Rocket Lab USA, Inc. (Nasdaq: RKLB) (“Rocket Lab” or “the
company”), a global leader in launch services and space systems,
today announced it is adjusting certain elements of its expected Q3
2023 financial outlook previously provided on August 8, 2023
resulting from the September 19, 2023 launch anomaly as
follows;
Revised Q3 Guidance
Prior Q3 Guidance
Revenue
$66 million to $68 million
$73 million to $77 million
Launch Services revenue
$22 million
$30 million
Space Systems revenue
$44 million to $46 million
$43 million to $47 million
GAAP Gross Margin
18% to 20%
21% to 23%
Non-GAAP Gross Margin*
26% to 28%
28% to 30%
* See “Use of Non-GAAP Financial Measures”
below for an explanation of our use of Non-GAAP financial measures.
We have not provided a reconciliation for the forward-looking
Non-GAAP Gross Margin and Non-GAAP Operating Expenses expectations
for Q3 2023 described above 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. Stock-based compensation
is currently expected to range from $13 million to $14 million in
Q3 2023.
The adjustments reflect the postponement of a scheduled Electron
mission, previously expected to launch before the end of the third
quarter 2023, while the Company completes an investigation into the
in-flight anomaly. The company does not anticipate any material
incremental expenses to be recognized in Q3 2023 as a result of the
anomaly.
Rocket Lab is leading the anomaly investigation at pace with
oversight from the Federal Aviation Administration (FAA). Rocket
Lab has previously completed 37 successful Electron missions,
deploying 171 satellites to orbit. With multiple Electron launch
vehicles in production, and launch sites standing ready, Rocket Lab
is in position to return to flight as soon as investigations are
complete and corrective measures are in place.
+ About Rocket Lab
Founded in 2006, Rocket Lab is an end-to-end space company with
an established track record of mission success. We deliver reliable
launch services, satellite manufacture, spacecraft components, and
on-orbit management solutions that make it faster, easier, and more
affordable to access space. Headquartered in Long Beach,
California, Rocket Lab designs and manufactures the Electron small
orbital launch vehicle, the Photon satellite platform, and the
Company is developing the large Neutron launch vehicle for
constellation deployment. Since its first orbital launch in January
2018, Rocket Lab’s Electron launch vehicle has become the second
most frequently launched U.S. rocket annually and has delivered 171
satellites to orbit for private and public sector organizations,
enabling operations in national security, scientific research,
space debris mitigation, Earth observation, climate monitoring, and
communications. Rocket Lab’s Photon spacecraft platform has been
selected to support NASA missions to the Moon and Mars, as well as
the first private commercial mission to Venus. Rocket Lab has three
launch pads at two launch sites, including two launch pads at a
private orbital launch site located in New Zealand and a third
launch pad in Virginia. To learn more, visit
www.rocketlabusa.com.
+ Forward Looking Statements
This press release 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 2023,
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; 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 congestion from the proliferation of low Earth orbit
constellations which could materially increase the risk of
potential collision with space debris or another spacecraft and
limit or impair our launch flexibility and/or access to our own
orbital slots; increased competition in our industry due in part to
rapid technological development and decreasing costs; 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; 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, 2022, which was filed with
the SEC on March 7, 2023, 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
We supplement the reporting of our financial information
determined under Generally Accepted Accounting Principles in the
United States of America (“GAAP”) with certain non-GAAP financial
information. The non-GAAP financial information presented excludes
certain significant items that may not be indicative of, or are
unrelated to, results from our ongoing business operations. We
believe that these non-GAAP measures provide investors with
additional insight into the company's ongoing business performance.
These non-GAAP measures should not be considered in isolation or as
a substitute for the related GAAP measures, and other companies may
define such measures differently. We encourage investors to review
our financial statements and publicly-filed reports in their
entirety and not to rely on any single financial measure. We have
not provided a reconciliation for 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.
The following definitions are provided:
+ Adjusted EBITDA
EBITDA is defined as earnings before interest, taxes,
depreciation and amortization. Adjusted EBITDA further excludes
items of income or loss that we characterize as unrepresentative of
our ongoing operations. Such items are excluded from net income or
loss to determine Adjusted EBITDA. Management believes this measure
provides investors meaningful insight into results from ongoing
operations.
+ Other Non-GAAP Financial Measures
Non-GAAP gross profit, research and development, net, selling,
general and administrative, operating expenses, operating loss and
total other income (expense), net, further excludes items of income
or loss that we characterize as unrepresentative of our ongoing
operations. Such items are excluded from the applicable GAAP
financial measure. Management believes these non-GAAP measures
provide investors meaningful insight into results from ongoing
operations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230926901599/en/
+ Rocket Lab Investor Relations Contact Colin Canfield
investors@rocketlabusa.com
+ Rocket Lab Media Contact Morgan Bailey
media@rocketlabusa.com
Rocket Lab USA (NASDAQ:RKLB)
Historical Stock Chart
From Apr 2024 to May 2024
Rocket Lab USA (NASDAQ:RKLB)
Historical Stock Chart
From May 2023 to May 2024