Rocket Lab Corporation · NASDAQ:RKLB
Rocket Lab — Rocket Lab USA — Q2 2022 Earnings Presentation
39 slides from Rocket Lab's earnings presentation, Aug 11, 2022
Slide 1: Q2 2022 Investor Update
Rocket Lab USA, Inc. Q2 2022 investor update August 11, 2022 rocketlabusa.com 1
Slide 2: Disclaimer and Forward Looking Statements
DISCLAIMER AND F O R WA R D L O O K I N G S TAT E M E N T S Forward Looking Statements This presentation 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
Slide 3: Today's Presenters
T O D AY ’ S PRESENTERS Peter Beck Adam Spice Founder, Chief Executive Officer, Chief Engineer Chief Financial Officer 3
Slide 4: Agenda
Agenda 1 Key Accomplishments 2 Financial Highlights and Outlook 3 Sell-Side Q&A 4 Upcoming Conferences and Events 4
Slide 5: Key accomplishments Q2 2022
SECTION Key accomplishments Q2 2022 5
Slide 6: Key accomplishments Q2 2022
Key accomplishments Q2 2022 Launched 3 successful Successfully launched the Signed a multi-launch Completed the first mid-air Electron missions, more than CAPSTONE mission to the contract with HawkEye capture of an Electron any other small launch Moon for NASA - the first 360 to launch 15 booster wi
Slide 7: Three successful launches in Q2
Key Accomplishments Q2 2022 Three successful launches in q2 More than any other small launch provider for the entire year so far 37 customer satellites deployed to orbit by Electron Launches included a mission to the Moon for NASA, a dedicated launch for Earth-imaging constellation BlackSky and a ri
Slide 8: Successful moon mission for NASA
Successful moon mission for NASA
Slide 9: The capstone mission for NASA
Key Accomplishments Q2 2022 The capstone mission for NASA The Cislunar Autonomous Positioning System Technology Operations and Navigation Experiment (CAPSTONE) is the first spacecraft to test the Near Rectilinear Halo Orbit (NRHO) around the Moon. This is the same orbit intended for NASA’s Gateway,
Slide 10: We launched the first mission of NASA's Artemis program
We launched the first mission of NASA’s Artemis program to return humans to the Moon
Slide 11: More than just a launch
Key Accomplishments Q2 2022 MORE THAN JUST A LAUNCH > A Moon Rocket > A Moon Engine > A M o o n S pa c e c r a f t All designed, built and operated by Rocket Lab. Rocket Lab is the only small launch provider to have designed, built, launched, and operated its own satellites in orbit, further expandi
Slide 12: Highly complex trajectory
H i g h ly c o m p l e x t r a j e c t o r y Six days of 24/7 spacecraft operations
Slide 13: Lunar Photon is now touring the solar system
Lunar Photon is now touring the solar system 1.3 million km from Earth earth
Slide 14: The most complex Rocket Lab mission yet
The most complex rocket lab mission yet First deep First use of Lunar Photon, Developed new First use of MAX space a high energy Rocket in-space propulsion Flight Software from mission Lab-designed and system in under Advanced Solutions built spacecraft two years Inc (ASI) on a Rocket Lab spacecraft
Slide 15: Rocket Lab satellites are now deep space proven
R o c k e t L a b s at e l l i t e s a r e n o w d e e p s pa c e p r o v e n Rocket Lab has now successfully built, launched, and operated a highly capable spacecraft in deep space, positioning the company well for upcoming interplanetary missions to Mars and Venus. 15
Slide 16: Signed bulk-buy launch contract with HawkEye 360
Key Accomplishments Q2 2022 S i g n e d b u l k- b u y launch contract w i t h H aw k e y e 3 6 0 Rocket Lab to launch 15 satellites for HawkEye 360 across three Electron missions between late 2022 and 2024. Contract also adds Rocket Lab separation systems for each satellite, supporting our vertical
Slide 17: Scheduled first mission at Launch Complex 2
Key Accomplishments Q2 2022 Scheduled first M I S S I O N AT L a u n c h Complex 2 The first of the three missions for HawkEye 360 is scheduled to be Rocket Lab’s inaugural Electron mission from Launch Complex 2 in Virginia. NASA on track to certify its Autonomous Flight Termination Unit (NAFTU) sof
Slide 18: First mid-air capture of an Electron booster
Key Accomplishments Q2 2022 First mid-air capture of an Electron booster with a helicopter Advancing rocket reusability program Proved reusability technology and concept of operations (CONOPS) for future aerial captures. Booster returned to Rocket Lab Production Complex in a good state and currently
Slide 19: Commenced construction on Neutron production complex in Virginia
Key Accomplishments Q2 2022 Commenced construction on neutron production complex in Virginia Construction underway on 250,000 sq./ft complex to support Neutron production, assembly, and integration, with new Neutron launch pad to follow. 19
Slide 20: Selected to manufacture Solar Array Panel for NASA's GLIDE spacecraft
Key Accomplishments Q2 2022 Selected to m a n u fa c t u r e S o l a r A r r ay Pa n e l for NASA’s GLIDE s pa c e c r a f t The array will use Rocket Lab’s high-efficiency, radiation-hardened, quadruple-junction Z4J solar cells, manufactured at our production complex in Albuquerque, New Mexico. GLI
Slide 21: 50th MAX flight software mission
Key Accomplishments Q2 2022 50th Max flight s o f t wa r e m i s s i o n As of Q2 2022, Rocket Lab’s MAX flight-software has been successfully flown on more than 50 missions. Developed by Colorado-based ASI, which was acquired by Rocket Lab in October 2021, MAX is an off-the-shelf spacecraft flight
Slide 22: Substantial completion of construction on satellite production facility
Key Accomplishments Q2 2022 S u b s ta n t i a l completion of construction on s at e l l i t e p r o d u c t i o n fa c i l i t y Rocket Lab was awarded a $143M subcontract by MDA to build seventeen 500 kg spacecraft buses for Globalstar constellation in Q1. Rocket Lab is also manufacturing spacecr
Slide 23: Additional accomplishments
Additional accomplishments After June 30, 2022 23
Slide 24: Two successful launches for the NRO
Additional Accomplishments after June 30, 2022 Two successful launches for the NRO Back-to-back national security missions launched from separate pads just over 3 weeks apart Successful demonstration of responsive space in action Rocket Lab has now launched four NRO missions to orbit on Electron, re
Slide 25: Proven rapid and reliable launch
Proven Rapid and reliable launch Successfully launched missions for NASA and the National Reconnaissance Office from two separate launch pads just 15 days apart The only small launch provider to demonstrate this sought-after capability increasingly demanded by national security community 25
Slide 26: Rapidly increased launch cadence
Additional Accomplishments after June 30, 2022 R a p i d ly I n c r e a s e d Launch Cadence ROCKET LAB HAS DEMONSTRATED THE FASTEST TURNAROUND BETWEEN SUCCESSFUL LAUNCHES OF ANY SMALL LAUNCH PROVIDER 1 st 15 Days 2 nd 26 115 Days 3 RD 164 Days Other small launch company *Source: https://space.skyro
Slide 27: Selected to supply solar power for Space Force missile warning satellites
Additional Accomplishments after June 30, 2022 S e l e c t e d t o S u p p ly Solar Power for U n i t e d S tat e s S pa c e F o r c e ’ s N e w M i s s i l e Wa r n i n g S at e l l i t e s Continuing SolAero’s long-term partnership with Lockheed Martin by powering the Next Gen OPIR GEO missile war
Slide 28: Rocket Lab Responsive Space Program
Additional Accomplishments after June 30, 2022 Rocket Lab Responsive S pa c e P r o g r a m The leader in responsive launch and satellites Satellites fail through accidental and deliberate actions. The ability to rapidly replace or establish new assets on orbit is crucial for government and commerci
Slide 29: Responsive Space Program
R e s p o n s i v e S pa c e P r o g r a m Flexible Launch PROVEN RAPID PAYLOAD launch sites on demand CAPABILITY INTEGRATION 3 launch pads Proven rockets, payload 140+ satellites delivered to orbit by Satellites received, across 2 processing facilities, personnel, Electron. Demonstrated ability to
Slide 30: Financial highlights and outlook
SECTION Financial highlights and outlook 30
Slide 31: Review of revenue and gross margin (quarter-on-quarter)
REVIEW OF REVENUE AND GROSS MARGIN Sequential revenue growth of 36%, or $14.7 M, driven by Launch Services growth of 191%, or $12.5M, and Space Quarter-on-Quarter Systems growth of 7%, or $2.2M. Space Systems contributed 66% of total revenue in Q2 $55.5M 36% 2022, led by SolAero momentum and accompa
Slide 32: Review of revenue and gross margin (year-on-year)
REVIEW OF REVENUE AND GROSS MARGIN Y e a r - o n -Y e a r $55.5M 392% Revenue in Q2 2022 Year-on-Year revenue growth Total revenue grew nearly 392%, or more than $44M as both revenue segments experienced Revenue Growth & GAAP / Non-GAAP Gross Margin significant expansion. GAAP GM% - 9% $60 Non-GAAP
Slide 33: Review of operating expenses (quarter-on-quarter)
REVIEW OF OPERATING EXPENSES Quarter-on-Quarter GAAP & Non-GAAP Both GAAP and Non-GAAP R&D R&D vs. SG&A Spending expense increases were largely driven $45 by incremental investments in Neutron $40 development, Electron Booster $35 Recovery and Photon projects. $30 $19.0 $25 $23.1 GAAP SG&A expense d
Slide 34: Review of operating expenses (year-on-year)
REVIEW OF OPERATING EXPENSES Y e a r - o n -Y e a r GAAP R&D increase was driven by Stock Base Compensation, acquisition- related earnouts and amortization of purchased intangibles. GAAP & Non-GAAP R&D vs. SG&A Spending Non-GAAP R&D growth was driven by $45 investments in Neutron, Electron $40 Boost
Slide 35: Ending cash and key cash flow metrics
Ending Cash and Key cash flow Cash consumed from Operating Activities metrics increased by $12M, to $38M, driven primarily by higher net losses due to Quarter-on-Quarter stepped-up R&D related to Neutron developments, and Space Systems Photon $546.6M in Cash and Cash projects, which included signifi
Slide 36: Financial outlook
FINANCIAL OUTLOOK Q3 2022 Revenue Outlook Q3 GAAP and Non-GAAP Q3 Operating Expense Q3 Interest Expense, Adjusted Gross Margins EBITDA and Shares Outstanding • We expect revenue to range • Expect GAAP gross margin to • Expect GAAP Operating Expenses • Expect Interest Expense (Income), between $60 mi
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Slide 38: Upcoming conferences
UPCOMING CONFERENCES RBC Global Industrials Morgan Stanley 10th Aerospace & Defense BofA Global Industrial Conference Annual Laguna Middle Market Innovation Summit US Conference Conference 2022 Las Vegas, Nevada Laguna, California Los Angeles, California Washington DC, September 13, 2022 September 1
Slide 39: Investor day and Neutron development update
In v e stor d ay a n d N e u t ro n D e v e l op me n t U p d at e Date: 21st September, 1:30 – 4:30 pm ET Location: Intrepid Sea, Air & Space Museum, New York Rocket Lab’s Founder and Chief Executive Officer Peter Beck, Chief Financial Officer Adam Spice, and members of Rocket Lab’s leadership team