Rocket Lab, a leading space company, has announced that its contract backlog has exceeded $1 billion, highlighting its strong growth and development. The company also provided updates on the progress of its Neutron rocket, which is set to compete with SpaceX.
In the fourth quarter, Rocket Lab reported a net loss of $50.5 million, or 10 cents per share. This represents a 36% increase in net loss compared to the previous year, as the company continues to invest heavily in the development of its Neutron rocket. The full-year loss also widened by a similar amount to $182.6 million, or 38 cents per share.
However, despite these losses, Rocket Lab’s revenue grew by 16% in the fourth quarter to $60 million. The majority of this revenue came from its space systems business, which accounted for $51.5 million, while its launch business contributed just $8.5 million. The company’s fourth-quarter revenue fell slightly short of Wall Street’s expectations, but its net loss per share was in line with estimates.
One of the key factors driving Rocket Lab’s growth is its backlog of orders, which more than doubled year over year. This is largely due to a $515 million satellite contract from the Pentagon’s Space Development Agency. Rocket Lab CEO Peter Beck highlighted that 2023 was a record year for securing Electron launch deals, with the company adding 25 contracts. The backlog currently stands at $1 billion, with $248 million attributed to launch contracts and the remainder representing the growing space systems business.
Despite the positive news, Rocket Lab’s shares slipped 5% in after-hours trading. However, the company remains optimistic about its future prospects and has forecasted first-quarter revenue between $92 million and $98 million.
In terms of its Neutron rocket development, Rocket Lab provided several updates on its progress. The company has started production of rocket parts for the first launch, conducted software simulations of launches, and completed early testing of the Archimedes engines that will power the rocket. It also outlined upcoming milestones for this year, including further engine testing and structural testing of the rocket’s nose cone.
Rocket Lab also announced the expansion of its spacecraft lineup, building upon the success of its Photon satellite bus. The company unveiled three additional spacecraft, named Lightning, Pioneer, and Explorer, which will cater to a range of customer missions, from low Earth orbit communications satellites to deep space exploration of other planetary bodies.
Rocket Lab’s strong contract backlog and progress in Neutron’s development position the company as a key player in the space industry. With its expanding spacecraft lineup and ambitious goals, Rocket Lab is poised to compete with industry giants like SpaceX. As the company continues to make strides in its development, investors will be closely watching its performance and growth in the coming years.
