Rocket Lab is making notable advancements in the development of its Neutron vehicle, as indicated by its fourth-quarter results, which saw its contract backlog exceed $1 billion.
For the fourth quarter, Rocket Lab reported a net loss of $50.5 million, or 10 cents per share. This loss represents a 36% increase compared to the previous year’s fourth-quarter net loss.
The company’s total loss for the year also widened by approximately the same percentage, reaching $182.6 million, or 38 cents per share.
Despite the losses, revenue for the fourth quarter rose by 16% year over year, totaling $60 million compared to $51.8 million.
The revenue from launch services contributed $8.5 million, as Rocket Lab experienced a multi-month hiatus in Electron missions. The majority of the revenue, $51.5 million, came from its space systems segment.
The company’s fourth-quarter revenue fell slightly short of the $62.9 million forecast by analysts surveyed by LSEG, formerly known as Refinitiv. However, the net loss of 10 cents per share aligned with expectations.
The company’s backlog of orders more than doubled compared to the previous year, significantly boosted by 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 contracts, with 25 new deals added.
Of the $248 million in the backlog related to launches, the remaining amount is attributed to its expanding space systems business.
Following the announcement, Rocket Lab’s shares fell 5% in after-hours trading, closing at $4.71.
Looking ahead, Rocket Lab has forecasted first-quarter revenue to range between $92 million and $98 million.
In addition to financial updates, Rocket Lab provided several key updates on the Neutron rocket’s development. The company has been investing heavily to bring the Neutron vehicle to market within the next year.
The fourth-quarter investor presentation highlighted several achievements, including the start of production for rocket parts intended for the first launch, software simulations of launch scenarios, and initial testing of the Archimedes engines that will power the Neutron rocket.
Upcoming milestones for the Neutron rocket include further testing of the Archimedes engines and structural tests of the rocket’s nose cone.
Rocket Lab also announced an expansion of its spacecraft lineup. Building on the success of its Photon satellite bus, the company introduced three new spacecraft—Lightning, Pioneer, and Explorer—designed for various customer missions, ranging from low Earth orbit communications satellites to scientific exploration of other planetary bodies.
