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Rocket Lab USA, Inc. (RKLB)·Q4 2024 Earnings Summary

Executive Summary

  • Record revenue and margin execution: Q4 2024 revenue was $132.4M, up 121% year-over-year and 26% sequential; non-GAAP gross margin reached 34% and GAAP gross margin was 27.8% at the high end of guidance .
  • Segment strength: Space Systems delivered $90.0M while Launch Services delivered $42.4M; quarter included 5 launches, with 2 higher-ASP HASTE missions, driving mix and margins .
  • Backlog and outlook: Ending backlog was $1.07B; Q1 2025 guidance calls for $117–$123M revenue, lower margins, higher OpEx and wider adjusted EBITDA loss, reflecting Neutron ramp investment and Space Systems milestone timing .
  • Strategic updates: Neutron debut shifted to 2H25, with visible hardware/test progress and new ocean landing platform “Return On Investment”; Flatellite constellation-class satellite introduced, positioning Rocket Lab to operate future services from space; selected by Kratos for MACH‑TB 2.0 hypersonic testing .
  • Stock reaction catalyst: Near-term narrative centers on Neutron schedule clarity, defense program execution, and Q1 margin/OpEx trajectory; medium-term on Flatellite commercialization and Neutron reusability economics .

What Went Well and What Went Wrong

What Went Well

  • Space Systems and Launch both drove record quarter; “we do what we say we’re going to do,” with revenue of $132.4M (+121% YoY) and 16 Electron launches in 2024 (+60% YoY cadence) .
  • Mix and margin improved: non-GAAP gross margin 34% (top of guide); GAAP gross margin 27.8% (top of guide) on higher ASP HASTE missions and scaling Space Systems .
  • Strategic wins: MACH‑TB 2.0 selection (Kratos) and iQPS multi-launch expansion; Flatellite introduces a mass-producible platform enabling potential owned constellations .

What Went Wrong

  • Elevated OpEx: GAAP OpEx $88.4M, modestly above guide, driven by Neutron prototyping and cybersecurity spend; non-GAAP OpEx $74.5M, slightly below guide .
  • Q1 2025 guide implies sequential revenue dip with lower margins and wider adjusted EBITDA loss ($33–$35M), highlighting near-term spend ahead of Neutron and lumpy Space Systems milestones .
  • Neutron schedule modestly pushed from “mid‑2025” to “2H25” to preserve program execution; management emphasized months, not material slippage .

Financial Results

Headline Metrics vs Prior Year and Prior Quarter

MetricQ4 2023Q3 2024Q4 2024
Revenue ($USD Millions)$59.991 $104.808 $132.388
Diluted EPS ($USD)$(0.10) $(0.10) $(0.10)
Non-GAAP Gross Margin (%)32.3% 31.3% 34.0%
Adjusted EBITDA ($USD Millions)$(28.989) $(30.867) $(23.194)
GAAP Operating Loss ($USD Millions)$(47.883) $(51.899) $(51.549)

Segment Breakdown (Q4 2024)

SegmentQ4 2024 Revenue ($USD Millions)
Launch Services$42.4
Space Systems$90.0
Total$132.4

Revenue Mix by Type (Q4 2024)

CategoryQ4 2024 ($USD Thousands)
Product Revenues$84,003
Service Revenues$48,385
Total Revenues$132,388

KPIs and Operating Metrics

KPIQ3 2024Q4 2024
Total Backlog ($USD Billions)$1.05 $1.07
Electron Launches YTD / Full Year12 YTD 16 in 2024
Launches in Quarter (Electron + HASTE)3 5 (incl. 2 HASTE)
Cash & Restricted Cash End of Period ($USD Millions)$296.792 $275.302
Adjusted EBITDA ($USD Millions)$(30.867) $(23.194)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ4 2024 vs Q1 2025$125–$135M (Q4’24) $117–$123M (Q1’25) Lowered
GAAP Gross Margin %Q4 2024 vs Q1 202526%–28% (Q4’24) 25%–27% (Q1’25) Lowered
Non-GAAP Gross Margin %Q4 2024 vs Q1 202532%–34% (Q4’24) 30%–32% (Q1’25) Lowered
GAAP OpEx ($MM)Q4 2024 vs Q1 2025$84–$86 (Q4’24) $93–$95 (Q1’25) Raised
Non-GAAP OpEx ($MM)Q4 2024 vs Q1 2025$75–$77 (Q4’24) $77–$79 (Q1’25) Raised
Net Interest Expense ($MM)Q4 2024 vs Q1 2025$1.5 (Q4’24) $2.7 (Q1’25) Raised
Adjusted EBITDA ($MM)Q4 2024 vs Q1 2025$(27)–$(29) (Q4’24) $(33)–$(35) (Q1’25) More negative
Basic Shares (MM)Q4 2024 vs Q1 2025501 (Q4’24) 458 excl. ~51 pref (Q1’25) Decreased (share count basis differs)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Neutron development & scheduleFirst Archimedes hot fire; AIP/AFP installs; LC3 build-out progressing Engine test cadence doubled; AIT facility complete; NSSL Lane 1 on-ramp positioning “Year of Neutron”; debut in 2H25; Hungry Hippo fairing testing; barge “Return On Investment”; concurrent hardware/testing Advancing; timeline modestly pushed to 2H25
HASTE hypersonic & defenseSigned HASTE launch for govt; responsive space missions MACH‑TB missions executed; AFRL Archimedes support Selected by Kratos for MACH‑TB 2.0 ($1.45B, 5 yrs) Strengthening defense pipeline
Space Systems programs & SDA>$720M spacecraft under contract; ESCAPADE twin spacecraft complete Executing $515M SDA T2TL; Varda second/third spacecraft Cleared multi-day design reviews for SDA T2TL‑Beta; VICTUS HAZE $32M responsive mission Building execution momentum
Electron cadence & multi-launch dealsRecord quarter; 50th mission; multiple constellation launches 12 Electron YTD; expedited 10-week contract-to-launch 16 launches in 2024; >20 Electron/HASTE manifest for 2025; expanded iQPS multi-launch Increasing volume and ASP
Space applications / FlatelliteNot disclosedNot disclosedAnnounced Flatellite: low-cost, mass-producible constellation platform; vertical integration for speed/cost New strategic leg
Tariffs & macro exposureNot highlightedNot highlightedLimited Canada/Mexico tariff exposure; majority intensity U.S./NZ Neutral risk currently

Management Commentary

  • Peter Beck (CEO): “2024 was a record-setting year… highest annual revenue ever… and a record Q4 2024 revenue of $132.4 million… We rounded out the year with significant advancement across the Neutron program ahead of a planned debut launch in the second half of 2025… introduction of our new constellation-class satellite platform… Flatellite” .
  • Adam Spice (CFO): “Fourth quarter 2024 revenue was $132 million… year-over-year growth of 121%, driven by strong contribution from both segments… non-GAAP gross margin for the fourth quarter was 34%… backlog $1.07 billion…” .
  • Peter Beck on Neutron schedule: “We’re taking… a little bit more time… we’re talking months here. It’s not very material.” .
  • Adam Spice on Neutron economics: “Margin expansion… dictated… by reusability… designed to reuse the booster at least 20x.” .
  • Peter Beck on Flatellite: “We can build it fast, cost effectively and in high volumes… a bold strategic move towards… operating its own constellation” .

Q&A Highlights

  • Neutron timing and success criteria: Launch in 2H25; intention is to reach orbit on first flight; modest cushion vs prior “mid‑2025” language .
  • Neutron cost curve and reusability: Economics hinge on sticking first landing and booster reuse (target ≥20x), shifting cost from first stage amortized across missions .
  • Flatellite advantages: Speed and low cost via vertical integration; flexible payload depth/arrays; less suited to large optical apertures .
  • Backlog composition: True end-demand likely >80% government consumption even through commercial programs; pipeline includes larger, lumpier deals .
  • Tariffs exposure: Limited cross-border risk; most operations U.S./NZ; Canadian components largely produced in NZ .
  • NSSL on-ramp: Timeline update does not affect ability to support NSSL Lane 1 on-ramp .

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 2024 and Q1 2025 EPS and revenue could not be retrieved due to S&P Global daily request limit constraints at the time of analysis; therefore, explicit vs-consensus comparisons are not shown [GetEstimates error].
  • Where relevant, we benchmark against company guidance issued for Q4 2024 and Q1 2025 to infer directional beats/misses on margins and EBITDA .

Key Takeaways for Investors

  • Mix-led margin execution: Non-GAAP gross margin at 34% and GAAP at 27.8% reflect beneficial mission mix (HASTE) and scaling Space Systems; watch for mix normalization in Q1 guide (lower margins) .
  • Near-term spend up for Neutron: Q1 guide implies higher OpEx and wider adjusted EBITDA loss as program investment peaks; cash consumption expected to roughly double vs recent $20–$40M/quarter run-rate in Q1 before moderating .
  • Defense exposure deepening: MACH‑TB 2.0 selection and SDA/VICTUS progress underpin backlog durability and ASP; lumpiness expected in bookings/milestones .
  • Neutron is the medium-term re-rating lever: 2H25 debut targeted; reusability economics are critical for margin expansion and Launch mix shift in 2026+ .
  • Flatellite creates applications optionality: Vertical integration plus Neutron capacity positions Rocket Lab for potential owned constellation/services TAM; monitor customer traction and initial deployments .
  • Watch sequential Q1 dynamics: Lower revenue and margins with higher OpEx suggest cautious near-term setup; management expects return to sequential growth in Q2 on Space Systems strength .
  • Trading implications: Near term, stock likely keyed to Neutron execution milestones (hardware shipments, engine qual cadence, licensing) and defense awards; medium term to reusability milestones and Flatellite commercialization trajectory .

Citations: Earnings 8-K and press release ; Q4 2024 call transcript –; Q3 2024 press release –; Q2 2024 press release –.