Rocket Lab increases revenues by 55 percent in Q3

The third quarter of 2024 was very successful for Rocket Lab (NASDAQ: RKLB, WKN: A3CY7P), as revenue increased by a strong 55% to USD 105 million compared to the same quarter of the previous year. The track record of 2024 thus continues. Rocket Lab is also optimistic for the current final quarter, as the company expects record revenues for 2024.

The number of rocket launches has increased significantly this year compared to the past. One reason for this is that the number of launch sites has been increased to three. In addition, the intervals between individual launches are becoming shorter and shorter. Customers are happy to accept this offer, as regular launches on the three launch ramps characterize the picture this year. One of the successes of the work in recent years has been the stable and growing trust of customers.

One of Rocket Lab’s major successes in the third quarter was the signing of a launch service contract for several Neutron rocket launches with a commercial satellite customer. As the customer attaches great importance to confidentiality, its name was not disclosed. However, the successful signing of the contract is further proof of the trust that Rocket Lab has earned with its customers in the meantime. This also extends to a rocket type that has not yet completed very many series of launches.

The focus is already on the neutron rocket

While the focus is already on future launches of the larger Neutron rocket, Rocket Lab has already recorded twelve successful launches for the smaller Electron rocket this year. The year 2024 will therefore go down as a new record year in the company’s history, as further launches are also planned for November and December.

However, it is questionable whether this record will stand for long, as many new launches are already on the horizon for 2025. In the third quarter alone, contracts worth 55 million US dollars were concluded for further Electron launches in the coming year. This corresponds to an average sales price of 8.4 million US dollars. Compared to the launch of the debut rocket, Rocket Lab was thus able to increase its prices by 67%.

This makes the Electron rocket the most frequently launched rocket in its segment worldwide and the second most frequently used rocket across all segments in the United States. However, Rocket Lab made further progress in Q3, and not only in terms of rocket launches.

The production and delivery of two spacecraft for the NASA Escapade mission to Mars was also completed. The work was completed within the calculated time frame and budget. Two further spacecraft were completed for Varda Space Industrie. There are also plans to build a total of 18 spacecraft for the Space Development Agency as part of the second tranche of the Layer program.

NASA issues a groundbreaking order

One of the most prestigious contracts comes from NASA, as the American space agency is planning to bring samples taken on Mars back to Earth. To implement this plan, Rocket Lab was commissioned to conduct studies on how such a mission could best be carried out.

Other customers are not stingy with orders either. Rocket Lab was able to launch two missions within just eight days in the third quarter and the most recent mission, launched on November 5, 2024, is characterized by the fact that it only took ten weeks from contract conclusion to launch.

Following a turnover of 105 million US dollars in the third quarter, Rocket Lab is currently forecasting revenues of between 125 and 135 million US dollars for the fourth quarter. The GAAP gross margin is expected to be in the range of 26 to 28 percent. With planned operating expenses of 84 to 86 million US dollars and net interest expenses of 1.5 million US dollars, an adjusted EBITDA loss of 27 to 29 million US dollars is expected.

There are therefore still a few steps to go before the break-even point can be exceeded, but Rocket Lab made great progress on this path in the third quarter of 2024 and there are already signs that the fourth quarter will also be successful, and the company will come another step closer to its major goal.