Rocket Lab (RKLB) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $106.3 million, a 71% year-over-year and 15% sequential increase, driven by strong growth in launch services and space systems.

• Backlog reached $1.07 billion as of June 30, 2024, with 44% expected to convert to revenue within 12 months and strong bookings in both Launch and Space Systems.

• Electron became the third most frequently launched rocket globally, completing its 50th mission and accounting for 64% of all non-SpaceX US orbital launches in 2024.

• Significant contract wins include a 10-launch deal with Synspective, new DoD contracts, and over $720 million in spacecraft under contract for key government and commercial programs.

• Neutron rocket development advanced with successful Archimedes engine hot fire, flight hardware in production, and first launch targeted for mid-2025.

Financial highlights

• Q2 2024 revenue: $106.3 million (Launch Services: $29.4 million; Space Systems: $77 million).

• Q2 2024 GAAP gross margin: 25.6%; Non-GAAP gross margin: up to 31.8%.

• Q2 2024 adjusted EBITDA loss: $21.2 million, a slight improvement from Q1.

• Cash, equivalents, and marketable securities: $546.8 million at quarter end.

• Q2 2024 net loss: $41.6 million, improved from $45.9 million in Q2 2023.

Outlook and guidance

• Q3 2024 revenue guidance: $100–$105 million (Space Systems: $79–$84 million; Launch: ~$21 million).

• Q3 2024 GAAP gross margin: 25–27%; Non-GAAP: 30–32%.

• Q3 2024 adjusted EBITDA loss expected: $31–$33 million.

• Continued investment in production, R&D, and infrastructure, with Neutron's first flight targeted for mid-2025.

• 44% of backlog expected to convert to revenue within 12 months, supporting future growth.