocket Lab founder and CEO, Peter Beck, said: “Rocket Lab had another strong year in 2023 across our launch and space systems businesses. We grew revenue
Fourth Quarter 2023 Business Highlights:
-
Selected as prime contractor by the Space Development Agency for a
$515 million - Electron successfully returned to flight in the fourth quarter, deploying a synthetic aperture radar satellite to orbit for Japanese constellation operator iQPS.
- Closed 2023 with a record number of 25 launches signed across Electron and HASTE.
- Progressed major infrastructure milestones at Launch Complex 3 for Neutron, including foundations for the launch mount, water tower and liquid oxygen tanks.
-
Established a Space Structures Complex in the former Lockheed Martin Vertical Launch Building in
Middle River, Maryland to support the development and manufacture of carbon composite spacecraft structures and components, as well as the long-term supply of carbon composite structures for Neutron. -
Refinanced our
$100M $120M
Business Highlights Since December 31, 2023:
-
Successfully launched two Electron missions, including a Space Situational Awareness mission for Spire and
NorthStar , as well as an orbital debris observation demonstration mission for Astroscale Japan Inc. - Progressed Electron’s reusability program with a successful ocean splashdown and recovery in January 2024, bringing Electron’s first stage back in the best condition yet.
- Entered the commissioning phase at the Archimedes Test Complex at NASA Stennis Space Center in preparation for Neutron engine hot fires.
-
Closed an upsized offering of
$355 million - Successful re-entry of Rocket Lab-built in-space manufacturing satellite developed for Varda Space Industries. The successful reentry marked the completion of the first commercial in-space manufacturing demonstration.
First Quarter 2024 Guidance
For the first quarter of 2024, Rocket Lab expects:
-
Revenue between
$92 million $98 million -
Space Systems revenue between
$60 million $65 million -
Launch Services revenue between
$32 million $33 million -
GAAP Gross Margins between
24% and26% . -
Non-GAAP Gross Margins between
29% and31% . -
GAAP Operating Expenses between
$73 million $75 million -
Non-GAAP Operating Expenses between
$62 million $64 million -
Expected Interest Expense (Income), net
$1.5 million -
Adjusted EBITDA loss of
$28 million $30 million - Basic Shares Outstanding of 490 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 Q1 2024 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
Conference Call Information
Rocket Lab will host a conference call for investors at 2 p.m. PT (5 p.m. ET) today to discuss these business highlights and financial results for our fourth quarter, to provide our outlook for the first 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
+ 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 first quarter of 2024, 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 release, including risks related to delays and disruptions in expansion efforts; delays in the development of our Neutron rocket; 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 competition in our industry due in part to rapid technological development; 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; general economic uncertainty and turbulence which could impact our customers’ ability to pay what we are owed; failure of our launch vehicles, spacecraft and components to operate as intended either due to our error in design. in engineering, 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; any inability to effectively integrate recently acquired assets; a US government shutdown or delays in government funding; 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
+ USE OF NON-GAAP FINANCIAL MEASURES
We supplement the reporting of our financial information determined under Generally Accepted Accounting Principles in
+ 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 |
||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
FOR THE THREE MONTHS AND YEARS ENDED DECEMBER 31, 2023 AND 2022 |
||||||||||||||||
(unaudited; in thousands, except share and per share data) |
||||||||||||||||
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Revenues |
|
$ |
59,991 |
|
|
$ |
51,762 |
|
|
$ |
244,592 |
|
|
$ |
210,996 |
|
Cost of revenues |
|
|
44,499 |
|
|
|
49,932 |
|
|
|
193,183 |
|
|
|
192,006 |
|
Gross profit |
|
|
15,492 |
|
|
|
1,830 |
|
|
|
51,409 |
|
|
|
18,990 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Research and development, net |
|
|
37,488 |
|
|
|
15,018 |
|
|
|
119,054 |
|
|
|
65,168 |
|
Selling, general and administrative |
|
|
25,887 |
|
|
|
24,035 |
|
|
|
110,273 |
|
|
|
89,026 |
|
Total operating expenses |
|
|
63,375 |
|
|
|
39,053 |
|
|
|
229,327 |
|
|
|
154,194 |
|
Operating loss |
|
|
(47,883 |
) |
|
|
(37,223 |
) |
|
|
(177,918 |
) |
|
|
(135,204 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
||||||||
Interest income (expense), net |
|
|
(1,405 |
) |
|
|
(892 |
) |
|
|
(4,248 |
) |
|
|
(7,799 |
) |
Loss on foreign exchange |
|
|
(394 |
) |
|
|
(488 |
) |
|
|
(470 |
) |
|
|
(4,435 |
) |
Change in fair value of liability classified warrants |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13,482 |
|
Other income (expense), net |
|
|
196 |
|
|
|
385 |
|
|
|
3,715 |
|
|
|
1,010 |
|
Total other income (expense), net |
|
|
(1,603 |
) |
|
|
(995 |
) |
|
|
(1,003 |
) |
|
|
2,258 |
|
Loss before income taxes |
|
|
(49,486 |
) |
|
|
(38,218 |
) |
|
|
(178,921 |
) |
|
|
(132,946 |
) |
Benefit (provision) for income taxes |
|
|
(1,011 |
) |
|
|
1,010 |
|
|
|
(3,650 |
) |
|
|
(2,998 |
) |
Net loss |
|
$ |
(50,497 |
) |
|
$ |
(37,208 |
) |
|
$ |
(182,571 |
) |
|
$ |
(135,944 |
) |
Net loss per share attributable to Rocket Lab USA, Inc.: |
|
|
|
|
|
|
|
|
||||||||
Basic and diluted |
|
$ |
(0.10 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.38 |
) |
|
$ |
(0.29 |
) |
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic and diluted |
|
|
486,959,454 |
|
|
|
473,644,862 |
|
|
|
481,768,060 |
|
|
|
466,214,095 |
|
ROCKET LAB |
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
AS OF DECEMBER 31, 2023 AND 2022 |
||||||||
(unaudited; in thousands, except share and per share data) |
||||||||
|
|
December 31, |
||||||
|
|
2023 |
|
2022 |
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
162,518 |
|
|
$ |
242,515 |
|
Marketable securities, current |
|
|
82,255 |
|
|
|
229,276 |
|
Accounts receivable, net |
|
|
35,176 |
|
|
|
36,572 |
|
Contract assets |
|
|
12,951 |
|
|
|
9,451 |
|
Inventories |
|
|
107,857 |
|
|
|
92,279 |
|
Prepaids and other current assets |
|
|
66,949 |
|
|
|
52,201 |
|
Assets held for sale |
|
|
9,016 |
|
|
|
— |
|
Total current assets |
|
|
476,722 |
|
|
|
662,294 |
|
Non-current assets: |
|
|
|
|
||||
Property, plant and equipment, net |
|
|
145,409 |
|
|
|
101,514 |
|
Intangible assets, net |
|
|
68,094 |
|
|
|
79,692 |
|
Goodwill |
|
|
71,020 |
|
|
|
71,020 |
|
Right-of-use assets - operating leases |
|
|
59,401 |
|
|
|
35,239 |
|
Right-of-use assets - finance leases |
|
|
14,987 |
|
|
|
15,614 |
|
Marketable securities, non-current |
|
|
79,247 |
|
|
|
9,193 |
|
Restricted cash |
|
|
3,916 |
|
|
|
3,356 |
|
Deferred income tax assets, net |
|
|
3,501 |
|
|
|
3,898 |
|
Other non-current assets |
|
|
18,914 |
|
|
|
7,303 |
|
Total assets |
|
$ |
941,211 |
|
|
$ |
989,123 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Trade payables |
|
$ |
29,303 |
|
|
$ |
12,084 |
|
Accrued expenses |
|
|
5,590 |
|
|
|
8,723 |
|
Employee benefits payable |
|
|
16,342 |
|
|
|
8,634 |
|
Contract liabilities |
|
|
139,338 |
|
|
|
108,344 |
|
Current installments of long-term borrowings |
|
|
17,764 |
|
|
|
2,906 |
|
Other current liabilities |
|
|
15,036 |
|
|
|
22,249 |
|
Total current liabilities |
|
|
223,373 |
|
|
|
162,940 |
|
Non-current liabilities: |
|
|
|
|
||||
Long-term borrowings, excluding current installments |
|
|
87,587 |
|
|
|
100,043 |
|
Non-current operating lease liabilities |
|
|
56,099 |
|
|
|
34,266 |
|
Non-current finance lease liabilities |
|
|
15,238 |
|
|
|
15,568 |
|
Deferred tax liabilities |
|
|
426 |
|
|
|
95 |
|
Other non-current liabilities |
|
|
3,944 |
|
|
|
3,005 |
|
Total liabilities |
|
|
386,667 |
|
|
|
315,917 |
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Common stock, |
|
|
49 |
|
|
|
48 |
|
Additional paid-in capital |
|
|
1,176,484 |
|
|
|
1,112,977 |
|
Accumulated deficit |
|
|
(623,526 |
) |
|
|
(440,955 |
) |
Accumulated other comprehensive income |
|
|
1,537 |
|
|
|
1,136 |
|
Total stockholders’ equity |
|
|
554,544 |
|
|
|
673,206 |
|
Total liabilities and stockholders’ equity |
|
$ |
941,211 |
|
|
$ |
989,123 |
|
ROCKET LAB |
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 |
||||||||
(unaudited; in thousands) |
||||||||
|
|
Years Ended December 31, |
||||||
|
|
2023 |
|
2022 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
||||
Net loss |
|
$ |
(182,571 |
) |
|
$ |
(135,944 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
29,744 |
|
|
|
29,947 |
|
Stock-based compensation expense |
|
|
53,461 |
|
|
|
55,649 |
|
(Gain) loss on disposal of assets |
|
|
(111 |
) |
|
|
923 |
|
Loss on extinguishment of long-term debt |
|
|
1,732 |
|
|
|
— |
|
Amortization of debt issuance costs and discount |
|
|
2,904 |
|
|
|
2,827 |
|
Noncash lease expense |
|
|
5,787 |
|
|
|
3,199 |
|
Noncash income associated with liability-classified warrants |
|
|
— |
|
|
|
(13,482 |
) |
Change in the fair value of contingent consideration |
|
|
1,343 |
|
|
|
— |
|
Accretion of marketable securities purchased at a discount |
|
|
(4,571 |
) |
|
|
(1,395 |
) |
Deferred income taxes |
|
|
708 |
|
|
|
(576 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable, net |
|
|
1,452 |
|
|
|
(9,430 |
) |
Contract assets |
|
|
(3,501 |
) |
|
|
(7,545 |
) |
Inventories |
|
|
(15,562 |
) |
|
|
(25,964 |
) |
Prepaids and other current assets |
|
|
(14,586 |
) |
|
|
(15,059 |
) |
Other non-current assets |
|
|
(11,470 |
) |
|
|
(7,072 |
) |
Trade payables |
|
|
15,585 |
|
|
|
(2,129 |
) |
Accrued expenses |
|
|
(3,275 |
) |
|
|
(3,518 |
) |
Employee benefits payables |
|
|
5,484 |
|
|
|
2,108 |
|
Contract liabilities |
|
|
30,992 |
|
|
|
22,661 |
|
Other current liabilities |
|
|
(7,563 |
) |
|
|
1,280 |
|
Non-current lease liabilities |
|
|
(5,076 |
) |
|
|
(3,686 |
) |
Other non-current liabilities |
|
|
227 |
|
|
|
668 |
|
Net cash used in operating activities |
|
|
(98,867 |
) |
|
|
(106,538 |
) |
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
||||
Purchases of property, equipment and software |
|
|
(54,707 |
) |
|
|
(42,412 |
) |
Proceeds on disposal of assets, net |
|
|
3,660 |
|
|
|
— |
|
Cash paid for business combinations and asset acquisitions, net of acquired cash and restricted cash |
|
|
(18,966 |
) |
|
|
(65,824 |
) |
Purchases of marketable securities |
|
|
(207,266 |
) |
|
|
(259,567 |
) |
Maturities of marketable securities |
|
|
269,204 |
|
|
|
21,724 |
|
Sale of marketable securities |
|
|
20,093 |
|
|
|
— |
|
Net cash provided by (used in) investing activities |
|
|
12,018 |
|
|
|
(346,079 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
||||
Proceeds from the exercise of stock options and public warrants |
|
|
2,444 |
|
|
|
3,874 |
|
Proceeds from Employee Stock Purchase Plan |
|
|
4,988 |
|
|
|
4,380 |
|
Proceeds from sale of employees restricted stock units to cover taxes |
|
|
15,995 |
|
|
|
31,166 |
|
Minimum tax withholding paid on behalf of employees for restricted stock units |
|
|
(15,722 |
) |
|
|
(31,164 |
) |
Tax payment for net settled option shares |
|
|
— |
|
|
|
(444 |
) |
Payment of contingent consideration |
|
|
(1,000 |
) |
|
|
(5,500 |
) |
Finance lease principal payments |
|
|
(336 |
) |
|
|
(271 |
) |
Proceeds from secured term loan |
|
|
110,000 |
|
|
|
— |
|
Repayments on secured term loan |
|
|
(107,573 |
) |
|
|
— |
|
Payment of debt issuance costs |
|
|
(1,427 |
) |
|
|
— |
|
Net cash provided by financing activities |
|
|
7,369 |
|
|
|
2,041 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
43 |
|
|
|
4,372 |
|
Net decrease in cash and cash equivalents and restricted cash |
|
|
(79,437 |
) |
|
|
(446,204 |
) |
Cash and cash equivalents, and restricted cash, beginning of period |
|
|
245,871 |
|
|
|
692,075 |
|
Cash and cash equivalents, and restricted cash, end of period |
|
$ |
166,434 |
|
|
$ |
245,871 |
|
ROCKET LAB |
||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
||||||||||||||||
FOR THE THREE MONTHS AND YEARS ENDED DECEMBER 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 December 31, |
|
Years Ended December 31, |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
NET LOSS |
|
$ |
(50,497 |
) |
|
$ |
(37,208 |
) |
|
$ |
(182,571 |
) |
|
$ |
(135,944 |
) |
Depreciation |
|
|
4,571 |
|
|
|
4,809 |
|
|
|
16,034 |
|
|
|
16,720 |
|
Amortization |
|
|
3,596 |
|
|
|
3,548 |
|
|
|
13,710 |
|
|
|
13,227 |
|
Stock-based compensation expense |
|
|
10,063 |
|
|
|
12,337 |
|
|
|
53,461 |
|
|
|
55,649 |
|
Transaction costs |
|
|
30 |
|
|
|
144 |
|
|
|
341 |
|
|
|
649 |
|
Interest expense, net |
|
|
1,405 |
|
|
|
892 |
|
|
|
4,248 |
|
|
|
7,799 |
|
Change in fair value of liability classified warrants |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(13,482 |
) |
Change in fair value of contingent consideration |
|
|
205 |
|
|
|
(200 |
) |
|
|
1,343 |
|
|
|
— |
|
Performance reserve escrow |
|
|
31 |
|
|
|
1,895 |
|
|
|
5,457 |
|
|
|
7,579 |
|
Amortization of inventory step-up |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,618 |
|
(Benefit) provision for income taxes |
|
|
1,011 |
|
|
|
(1,010 |
) |
|
|
3,650 |
|
|
|
2,998 |
|
Loss on foreign exchange |
|
|
394 |
|
|
|
488 |
|
|
|
470 |
|
|
|
4,435 |
|
Accretion of marketable securities and cash equivalents purchased at a discount |
|
|
(1,179 |
) |
|
|
(1,092 |
) |
|
|
(4,780 |
) |
|
|
(1,696 |
) |
(Gain) loss on disposal of assets |
|
|
(351 |
) |
|
|
891 |
|
|
|
(111 |
) |
|
|
923 |
|
Employee retention credit |
|
|
— |
|
|
|
— |
|
|
|
(3,841 |
) |
|
|
— |
|
Loss on extinguishment of debt |
|
|
1,732 |
|
|
|
— |
|
|
|
1,732 |
|
|
|
— |
|
ADJUSTED EBITDA |
|
$ |
(28,989 |
) |
|
$ |
(14,506 |
) |
|
$ |
(90,857 |
) |
|
$ |
(38,525 |
) |
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
GAAP Gross profit |
|
$ |
15,492 |
|
|
$ |
1,830 |
|
|
$ |
51,409 |
|
|
$ |
18,990 |
|
Stock-based compensation |
|
|
2,196 |
|
|
|
3,857 |
|
|
|
12,521 |
|
|
|
17,948 |
|
Amortization of purchased intangibles |
|
|
1,710 |
|
|
|
1,710 |
|
|
|
6,839 |
|
|
|
4,782 |
|
Amortization of inventory step-up |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,618 |
|
Performance reserve escrow |
|
|
1 |
|
|
|
114 |
|
|
|
210 |
|
|
|
456 |
|
Employee retention credit |
|
|
— |
|
|
|
— |
|
|
|
(2,130 |
) |
|
|
— |
|
Non-GAAP Gross profit |
|
$ |
19,399 |
|
|
$ |
7,511 |
|
|
$ |
68,849 |
|
|
$ |
44,794 |
|
Non-GAAP Gross margin |
|
|
32.3 |
% |
|
|
14.5 |
% |
|
|
28.1 |
% |
|
|
21.2 |
% |
|
|
|
|
|
|
|
|
|
||||||||
GAAP Research and development, net |
|
$ |
37,488 |
|
|
$ |
15,018 |
|
|
$ |
119,054 |
|
|
$ |
65,168 |
|
Stock-based compensation |
|
|
(3,828 |
) |
|
|
(4,442 |
) |
|
|
(21,721 |
) |
|
|
(21,127 |
) |
Amortization of purchased intangibles and favorable lease |
|
|
(314 |
) |
|
|
(9 |
) |
|
|
(647 |
) |
|
|
(3,342 |
) |
Employee retention credit |
|
|
— |
|
|
|
— |
|
|
|
631 |
|
|
|
— |
|
Non-GAAP Research and development, net |
|
$ |
33,346 |
|
|
$ |
10,567 |
|
|
$ |
97,317 |
|
|
$ |
40,699 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP Selling, general and administrative |
|
$ |
25,887 |
|
|
$ |
24,035 |
|
|
$ |
110,273 |
|
|
$ |
89,026 |
|
Stock-based compensation |
|
|
(4,039 |
) |
|
|
(4,038 |
) |
|
|
(19,219 |
) |
|
|
(16,574 |
) |
Amortization of purchased intangibles |
|
|
(1,378 |
) |
|
|
(1,494 |
) |
|
|
(5,585 |
) |
|
|
(4,401 |
) |
Transaction costs |
|
|
(30 |
) |
|
|
(144 |
) |
|
|
(341 |
) |
|
|
(649 |
) |
Performance reserve escrow |
|
|
(30 |
) |
|
|
(1,780 |
) |
|
|
(5,247 |
) |
|
|
(7,123 |
) |
Change in fair value of contingent consideration |
|
|
(205 |
) |
|
|
200 |
|
|
|
(1,343 |
) |
|
|
— |
|
Employee retention credit |
|
|
— |
|
|
|
— |
|
|
|
1,080 |
|
|
|
— |
|
Non-GAAP Selling, general and administrative |
|
$ |
20,205 |
|
|
$ |
16,779 |
|
|
$ |
79,618 |
|
|
$ |
60,279 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP Operating expenses |
|
$ |
63,375 |
|
|
$ |
39,053 |
|
|
$ |
229,327 |
|
|
$ |
154,194 |
|
Stock-based compensation |
|
|
(7,867 |
) |
|
|
(8,480 |
) |
|
|
(40,940 |
) |
|
|
(37,701 |
) |
Amortization of purchased intangibles |
|
|
(1,692 |
) |
|
|
(1,503 |
) |
|
|
(6,232 |
) |
|
|
(7,743 |
) |
Transaction costs |
|
|
(30 |
) |
|
|
(144 |
) |
|
|
(341 |
) |
|
|
(649 |
) |
Performance reserve escrow |
|
|
(30 |
) |
|
|
(1,780 |
) |
|
|
(5,247 |
) |
|
|
(7,123 |
) |
Change in fair value of contingent consideration |
|
|
(205 |
) |
|
|
200 |
|
|
|
(1,343 |
) |
|
|
— |
|
Employee retention credit |
|
|
— |
|
|
|
— |
|
|
|
1,711 |
|
|
|
— |
|
Non-GAAP Operating expenses |
|
$ |
53,551 |
|
|
$ |
27,346 |
|
|
$ |
176,935 |
|
|
$ |
100,978 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP Operating loss |
|
$ |
(47,883 |
) |
|
$ |
(37,223 |
) |
|
$ |
(177,918 |
) |
|
$ |
(135,204 |
) |
Total non-GAAP adjustments |
|
|
13,731 |
|
|
|
17,388 |
|
|
|
69,832 |
|
|
|
79,020 |
|
Non-GAAP Operating loss |
|
$ |
(34,152 |
) |
|
$ |
(19,835 |
) |
|
$ |
(108,086 |
) |
|
$ |
(56,184 |
) |
|
|
|
|
|
|
|
|
|
||||||||
GAAP Total other income (expense), net |
|
$ |
(1,603 |
) |
|
$ |
(995 |
) |
|
$ |
(1,003 |
) |
|
$ |
2,258 |
|
Change in fair value of liability classified warrants |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(13,482 |
) |
Loss on foreign exchange |
|
|
394 |
|
|
|
488 |
|
|
|
470 |
|
|
|
4,435 |
|
Non-GAAP Total other expense, net |
|
$ |
(1,209 |
) |
|
$ |
(507 |
) |
|
$ |
(533 |
) |
|
$ |
(6,789 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240227634541/en/
+ Rocket Lab Investor Relations Contact
Colin Canfield
investors@rocketlabusa.com
+ Rocket Lab Media Contact
Morgan Bailey
media@rocketlabusa.com
Source: Rocket Lab USA, Inc.
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