Q3 2021 Financial Results Highlights
- Revenue above high end of prior guidance range at $5.3
million
- Backlog increased from $141 million at June 30, 2021 to $183
million as of September 30, 2021, and currently stands at $237
million as of November 15, 2021
- Space Systems revenue in the third quarter 2021 grew 360% over
the same quarterly period in 2020 to represent 27% of total revenue
for the nine months ended September 30, 2021
- Successfully completed the merger with Vector Acquisition
Corporation resulting in ending cash balance at September 30, 2021
of $792.7 million
Q4 2021 Guidance
- Revenue to range between $23 million to $25 million
- GAAP and non-GAAP gross margins of 13 percent and 27 percent,
respectively
- GAAP and non-GAAP operating expenses between $24 million to $26
million, and $19 million to $21 million, respectively
- GAAP Net Loss between $24 million and $26 million, and Adjusted
EBITDA loss of $9 million to $11 million, which reflects
adjustments for stock-based compensation, 3rd party fees associated
with M&A activity, depreciation and amortization, FX gains and
losses, interest expense, taxes and other recurring and
non-recurring items
- All of the above exclude any warrant expense impacts from the
public and private warrants assumed from the Vector Acquisition
Corporation merger that closed on August 25, 2021, and also
excludes any impacts from the Advance Solutions Inc. acquisition
and related purchase price accounting, and excludes any financial
contributions and accounting impacts from the pending Planetary
Systems Corporation acquisition announced today
Rocket Lab USA, Inc. (Nasdaq: RKLB) (“Rocket Lab” or “the
Company”), a global leader in launch services and space systems,
today announced financial results for its fiscal third quarter
ended September 30, 2021.
“In the third quarter of 2021, Rocket Lab continued to deliver
reliable end-to-end space services, including completing another
successful Electron launch delivering a satellite to orbit for the
United States Space Force, progressing development of the Lunar
Photon spacecraft for the upcoming CAPSTONE mission to the Moon for
NASA, and delivering the highest volume of star trackers and
reaction wheels to customers in a single quarter from our satellite
components business,” said Rocket Lab Founder and CEO, Peter Beck.
“At the same time, we continue to see strong growth from
constellation customers selecting Electron as their preferred
launch vehicle to deploy spacecraft across multiple missions. In
the third quarter, this growth in constellation customers included
entering into a contract with global Internet-of-Things (IoT)
connectivity provider Kinéis to deploy 25 satellites across five
dedicated Electron launches. This multi-launch constellation
contract follows on from the five-launch contract with geospatial
intelligence constellation operator BlackSky signed earlier this
year.”
Third Quarter 2021 Business Highlights:
- Successfully launched a dedicated mission for the United States
Space Force in July. The mission was Rocket Lab’s second for the
Space Test Program and the company’s 21st Electron launch overall.
It brought the number of satellites deployed to orbit by Rocket Lab
to 105.
- Awarded a $24.35 million contract by the U.S. Space Force’s
Space Systems Command for development of the Neutron launch
vehicle’s upper stage. The agreement signifies Rocket Lab’s
commitment to becoming a launch provider for the National Security
Space Launch (NSSL) program, which launches the United States' most
critical missions.
- Entered into a contract with Astroscale Japan Inc to launch an
orbital debris removal demonstration satellite.
- Expanded the company’s space systems footprint with the
commencement of construction on a new high volume reaction wheel
production facility.
- Entered into a contract with global Internet-of-Things (IoT)
connectivity provider Kinéis to deploy 25 satellites across five
dedicated Electron launches.
- Signed launch services agreements to deploy satellites for Alba
Orbital and Aurora Propulsion Technologies.
- Passed a key design review and received NASA approval to move
toward launch for ESCAPADE, a twin Photon mission to Mars led by
the University of California Berkeley Space Sciences
Laboratory.
- Selected to launch NASA’s Advanced Composite Solar Sail System
designed to test new deployable structures and materials
technologies for solar sail propulsion systems.
Since September 30, 2021 Rocket Lab also:
- Acquired Colorado-based space software company Advanced
Solutions, Inc. which delivers mission proven space software,
mission simulation and test systems, and Guidance, Navigation, and
Control (GNC) solutions.
- Entered into an agreement to acquire Planetary Systems
Corporation, a Maryland-based provider of mechanical separation
systems and satellite dispensers with 100% mission success heritage
to date across more than 100 missions.
- Achieved program kick-off for orbital fuel depot demonstration
on Photon Platform. The LOXSAT-1 mission in partnership with Eta
Space will demonstrate a cryogenic oxygen fluid management system
on orbit sponsored by NASA’s Tipping Point Program.
Conference Call Information
Rocket Lab will host a conference call for investors at 1:30
p.m. PT (4:30 p.m. ET) today to discuss these business highlights
and financial results, and to provide our outlook for the fourth
quarter ending December 31, 2021 and other updates. The Company has
also posted an investor presentation dated November 15, 2021
containing more detailed financial results as of and for the three
and nine months ended September 30, 2021 to the investor section of
the Company’s website at:
https://investors.rocketlabusa.com/events-and-presentations/presentations
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, spacecraft components, satellites and other
spacecraft and on-orbit management solutions that make it faster,
easier and more affordable to access space. Headquartered in Long
Beach, California, Rocket Lab designs and manufactures the Electron
small orbital launch vehicle and the Photon satellite platform and
is developing the Neutron 8-ton payload class launch vehicle. Since
its first orbital launch in January 2018, Rocket Lab’s Electron
launch vehicle has become the second most frequently launched U.S.
rocket annually and has delivered 105 satellites to orbit for
private and public sector organizations, enabling operations in
national security, scientific research, space debris mitigation,
Earth observation, climate monitoring, and communications. Rocket
Lab’s Photon spacecraft platform has been selected to support NASA
missions to the Moon and Mars, as well as the first private
commercial mission to Venus. Rocket Lab has three launch pads at
two launch sites, including two launch pads at a private orbital
launch site located in New Zealand, one of which is currently
operational, and a second launch site in Virginia, USA which is
expected to become operational by the end of 2021. To learn more,
visit www.rocketlabusa.com.
Forward Looking Statements
This press release contains 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 and Exchange Act of 1934, as amended.
All statements, other than statements of historical facts,
contained in this press release, including statements regarding our
strategy, future operations, future financial position, projected
costs, prospects, plans and objectives of management, including
without limitation Q4 2021 preliminary guidance, 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 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 the forward-looking statements contained in this press
release, including risks related to the global COVID-19 pandemic,
including risks related to government restrictions and lock-downs
in New Zealand and other countries in which we operate that could
delay or suspend our operations; delays and disruptions in
expansion efforts; 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 congestion from the proliferation of low
Earth orbit constellations which could materially increase the risk
of potential collision with space debris or another spacecraft and
limit or impair our launch flexibility and/or access to our own
orbital slots; increased competition in our industry due to rapid
technological development and decreasing costs; 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; failure of our satellites to operate as intended either due
to our error in design 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; 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, 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 the
prospectus dated October 7, 2021 related to our Registration
Statement on Form S-1 (File No. 333-259757), which was filed with
the Securities and Exchange Commission pursuant to Rule 424(b) on
October 7, 2021 and elsewhere (including that the impact of the
COVID-19 pandemic may also exacerbate the risks discussed
therein).
These forward-looking statements are based on Rocket Lab’s
current plans, expectations and beliefs concerning future
developments and their potential effects. Although we believe that
we have a reasonable basis for each forward-looking statement
contained in this press release, there can be no assurance that the
future developments affecting Rocket Lab will be those that we have
anticipated and we may not actually achieve the plans, intentions
or expectations disclosed in our forward-looking statements, and
you should not place undue reliance on our forward-looking
statements. Moreover, we operate in a very competitive and rapidly
changing environment. New risks emerge from time to time. It is not
possible for our management to predict all risks, nor can we assess
the impact of all factors on our business or the extent to which
any factor, or combination of factors, may cause actual results to
differ materially from those contained in any forward-looking
statements we may make. You should read this press release with the
understanding that our actual results may be materially different
from the plans, intentions and expectations disclosed in the
forward-looking statements we make. All forward-looking statements
are qualified in their entirety by this cautionary statement. The
forward-looking statements contained in this press release are made
as of the date of this press release, and we do not assume any
obligation to update any forward-looking statements, whether as a
result of new information, future events or otherwise except as
required by applicable law.
Use of Non-GAAP Financial Measures
To supplement our unaudited consolidated financial statements
presented on a basis consistent with GAAP, we disclose certain
non-GAAP financial measures, including Adjusted EBITDA, non-GAAP
gross margin, non-GAAP operating expenses and non-GAAP income
(loss) from operations. These supplemental measures exclude the
effects of (i) stock-based compensation expense; (ii) amortization
of purchased intangible assets; (iii) other recurring and
non-recurring interest and other income (expenses), net
attributable to acquisitions and (iv) non-cash income tax benefits
and expenses. We also supplement our unaudited historical
statements and forward-looking guidance with the measure of
Adjusted EBITDA, where adjustments to net loss before interest,
taxes, depreciation and amortization (EBITDA) include share-based
compensation, warrant expense, foreign exchange gains or losses,
and other recurring and non-recurring gains or losses. These
non-GAAP measures are not in accordance with and do not serve as an
alternative for GAAP. We believe that these non-GAAP measures have
limitations in that they do not reflect all of the amounts
associated with our GAAP results of operations. These non-GAAP
measures should only be viewed in conjunction with corresponding
GAAP measures. We compensate for the limitations of non-GAAP
financial measures by relying upon GAAP results to gain a complete
picture of our performance. Non-GAAP financial measures are not in
accordance with and do not serve as an alternative for the
presentation of our GAAP financial results. We are providing this
information to enable investors to perform more meaningful
comparisons of our operating results in a manner similar to
management's analysis of our business. We believe that these
non-GAAP measures have limitations in that they do not reflect all
of the amounts associated with our GAAP results of operations.
These non-GAAP measures should only be viewed in conjunction with
corresponding GAAP measures. We have not provided a reconciliation
of forward-looking non-GAAP measures 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 measures, particularly related to stock-based compensation
and its related tax effects.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211115006183/en/
+ Rocket Lab Investor Relations Contact Adam Spice
investors@rocketlabusa.com
+ Rocket Lab Media Contact Morgan Bailey media@rocketlabusa.com
+64 27 538 9039
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