Rocket Lab Corp Q3 FY2024 earnings call

• Electron: Successfully launched multiple missions in Q3, signed $55 million in new launch contracts with a 60% higher average sales price than when Electron first started. • Neutron: Signed a multi-launch deal with a commercial constellation operator for two early launches, in build and test phases; working on NSSL program and awarded an $8 million study contract with the US Air Force's research lab. • Space Systems: Selected by NASA for Mars Sample Return Contract Study; Long Beach spacecraft production line churning out spacecraft with a backlog of over 40; completed and delivered two spacecraft for the ESCAPADE Science Mission to Mars for NASA (though delayed). • Financials: Third quarter revenue $105 million, 55% y-o-y increase; backlog $1.05 billion, 80% y-o-y growth.

Third quarter revenue reached $105 million, a 55% year-on-year increase. Backlog grew 80% year-on-year to $1.05 billion at the end of September. Launch services segment generated $21 million in revenue. Space systems segment contributed $83.9 million in the quarter.

• Fourth quarter revenue expected to range between $125 million and $135 million. • GAAP gross margin forecasted to be between 26% to 28% and non-GAAP gross margin between 32% to 34%. • GAAP operating expenses expected to range from $84 million to $86 million and non-GAAP operating expenses from $75 million to $77 million.

• Launch business is lumpy with potential customer delays and manifest shuffles. • Technical risks associated with Neutron development. • Uncertainty in government projects such as NSSL program timelines and requirements.

Q: About Neutron, when is the first launch target and details of the multi-launch agreement?

A: Target for first launch is mid-2025. Signed a multi-launch agreement with a commercial constellation operator for two early launches on Neutron, carefully matching customer requirements and launch slots to ensure on-time delivery.

Q: On Frank Klein joining from the automotive industry, thoughts on scaling?

A: Production fundamentals are similar across industries. Frank's experience in production scaling will help in ramping up space systems production to handle higher volumes.

Q: On Electron's launch guidance of 15-18 launches, confidence level?

A: Confident to be within the range as customers are looking good in the busy fourth quarter, though initially targeted 22 launches at the start of the year.