Rocket Lab recently reported its fourth-quarter results, showing a net loss of $50.5 million, or 10 cents per share. The company’s net loss widened by about 36% year over year as it continues to heavily invest in the development of its Neutron rocket. Rocket Lab’s revenue in the fourth quarter grew by 16% to $60 million, with its launch business accounting for $8.5 million and space systems making up the bulk at $51.5 million. Although the fourth-quarter revenue fell slightly short of Wall Street expectations, the net loss was in line with estimates. The company’s full-year loss also widened by a similar amount to $182.6 million.
Rocket Lab’s backlog of orders more than doubled year over year, surpassing $1 billion. This increase was largely driven by a $515 million satellite contract from the Pentagon’s Space Development Agency. CEO Peter Beck highlighted that 2023 was a record year for securing Electron launch deals, with Rocket Lab adding 25 contracts. Launches account for $248 million of Rocket Lab’s backlog, while the rest represents the growing space systems business.
Despite the positive financial and contract backlog news, Rocket Lab’s shares slipped 5% in after-hours trading. The company forecasted first-quarter revenue between $92 million and $98 million. These forecasts indicate continued growth and strong demand for Rocket Lab’s services.
Rocket Lab provided updates on the development of its Neutron rocket, which is aimed at competing with industry giants like SpaceX. The company has been making significant progress in various aspects of Neutron, including the production of rocket parts, software simulations of launches, and early testing of the Archimedes engines that will power the rocket. Future milestones for Neutron include engine testing and structural testing of the rocket’s nose cone.
In addition to the development of the Neutron rocket, Rocket Lab announced the expansion of its spacecraft product line. Building on the success of its Photon satellite bus, the company unveiled three new spacecraft models – Lightning, Pioneer, and Explorer. These spacecraft are designed for a range of missions, from low Earth orbit communications satellites to scientific deep space exploration.
Overall, Rocket Lab continues to make progress on its ambitious goals, with the Neutron rocket and expanded spacecraft product line poised to further establish the company as a key player in the space industry. Despite some financial setbacks and stock fluctuations, Rocket Lab’s strong contract backlog and ongoing development efforts indicate a promising future for the company and its innovative projects.