• Annual Revenue: $436 million, a 78% increase year-on-year.
• Q4 2024 Revenue: $132 million, a 121% increase year-on-year.
• Launch Services Revenue: $42.4 million for Q4; $125.4 million for the full year, a 74% increase year-on-year.
• Space Systems Revenue: $90 million for Q4; $310.8 million for the full year, an 80% increase year-on-year.
• GAAP Gross Margin: 27.8% for Q4; 26.6% for the full year.
• Non-GAAP Gross Margin: 34% for Q4; 32% for the full year.
• Total Backlog: $1.07 billion, with $386 million in launch backlog and $681 million in Space Systems backlog.
• Q4 Operating Expenses: $88.4 million GAAP; $74.5 million non-GAAP.
• Cash and Equivalents: $484 million at the end of Q4 2024.
• Adjusted Loss: $23.2 million for Q4 2024.
• Q1 2025 Revenue Guidance: $117 to $123 million.
• Q1 2025 GAAP Gross Margin Guidance: 25% to 27%.
• Q1 2025 Non-GAAP Gross Margin Guidance: 30% to 32%.
• Q1 2025 Adjusted EBITDA Loss Guidance: $33 million to $35 million.

• Warning! GuruFocus has detected 6 Warning Signs with OPEN.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Rocket Lab USA Inc (NASDAQ:RKLB) achieved its highest annual revenue to date of $436 million in 2024, marking a 78% increase from the previous year.
• The company successfully executed a record number of 16 launches in 2024, maintaining a 100% mission success rate.
• Rocket Lab USA Inc (NASDAQ:RKLB) signed over $450 million in new contracts in 2024, strengthening its backlog to over a billion dollars.
• The company made significant progress in its Space Systems segment, including the completion of twin spacecraft for NASA's escapade mission to Mars.
• Rocket Lab USA Inc (NASDAQ:RKLB) is advancing its Neutron rocket program, with plans to address the medium launch market and support the deployment of an estimated 10,000 constellation spacecraft over the next decade.

Negative Points

• The timeline for the Neutron rocket's first launch has been pushed to the second half of 2025, indicating potential delays.
• Rocket Lab USA Inc (NASDAQ:RKLB) faces challenges with supplier dependencies, which have caused some delays in the Neutron program.
• The company anticipates increased cash consumption in Q1 2025 due to Neutron-related investments and lower milestone payments.
• There is some uncertainty in the industry regarding defense programs under the new administration, which could impact future contracts.
• Gross margins in the launch business can be volatile quarter to quarter, influenced by customer mix and mission type.

Q & A Highlights

Q: Can you clarify the timing for the Neutron launch, as it seems to have shifted from mid-2025 to the second half of 2025? A: Peter Beck, CEO: We've adjusted the timeline slightly to allow more time for preparation, but we're only talking about a few months' difference. It's not a significant delay.

Q: What would you define as a successful launch for Neutron? A: Peter Beck, CEO: Our goal is to achieve orbit on the first flight. Anything less would not meet our expectations. Achieving orbit on the first attempt is challenging, but it's our target.

Q: How confident are you in launching Neutron this year, and how will the revenue mix shift between Space Systems and launch systems in 2026? A: Peter Beck, CEO: We're confident in launching this year, barring any major unforeseen events. Adam Spice, CFO: We expect the revenue mix to shift as Neutron launches begin. Initially, launch revenue will increase, but we aim for a long-term balance of 2/3 Space Systems and 1/3 launch.

Q: Can you discuss the cost advantages of your new satellite product, Flatite, compared to competitors? A: Peter Beck, CEO: Our vertical integration allows us to produce satellites quickly and cost-effectively. We have significant in-house capabilities, which gives us an edge in both speed and cost.

Q: What are the expectations for Electron's launch capacity in the coming years? A: Peter Beck, CEO: We aim to maximize launch capacity, with LC1 capable of 120 launches annually and LC2 at 12. The market demand will dictate the actual number of launches, but we continue to see growth in Electron sales year on year.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.