Aerospace and defense company Rocket Lab (NASDAQ:RKLB) announced better-than-expected revenue in Q4 CY2024, with sales up 121% year on year to $132.4 million. On the other hand, next quarter’s revenue guidance of $120 million was less impressive, coming in 13.4% below analysts’ estimates. Its GAAP loss of $0.10 per share was in line with analysts’ consensus estimates.
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Revenue: $132.4 million vs analyst estimates of $130.5 million (121% year-on-year growth, 1.4% beat)
EPS (GAAP): -$0.10 vs analyst estimates of -$0.10 (in line)
Adjusted EBITDA: -$23.19 million vs analyst estimates of -$29.06 million (-17.5% margin, 20.2% beat)
Revenue Guidance for Q1 CY2025 is $120 million at the midpoint, below analyst estimates of $138.6 million
EBITDA guidance for Q1 CY2025 is -$34 million at the midpoint, below analyst estimates of -$27.72 million
Operating Margin: -38.9%, up from -79.8% in the same quarter last year
Free Cash Flow was -$70.44 million compared to -$52.63 million in the same quarter last year
Market Capitalization: $10.62 billion
Rocket Lab founder and CEO, Sir Peter Beck, said: “2024 was a record-setting year for Rocket Lab, with our highest annual revenue ever posted of $436.2 million and a record Q4 2024 revenue of $132.4 million – a 382% increase compared to Q4 2021, our first full quarter following our debut on the Nasdaq as a publicly-traded company. Top achievements across launch and space systems include a record number of 16 launches for Electron in 2024 (a 60% increase in launch cadence compared to 2023) and more than $450 million in newly-secured launch and space systems contracts. We rounded out the year with significant advancement across the Neutron program ahead of a planned debut launch in the second half of 2025. The Company’s strong performance across launch and space systems is foundational to Rocket Lab’s momentum toward delivering its own satellite service as a truly end-to-end space company. This has been bolstered in Q1 2025 with the introduction of our new constellation-class satellite platform designed for mass manufacture, named Flatellite. Applicable to national security, defense, and commercial services, the new satellite also signals a bold, strategic step toward potential paths for operating our own future constellation.”
Becoming the first private company in the Southern Hemisphere to reach space, Rocket Lab (NASDAQ:RKLB) offers rockets designed for launching small satellites.
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Rocket Lab (RKLB) Q4 CY2024 Highlights:
Company Overview
Rocket Lab Announces Full Year & Fourth Quarter 2024 Financial Results, Posts Record Revenue Representing 26% Sequential Growth, 78% Annual Growth and 121% Year-on-Year Quarterly Growth
LONG BEACH, Calif.–(BUSINESS WIRE)–Rocket Lab USA, Inc. (Nasdaq: RKLB) (“Rocket Lab”, “the Company”, “we,” “us,” or “our”), a global leader in launch services and space systems, today shared the financial results for fiscal fourth quarter, ended December 31, 2024.
Rocket Lab founder and CEO, Sir Peter Beck, said: “2024 was a record-setting year for Rocket Lab, with our highest annual revenue ever posted of $436.2 million and a record Q4 2024 revenue of $132.4 million – a 382% increase compared to Q4 2021, our first full quarter following our debut on the Nasdaq as a publicly-traded company. Top achievements across launch and space systems include a record number of 16 launches for Electron in 2024 (a 60% increase in launch cadence compared to 2023) and more than $450 million in newly-secured launch and space systems contracts. We rounded out the year with significant advancement across the Neutron program ahead of a planned debut launch in the second half of 2025. The Company’s strong performance across launch and space systems is foundational to Rocket Lab’s momentum toward delivering its own satellite service as a truly end-to-end space company. This has been bolstered in Q1 2025 with the introduction of our new constellation-class satellite platform designed for mass manufacture, named Flatellite. Applicable to national security, defense, and commercial services, the new satellite also signals a bold, strategic step toward potential paths for operating our own future constellation.”
Business Highlights for the Full Year & Fourth Quarter 2024, plus updates since December 31, 2024.
Launch:
Space Systems:
First Quarter 2025 Guidance
For the first quarter of 2025, Rocket Lab expects:
See “Use of Non-GAAP Financial Measures” below for an explanation of our use of Non-GAAP financial measures, and the reconciliation of historical Non-GAAP measures to the comparable GAAP measures in the tables attached to this press release. We have not provided a reconciliation for the forward-looking Non-GAAP Gross Margin, Non-GAAP Operating Expenses or Adjusted EBITDA expectations for Q1 2025 described above 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 financial measures, particularly related to stock-based compensation and its related tax effects. Stock-based compensation is currently expected to range from $16 million to $18 million in Q1 2025.
Conference Call Information
Rocket Lab will host a conference call for investors at 2 p.m. PT (5 p.m. ET) today to discuss these business highlights and financial results for our fourth quarter, to provide our outlook for the first quarter, and other updates.
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, satellite manufacture, spacecraft components, 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, a family of flight-proven spacecraft, and the Company is developing the large Neutron launch vehicle for constellation deployment. 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 more than 200 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 and a third launch pad in Virginia. To learn more, visit www.rocketlabusa.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding our expectations of financial results for the first quarter of 2025, launch and space systems operations, launch schedule and window, safe and repeatable access to space, Neutron development and anticipated timeline to launch, operational expansion and business strategy are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “strategy,” “future,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to the factors, risks and uncertainties included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as such factors may be updated from time to time in our other filings with the Securities and Exchange Commission (the “SEC”), accessible on the SEC’s website at www.sec.gov and the Investor Relations section of our website at www.rocketlabusa.com, which could cause our actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.
+ Use of Non-GAAP Financial Measures
We supplement the reporting of our financial information determined under Generally Accepted Accounting Principles in the United States of America (“GAAP”) with certain non-GAAP financial information. The non-GAAP financial information presented excludes certain significant items that may not be indicative of, or are unrelated to, results from our ongoing business operations. We believe that these non-GAAP measures provide investors with additional insight into the company’s ongoing business performance. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. We encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Reconciliation of the non-GAAP financial information to the corresponding GAAP measures for the historical periods disclosed are included at the end of the tables in this press release. We have not provided a reconciliation for forward-looking non-GAAP financial 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 financial measures, particularly related to stock-based compensation and its related tax effects. The following definitions are provided:
+ Adjusted EBITDA
EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA further excludes items of income or loss that we characterize as unrepresentative of our ongoing operations. Such items are excluded from net income or loss to determine Adjusted EBITDA. Management believes this measure provides investors meaningful insight into results from ongoing operations.
+ Other Non-GAAP Financial Measures
Non-GAAP gross profit, research and development, net, selling, general and administrative, operating expenses, operating loss and total other income (expense), net, further excludes items of income or loss that we characterize as unrepresentative of our ongoing operations. Such items are excluded from the applicable GAAP financial measure. Management believes these non-GAAP measures provide investors meaningful insight into results from ongoing operations.
ROCKET LAB USA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS AND YEARS ENDED DECEMBER 31, 2024 AND 2023
(unaudited; in thousands, except share and per share data)
Three Months Ended
December 31,
Years Ended December 31,
2024
2023
2024
2023
Revenues:
Product revenues
$
84,003
$
47,868
$
289,851
$
156,560
Service revenues
48,385
12,123
146,363
88,032
Total revenues
132,388
59,991
436,214
244,592
Cost of revenues:
Cost of product revenues
60,620
31,104
213,835
115,342
Cost of service revenues
34,951
13,395
106,230
77,841
Total cost of revenues
95,571
44,499
320,065
193,183
Gross profit
36,817
15,492
116,149
51,409
Operating expenses:
Research and development, net
48,255
37,488
174,394
119,054
Selling, general and administrative
40,111
25,887
131,556
110,273
Total operating expenses
88,366
63,375
305,950
229,327
Operating loss
(51,549
)
(47,883
)
(189,801
)
(177,918
)
Other income (expense):
Interest expense, net
(1,778
)
(1,405
)
(3,954
)
(4,248
)
Gain (loss) on foreign exchange
378
(394
)
(87
)
(470
)
Other income, net
1,279
196
4,431
3,715
Total other income (expense), net
(121
)
(1,603
)
390
(1,003
)
Loss before income taxes
(51,670
)
(49,486
)
(189,411
)
(178,921
)
Provision for income taxes
(675
)
(1,011
)
(764
)
(3,650
)
Net loss
$
(52,345
)
$
(50,497
)
$
(190,175
)
$
(182,571
)
Net loss per share attributable to Rocket Lab USA, Inc.:
Basic and diluted
$
(0.10
)
$
(0.10
)
$
(0.38
)
$
(0.38
)
Weighted-average common shares outstanding:
Basic and diluted
501,748,897
486,959,454
495,929,861
481,768,060
ROCKET LAB USA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2024 AND 2023
(unaudited; in thousands, except share and per share data)
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
271,042
$
162,518
Marketable securities, current
147,948
82,255
Accounts receivable, net
36,440
35,176
Contract assets
63,108
12,951
Inventories
119,074
107,857
Prepaids and other current assets
55,009
66,949
Assets held for sale
—
9,016
Total current assets
692,621
476,722
Non-current assets:
Property, plant and equipment, net
194,838
145,409
Intangible assets, net
58,637
68,094
Goodwill
71,020
71,020
Right-of-use assets – operating leases
53,664
59,401
Right-of-use assets – finance leases
14,396
14,987
Marketable securities, non-current
60,686
79,247
Restricted cash
4,260
3,916
Deferred income tax assets, net
3,010
3,501
Other non-current assets
31,210
18,914
Total assets
$
1,184,342
$
941,211
Liabilities and Stockholders’ Equity
Current liabilities:
Trade payables
$
53,059
$
29,303
Accrued expenses
19,460
5,590
Employee benefits payable
20,847
16,342
Contract liabilities
216,160
139,338
Current installments of long-term borrowings
12,045
17,764
Other current liabilities
17,954
15,036
Total current liabilities
339,525
223,373
Non-current liabilities:
Convertible senior notes, net
345,392
—
Long-term borrowings, excluding current installments
44,049
87,587
Non-current operating lease liabilities
51,965
56,099
Non-current finance lease liabilities
14,970
15,238
Deferred tax liabilities
891
426
Other non-current liabilities
5,097
3,944
Total liabilities
801,889
386,667
COMMITMENTS AND CONTINGENCIES
Stockholders’ equity:
Preferred stock, $0.0001 par value; authorized shares: 100,000,000; no shares issued and outstanding at December 31, 2024 and December 31, 2023
—
—
Common stock, $0.0001 par value; authorized shares: 2,500,000,000; issued and outstanding shares: 504,453,785 and 488,923,055 at December 31, 2024 and December 31, 2023, respectively
50
49
Additional paid-in capital
1,198,909
1,176,484
Accumulated deficit
(813,701
)
(623,526
)
Accumulated other comprehensive (loss) income
(2,805
)
1,537
Total stockholders’ equity
382,453
554,544
Total liabilities and stockholders’ equity
$
1,184,342
$
941,211
ROCKET LAB USA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
(unaudited; in thousands)
Years Ended December 31,
2024
2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(190,175
)
$
(182,571
)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
33,655
29,744
Stock-based compensation expense
56,816
53,461
Gain on disposal of assets
(2,828
)
(111
)
Loss on extinguishment of long-term debt
1,330
1,732
Amortization of debt issuance costs and discount
3,091
2,904
Noncash lease expense
5,951
5,787
Change in the fair value of contingent consideration
(218
)
1,343
Accretion of marketable securities purchased at a discount
(2,901
)
(4,571
)
Deferred income taxes
599
708
Changes in operating assets and liabilities:
Accounts receivable, net
(1,428
)
1,452
Contract assets
(50,161
)
(3,501
)
Inventories
(12,398
)
(15,562
)
Prepaids and other current assets
7,591
(14,586
)
Other non-current assets
(12,922
)
(11,470
)
Trade payables
24,800
15,585
Accrued expenses
9,086
(3,275
)
Employee benefits payable
5,304
5,484
Contract liabilities
76,865
30,992
Other current liabilities
3,249
(7,563
)
Non-current lease liabilities
(6,405
)
(5,076
)
Other non-current liabilities
2,209
227
Net cash used in operating activities
(48,890
)
(98,867
)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, equipment and software
(67,093
)
(54,707
)
Proceeds on disposal of assets, net
12,542
3,660
Cash paid for business combinations and asset acquisitions, net of acquired cash and restricted cash
—
(18,966
)
Purchases of marketable securities
(162,161
)
(207,266
)
Maturities of marketable securities
116,242
269,204
Sale of marketable securities
2,143
20,093
Net cash (used in) provided by investing activities
(98,327
)
12,018
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the exercise of stock options
3,507
2,444
Proceeds from Employee Stock Purchase Plan
5,683
4,988
Proceeds from sale of employees restricted stock units to cover taxes
35,254
15,995
Minimum tax withholding paid on behalf of employees for restricted stock units
(35,336
)
(15,722
)
Payment of contingent consideration
—
(1,000
)
Finance lease principal payments
(329
)
(336
)
Purchase of capped calls related to issuance of convertible senior notes
(43,168
)
—
Proceeds from issuance of convertible senior notes
355,000
—
Proceeds from secured term loan
—
110,000
Repayments on secured term loans
(51,724
)
(107,573
)
Payment of debt issuance costs
(12,205
)
(1,427
)
Net cash provided by financing activities
256,682
7,369
Effect of exchange rate changes on cash and cash equivalents
(597
)
43
Net increase (decrease) in cash and cash equivalents and restricted cash
108,868
(79,437
)
Cash and cash equivalents, and restricted cash, beginning of period
166,434
245,871
Cash and cash equivalents, and restricted cash, end of period
$
275,302
$
166,434
ROCKET LAB USA, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
FOR THE THREE MONTHS AND YEARS ENDED DECEMBER 31, 2024 AND 2023
(unaudited; in thousands)
The tables provided below reconcile the non-GAAP financial measures Adjusted EBITDA, Non-GAAP gross profit, Non-GAAP research and development, net, Non-GAAP selling, general and administrative, Non-GAAP operating expenses, Non-GAAP operating loss and Non-GAAP total other income (expense), net with the most directly comparable GAAP financial measures. See above for additional information on the use of these non-GAAP financial measures.
Three Months Ended
December 31,
Years Ended December 31,
2024
2023
2024
2023
NET LOSS
$
(52,345
)
$
(50,497
)
$
(190,175
)
$
(182,571
)
Depreciation
5,854
4,571
20,367
16,034
Amortization
3,285
3,596
13,288
13,710
Stock-based compensation expense
16,872
10,063
56,816
53,461
Transaction costs
2,187
30
2,594
341
Interest expense, net
1,778
1,405
3,954
4,248
Change in fair value of contingent consideration
—
205
(218
)
1,343
Performance reserve escrow
—
31
—
5,457
Provision for income taxes
675
1,011
764
3,650
(Gain) loss on foreign exchange
(378
)
394
87
470
Accretion of marketable securities purchased at a discount
(650
)
(1,179
)
(2,922
)
(4,780
)
Gain on disposal of assets
(472
)
(351
)
(2,828
)
(111
)
Employee retention credit
—
—
—
(3,841
)
Loss on extinguishment of debt
—
1,732
1,330
1,732
ADJUSTED EBITDA
$
(23,194
)
$
(28,989
)
$
(96,943
)
$
(90,857
)
Three Months Ended
December 31,
Years Ended December 31,
2024
2023
2024
2023
GAAP Gross profit
$
36,817
$
15,492
$
116,149
$
51,409
Stock-based compensation
6,452
2,196
16,657
12,521
Amortization of purchased intangibles and favorable lease
1,751
1,710
6,998
6,839
Performance reserve escrow
—
1
—
210
Employee retention credit
—
—
—
(2,130
)
Non-GAAP Gross profit
$
45,020
$
19,399
$
139,804
$
68,849
Non-GAAP Gross margin
34.0
%
32.3
%
32.0
%
28.1
%
GAAP Research and development, net
$
48,255
$
37,488
$
174,394
$
119,054
Stock-based compensation
(1,966
)
(3,828
)
(15,626
)
(21,721
)
Amortization of purchased intangibles and favorable lease
(226
)
(314
)
(912
)
(647
)
Employee retention credit
—
—
—
631
Non-GAAP Research and development, net
$
46,063
$
33,346
$
157,856
$
97,317
GAAP Selling, general and administrative
$
40,111
$
25,887
$
131,556
$
110,273
Stock-based compensation
(8,454
)
(4,039
)
(24,533
)
(19,219
)
Amortization of purchased intangibles and favorable lease
(1,046
)
(1,378
)
(4,320
)
(5,585
)
Transaction costs
(2,187
)
(30
)
(2,594
)
(341
)
Performance reserve escrow
—
(30
)
—
(5,247
)
Change in fair value of contingent consideration
—
(205
)
218
(1,343
)
Employee retention credit
—
—
—
1,080
Non-GAAP Selling, general and administrative
$
28,424
$
20,205
$
100,327
$
79,618
GAAP Operating expenses
$
88,366
$
63,375
$
305,950
$
229,327
Stock-based compensation
(10,420
)
(7,867
)
(40,159
)
(40,940
)
Amortization of purchased intangibles and favorable lease
(1,272
)
(1,692
)
(5,232
)
(6,232
)
Transaction costs
(2,187
)
(30
)
(2,594
)
(341
)
Performance reserve escrow
—
(30
)
—
(5,247
)
Change in fair value of contingent consideration
—
(205
)
218
(1,343
)
Employee retention credit
—
—
—
1,711
Non-GAAP Operating expenses
$
74,487
$
53,551
$
258,183
$
176,935
GAAP Operating loss
$
(51,549
)
$
(47,883
)
$
(189,801
)
$
(177,918
)
Total non-GAAP adjustments
22,082
13,731
71,422
69,832
Non-GAAP Operating loss
$
(29,467
)
$
(34,152
)
$
(118,379
)
$
(108,086
)
GAAP Total other income (expense), net
$
(121
)
$
(1,603
)
$
390
$
(1,003
)
(Gain) loss on foreign exchange
(378
)
394
87
470
Gain on disposal of assets
(472
)
(351
)
(2,828
)
(111
)
Loss on extinguishment of debt
—
1,732
1,330
1,732
Non-GAAP Total other income (expense), net
$
(971
)
$
172
$
(1,021
)
$
1,088
+ Rocket Lab Investor Relations Contact
Patrick Vorenkamp
investors@rocketlabusa.com
+ Rocket Lab Media Contact
Murielle Baker
media@rocketlabusa.com
+ Rocket Lab Investor Relations Contact
Patrick Vorenkamp
investors@rocketlabusa.com
+ Rocket Lab Media Contact
Murielle Baker
media@rocketlabusa.com
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ROCKET LAB USA, INC.
|
ROCKET LAB USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS AND YEARS ENDED DECEMBER 31, 2024 AND 2023 (unaudited; in thousands, except share and per share data) |
||||||||||||||||
|
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
||||||||||||
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Product revenues |
|
$ |
84,003 |
|
|
$ |
47,868 |
|
|
$ |
289,851 |
|
|
$ |
156,560 |
|
|
Service revenues |
|
|
48,385 |
|
|
|
12,123 |
|
|
|
146,363 |
|
|
|
88,032 |
|
|
Total revenues |
|
|
132,388 |
|
|
|
59,991 |
|
|
|
436,214 |
|
|
|
244,592 |
|
|
Cost of revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cost of product revenues |
|
60,620 |
|
|
31,104 |
|
|
213,835 |
|
|
115,342 |
|
||||
|
Cost of service revenues |
|
|
34,951 |
|
|
|
13,395 |
|
|
|
106,230 |
|
|
|
77,841 |
|
|
Total cost of revenues |
|
|
95,571 |
|
|
|
44,499 |
|
|
|
320,065 |
|
|
|
193,183 |
|
|
Gross profit |
|
|
36,817 |
|
|
|
15,492 |
|
|
|
116,149 |
|
|
|
51,409 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
|
Research and development, net |
|
|
48,255 |
|
|
|
37,488 |
|
|
|
174,394 |
|
|
|
119,054 |
|
|
Selling, general and administrative |
|
|
40,111 |
|
|
|
25,887 |
|
|
|
131,556 |
|
|
|
110,273 |
|
|
Total operating expenses |
|
|
88,366 |
|
|
|
63,375 |
|
|
|
305,950 |
|
|
|
229,327 |
|
|
Operating loss |
|
|
(51,549 |
) |
|
|
(47,883 |
) |
|
|
(189,801 |
) |
|
|
(177,918 |
) |
|
Other income (expense): |
|
|
|
|
|
|
|
|
||||||||
|
Interest expense, net |
|
|
(1,778 |
) |
|
|
(1,405 |
) |
|
|
(3,954 |
) |
|
|
(4,248 |
) |
|
Gain (loss) on foreign exchange |
|
|
378 |
|
|
|
(394 |
) |
|
|
(87 |
) |
|
|
(470 |
) |
|
Other income, net |
|
|
1,279 |
|
|
|
196 |
|
|
|
4,431 |
|
|
|
3,715 |
|
|
Total other income (expense), net |
|
|
(121 |
) |
|
|
(1,603 |
) |
|
|
390 |
|
|
|
(1,003 |
) |
|
Loss before income taxes |
|
|
(51,670 |
) |
|
|
(49,486 |
) |
|
|
(189,411 |
) |
|
|
(178,921 |
) |
|
Provision for income taxes |
|
|
(675 |
) |
|
|
(1,011 |
) |
|
|
(764 |
) |
|
|
(3,650 |
) |
|
Net loss |
|
$ |
(52,345 |
) |
|
$ |
(50,497 |
) |
|
$ |
(190,175 |
) |
|
$ |
(182,571 |
) |
|
Net loss per share attributable to Rocket Lab USA, Inc.: |
|
|
|
|
|
|
|
|
||||||||
|
Basic and diluted |
|
$ |
(0.10 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.38 |
) |
|
$ |
(0.38 |
) |
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
|
Basic and diluted |
|
|
501,748,897 |
|
|
|
486,959,454 |
|
|
|
495,929,861 |
|
|
|
481,768,060 |
|
|
ROCKET LAB USA, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2024 AND 2023 (unaudited; in thousands, except share and per share data) |
||||||||
|
|
|
December 31, |
||||||
|
|
|
2024 |
|
2023 |
||||
|
Assets |
|
|
|
|
||||
|
Current assets: |
|
|
|
|
||||
|
Cash and cash equivalents |
|
$ |
271,042 |
|
|
$ |
162,518 |
|
|
Marketable securities, current |
|
|
147,948 |
|
|
|
82,255 |
|
|
Accounts receivable, net |
|
|
36,440 |
|
|
|
35,176 |
|
|
Contract assets |
|
|
63,108 |
|
|
|
12,951 |
|
|
Inventories |
|
|
119,074 |
|
|
|
107,857 |
|
|
Prepaids and other current assets |
|
|
55,009 |
|
|
|
66,949 |
|
|
Assets held for sale |
|
|
— |
|
|
|
9,016 |
|
|
Total current assets |
|
|
692,621 |
|
|
|
476,722 |
|
|
Non-current assets: |
|
|
|
|
||||
|
Property, plant and equipment, net |
|
|
194,838 |
|
|
|
145,409 |
|
|
Intangible assets, net |
|
|
58,637 |
|
|
|
68,094 |
|
|
Goodwill |
|
|
71,020 |
|
|
|
71,020 |
|
|
Right-of-use assets – operating leases |
|
|
53,664 |
|
|
|
59,401 |
|
|
Right-of-use assets – finance leases |
|
|
14,396 |
|
|
|
14,987 |
|
|
Marketable securities, non-current |
|
|
60,686 |
|
|
|
79,247 |
|
|
Restricted cash |
|
|
4,260 |
|
|
|
3,916 |
|
|
Deferred income tax assets, net |
|
|
3,010 |
|
|
|
3,501 |
|
|
Other non-current assets |
|
|
31,210 |
|
|
|
18,914 |
|
|
Total assets |
|
$ |
1,184,342 |
|
|
$ |
941,211 |
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
||||
|
Current liabilities: |
|
|
|
|
||||
|
Trade payables |
|
$ |
53,059 |
|
|
$ |
29,303 |
|
|
Accrued expenses |
|
|
19,460 |
|
|
|
5,590 |
|
|
Employee benefits payable |
|
|
20,847 |
|
|
|
16,342 |
|
|
Contract liabilities |
|
|
216,160 |
|
|
|
139,338 |
|
|
Current installments of long-term borrowings |
|
|
12,045 |
|
|
|
17,764 |
|
|
Other current liabilities |
|
|
17,954 |
|
|
|
15,036 |
|
|
Total current liabilities |
|
|
339,525 |
|
|
|
223,373 |
|
|
Non-current liabilities: |
|
|
|
|
||||
|
Convertible senior notes, net |
|
|
345,392 |
|
|
|
— |
|
|
Long-term borrowings, excluding current installments |
|
|
44,049 |
|
|
|
87,587 |
|
|
Non-current operating lease liabilities |
|
|
51,965 |
|
|
|
56,099 |
|
|
Non-current finance lease liabilities |
|
|
14,970 |
|
|
|
15,238 |
|
|
Deferred tax liabilities |
|
|
891 |
|
|
|
426 |
|
|
Other non-current liabilities |
|
|
5,097 |
|
|
|
3,944 |
|
|
Total liabilities |
|
|
801,889 |
|
|
|
386,667 |
|
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
||||
|
Stockholders’ equity: |
|
|
|
|
||||
|
Preferred stock, $0.0001 par value; authorized shares: 100,000,000; no shares issued and outstanding at December 31, 2024 and December 31, 2023 |
|
|
— |
|
|
|
— |
|
|
Common stock, $0.0001 par value; authorized shares: 2,500,000,000; issued and outstanding shares: 504,453,785 and 488,923,055 at December 31, 2024 and December 31, 2023, respectively |
|
|
50 |
|
|
|
49 |
|
|
Additional paid-in capital |
|
|
1,198,909 |
|
|
|
1,176,484 |
|
|
Accumulated deficit |
|
|
(813,701 |
) |
|
|
(623,526 |
) |
|
Accumulated other comprehensive (loss) income |
|
|
(2,805 |
) |
|
|
1,537 |
|
|
Total stockholders’ equity |
|
|
382,453 |
|
|
|
554,544 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
1,184,342 |
|
|
$ |
941,211 |
|
|
ROCKET LAB USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 (unaudited; in thousands) |
||||||||
|
|
|
Years Ended December 31, |
||||||
|
|
|
2024 |
|
2023 |
||||
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
||||
|
Net loss |
|
$ |
(190,175 |
) |
|
$ |
(182,571 |
) |
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
||||
|
Depreciation and amortization |
|
|
33,655 |
|
|
|
29,744 |
|
|
Stock-based compensation expense |
|
|
56,816 |
|
|
|
53,461 |
|
|
Gain on disposal of assets |
|
|
(2,828 |
) |
|
|
(111 |
) |
|
Loss on extinguishment of long-term debt |
|
|
1,330 |
|
|
|
1,732 |
|
|
Amortization of debt issuance costs and discount |
|
|
3,091 |
|
|
|
2,904 |
|
|
Noncash lease expense |
|
|
5,951 |
|
|
|
5,787 |
|
|
Change in the fair value of contingent consideration |
|
|
(218 |
) |
|
|
1,343 |
|
|
Accretion of marketable securities purchased at a discount |
|
|
(2,901 |
) |
|
|
(4,571 |
) |
|
Deferred income taxes |
|
|
599 |
|
|
|
708 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
|
Accounts receivable, net |
|
|
(1,428 |
) |
|
|
1,452 |
|
|
Contract assets |
|
|
(50,161 |
) |
|
|
(3,501 |
) |
|
Inventories |
|
|
(12,398 |
) |
|
|
(15,562 |
) |
|
Prepaids and other current assets |
|
|
7,591 |
|
|
|
(14,586 |
) |
|
Other non-current assets |
|
|
(12,922 |
) |
|
|
(11,470 |
) |
|
Trade payables |
|
|
24,800 |
|
|
|
15,585 |
|
|
Accrued expenses |
|
|
9,086 |
|
|
|
(3,275 |
) |
|
Employee benefits payable |
|
|
5,304 |
|
|
|
5,484 |
|
|
Contract liabilities |
|
|
76,865 |
|
|
|
30,992 |
|
|
Other current liabilities |
|
|
3,249 |
|
|
|
(7,563 |
) |
|
Non-current lease liabilities |
|
|
(6,405 |
) |
|
|
(5,076 |
) |
|
Other non-current liabilities |
|
|
2,209 |
|
|
|
227 |
|
|
Net cash used in operating activities |
|
|
(48,890 |
) |
|
|
(98,867 |
) |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
||||
|
Purchases of property, equipment and software |
|
|
(67,093 |
) |
|
|
(54,707 |
) |
|
Proceeds on disposal of assets, net |
|
|
12,542 |
|
|
|
3,660 |
|
|
Cash paid for business combinations and asset acquisitions, net of acquired cash and restricted cash |
|
|
— |
|
|
|
(18,966 |
) |
|
Purchases of marketable securities |
|
|
(162,161 |
) |
|
|
(207,266 |
) |
|
Maturities of marketable securities |
|
|
116,242 |
|
|
|
269,204 |
|
|
Sale of marketable securities |
|
|
2,143 |
|
|
|
20,093 |
|
|
Net cash (used in) provided by investing activities |
|
|
(98,327 |
) |
|
|
12,018 |
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
||||
|
Proceeds from the exercise of stock options |
|
|
3,507 |
|
|
|
2,444 |
|
|
Proceeds from Employee Stock Purchase Plan |
|
|
5,683 |
|
|
|
4,988 |
|
|
Proceeds from sale of employees restricted stock units to cover taxes |
|
|
35,254 |
|
|
|
15,995 |
|
|
Minimum tax withholding paid on behalf of employees for restricted stock units |
|
|
(35,336 |
) |
|
|
(15,722 |
) |
|
Payment of contingent consideration |
|
|
— |
|
|
|
(1,000 |
) |
|
Finance lease principal payments |
|
|
(329 |
) |
|
|
(336 |
) |
|
Purchase of capped calls related to issuance of convertible senior notes |
|
|
(43,168 |
) |
|
|
— |
|
|
Proceeds from issuance of convertible senior notes |
|
|
355,000 |
|
|
|
— |
|
|
Proceeds from secured term loan |
|
|
— |
|
|
|
110,000 |
|
|
Repayments on secured term loans |
|
|
(51,724 |
) |
|
|
(107,573 |
) |
|
Payment of debt issuance costs |
|
|
(12,205 |
) |
|
|
(1,427 |
) |
|
Net cash provided by financing activities |
|
|
256,682 |
|
|
|
7,369 |
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
(597 |
) |
|
|
43 |
|
|
Net increase (decrease) in cash and cash equivalents and restricted cash |
|
|
108,868 |
|
|
|
(79,437 |
) |
|
Cash and cash equivalents, and restricted cash, beginning of period |
|
|
166,434 |
|
|
|
245,871 |
|
|
Cash and cash equivalents, and restricted cash, end of period |
|
$ |
275,302 |
|
|
$ |
166,434 |
|
|
ROCKET LAB USA, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES FOR THE THREE MONTHS AND YEARS ENDED DECEMBER 31, 2024 AND 2023 (unaudited; in thousands) |
||||||||||||||||
|
The tables provided below reconcile the non-GAAP financial measures Adjusted EBITDA, Non-GAAP gross profit, Non-GAAP research and development, net, Non-GAAP selling, general and administrative, Non-GAAP operating expenses, Non-GAAP operating loss and Non-GAAP total other income (expense), net with the most directly comparable GAAP financial measures. See above for additional information on the use of these non-GAAP financial measures. |
||||||||||||||||
|
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
||||||||||||
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
NET LOSS |
|
$ |
(52,345 |
) |
|
$ |
(50,497 |
) |
|
$ |
(190,175 |
) |
|
$ |
(182,571 |
) |
|
Depreciation |
|
|
5,854 |
|
|
|
4,571 |
|
|
|
20,367 |
|
|
|
16,034 |
|
|
Amortization |
|
|
3,285 |
|
|
|
3,596 |
|
|
|
13,288 |
|
|
|
13,710 |
|
|
Stock-based compensation expense |
|
|
16,872 |
|
|
|
10,063 |
|
|
|
56,816 |
|
|
|
53,461 |
|
|
Transaction costs |
|
|
2,187 |
|
|
|
30 |
|
|
|
2,594 |
|
|
|
341 |
|
|
Interest expense, net |
|
|
1,778 |
|
|
|
1,405 |
|
|
|
3,954 |
|
|
|
4,248 |
|
|
Change in fair value of contingent consideration |
|
|
— |
|
|
|
205 |
|
|
|
(218 |
) |
|
|
1,343 |
|
|
Performance reserve escrow |
|
|
— |
|
|
|
31 |
|
|
|
— |
|
|
|
5,457 |
|
|
Provision for income taxes |
|
|
675 |
|
|
|
1,011 |
|
|
|
764 |
|
|
|
3,650 |
|
|
(Gain) loss on foreign exchange |
|
|
(378 |
) |
|
|
394 |
|
|
|
87 |
|
|
|
470 |
|
|
Accretion of marketable securities purchased at a discount |
|
|
(650 |
) |
|
|
(1,179 |
) |
|
|
(2,922 |
) |
|
|
(4,780 |
) |
|
Gain on disposal of assets |
|
|
(472 |
) |
|
|
(351 |
) |
|
|
(2,828 |
) |
|
|
(111 |
) |
|
Employee retention credit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,841 |
) |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
1,732 |
|
|
|
1,330 |
|
|
|
1,732 |
|
|
ADJUSTED EBITDA |
|
$ |
(23,194 |
) |
|
$ |
(28,989 |
) |
|
$ |
(96,943 |
) |
|
$ |
(90,857 |
) |
|
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
||||||||||||
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
GAAP Gross profit |
|
$ |
36,817 |
|
|
$ |
15,492 |
|
|
$ |
116,149 |
|
|
$ |
51,409 |
|
|
Stock-based compensation |
|
|
6,452 |
|
|
|
2,196 |
|
|
|
16,657 |
|
|
|
12,521 |
|
|
Amortization of purchased intangibles and favorable lease |
|
|
1,751 |
|
|
|
1,710 |
|
|
|
6,998 |
|
|
|
6,839 |
|
|
Performance reserve escrow |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
210 |
|
|
Employee retention credit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,130 |
) |
|
Non-GAAP Gross profit |
|
$ |
45,020 |
|
|
$ |
19,399 |
|
|
$ |
139,804 |
|
|
$ |
68,849 |
|
|
Non-GAAP Gross margin |
|
|
34.0 |
% |
|
|
32.3 |
% |
|
|
32.0 |
% |
|
|
28.1 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||
|
GAAP Research and development, net |
|
$ |
48,255 |
|
|
$ |
37,488 |
|
|
$ |
174,394 |
|
|
$ |
119,054 |
|
|
Stock-based compensation |
|
|
(1,966 |
) |
|
|
(3,828 |
) |
|
|
(15,626 |
) |
|
|
(21,721 |
) |
|
Amortization of purchased intangibles and favorable lease |
|
|
(226 |
) |
|
|
(314 |
) |
|
|
(912 |
) |
|
|
(647 |
) |
|
Employee retention credit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
631 |
|
|
Non-GAAP Research and development, net |
|
$ |
46,063 |
|
|
$ |
33,346 |
|
|
$ |
157,856 |
|
|
$ |
97,317 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
GAAP Selling, general and administrative |
|
$ |
40,111 |
|
|
$ |
25,887 |
|
|
$ |
131,556 |
|
|
$ |
110,273 |
|
|
Stock-based compensation |
|
|
(8,454 |
) |
|
|
(4,039 |
) |
|
|
(24,533 |
) |
|
|
(19,219 |
) |
|
Amortization of purchased intangibles and favorable lease |
|
|
(1,046 |
) |
|
|
(1,378 |
) |
|
|
(4,320 |
) |
|
|
(5,585 |
) |
|
Transaction costs |
|
|
(2,187 |
) |
|
|
(30 |
) |
|
|
(2,594 |
) |
|
|
(341 |
) |
|
Performance reserve escrow |
|
|
— |
|
|
|
(30 |
) |
|
|
— |
|
|
|
(5,247 |
) |
|
Change in fair value of contingent consideration |
|
|
— |
|
|
|
(205 |
) |
|
|
218 |
|
|
|
(1,343 |
) |
|
Employee retention credit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,080 |
|
|
Non-GAAP Selling, general and administrative |
|
$ |
28,424 |
|
|
$ |
20,205 |
|
|
$ |
100,327 |
|
|
$ |
79,618 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
GAAP Operating expenses |
|
$ |
88,366 |
|
|
$ |
63,375 |
|
|
$ |
305,950 |
|
|
$ |
229,327 |
|
|
Stock-based compensation |
|
|
(10,420 |
) |
|
|
(7,867 |
) |
|
|
(40,159 |
) |
|
|
(40,940 |
) |
|
Amortization of purchased intangibles and favorable lease |
|
|
(1,272 |
) |
|
|
(1,692 |
) |
|
|
(5,232 |
) |
|
|
(6,232 |
) |
|
Transaction costs |
|
|
(2,187 |
) |
|
|
(30 |
) |
|
|
(2,594 |
) |
|
|
(341 |
) |
|
Performance reserve escrow |
|
|
— |
|
|
|
(30 |
) |
|
|
— |
|
|
|
(5,247 |
) |
|
Change in fair value of contingent consideration |
|
|
— |
|
|
|
(205 |
) |
|
|
218 |
|
|
|
(1,343 |
) |
|
Employee retention credit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,711 |
|
|
Non-GAAP Operating expenses |
|
$ |
74,487 |
|
|
$ |
53,551 |
|
|
$ |
258,183 |
|
|
$ |
176,935 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
GAAP Operating loss |
|
$ |
(51,549 |
) |
|
$ |
(47,883 |
) |
|
$ |
(189,801 |
) |
|
$ |
(177,918 |
) |
|
Total non-GAAP adjustments |
|
|
22,082 |
|
|
|
13,731 |
|
|
|
71,422 |
|
|
|
69,832 |
|
|
Non-GAAP Operating loss |
|
$ |
(29,467 |
) |
|
$ |
(34,152 |
) |
|
$ |
(118,379 |
) |
|
$ |
(108,086 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
GAAP Total other income (expense), net |
|
$ |
(121 |
) |
|
$ |
(1,603 |
) |
|
$ |
390 |
|
|
$ |
(1,003 |
) |
|
(Gain) loss on foreign exchange |
|
|
(378 |
) |
|
|
394 |
|
|
|
87 |
|
|
|
470 |
|
|
Gain on disposal of assets |
|
|
(472 |
) |
|
|
(351 |
) |
|
|
(2,828 |
) |
|
|
(111 |
) |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
1,732 |
|
|
|
1,330 |
|
|
|
1,732 |
|
|
Non-GAAP Total other income (expense), net |
|
$ |
(971 |
) |
|
$ |
172 |
|
|
$ |
(1,021 |
) |
|
$ |
1,088 |
|
