RKLB - Earnings call 2 2021 | Rocket Lab USA, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings. And welcome to the Rocket Lab First Half 2021 Earnings Conference Call. [Operator Instructions]

As a reminder, this conference call is being recorded. It is now my pleasure to introduce your host, Gideon Massey, Finance Planning and Analyst Manager. sir. you, Thank

begin. You may

Gideon Massey

being operator. After joining Good Rocket thank you, take Spice, call everyone. first and Beck, CEO; questions. and prepared afternoon, on today's comments, for Adam is Today's us results. discuss Financial XXXX you by conference Peter half Founder Officer. Thank Chief financial And hosted our call Lab's will to we

expense. the applicable third today markets, forward-looking margin fourth our our statements security of laws, tax expenses, operating include meaning to in including and expenses comments GAAP revenue. Our guidance GAAP XXXX and rate the for and quarter expectations other gross Revenue effective relating statements interest within and non-GAAP tax and growth non-GAAP target principal and

make related target across opportunities concerning systems and and we and market statements for products various and addition, service trend revenue in from markets, to including, our limitation, In geographic opportunities space markets. our launch uncertainties will without opportunities arising statements forward-looking improved

include opportunities our trade as pandemic and price risks market These forward-looking the average global from limited may of COVID-XX restrictions, currently the that growth incorrect. develop customers, that prove substantial arising assumptions includes statements and concerning and number of and our selling impact on export may competition, a dependence not trends uncertainty and we our risks expect these opportunities

has other made to X-K therein. and XXXX, affect section and forward-looking the forward-looking update forward-looking documents of may statements filed revise Any and the XX, in obligation our Lab risks recent any of our Factors incorporated statements. statements or these the SEC outlined on Rocket are today, on Risk information filings, no More is including as August Form

available XXXX section half the website at The earnings Relations is rocketlabusa.com. first Investor release of our in

presented compensation amortization attributable the including income supplemental intangible basis financial to acquisitions of and of statements stock-based benefits assets, other operating noncash a To with margin disclose and we non-GAAP expense, other gross effects financial These and measures net on consistent exclude expense, expenses. measures, certain nonrecurring interest GAAP, unaudited and consolidated supplement our expenses. tax purchased income

forward-looking compensation, and loss, to also unaudited adjusted and interest review share-based losses, related We our with expense to warrant include and EBITDA. our statements the reconciliation foreign encourage other or updated of available of expense on We excluding to other our investors Investments guidance investor exchange related gains detailed gains non-GAAP and debt EBITDA the customers website. to historical measure GAAP income in partners nonoperating losses. our presentation or supplement presentations nonrecurring and

reconciliation today financial do project future discussed are with inherent of future Labs' ability associated effects not of partners. tax associated of to in periods to the serve do and alternative certain with because We a GAAP provide customers the stock-based warrant Non-GAAP compensation our and measures and for its results. related including not non-GAAP effects the not presentation Rocket financial and charges, uncertainty an accordance guidance as expense for of

a viewed meaningful location that with GAAP investors associated of measures not amounts results We of operation. that manner do to analysis measures corresponding We GAAP only of are business. to operating to providing These should all have measures. and reflect our the be non-GAAP conjunction they in with in results management's perform believe similar information our more non-GAAP enable our of this comparisons these

call a replay presentation this webcast the copy presentation website weeks. for supporting of on be available with and a X being and Lastly, is will our

Beck. CEO. Peter turn call over Now and the Founder let to me

Peter Beck

joining it's founded half for and potential unlock vision that. and in you XXXX. to you Gideon, and of Thank you sharing exactly a very and the just much, I pleasure Rocket highlights for doing of us we're results the be to Lab today details joining all as Rocket XXXX business thank space, how today Lab review on first with financial a

I'm our President to Adam May and XXXX. Officer CFO Adam at MaxLinear, Chief Spice. the of Rocket Financial Financial Prior since Vice as to and Adam our served has Lab team. Chief Officer, experience the team, joined was by joining the

you Today, first business, And we'll of conference leave a financial time brief highlights and be be and introduction Rocket outlook our We'll questions sharing XXXX. schedule. talking through key our for we'll course, the of accomplishments by of our answers. followed the up-and-coming Lab half covering

perhaps which Lab. applications a move a launch to quick space spanning integrated with vertically known orbit. into let space and satellites launch XXx a XXX to and manufacture me So for services XXXX. orbit overview services space commercial since flying as data of Rocket We has and We've design, company vision range customers. end-to-end a and We're first better for delivered rocket, providing with been open of launched the manufacturing Electron government now

the X. us second only X made frequently for is most basic Falcon has This rocket years behind the launched U.S. past

nearing launch pad in New another X have including completion X operational pads, and We Zealand.

Virginia third be certification. in is The operational pending third the the in -- months NASA scheduled Virginia to coming

spacecraft, have manufacture orbit launch, been Beyond and operating which now. design, operate two right and of the launched we in

low has selected the NASA by Earth orbit. by spacecraft permissions selected been been moon commercial satellite or to has operators and missions Photon to Our Mars in

particularly a manufacturer, supply into Operating insight across spacecraft we launch unique as a industry, the provider and have chains.

that was was small expensive in was hugely became it ordering us quantity and satellite satellite growing, by advance. sometimes being to as that constrained quickly while industry produced and require products these are typically, in apparent component years are small Something supply

set at Planetary Sinclair capability we we with of change strengthened space to So acquisition the XXXX. that components our in by what producing was out consider best-in-class scale, got

you Rocket and half of first story that through some for overview achievements Lab the today, the the let of this with me of year. So brief take

us managed launch strong twice we first our We period in with date. off milestone year. XXth the saw same launch This, launches Electron hit started X the half, to to which in Electron last

half first XX% the of increased we've XXXX. our So for by launch cadence

actually are as sitting Photon own deployed orbit. government across and plus markets, that customers satellites now XXX orbit reached our milestone well. for at Across these spacecraft key deploying missions, we to here X satellite our commercial exceeded of another XXXth and to We've

was on we is successful Electron and step that second stage Electron's small significant of in first to Ocean Bristolia usability This program, the first first marked SplashTown recovery this a our our launch aims stage reusable make forward It successfully after the dedicated satellites. XXth launch. rocket to which recovered

$XXX their to registered growth Constellation underpinned including backlog with deal launch The in a new this as This a XX, first XX, by contracts, also with new General backlog XXXX growth well half year contract of of with June Electron backlog $XX.X XXXX X-launch as is of million. significant June several million. launch support BlackSky Atomics. Global significant

for see a wish launch continue customers remain The government to undisclosed growth for contract customers sensitivity launch and to at We strong commercial new government U.S. and a government. commercial reasons, this do with dedicated point. from security several our to the of awarded

growth for also spacecraft saw manufacturing awarded design Space We to the NASA to We Vada photons Industries, mission a and a Escapade Photon X Systems an for Space side. strong in-space Mars. on develop spacecraft to We build awarded were X contract company. study were

undisclosed Photon's customers. to components a of satellite secured across contracts, addition for In large new deals number we

to into big of milestone NASDAQ. entering on in a become of publicly-traded And Vector course, with we first the the listed Acquisition merger a had agreement the a by half Corporation company XXXX, journey being

anticipation new and Members, Alex. the him we We're Jon to chapter. excited our this new have embark also In Board team welcomed to we Merline, on listing, as at public on proud

for sold a where payload will On Electron rocket new development coming provide constellations the a solution the of update the challenge for R&D I in the sharing launch launching and Neutron responsive months. right-sized we've in progress, X-ton make detailed side, future. we called Since March, to class small announcing announced plans Neutron, great to of to a continued forward look dedicated the develop plans satellites,

half, snapshot let's in the briefly I'd to some a So June this achievements touch of key also first year. our since brief on provide of like but highlights of XX the

On the United is place first XXXX. Force. a dedicated under the Electron States May taking mission the for second our in space XXst launch mission, July successfully we program, test Space XX, This our launched

So we're mission our delivered again. success customers a proud for once to have government

case and and again again. electronic is With payload with coming deployment to is stage. up, our customers, reliability government orbital point valued, thanks and the we mission precision, missions with government the accuracy this As more delivered highly this delivering often look pin to forward

Alba Beyond from This to across million. to we activity, commercial continued is underpinned well XX, of Technologies, with undisclosed and a as commercial launch XX customers as contracts space Orbital to June backlog systems. including and August government Propulsion launch grow Aurora $XXX launch satellite operators number by our

another Contributing as to this deal. multi-launch

XXXX. to launch customers over really value This their deliver Rocket Lab our of control has that constellation accuracy control awarded in launching announced on entire launch the parameters as by orbital with their by as well Electron the provided Kinéis with more from that schedule, we Electron, kick of to today, commence contract satellites deployment orbit, that Kinéis has pinpoint XX a Just represents Electron's is stage. emissions much putting proposition and Kinéis X been

Systems component that construction satellites. Space production we underway the for is line side, On recently small A on announced yields key reaction for a new

at needs components been scale of the that, large. limited really production customers, satellite speed at numbers, built As development. has the the solve typically in mentioned their The to of have meet scale industry produced has line which been earlier, growing and Constellation enabling small to

course, of with key so of Vector the one has Corporation. Acquisition been closure our far of And successful merger year the the of achievements

Lab a August, XXth company transaction of publicly-traded Rocket million saw $XXX As proceeds. NASDAQ Rocket gross Lab the in on -- is The received

low on rate also redemption tremendously saw VACQ of X% We shares. a just publicly-traded

against has activity COVID-XX. of backdrop place This a taken

and the cadence to U.S. in and affected be restrictions by launch continued Our operations COVID-XX have

have current taking Canada. which COVID-XX experienced including convince measures launch at due Zealand place. and law, restrictive stay some operations New And Zealand most operations our to the New home of disruptions orders,

delays. New Zealand international border -- have New addition, In restrictions in created Zealand's addition, strict

far. successful to is with of New Delta subject we our customers in so lockdown been However, into end in securing the by of New Indications cases restrictions Zealand that are the change. this, But ease dropping September current the Zealand. may have course,

that, call over let I'll Officer. Spice, Financial with to our the Adam turn So Chief

Adam Spice

and will our then XXXX outlook for revenue Peter. our half review and first first QX Thanks, I provide XXXX discuss further QX around results outlook. our

and XX%, non-GAAP highlight half XX% first margins year-on-year Our representing XXXX gross of and a and XXX% GAAP of respectively. growth revenues $XX.X of results million,

launch million contributed Space revenue stood revenue. total $X.X XX% Specifically, revenue total $XX.X or grew of or million at of XX% services XXX% and Systems and

initiatives, a from including XXXX, for as overall reaction spacecraft, spaces the in of period strong Planetary wheels Sinclair dramatically from full $X.X Space from closed small April our contribution design that contributions of Systems base and as benefited million and off acquisition shipments as well services. engineering the year-on-year star in from the period combination grew to growth approximately $XXX,XXX trackers broader

As related and driven gross GAAP greater Systems. relative contribution were the build well Electron of of amortization. were for first by cost GAAP the and compares cadence GAAP and intangible XXXX margins the rate GAAP of of gross margins as non-GAAP and referenced gross production XXXX. of and between first earlier, mix half revenue, compensation on stock-based is the as margins of negative of largely first non-GAAP $XXX,XXX and of negative respectively. and acquisition-related non-GAAP XX% half Space XX% primarily gross overhead delta absorption both and XX% of to increases asset effects XXXX the The respectively, half of margins Expansion and launch result $XXX,XXX XX%, non-GAAP in the in launch and effect approximately in This

to for of GAAP XX% up first of expenses at $XX.X $XX.X the OpEx capabilities. the targeted were XXXX further million, with attributable developing the R&D versus half increased of TAM half technical expanding operating spending first XXXX, million

$X announced systems termination spend the Neutron launch amortization for flight expenses operating The $XXX,XXX, launch largely of GAAP R&D system the of first million up targeted efforts non-GAAP vehicle. expenses our that of staffing intangibles on vehicle automated compensation increased driven initial included development spend $X.X million of yielding R&D million related by stock-based products, stepped XXXX. $XX.X half our $XX.X purchased recently previously of referenced and of million approximately and in were to and investments Photon expenses

intangibles expense non-GAAP of SG&A purchased $XX.X half of yielding of XXXX. included $XX,XXX, stock-based of of million compensation the $XX.X million first $XXX,XXX GAAP of expense approximately for SG&A and amortization

related in million $X.X primarily labor headcount professional to and preparation licenses of for as increased transaction, other and offset facilities to and related markets capital step-up was services software year-on-year partially subscriptions expenses expenses, audit the SG&A related The by in overhead reductions the expenses. due and our

by an increase a of net to financing larger first driven million loss, half was increase This from increase expense nearing by receivable $XX.X is million, strategic and the in which noncash payment $X.X the million first cash a million combined consumed due Our warrants. of cash process, the preferred undergoing to of in flow $XX.X lengthening in now of offset which largely consumed somewhat an customer activities versus XXXX in $X.X million, operating reflects $XX.X a terms was XXXX. extended inventory with half accounts conclusion of stock associated increase a protracted $X.X million with

largely consuming Cash flow was in in consumed driven by XXXX, first large were cash $XX.X to in cash consumed of of being the from completed $X.X half operating of XXXX. in first with half reduction of several half first period compared activities year-on-year capital the cash the million XXXX that million consumed in projects XXXX

and our investments headquarters related in launch test pad Included St. planetary as Beach Maya, acquisition New to consolidated in investments well new the second our outflow propulsion Long facility, million Auckland newly complex at April nonrecurring production $XX.XX of Zealand, LCXB, XXXX. are in cash as our and Clare

The $XX.X resulting equivalents in XXXX, from of net XX, million $XX.X cash million and investing XX, generated million in of cash in cash the consumed June by period, more than combination prior finance increase ending offset versus as the $XXX cash activities activities cash the the period June operating an XXXX. was from and and restricted of

the combination and in for Systems cash Neutron continued and believe our the $XXX XX, proceeds to market of our we including Corporation XX, company enable Space stack completed targeted trust. resources map, million total a development $XXX Subsequent in on $XXX a launch Strategic Acquisition development investments the strategic our We August from liquidity road of addressable Corporation's execution million expanding pipe of of gross transaction the Acquisition vehicle Solutions. the XXXX period, from million and June resulting the Vector Vector

negative alert quarter that, be With quarter. QX revenue of expect in from lower in XX%, resulting and our to quarter to These launch and XXX% third production impacted call. of gross margins is factor let's in We planned and no level X gross We $X strategic currently restrictions the are in the related leverage. enabling high for to COVID significantly been future degree variant has further in million negative the COVID vertical $X our which resulting and New launch approximately volumes on the guidance turn QX referenced margins X forecasted production million, XXXX. outbreak, Level launch Zealand costs of believe XXXX earlier XXXX of negative very the and integration after GAAP respectively. activity by key lockdown and non-GAAP Delta a Zealand a the no the product unabsorbed significantly period operating

have such as periods vertical the integration in asset can However, this, effect.

activities As recover Launch gross expect to production resume, margins we accordingly.

to as launch to goal We $XX business. operating $XX beyond expect we the to XXXX million delivering Systems million and expenses million continue and $XX programs targeted GAAP growth in at delivering QX of strong and million line $XX strategic fund leverage of across top Space our in of expenses non-GAAP operating XXXX operating and development

QX XXXX interest GAAP We and $X.X to expect be non-GAAP million. expense

GAAP nor the other requirement warrants Rocket Given expense public estimate income end are awards we this the able customer cannot exchange Vector of or stock market these items fair the to Acquisition losses. forecast and on value and at based to below-the-line Lab price, private partner Corp. gains foreign and time, and we

and QX $XX loss We range XXXX adjusted $XX to million EBITDA expect between million.

the the remainder revenue strong, than million supports for $XX in which the year quarter. fourth more remains of Our of for manifest demand

quarter resume. books half eased assumes our million. of million million to in million. between our to judging to our uncertainty of for COVID September, however, million and allowing $XX of end revenue Zealand, $XX first This restrictions QX, $XX Given and New for COVID-XX the service in guidance fourth revenue in restriction This year revenue range the $XX forecast to $X $XX to QX $X we with the are the launch fiscal prior of to result million XXXX million combined when $XX would million

are a regards we We time prudently be in taking New uncertain to very Zealand. in to with believe forecasting a restrictions to approach conservative COVID what

timing are that our execution the services To and quarter agreements. the these from but restrictions and backlog for sequential versus assumes the contracts this launches X growth the launches has only in rather not Space end, estimate been these just fourth current growing is contractual despite consider quarter in Systems binding modest revenue X manifested. Zealand It COVID New to against operating of in contribution important currently perishable, also launch

challenges near-term and services initiatives very in affecting despite encouraged by against key primarily made continued restrictions launch by expansion by backlog. closing, and we're in the our expansion presented business, programs progress So COVID our particularly strategic

for I'd open like that, with the And questions. to call

Operator

Instructions] [Operator

The first question line with the Yu from is Edison of Deutsche Bank.

Xin Yu

out. the quarter And on first congratulations

Just ask on to a of of about up had realize like first go I potential cadence in XXXX, and wanted have a further quarter the couple what's you're X possible launch year Could of that of maybe those first that maybe in near the of the conservative COVID. term curious that. the you I over Is to launches out. it due bit the to being maybe XXXX? make kind to. you capacity half given kind get to still clearly things

like really bit you the And say, over Could then longer the few has of that past? verticals the more curious, of second pace months. expanding would again has I term. various of wins in It the go playing announcements just across maybe thing, seems a accelerated, wind just last I'm the pipeline that you've in? accelerated. the it the outlined that also you're in pace Is seems

Peter Beck

all With to make color couple a -- we to can add Operating and us we vehicles any any those obviously, push scheduling a constraints. vehicles launch the and manage manifest. the can the our we private up quickly. other pretty gives huge out these to -- range I produce that you manifest. of it. amount are provided can We not own respect we can to We're flexibility launch to subject pad of kick wish

So and good the to extending and in in puts position to pipeline pipeline to control With those us continue the respect see growth the make expand, that the opportunities thereon. continue to that. a we up does and pipeline

Adam Spice

in jump comes ahead. Yes. and Sorry, I when up it I think the go I'll mean catch to

Xin Yu

I go follow-up. had Go No, ahead. a ahead.

Adam Spice

and your and Go then I'll ahead follow-up ask answer.

Xin Yu

I to XQ include any going was assume just make to right? launches guess, I Yes, was I say is, I of doesn't out going walls, sure.

Adam Spice

Okay. I'll take that.

So have any launches of out QX for yes, now, manifest currently, wallets. right on we scheduled don't the

As We're flight our in NASA's waiting certified certification to system. automated the software We're really past, we've on hardware. the final be termination discussed awaiting our of on

that until able So wall. we're launch to happens, a at

end So date is that to do within off that we but launch of we've question. the you of a also the there's the of add? operational Peter, -- kind year, targeted in a by very whether want could the year of end having get towards

Peter Beck

a of complete, is plan the and scheduled waiting which, end just it's on said, final work of on the piece launch Adam year. software, We're commissioned. the That's complete The of right by as factor in. is that sort the

Adam Spice

up It not far execute the say, on as launch we our that really that. was back at not we an QX jump the to forecasting everything sign towel on of I of up the or what I the that prudent we're commit willing just we And doing all are question would catching indication then would many still say of, and to. that kind as is can for supporting out to throwing we're have to manifest. community, QX. conservative in on I'll the not certainly to with regards being and in This manifest to changing for, financial as

what don't out was on the sure want that it again, ultimately just there. confuse with commitment I think bogey put to exists us what cautious actually of I manifest be. prudently would and the to that lower a financial make people But

and pace I as agree. the follow on forth. the pipeline as then question I far so And would would other

building diversity tremendous a of of Space more I in where probably across and government, pipeline the And think seeing a where Systems we're across launch we're we're think seeing amount commercial. lot strength getting then across I in the on of the diversity side a business. specifically lot is

most the some can business the of by To the the me deal allows launch because having natural probably with by us diversity affected that's in Launches encouraging can lumpiness affected think to design They business. lot of I be of which and business, of provide things, a right? weather. be of orbit portfolio of stable Space business And build, whereas your and you a that kind really Systems does so this forth. management base build satellite operational on services across can contracts diversified components, on nice that diversified

part that the about So growth very, we're pipeline. particular in very excited of our

Xin Yu

That's color. timing-wise, that sneak of could Neutron. months. details more customers. If some reactions sort from Any potential I updates The anything Curious kind in. just Great. on give progress everything track you'll on said of great more maybe know there? is coming just one I what's you the in

Peter Beck

well. Yes, really we're we're Neutron getting chest. a of holding time -- little continues spending our bit through to just a And amount close tremendous cards our develop to sure. work. a And

that the that on view. really sets of standard within Look, a kind a something vehicle electronics. Neutron It space is an is in increment our new that is industry

hard that keep going of the a just announcement we'd reveal anybody and lot So of months, ops. when like coming we the through down more expose here But working disappointed about will head a more to details. significant getting a I be moment, its information. design think we're the in large with portion where vehicle and and we'll the to don't -- a do really at

Operator

of the Cai from Cowen. von is Rumohr question with The next line

Cai Von Rumohr

Yes.

us looking in when we what I raised looks size M&A for and It Neutron give are like breakeven. of might inorganic terms cash of sort you've the looks need you money. growth. of what until like Can color lot So a of deals think for of you you see reach we of pipeline talked a And transaction. little of a you bit

Peter Beck

correct. powder fair expand I kind that ensured And exactly mean position is I we're pursuing and are the really your Sure. ones point that really grow TAM. have that strategically. looking our we for have say very sufficient acquisitions to the to We've of dry would been just

what obviously, can things But and So ability in those in of creates there. -- aggressively the acquisition the provide seen more along that we're to we you've things value kinds marketplace after. technologies lines the compete new Sinclair really more an other of create

little I provide anything think it's But that bit to any here. early announce a perhaps, you Adam, to you want here. approach think

Adam Spice

that Sure. of think interesting is No, the I sense feel that what's does large not Okay. for companies market. it's time, getting But like raise the about consolidation. this some a to phenomena relatively is very space investability really is ripe right capital consolidation private difficult it in fact now for necessarily together. Yes. market new this the it's And in of quite

they to though, a there's are nice really businesses digestible founder had businesses perspective. on mom-and-pop their tend they're integratable lot from bootstrap profitability. or that of reasonably have Also, controlled, where focus companies So that a

you're picking what operations. are venture-funded of kind burning cash up typically So not

actually opportunity. a that investigating have a half or of to quite progress. or we trying bit So our deals seen we're we're always actively so pipeline, dozen seeing And

So for us looks landing think that good the outlook transactions.

that's Rocket start seem lean meld that people forward really to can engineer-to-engineer Peter that finding company of and also And to sense platform engineers. to we in emboldened really that acquisition that a that's great get great to got to get want is we you engineering-oriented So their offer as look drawn really companies, Sinclair one that's acquiring a have of has one us opportunities. mentioned have we're the And you those this ultimately when experience, be companies, a at of are have engineers to products my platform think I they thing part I platform, kind other Lab a right? fortunately, to with they great you market. conversations, mind true and that discussions think want leading really get and be operating part at here the engineers. to -- earlier, when And

I and really to not we seeing looking breadth the do We're range technologies So add of we more portfolio the Systems of Space our some on disproportionately that's primarily Electron because that on be is the that side that And building footprint not out the Obviously, and really pretty on of now where as side focus -- kind But well. the house with really consider the is tuck-ins, in been in well ecosystem we're that we'll hand, a majority we've to the and profile think investors got kind -- and model business side. would obviously, really but far. for articulating fits the large but the just of I the the prudent way, that think there we're ultimate at that deliver believe thus way of we Systems type in they looking across might opportunity market, and Space Neutron. deals. we've that launch be of with

Cai Von Rumohr

get have a both in in pricing, as you I a follow-on, you for basically signed XXXX couple up And mentioned that trend the they able from with to have prices. of think is you're you're of recent yet planet pricing, to now proven? What respect what launches you've that And given competition more guys what like you're themselves, prove seeing have business. basically kind to to that but those have obviously,

Peter Beck

than of the things So customers else. the of couple value end day, a anything our at

vehicle, reliability value So reliability they proven launch but a just and schedule of the the of not and service. reliability just

launch dedicated the customers value haven't a and understand seen we small reliable, pricing that So provides. eroded,

really issues we haven't -- seen kind would there. I of So really any

Adam Spice

Yes. more I'll a little color add there.

Cai Von Rumohr

Have you seen...

Adam Spice

Sorry, go ahead, Cai.

Cai Von Rumohr

you've pricing kind No, now of that done I improvement any was satellites? saying, seen more just you in have

Adam Spice

joined, today. I in in pricing was we since certainly, time I would XXXX talking than the of our point pricing May considerably that seen say that that at is we've about stability it joined I lower in were and

up people to us. case, developed perhaps would of to think gone predicted have be has actually And that. has that lot not a for pricing So be I the but certainly

key a launch. they we we're from fact But to is launch, dealing don't business, because data, that I really asset playing than we is a over pricing bringing launch need would And Photon offerings. not we're our to a lot same I powerful. out to with I with minimize can really really been incredibly allows what more stability just again, space has orbit, which a that that on launch more, in -- solution we're to a you combined seeing, what's the have the them believe and all in really would can control complement where is complex, helping plus customer to think complete have, on overall. is of the launch when to us want that all solution suite that right, what offer coming other to huge want Photon the say, pricing turnkey focus they there And where is incredibly competitors I say, table the

So and that's pricing support not to affected for for really been helpful really to others. this get by provide too

thing predictable we're few on other pricing, basis. be orbit there the that's is and course, putting the assets about on too, actually of launches, talking of frequent lot on but out of And a a one people can

So that helps as well.

forward. come I is we're have And seeing, that then multi-launch developed also think, deals what

we're started really the and momentum XX that's mean, are itself these about really ones. And starting say space those proof on I say, start see off you in we the LEO see and last something that's X months, see I that multi-launch evidence to new Kinéis let's of early So today. really, more mean take kind has talked let's starting commitments. the market you kind to of more to deal to and to

which agreements So less very kind multi-launch and launchers the of one-off for encouraging. of is bespoke more

Peter Beck

reliable launch and satellite dedicated are prior obvious. more was on less a operators more the see But flying whereas as with as that value I the value, I that's and platform, -- customers all it then And help of certainly well. understand think also they us think

Adam Spice

Yes.

with go do they have I assets we heritage, proven launches, they people of the the that orbit, And I marketplace. the number far launches, repeatedly. really things it of that's who's now, Peter as they is can So to milestones really putting the somebody in can stability mentioned, helps the significant, their we on serious differentiated as get reliably and right? it, think hit think about It's do in having that right? XX to as one want as pricing

pretty things of those we is So see pricing. all a stable factored for of kind to what in have environment provide

Operator

from is ROTH with of The Silva Suji next Capital. the question line

Suji Desilva

in-house congratulations can into on be component want here. And the I gross Is during that then progress and line? the on to ones versus negatively to us you dig difference don't. it Team, how that strategic margin and your draw understand strategy a of in guys try and which like components And you comments this. times kind for which source competitors financially? that you rebound. the But impacted you bring help

Peter Beck

at fairly launch a always is subject always mean I business readiness as readiness. because of you're launch provider, business the lumpy to spacecraft day, a Yes. customer the end the and

day from baked display the into something So wasn't we lumpy launch to that a into is was was always And move consciously business. plan that it our something X. decision systems did recently,

stage to. that we If second for kick in panels launch rocket solar you at we look right launched, Albert the the back on very had resets put that

components between satellite for end-to-end view too as XX form or going that important out company on we you to were when components, and when reaction found months a our started to just are. times foundational lead because order long. company been have X space quickly others very don't be Like has to from you're a layer X. we actually really wait differentiator fundamental and really interim-based providing components And satellite an So day to we

volumes. of So fact you industry rest and kind that of a a kind is the have, that the at of of of our understood heads thousands or when in number couple relatively up just to program, experiencing And rest producing small as bounded and by industry component small Adam of satellite shops mentioned, Everybody's want the market kind the you manufacturer something. the and the say turn satellite exploded. we a satellite you of after own

are constellations then scale rate that So going the problem has it's satellite if at industry space sold. to everybody this products, to be a and

we're that a as the good company producing complete component volume And things thing of super is space and at volume. one of really

now constellations into own the and provide strategy large really into but is to components general. And you deal examples hundreds, platforms. we're not support a the supplying jolly can in but satellite kind that growth thousands variety and up the of into wells Sinclair obviously, with with see where here our platforms, and of obviously of the of others So help to of that, reaction along our also

Suji Desilva

you targets of Okay. would, years? that. that there have back? some that you out And into here, has you any few and your the push in before New revenue in? to to if launch a I testing place push Zealand that when learnings wondering pushouts already monetize come and if presume cadence revenue hit services, Does then the is in on Or impact expect you the space the flowing launch timing I'm in for on

Peter Beck

I and -- whether moved the spacecraft, No, affect like subject the wouldn't of always to It's around said, impact a we're plans. customer's all mean I of course, manifest readiness customer I spacecraft this mean to of this gets future global something Yes. the time. very those pandemic. launch delivery of

this So there. in the frame. actually gets like is gets launch and move to off manifest our that in biggest able thrown manage owning so benefits everybody range it time those own And being inflect said, I and that all

Suji Desilva

Okay. the Again, on progress. congratulations

Operator

The Moeller next the Canaccord. from question Austin of is with line

Austin Moeller

can in breakout first do the a to of of revenue satellite bit being little Just about Yes, Photon I mean, my provide of color. bus ultimate versus in of mix here. sales foresee question Space you where the with the I in If we next components. sales terms go think the Systems of years segment, the the few ahead the terms

Peter Beck

Adam. ahead, Go

Adam Spice

Yes.

little of of larger time start we period. out balanced in to it acquisition from overall XXXX, contribution pretty into the look at -- So the say, -- a Austin, you getting is now, more by is if bit a Sinclair bit a had certainly, QX because we're I right look this bit of it breakout, at little the a a gets would components the be When running our

that broader have systems my and be for space will both So they satellite XX I the related next the be a level bus the then space components of the would of I outstrip guess outside that scale, probably to boss pretty, would services the earlier pretty on at in functions -- would to We're systems other side components, perhaps opportunity design and satellite although say there's opportunities to that get But both question and pipeline. large. say months. services about our

pursuing that We moving. pipeline our needle had that very we're large are some opportunities very, very in

services little components say will think is larger now, developed little further things default those kind the bit of a But the full outside more I'd components right of a So a and And have bit longer things, maybe scale once the side, Peter period. of overall, greatly I they differently. do a bus more out been kind term, in satellite not past let the the much I'll gain to you that, be easier that are because bit systems the little opportunities and you XX- any XX-month with if think I quantified. get

Peter Beck

No exactly was I going what you've say. said

Austin Moeller

Okay. Great.

build or targeting either that, sphere Sinclair. you bus envisioning services companies same line that if more so this of the satellite that about guys think components along or as space of Are system, acquisitions business? we And more are you out within potential larger sort future

Peter Beck

-- say from I'd I a of a bit we hit careful mean, too say a both. would of I be But competitively. little not to have showing little bit it's much Well,

Operator

remarks. it would at Beck There I are this like time. Peter back for to pass no additional questions to any waiting additional

Peter Beck

XX. Thank to through we Virtual in TechCrunch on like their and XX; disruptive to business, Conference Disrupt on participated up Deutsche September look and who including CEO further UBS CEO XXXX in having we Bank's September updates today's Conference wrap participation Technology our at thank And XX, the I you on October the much. call, everybody before the forward call, opportunity would to provide very

everybody Once great a have the your on to day. again, call, of and rest thanks

Operator

concludes your That I Half of rest the Call. XXXX hope First Conference you enjoy Lab the all Rocket day.

Rocket Lab USA (RKLB) 8 Sep 212021 Q2 Earnings call transcript