![]() Per the CFO, Rocket Lab is currently producing one Electron rocket every eighteen days, which equates to exactly five per quarter. Rocket Lab Has The Capacity For Sustained Higher Cadence Investors should therefore keep a close eye on this recently launched Electron variant by Rocket Lab. ![]() Per the CFO, HASTE launches generate more revenue than regular Electron launches, albeit with higher associated expenses. So this is not a one-sie two-sie thing, we believe this has the opportunity to scale meaningfully and be a real meaningful contributor to our launch cadence growth." ultimately we see, you know, dozens and dozens of launch opportunities for this kind of program in the not too distant future right. As Spice noted, "We've got several programs that we are engaged on for this type of, for this HASTE opportunity. This new program is entirely geared toward defense applications.Īccording to CFO Adam Spice at the Stifel conference, the HASTE program could also significantly increase launch cadence. This represents a distinct new business from Rocket Lab's usual (orbital) launch business. This program involves a modified version of the Electron rocket for hypersonic suborbital testing and payloads. Rocket Lab initiated its HASTE (Hypersonic Accelerator Suborbital Test Electron) program in April this year. Moreover, as noted by Spice, increased Electron launch cadence should also tend to improve margins as the high fixed costs of research and development and maintaining launch facilities are spread out over more launches. Hence, Rocket Lab should soon be growing its top line at a rapid clip. And this estimate does not account for any potential growth in the space systems segment in Q3 and Q4. This means that from Q4 2022 to Q4 2023, Rocket Lab's quarterly revenue can very reasonably be expected to grow from $51 million to $75 million - representing an excellent 47% increase. Then, if we set aside ongoing growth in Rocket Lab's space systems division and assume it remains constant after Q2 (an unrealistic assumption, of course), we can project Q3 revenue of $68 million and Q4 revenue of $75 million. Let's use $61 million for our Q2 calculations. In Q1, Rocket Lab reported revenue of $54 million, with Q2 guidance of $60-63 million. Assuming each launch generates $7 million in revenue, we can start to forecast the potential impact on Rocket Lab's financials. Given this guidance, the most likely outcome should be 4 launches in Q3 and 5 in Q4. This projection was reiterated by CFO Adam Spice at the Stifel conference on June 6. During the earnings call for the last quarter, the company guided nine launches for the H2 2023. Launch cadence for the Electron is set to increase presently. These setbacks have resulted in some orders being redirected to Rocket Lab, as noted in their most recent earnings call.Īnd, of course, secular growth in the space industry continues. Rocket Lab has also benefited from recent turbulence in the small launch industry, with for instance Virgin Orbit going bankrupt and Astra experiencing launch failures. However, per the CFO, the average selling price currently stands slightly higher around $7.5 million per launch. On average, each Electron launch generated about $6.7 million. Rocket Lab's CFO, Adam Spice, confirmed at the " Stifel 2023 Cross Sector Insight Conference" on June 6 that the company has completed two launches, with a third scheduled for later in June.Įlectron launch cadence (Rocket Lab investor presentations Q1 2022-Q1 2023 and CFO comments at the Stifel 2023 Cross Sector Insight Conference.)Īs readers can see, over the past six quarters Rocket Lab has conducted 15 launches, with a current cadence of three launches per quarter. Please note that the launch number for this quarter is an estimate. The figure below shows the Electron launch cadence and revenues by quarter since Q1 2022. In 2022, Rocket Lab reported annual revenue of $211 million, with about $60 million of this stemming from their Electron launch business. In this article, I discuss this improving launch cadence and its implications for Rocket Lab's growth. Rocket Lab seems poised for rapid growth in the upcoming quarters, in part due to an expected increase in Electron launch cadence. However, this decline appears to be an excellent buying opportunity. ( NASDAQ: RKLB) have fallen alongside the broader space sector over the last few quarters.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |