RKLB 2q 2024 financial presentation
RKLB 2q 2024 financial presentation
RKLB 2q 2024 financial presentation
@financepresentations1 month ago
- 1
- 2 Electron
- 3 Neutron
- 4 Space Systems
- 5 Financial Highlights and Outlook
- 6 Q&A and Upcoming Events
- · Earth-observation constellation.
- · Repeat customer - Rocket Lab has been the sole launch provider for Synspective to date.
- · Largest Electron launch contract to date.
- · Constellation operator.
- · Vertical integration: Rocket Lab separation system to be used on all launches.
- · Rendezvous and proximity operations,
- · Efficient constellation deployment, significantly reducing phasing time,
- · Constellation replenishment,
- · Multiple deployments on same launch to different planes and altitudes,
- · Customized orbits.
FORWARD LOOKING STATEMENTS
Forward Looking Statements
This presentation may contain 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 Exchange Act of 1934, as amended. All statements, other than statements of historical facts, contained in this press release, including statements regarding our expectations of financial results for the third quarter of 2024, strategy, future operations, future financial position, projected costs, prospects, plans and objectives of management, 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 are based on Rocket Lab's current expectations and beliefs concerning future developments and their potential effects. 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 these forward-looking statements. Many factors could cause actual future events to differ materially from the forward-looking statements in this release, including risks related to delays and disruptions in expansion efforts; delays in the development of our Neutron rocket; 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 competition in our industry due in part to rapid technological development; 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; general economic uncertainty and turbulence which could impact our customers' ability to pay what we are owed; failure of our launch vehicles, spacecraft and components 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; any inability to effectively integrate recently acquired assets; a US government shutdown or delays in government funding; 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; risks that acquisitions may not be completed on the anticipated time frame or at all or do not achieve the anticipated benefits and results; 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 Rocket Lab's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on February 28, 2024 and elsewhere. There can be no assurance that the future developments affecting Rocket Lab will be those that we have anticipated. Except as required by law, Rocket Lab is not undertaking any obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
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 non-GAAP gross margin, operating expenses, research and development expenses, and non-GAAP net selling, general and administrative expenses. These supplemental measures exclude the effects of (i) stock-based compensation expense; (ii) amortization of purchased intangible assets and favorable lease; (iii) non-cash income tax benefits and expenses (iv) depreciation; (v) transaction costs; (vi) change in fair value of contingent consideration; (vii) performance reserve escrow; (viii) provision for income taxes; (ix) loss (gain) on foreign exchange; (x) accretion of marketable securities purchased at a discount; (xi) (gain) loss on disposal of assets; and (xii) employee retention credit. We also supplement our unaudited historical statements and forward-looking guidance with the measure of adjusted EBITDA, where adjustments to EBITDA include share-based compensation, warrant expense related to customers and partners, foreign exchange gains or losses, acquisition related performance reserve and escrow, and other non-recurring gains or losses. 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. We encourage investors to review the detailed reconciliation of our GAAP and non-GAAP presentations in our Earnings Release dated August 8, 2024 available on our website at investors.rocketlabusa.com. We have not provided a reconciliation for the 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.
Agenda
Highlights
Building an end-toend space company
Uniquely positioned to be a leading end-to-end space company.
Right now we deliver launch and spacecraft to those who provide space data and services.
We're positioning ourselves to own that too.
By owning the ride to orbit and the spacecraft, we're at a distinct advantage for establishing our own in-space capabilities.
1
2
3
The Ride
ROCKETS
To use space, first you have to get there.
The TOOLS
SPACECRAFT
The satellites and spacecraft, including their many components and software, that do the doing in space.
FUTURE
THE END USE CASE
SPACE DATA & SERVICES
If you own the rocket and the spacecraft, you can deliver the most valuable part of the space chain - data and services from orbit. It powers our world and demand for it continues to grow.
COMPLETE
COMPLETE
Biggest quarter in company history
$106m
Second quarter revenue.
Highest revenue quarter to date.
71%
$1,067M
Year-On-Year revenue increase
Backlog as of Q2 2024
Electron BUSINESS MODEL
Electron delivers what rideshares or other small rockets can't. This is what drives customers to Electron, but it means launch dates are ultimately driven by customer readiness.
Electron Billing
We collect the majority of cash long before lift-off, but only recognize the revenue at launch.
TIME BASED BILLING
L-9 Months
10%
20%
30%
30%
Contract Signed Documentation Delivered
Spacecraft Fit Check
Mission Readiness Review
MILESTONE BASED BILLING
L-6
Months
L-3 Months
Launch Day
10%
Launch Day
17
new Electron launches signed YTD.
$141m
total contract value.
3rd
most frequently launched rocket globally in 2024 (previously 4 th ).
100%
increase in launch rate from 2H 2023 to 1H 2024.
In a year plagued by launch anomalies and delays across the industry, Electron continues to deliver trusted and reliable access to space.
Electron
accounts for of all non-SpaceX orbital U.S. launches in 2024 so far. 64%
Undisputed leader in small launch
Across nine launches year-to-date we've demonstrated differentiated capabilities that show why many satellite operators are prepared to pay a premium for Electron.
Synspective
sstroscale
Back-to-back NASA launches within 11 days.
Tailored constellation deployment. First of 5 booked launches.
Rideshare deployed two customers' satellites to unique orbits 500km apart.
2x dedicated launches building out a constellation for return customer on accelerated timeline.
Highly complex mission launching a satellite to rendezvous with an old rocket body in orbit for a space junk removal demo.
NRO launch delivered thorugh a streamlined, commercial approach.
Precise deployment to enable Space Situational Awareness mission.
Strong demand from commercial customers
Multi-launch contracts signed with commercial constellation operators.
10 Launches: Synspective
4 Launches: Confidential Commercial Customer
Critical enabler to the DoD
Strong demand with three new contracts further strengthening Rocket Lab's position as a trusted partner to the DoD for launch and space systems.
VICTUS HAZE: Selected to design and build a spacecraft, then launch it on Electron with just 24 hours' notice for the USSF's Space Systems Command.
Validation of our model as an end-to-end space company.
STP-S30: A $14.49 mission for the USSF's Space Systems Command, scheduled to launch within 24 months from Rocket Lab Launch Complex 2 in Virginia.
New Haste Contract: Dedicated suborbital mission for U.S. Government customer. Seven HASTE missions now on the manifest, confirming growing market demand for hypersonic test launches.
Reached 50 launches faster than any commercially developed rocket in history
On track for Fastest to 100
FASTEST COMMERCIALLY DEVELOPED 50 LAUNCHES
Pinpoint deployment accuracy
Industry margin for deployment is typically, ~15 kilometers.
Electron delivered within 8 meters.
Demonstrates why Electron is sought-after for the most complex and unique small launch missions:
