Rocket Lab descends on earnings miss, outlook cut
The company’s cash burn hit a new record last quarter as it focused on its next-generation reusable rocket.
Retail favorite Rocket Lab USA dove in early trading after posting a larger-than-expected loss and offering disappointing guidance for Q2.
The company, which has positioned itself as the world’s second-largest commercial space company after Tesla CEO Elon Musk’s SpaceX, did report record revenue of $123 million in the first quarter, topping Wall Street’s forecast.
But the company — and its investors — are very focused on the development of Rocket Lab’s next-generation Neutron reusable rocket, which will enable it to ferry larger payloads into orbit.
In theory, that will let Rocket Lab develop a business selling satellite-based services (sort of the way SpaceX sells its Starlink internet service).
But the company also needs Neutron to come online as its larger payload will allow RocketLab to charge higher prices, helping to slow cash burn.
That cash burn picked up last quarter as Rocket Lab invested in building the rocket out. The company consumed $54 million in cash in Q1, the most on record, as it targets a maiden voyage for Neutron in the second half of this year.
“It’s all about getting the first launch of Neutron off,” CEO Peter Beck told investors on Rocket Lab’s post-earnings conference call. “That’s why that’s such an important thing. It’s got all hands to the pump internally to make sure that we hit our objective of getting that off in the second half.”
