An Electron rocket launches the Baby Come Back mission from New Zealand on July 17, 2023.
Rocket Lab
Rocket Lab is making steady progress in the development of the Neutron vehicle, the company said fourth quarter results which saw its contract backlog exceed $1 billion.
The space company reported a net loss of $50.5 million, or 10 cents per share, for the quarter. On a year-over-year basis, Rocket Lab’s fourth-quarter net loss widened about 36% as the company continues to spend heavily to build the Neutron rocket. Its full-year loss widened by a similar amount to $182.6 million, or 38 cents a share.
Revenue rose 16% year over year in the fourth quarter to $60 million, from $51.8 million. The launch business accounted for just $8.5 million of that, as the company is coming off a months-long hiatus in Electron missions, and its space systems accounted for the bulk, at $51.5 million.
Rocket Lab’s fourth-quarter revenue fell short of the $62.9 million Wall Street expected, according to analysts polled by LSEG, formerly Refinitiv, while a net loss of 10 cents per share was in line with forecasts estimates.
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The company’s backlog more than doubled annually, boosted significantly by a $515 million satellite contract from the Pentagon’s Space Agency. Rocket Lab CEO Peter Beck noted in a press release that 2023 was “a record year for securing Electron launch contracts,” with the company adding 25 contracts. The launches make up $248 million of Rocket Lab’s backlog, with the rest representing its growing space systems business.
Shares of Rocket Lab fell 5% in after-hours trading to close at $4.71.
Rocket Lab forecasts first-quarter revenue of between $92 million and $98 million.
Neutron progress and an expanded array of spacecraft
Rocket Lab has given multiple updates on the progress it is making on the development of its next-generation Neutron rocket, which aims to compete with companies like SpaceX. Since unveiling its plans for the Neutron in 2021, Rocket Lab has spent heavily to debut the vehicle in the next year or so.
The company’s fourth quarter investor presentation details several of the Neutron milestones achieved so far, including the start of production of rocket components for the first launch, software simulations of launches, and the completion of early testing of the Archimedes engines that will power the rocket.
Rocket Lab also unveiled milestones coming this year for Neutron, including Archimedes engine testing and structural testing of the Neutron rocket’s nose cone.
In addition, Rocket Lab announced the expansion of its spacecraft product line. Building on the success of the Photon satellite shuttle, the company unveiled three additional spacecraft, named Lightning, Pioneer and Explorer, for a variety of customer missions, from communications satellites in low Earth orbit to deep science exploration of other planetary bodies.
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