RKLB - Earnings call transcript Q4 2021

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Operator

Good afternoon. Thank you for attending today’s Rocket Lab Fourth Quarter 2021 Financial Results Conference Call. My name is Tanya, and I will be your moderator for today’s call. All lines will be muted during the presentation portion of the call with an opportunity for questions-and-answers at the end. [Operator Instructions] I would now like to pass the conference over to our host, Gideon Massey, Financial Planning and Analyst Manager. ahead. go Please

Gideon Massey

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

including statements comments in of adjusted laws, expenses, Our and GAAP EBITDA. expense, include applicable first margin, for operating within forward-looking our gross and and GAAP markets, revenue to meaning the relating quarter today statements target and including guidance non-GAAP other interest non-GAAP our security XXXX, principal

basis and affect opportunities without risks products today the available the our our geographic export Rocket statements. arising improved customers, average and target March documents be and or of risks these has release before forward-looking is Risk Factors Services opportunities opportunities and and In number More forward-looking global rocketlabusa.com. XXXX forward-looking forward-looking restrictions, on and will no therein. COVID-XX markets of full certain revenues presented made statements GAAP, incorrect. on to has supplemental statements compensation information Investor of the operating performance and expect non-recurring assets, to today may forward-looking website our acquisitions, addition, measures, limitation, and risks section financial we price and statements as The effects in disclose may amortization. which as filed these Any Lab our reserve competition, expenses. trends other and section with non-cash our revise fourth filing, our pandemic, limited expenses selling make we purchased or and of develop uncertainties, any year from consistent including in assumptions our on opportunities XX, Space other markets, concerning we and the dependency and a of supplement income at may outlined -- will XX-K growth earnings are consolidated statements the uncertainties other amortization our exclude in impact intangible and financial obligations stock-based unaudited and update of measures a currently including statements for that interest XXXX expenses, of not net that escrow and and may the incorporated expense, trade on including Relations gross that across margin prove tax from opportunities trends, statements risks These concerning XXXX arising quarter and to markets income non-GAAP Launch the involve benefits To substantial These systems various markets. relating attributable

We excluding interest of serve GAAP for of to accordance warrant expense Rocket effects our inherent ability and activity, our compensation, presentations partners. the alternative loss, as related its We and our other in financial mergers historical financial discussed where EBITDA, and Lab’s adjustments associated related guidance customers and also third-party for to not to share-based to unaudited of measure website. foreign forward-looking a the adjusted provide and include uncertainty updated customers gains do with tax expense measures associated supplement related presentation statements and warrant to related future exchange of with -- project acquisition Non-GAAP future with certain in expenses including EBITDA stock-based not today partners, we not are because reconciliation losses, GAAP on the of presentation our losses. gains effects or non-reoccurring expense periods, available update not -- compensation review of guidance and detailed non-GAAP to do reconciliation and our other investors non-operating debt and reserve investor’s charges to We escrow, the results. income and performance and and non-GAAP encourage an the

with providing results more management’s only to and analysis operating a limitations with measures replay two weeks. copy not the presentation manner results me CEO.. associated measures. comparisons and call be to with our perform let investors And our These will meaningful and We call a business. And also being non-GAAP corresponding are be conjunction the in operations. GAAP believe non-GAAP a information to lastly, of enable viewed that and all Peter of have supporting measures website they of on this We in these to now should the this is turn similar over our for presentation, amounts reflect available that Founder do our GAAP webcast of Beck,

Peter Beck

Thanks And just today, launched we earlier before Flight very here, going payload get confirm much, want permission and to Gideon. expected. is I which XX, I that deployed those

for Rocket results financial fourth and review is and year, presenters call today’s Officer, Financial me to today’s Lab’s Spice. final So Adam highlights XXXX joining and business the on joining Chief quarter me --

today the and course, full we be Q&A. and will XXXX, Adam year and you some quarter business of through will be fourth outlook, during have our plenty of today, up taking coming financial for conference key the and off time and So I agenda highlights covering our will schedule, accomplishments their for

with of in start accomplishments of review a a key let’s firstly, our So, XXXX. bit

managed I XXXX. restrictions we all pandemic, think I speaks by six at this will missions ongoing in our created a but to New the slide picking the in up border launch key launch Despite stringent challenges touch operations for Zealand including and particular, electron point. on still itself, site

U.S. retains title launched second most of the frequently As rocket. such, the electron

across breadth very space our encouraging much the customers scope me there’s and launch, to is geographic so application and regions, Beyond achievements of to come. and more

the to very decades and and industrial-leading to Rocket XXXX. Advanced QX for Technologies, do teams ultimately amount come. welcome PSC, ASI Systems in and technology. intent portfolio to we that and SolAero provide years pleased industry companies and value of So experience solutions, In Lab’s these am Culturally Corporation, will able into that are teams QX great highlights. I closed Solutions QX, leadership Planetary which Rocket acquire to the these have of Not only Lab provide family

this all was we able signing slide. achieving While business rockets run still launch we four the ocean and had project and very recovery closer complete reusable Backlog, good civil to happening, are third our our contracts Victor to of to to best some Electron milestone. a and launch inching this some is significant of electron

stands saw XXXX XX, us $XXX at at our at million a $XX million, XXXX, in representing and December backlog million significant our XXXX. customers that’s into we uptick ended backlog $XXX our XX, backlog XXXX, So contracts XXXX, December our stood we in won. At at over the a continued backlog today, to total $XXX since billion $X.X of and and confirmed and backlog end million, in increase and

we launch bookings for constellation our every numerous and to contracts, and Debris including are the photon use filing to want in sales state I and missions satellites universities that suite and of Government, government foreign massive Electron contracts, to see customers incredibly am governments, strengthen across and our customer Photon cases seen take how value with product Interplanetary global rocket-led proud technology services. than satellites, satellite Orbital components high are U.S. and customers include include moment operator. products company, the These do of software missions a I major all commercial have the We study Removal we programs, demonstration base. a

economy. years Our ago spanning and technology would Lab entire vision space company, Rocket that the an space end-to-end become services it best-in-class delivering

to still in is Lab strategy start of strategy, the to Rocket While exciting it’s this early approved. be very see that stages

As successful slide, in past electron I QX XXXX saw the mentioned two launches.

mentioned now in deployed Electrons XXXX. mission bringing launches launched XXX electron Lab interplanetary today XX. has well as total prior successful to XXX satellites saw across So, six Rocket and include slide, XXXX and as for our XX

after to expand entering we the manufacturing our public in and vertical to part ecosystem. special the our of supply would markets So chain Systems, be further started Space integration creating strategy

XXX on is economy, nation’s SolAero. systems. a ASI, that aerospace software Colorado, second evidenced they by PSC in refresher, and strategy spacecraft more Maryland-based than Littleton, cumulative the and of In of and more have acquired a provider satellite ASI’s to-date acquisition XX also operating off-the-shelf space. as and flight industry-leading PSC, litigation control executed NEX QX, features ASI across largest a XXX than based system we separation across Flagstar heritage has nickel guidance the been in and develop years With success with quick for missions. mission We XXX%

Technologies in SolAero New to on Moving Mexico. Albuquerque, based

structures power business. and world’s premier products space aerospace According and market. the line precision bought solar SolAero Rocket sales the to is into global space for of the high-performing SolAero, largest aerospace solar production supplier Lab a of

again, than and XXX% structural products to-date. cells, power space and SolAero’s success composite missions once have X,XXX more successful solar with, mission supported panels reliability

spend to some Over deployed positive of the mention key decades, Lander, cargo products and Parker joined resupply capabilities ambitious mission, to have SolAero’s supplying Mad surface ever in the some in the we now Sinclair will that discussing These impact acquisitions to Space acquired this Interplanetary, International the missions in have brought time I array played in the most several Insite strategic larger Station industry’s to the Mars, solar few. house. and these a just power of be acquisitions Solar presentation, of NASA’s Cygnus which on space April three Probe and Later the we two past roles including XXXX.

that breadth the and allow space to mission Rocket I nearly from Lab the For Rocket mission in inorganically provider leading organically capabilities, few the -- of spanning have capture almost proving years, we Rocket Investments and in. as entire highlights past Lab’s Lab the end-to-end rapidly space phase it ecosystem, that of whatever acquisition love and active have both we every is developed over strategy, is and slide the a solutions. value

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signed We continue multi-launch and a sign number large have also agreements. of to

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customer to it’s of and for the offering. and new and establishing supporting Rocket repeat Lab important across our is diverse that highlight diversity service base Lastly, accomplishments, equal XXXX and products high-quality

is services This spacecraft, has subsystems I highly acquired and these the company. the achieved at fiscal contract more. over few business process. to Lab’s on mission space Globalstar deliver stringent proposition facility, component Lab are end fiscal Important and meet team X mission. manufacturing MDA Since level a also XXXX, being prime growing place a large play. complete to global To of have -- Lab Globalstar post for announced launch manufacturing year Lab state-of-the-art facilities Rocket supply Lab us with building by scale, our deliberate satellites a a are company, them. we Rocket on bid Tier Rocket now Systems week, and these Lab long-term potential and Lab’s it. a reflects and our of contractors option a and resource be spacecraft now the program, to is to spacecraft well with chain strategy up to of strategy strong began for offers additional The kilograms organically parts Everything just such launch Today, technology chain Well, made XX manufacturing should designing million at $XXX complex. part that different now XX security really space that a required competitive contract the development We vertical establish in selected unlocks in Space simple of have integration the progress meeting discuss operate facilities and components and to customers XXX capabilities established Beach demand. that which beyond of into to with deliver customer deepen to logo Space security is which of grow for space revenue robust to strategy say, our goes attractive requirements complex embedded When to plans across enabling awarded contract demonstrating now So fleet pricing. nine a capabilities pricing. are accomplishments a a and the a that value are great Rocket cube one and production is has one launch in the Long with multiple our first the into of of new collaboration and Rocket become not for constellation sats, million X and with public this Lab solution. Rocket of expense supply this $XXX providers the MDA chain, Rocket strategy state-of-the-art is deliver this supply in complex end-to-end by year Rocket the to Rocket the end expertise and attractive and spacecraft to organically design via spacecraft this at headquarters, understand announced want on and is aspiration. example beta contract manufacture we and our we we developed XXXX. NASA out and our Lab acquisition. X,XXX this offer building have and Feeding Systems launch deep and the delivers satellite scheduled created complete. recently This We we scale just

and X. our meet the to Virginia with are we operational allows production system for and chosen services. Commonwealth we Neutron capacity essentially us afford offer incentives, deliberation, Launch the This was new Virginia the guidance Littleton, support a software, to control in considerable So operational present, ASI, week, can with on demand investment attractive very and can doubles a have site demand as and complex. location a geographical we in the flight launch and Colorado growing When decision our our viewed mission customer view. second status investment the the expansion truly last Last are complex strategic today the representing to State on location launch improvement production navigation services. Systems announced for infrastructure After month, signifies for our we growing launch of enable electronic launch Colorado excited to considerable and launch announced our third our Complex and with of this to made launch bringing The pad Regional the and well Spaceport needs. we Littleton, that we both Space and Mid-Atlantic for at turn at an acquire to simulation pad and neutron

in officially itself basing out Wallops Virginia. neutron is So at

Chief I Spice, Adam, the Officer. over So, hand to to call our will over you. that, Adam Financial with

Adam Spice

launch margins Space significantly one-time and higher QX a not PSC, the prior quarter to negative million, Products costs, first partial I full XXX% was were from than for $XX.X and million in $XX.X then in positive were for mix with basis, the of contribution gross grew slightly and quarter fourth XX%, coming prior and XX% XXX% New charges driven XXXX. by of and in for end Revenue margins ASI both included revenue results, by profit in by overhead XXXX impacted expected Overall, as our This XXXX. and XX%, was high XXXX and Pete. contracts negative X% XX% well XXXX, Systems. of respectively. as of XXX% as XX% with XXXX COVID XX%, QX the a Launch growing revenue XXXX our PSC above as by margins coming the absorption from lower was was versus the and GAAP our X the of BlackSky aforementioned year-on-year outlook Services million, fourth margins well on Fourth the XXXX impacts Systems $X.X negative $XX.X Global related of QX full service a guidance de-spac with non-GAAP respectively. guidance components, discuss respectively, which strength the revenue and $XX quarter fourth Thanks, were non-GAAP QX. of was QX across the will Great. or rate Space which in non-GAAP compensation in year or guidance third better quarter negative million and Services. Launch quarter quarter launches, of Gross Systems revenue triggered consistent and well restrictions coming transaction, negative the launch included stock-based quarter as Services gross saw our successful year-on-year. period. for a and this, fourth million, and gross were Net review XXXX catch-up and X% of revenue This for compares quarter, year-on-year GAAP in respectively, our and related prior the Sinclair the $XX.X year from revenue and Zealand as GAAP and Services on Full acquisition. non-GAAP and XX% X% than with to contribution GAAP million Launch growing year guidance. positive Space by XX-fold Systems Space XX% range. partial a

quarter year. result negative quarter, Systems a full XX% trend Space Services electron gross respectively, margins gross exited XX%, The versus higher in year and For XX% in non-GAAP of and XX% non-GAAP of XXXX, in fourth fourth improvement XX% positive and XXXX XX% were rates. negative and GAAP of margins the as Launch were was a gross showed build XXXX. and and GAAP the QX we the in respectively,

Systems respectively. For Space and non-GAAP margins full year XX% XXXX, were XX%, GAAP gross and

to well million $X.X $XXX.X by GAAP deal-related a and director as the operating of XXXX operating revest which XXXX. purchase with million expenses the to $XX.X guidance. and quarter. were our services, fourth staff purchase insurance expenses, XXXX million, non-GAAP and in launch XXXX, related as higher of to operates of $XXX,XXX in our quarter plan XXXX operating $X.X were the XXXX expenses GAAP in from operating company to, of Services stock-based [ASI] employee than -- higher prototyping certain Systems $XX XXXX. $XX.X in unforecasted compared targeting million, activity ASI of related related neutron million, million step-up well driven XXXX staff acquisition million, the the in operating to fourth milestones, $X year were share $XXX,XXX, offices by associated line quarter spend (sic) PSC with of fourth $XX.X quarter of to sorry, broadening and price with Full expenses was step-up and with for were related the public development guidance, our in expenses Non-GAAP vehicle, Full XXXX year higher-than-anticipated Products million as onetime million compensation costs $XXX,XXX, fees our escrow production out premiums. and $XX.X stock-based to audit expenses expenses were as primarily compared in ASC professional of spending approximately and for versus and R&D compared costs bonus Turning to higher to acquisitions PSC performance-based costs was and prior $XXX.X The of intangible amortization driven the Space XXXK as related million compensation

TAM company, as aggressively initiatives We space believe our to an company well end-to-end in invest as we as product will expanding in strengthen competitive continue will public our infrastructure. that positioning

on reconciling to QX Moving $X.X driven in and by EBITDA million prototyping of January EBITDA, expense the the $X.X increased included largely R&D revest vehicle statement Primary adjusted better warrant traded interest the quarter, $X consolidated to our loan to and guidance escrow the operations intangibles of warrants, adjusted and our income QX million million, Products adjusted was of loss our revenue of subsequently of spend million, XXXX million $X.X and of continued was to and outperformance launch QX of stock-based depreciation provision in $X XXXX. which income non-GAAP by range, net on midpoint amortization relative of spend Space related margin $XX fourth be acquisition and amortization a for and staffing was the million related million yielding of GAAP fourth $X.X privately the XXXX. the acquisition-related fourth performance GAAP in to assets, prepaid Services, quarter $X.X These expense EBITDA and $X.X benefit income generated operating XXXX. non-cash tax $X.X driven ASI quarter Systems versus $X.X of and which neutron third development million, efforts. were quarter development of systems revest which by ASI from of FX-related from of primarily quarter. acquisition was million, and R&D related mark-to-market $XX Growth officer expenses million of included million. million officer to of million director expense Cash and add yielding publicly adjustments operating activities Income Hercules $X increase results. which million, quarter, -- from for was $X.X R&D with impacted included our higher performance company. and than continues $XX.X $X.X of $X.X XX, prepaid to full million the intangibles purchase was the quarter XXXX. Cash termination million GAAP $XX.X consumed QX outstanding SG&A XXXX, previously redeemed $X.X million, mentioned and in for flow the to $X.X $X.X cash of million impact costs performance-based an $X step-up back expense compensation warrant expense of operating costs, compensation premiums fourth approximately as non-cash stock-based million and Quarter-on-quarter of due million of $XXX,XXX, of depreciated million compensation a full somewhat of costs was SG&A add-backs charges and of insurance director an $XX.X amortization from million the insurance fourth of QX income escrow saw revest escrow of of million purchase quarter other negative and million, the increase and offset transaction of of charges. derived non-GAAP current flow mainly activities public $X.X first million and a quarter performance-based in by $X.X for expense amortization the from flight the of based $X.X of expense automated $XX revesting million, stock-based for expenses.

million For full $XX loss activities of in an was increase of from consumed year XXXX. cash operating operating loss by $XXX.X in of XXXX. XXXX, $XX.X our This in cash in versus million consumed XXXX cash flow was consumption $XX.X from operating versus million driven million activities operating

stock-based on in an of by by facilities $XX.X million PSC, add-backs ASI consumption cash cash and of increase $X.X as consumption to driven assets this of several $XX.X quarter net million. the charges large other expanding consumed Complex acquisition driven $XX.X depreciation period XXXX. Cash inventory recovery in to our the consumed execution cash expense Zealand current investing in our second quarter the was cash expense amortization of prepaids consolidated increase million projects, satellite With of cash X, compensation of as and launch activities Long million XXXX, was and paid and and complex fourth $XX by addition, compared pad acquire $XX.X propulsion launch the and $XX.X labs including manufacturing million of our electron capital non-cash In quarter-on-quarter Gap] and increase from point in and on $XX.X headquarters, on third contract of our and an Launch million New in in new assets. Beach liabilities flow at from in test million of by [Audio well

million, repurchase flow factors $X.X million XXXX in XXXX. in cash $XX.X building in revenue activities strategic stock QX of by $XXX,XXX comprised generated employee than Space was from shares addressable million from by stemming full stock the XXXX, from includes XXXX. proceeds Vector activities Systems related Corp. We million from as exercise financing employee the proceeds cash dedicated to compared pipe was For guidance driven transaction of finance during our the by and in Acquisition and expanding million and In operating SolAero, net total of related the company for options investing by XX, activities combination of options. million XXXX cash compared consumed activities discussed $XX.X a full the fourth in $XX.X expect options. million in largely This the XXXX, $X Acquisition collecting the financing of consumption the cash and merger of somewhat January the activities offset neutron of fourth the In net any was development With offset with the which was which resulting activities the million third XXXX. proceeds and delayed from and options, our development The on from million, targeted of equivalents. de-spac investing exercise for contribution to believe Gap] cash $XXX.X was the and quarter near compares the our million was the Corporation merger of professional redemptions quarter year, Vector from between launch management’s with from to million from of turn of $XX cash affecting of of more the from issuance the services our including cash related to launches $XXX in million [Audio for vehicle liquidity $XX.X consumption of for our year the XXXX, $XXX.X to consumed in $X.X stock the the more excess which generated financing, and than cash from quarter, related which the earlier. cash leaseback to enable the quarter, proceeds consumed driven generated road the We resources quarter in third range with solutions. net million, offset let’s stock in reduction associated and preferred the $XX.X in cash first $X.X investments same that, by QX closed of to and $XX quarter strategic map, our at continued execution to currently two from market million

allocation margins and It are stock-based respectively. XX%, QX, in expect price sorry, well the margins GAAP and of and today’s and to therefore, note, of compensation product contribution captured gross purchase guidance. is as XXXX mix, purchased been not has the XX% full We not PSC, completed important expense related SolAero we as is by for call, quarter at driven intangible QX amortization our to of and QX yet non-GAAP ASI gross time expect GAAP SolAero.

expect $XX and GAAP to between range expenses million range and $XX expenses QX to operating non-GAAP between $XX operating million. million and million $XX XXXX We

and as from as ASI effect contribution near by quarter step-up This driven quarter-over-quarter contribution from well is the full SolAero. quarter PSC, of full

manufacture million our revenue satellites strategic we its Launch to of design, XXXX operating put business. QX leverage NDA delivering and The in in over XX quarters and at business from are in of Space already Globalstar. these its addition, seven award our and now beyond this In investments into to $X over guide. bearing of for strong our Space expanding Systems full targeted To effects and across X/X approximately XXXX, the contributed Systems topline generated and revenue representing growth regarding only the out our a for first year proof programs delivering deliver development announcements perspective, to the continue goal little and recent fund ago backlog of

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

and XXXX, P&L of warrants. these completion With and our longer impacts January closed private on income of be public will legacy warrant redemption our expense XX, the that mark-to-market to no subject

expect like we that, million million. $X range adjusted I’d to XXXX, We loss sorry, And XXXX between QX QX $X questions. the call EBITDA expect with to and to open Operator?

Operator

[Operator Yu Edison Instructions] Deutsche The Bank. first question line is of the from with

is open. line Your

Edison Yu

taking my for questions Thanks Hey. quarter. on congrats the and

to I topics two ask wanted about. So

basic of I obviously, saw within space, to thought right Europe? fly cannot last if the considering kind use is environment or about speed compensate kind the for potential so Have of you spaces development in And happened to implications, has any neutron that? is week. get of way or up there the now particular for lot sanctioned a guess, First

Peter Beck

Yeah. a neutron we time and working we as in Thank on quick right as Yeah. Edison. Obviously, can. the crazy you, now it’s world are

we say launch far accelerate can things continue am be been. already if I much So that, sure direction, is. a than limited than it there more have to availability more that But will this would what not needless normally in

Edison Yu

then M&A second of bearing fruit. the And a topic, clearly, quite strategy been has bit Understood.

have You lines propulsion? have most Is integrated strategic all anything maybe there there there along you most see this of you Do of left? of on kind some of satellites. think feel out the kind of still that’s potentially out is it electric anything completed you important you or content there

Peter Beck

might I next. say particular about, for going technology that and companies we and keep wouldn’t am of about going have I that details we pipeline to a like be not pretty dealers be feel active to answering want what we We do in finished

Edison Yu

just sneak X I it. Got could more. If in

quarter. the the have run kind end mean, kind year? of of by there I you supply per On of launch first place, the cadence, the embedded on fine assuming a two indication, what the Without rate any rough of se, number I be providing, in kind is could is know chain

Peter Beck

to always mean, are I first part we second I of may that. part the readiness. up want will the pick and then Adam take paced by customers’ our

us ready because You wasn’t time. seen have on another one quite customer accelerate customer

our the So the thing cadence customer’s that is readiness. our most drives launch

Adam Spice

the, Yeah. we as at that like, moment. and I the not Pete jump say, to are think mentioned, on will I constrained so that production And

our or really have delivered in so. resources production the quarter think I last

of for much very are to XXXX. planning the to we number rockets that So on pace we are deliver

have So plan a are our would position -- comfortably on internal We rockets inventory our to this some we for was this to year that production XX where we love is we with came year. forecast of rockets build in into be the with the in rockets some could year and shelf.

see every Sounds and But say funny rockets turns on because that. want lead look in have comes we we on we the could need have -- that orbit. to got if support a turns demo you they they opportunities, then shelf spectrum opportunities, time, where because to customer year, have some do a to do either very quick short they or want on they some a squat tech it to could to

to that support So this as there’s opportunities of progress. those no we reason believe can’t year kinds we

consistent two think basis. we basis indicate year that when then to least we want say, goal rockets again there’s from So be, a progressing the monthly be get a when there. get about to I our you we production where are towards a that want launching on would consistent -- that and exiting at where really nothing month I a -- say And can’t we think on would we from perspective, per there’s to,

the at are. very we a would everything be this It’s in kind gating be to looks of we will customers market launch I the won’t dedicated what revenue really is think feel business. the -- the item it there’s demand developing that -- delivering we the as good that point new into ultimately comfortable process a say category. and kind launch the for But small I of where are still of

those all of to kind launch else. somewhat right? to accustomed our think our launch, more So, kind as cadence of customers lumpiness anything mentioned, have really Pete I get get the of than

slots over up you and so maintain as and you I that that alleviated will really can launch kind we have replace time don’t think of opportunities growth as slot -- and can lose have you your get aspirations. picks demand

because a be need range, we to. as where quarter having the that own in we we so that position government move range, able able that things off unique around we -- I earlier If we traditional literally was to quickly, think can basically have case. of for a operating our launch we of are were wouldn’t the this mission we relatively again, swap example the swap missions today, good launched to we were

on our monthly a again, that lot I there’s at But launching will launch XXXX. be, so cadence rate things basis a that So think and influence forth. of consistent least goal exiting

Edison Yu

you. Thank Okay.

Operator

is Mr. from with Morgan question Kristine next Yu. you, Thank Stanley. The Liwag

Your line is open.

Kristine Liwag

afternoon, on… Hey. Good Maybe guys.

Peter Beck

Good afternoon.

Kristine Liwag

your Rocket capabilities acquisitions Hey. economy On -- the mentioned now you and have you space Lab with span full too. got recent integration,

or you stands and levels bolt-ons? comfortable we are opportunity the you see stop M&A mean to that to does kind So continue portfolio here today as with expect for do of it should

Adam Spice

it. Yeah. I take Pete, can

Sorry, ahead. ahead. Go go

Peter Beck

No. No.

You Yes. Yeah. go ahead.

Adam Spice

of through business plenty the Yeah. Kristine, means. accelerate appetite still an inorganic we of have think, appetite go growth from perspective, I to the and further

acquisitions out three assets in time, compelling continue and public we been seen a doing of have there. see in interesting in you period to have going We since relatively and four successful, short as August

series the as that execute because -- wouldn’t expect of that, we kinds out these the the can would done. the will we expanding was, and been, big I very TAM was was deals. that opportunities on. going for and But I So make go to quick we again, very, that do capacity of sure had reasons it we to say there to expect public has have find one do pace as to And just that I to in three continue acquisitions still capital that

far great that. fruit think and we strategy our push so we plan continue bearing So is to to

like, acquisitions that first same companies speaking, the I predict normal would something three the or is continue rate. say into of would that public doing in on just isn’t naturally XXXX necessarily months would Although six I

Peter Beck

would I say… And just

Kristine Liwag

then… And

Peter Beck

manufacturing enabled out here field. satellite established really … you I really, out supply suppliers win the secure with mean, to can of that and strategy the in MDA kind such having see scale and really Globalstar. a us beat rolling with chain

Kristine Liwag

provide Thanks. upcoming and specifics the the around milestones you updates timing, if any regular to you the also can helicopter? enable of stage you And to regime the testing then of planned And helicopter. a any tests, on boosters overall the retrieval using provide via can’t testing speak first around can recovery

is you about I eventually you where XX% to have said want guys be? think

Peter Beck

Yeah. Absolutely.

the been work this to to route modifications that’s on all currently do completed So it’s selected Zealand. the helicopter and New has had

last the drop the have last all of We week. of test completed

revest last piece. we team there had We but was which don’t And rendezvous really rendezvous dropping piece. the has that at helicopters stage, this the in validated flat last big did catch, on actually really final out. rockets year the and route not So the been out last

up, we will So attempt ready the have to out attach, today. will, you this to it launch next and to in wait long and coming go won’t helicopter fact, set we have

Kristine Liwag

to built showcase could I this fairly sneak that you if million meaningful $XXX and the from a have Sinclair, win And SolAero, portfolio you a contract one, you get is Great. MDA third got APL. win with that

spacecraft to the you already able have And execution place? capacity that do order can about when you are a to do think you XX potential this on delivering or So risks additional discuss contract? around this in contract, be XXX-kilogram you in build CapEx to have there

Peter Beck

Systems division. Yeah. the Space I we mean, investments made significant to have make significant into and continue investments

we think, satellite the in expansion the here, the facility. continued of I mentioned manufacturing slides

footprint in I these to programs the ASI we some been are can actually for some team’s quite these feeling grow ability. the executed in industry But I also and us sure. has you the have with swinging required increase past, Colorado. won of been and There’s that, we core from seen confident extension experts assembled as a times acquisitions by team facility planned mean, but these for on are have of many before have execution, see still and in the were have contract very time. You just complicated all some as spacecraft, standpoint, respect think, our already a we to

in very, to also to question, If full team previous to and just other very missions, is large launch the missions your for These are Mars complicated we haven’t mission defined just NASA correct make to make sure the engineering coming deeply I want some from excels programs. Kristine, I missions a the soon. recovery. really NASA, that’s our They been at myself, and complete is date you have the moon. sure, where these of And a look awarded to mission

Kristine Liwag

Yeah. Peter. Thanks Thank you, Adam

Operator

you, Rasmussen Thank is line of with Stifel. Liwag. Erik the from The next question

open. is line Your

Erik Rasmussen

the Yeah. busy Thanks a quarter, taking clarification and QX, congratulations. cadence exiting per the or the and and and question for guys. on It’s upcoming the year just this a Maybe month. two you then the for launch at everything year quarter one else, in least

with and wanted reconciling -- those two is or the for XX that builds to Just that builds launches, one coincide year, are with another?

Adam Spice

Yeah. No. XXXX. Those incremental are -- -- XXXX are XX in builds the

not launches. So it’s

I’d are range able kind have rate launches we -- it’s year that would of missions in support where we very comfortable we we talked think right that kind off And about of are now, now on that, a XXXX. a So manifest this and previously. discussed to at are right being go again, so manifest that was launch again, to of say or we kind talking quarter. of we kind at, But very point, think, that that provide exiting guidance are we I We just ability want providing don’t year full our have support feel kind launch where about next of at this comfortable to I XXXX. we the of

Erik Rasmussen

the And QX, I coming that, unpack piece the Great. what’s from question. outlook have Okay. outlook, maybe organic then then for you just maybe acquisitions? just recent what’s another revenue versus the behind And what’s

Adam Spice

Yeah. Erik. Sure,

kind cells -- that the going to kind Johns go what’s, of it’s ranging diverse like, and SolAero. versus that attribute It’s becoming from a we ones at systems radios kind of and from software then are to particular at and When from by panels the this and elements kind and point, a in built organically, organic Sinclair various you with details kind and solar partnerships very point, kind set for example, of there’s this really the what forth we comprises about with of think inorganic. developed of of to because space components the of not interdependencies lot intertwined businesses. of it’s from components in We so ASI Hopkins, just of hard driven have

of, productive components the as of really Launch and probably I Space going level to be this kind we be just Space point, as which as detail at So that all versus to far is kind far But point meaningful. below as again, the like not we think provide -- going Systems of Systems.

Erik Rasmussen

additional to on last Rocket of seemed then going after above Got congrats is that then just milestones What follow-up mean Thanks. services maybe What we should an subcontract and looking that Lab win? award, spacecraft? you. out initial something of those And up I is, there the terms and looking they a did could way, million contract? in for understand. to MDA to that. to -- the thing the sort also you satellites by on the last talk revenue that opportunity is Globalstar on $XXX be of then And nine separately, that it additional for the about be that to provide can is have contract on also launch

Adam Spice

$XX want beyond million. take of the I the you builds the opportunities satellite Pete, to Yeah. around kind

Peter Beck

Yeah. Absolutely. Yeah.

satellites out if scheduled other launch. these coincided of nicely launch is pieces to show build strategy we being would also bidding this on be the the launch satellites there options spacecraft, and there will and options able able the The number really both technology. So operational and being a build of further around as and successful, -- clearly of readiness, neutron’s everybody to certainly for date is round to power for which, are other there launch with --

Adam Spice

I I would perspective. the milestones, a revenue loaded mean, from around revenue from part is the a forth, contract this of Yeah. most Erik, back-end -- for perspective, so like say that

think lot just the that’s design work. get this doing up we then obviously, point award. So designs, a can done have you really But at on to about, of the of work kind

systems Now it’s customer. beginning the of next NRE doing and all level shipping of that ultimately, kind the of really at the the kind work, to of then,

probably hear won’t as this neutron where for -- will engine do of far not as example, as test, an lot or some far you is think implement that’s as you milestones, kind a I infrastructure like visible. So

going of that going revenue back-end of again again of to but milestones contract, this loaded. start internally one see that you where nothing until have very to which to we to to it’s set of final those detailed more execute the become towards, So is that’s come be really execution really where visible contracts is off a investors

I So is in would you material expect, beyond. really contract. shouldn’t XXXX say, revenue more contribution from this really XXXX This and

Erik Rasmussen

Got it.

Adam Spice

we if as contract, again, And of on is options the make want get to the point, have we the the don’t were don’t whack. we -- as speak expectations to think, at out this sure to to I people’s upside that that far incremental because, this to -- the again, nine -- deliver part of

the get we committed just in the that to notification what speak XX. for to And and to to as from extent that the they of So went we us, the options. those committed want some That’s exercise, incremental what’s customer what’s want backlog.

let know be sure will of to We folks about that. kind

Erik Rasmussen

everybody. luck Good Thanks.

Operator

Thank you, Mr. Rasmussen.

line Your Capital. with the next Desilva from question ROTH is of Suji

Suji Desilva

is but you of I Hi, Hi, on that… break I XXXX. earnings the don’t strong just the the that SolAero up, you because clarify, want to XXXX in was want minimal for XQ Adam. Congratulations finish merger, Adam, Peter. did the to accounting for say

Adam Spice

No.

Suji Desilva

what said? you …

Adam Spice

no. no, No, No.

in we will quarter’s on the because impact the get January most QX, basically, XXth. from closed So deal of SolAero

is per a run $XX revenue not that of SolAero a full will year million related -- to and nearly on of we thinking so per QX. but XXth, of lot no, rate kind from along accounting contribution be the in rough we deal price we previously full, assuming to should we kind But that roughly results quarter, full our QX. of be January prorated going there’s GAAP So just impacts announced in lines purchase $XX math. closed amount on And a for will acquisition million mentioned they you when were that operational get those

Suji Desilva

any the if significant very Does of kind to much congratulations strong helpful just then what out to the Is drove attributable break Spacecraft understand qualitatively backlog XXXX? the not way clearly spike, Agency is on versus that, -- versus how of And or just spike since the that Space end backlog, components? of that. Launch a there Okay.

Adam Spice

from backlog Yeah. Well, obviously, right? year-end the the came contract, biggest contributor MDA growth to post

Suji Desilva

Yeah.

Adam Spice

the spacecraft the $XXX right space million. components growth our continue continued we and sign did backlog new customers operating But to up in all launch well. at number. really are contribute well backlog across growth that … software, business, we our And systems to have in all of as pieces now,

to this Systems there’s -- Space activity almost lot say, it’s in the the as to So necessarily spot there’s in not contract. space MDA weak on a that certainly year was like want been a wouldn’t business. Launch would specifically across the well. and I other systems I fact, There’s obscure the it’s post kind side, portfolio the contribution not. disproportionate But of of the across of

whether behind one platforms, day So all message the talk the Backlog to really that’s launch it thing been is, investors Systems. we or pipeline I committed we resources to about mean, people Space always are very long, encouraged shows can growth. about be all it’s backlog. the but trying have backlog by

seen, we have that yeah, So, take we XXXX. comfort backlog XXXX, of growth have so far through not but as in we in progressed only a that lot

Suji Desilva

that. Great. The on good a MDA No. is one, certainly contract congrats

factory be for use out wondering number helpful. to spacecraft? complexity you a comes am the question, the quick million color math, going good of do it $X.X if proportional that forward to would the Is one it size Any opportunities? just spacecraft. or if Just spacecraft about last per envelope there I

Adam Spice

all the designed there’s are was that very, spacecraft case taken metric of platform, that unique. And bit of wish the also NRE about of this here, you of mass look type all different. aggregate totality in at no fits There’s spacecraft that Unfortunately, kind kind contract. and is I at can it they in really each quite fact think very a so all, we that that’s either nor of when really the Yeah. you easy. the

of and assembly AIT So -- to you it hard also kind of versus much and bomb NRE. how have is like fortune

we get will get we it we constellation, those volume to extent again, be available. as the to metrics upticks, So, will further that become share

Suji Desilva

it. That’s Thanks, Adam.

Operator

Canaccord. The next of Desilva. Mr. you, line Austin from is Thank the Muller question with

Your line is open.

Austin Muller

here Do update on Hi. My any for rain Launch to software first that NASA that? to we the Good afternoon, everyone. is to Peter. get operate question are have you supposed from

Peter Beck

Austin. Hi, Yeah.

through confidence us own But very, to are to to tweaks to and here more we going to our review. internal progressing. us probably some schedule which some us, giving very have There’s much made. is an to initial products they have promising So XXXX. of something out delivered version that launch that and released software slight is needs be be NASA able

Austin Muller

long on some will Zealand New you early Okay. facility come will come in Do being and all think it and that’s facility set from Virginia. will or take California? built there the rockets start neutron we to have just That’s from get on helpful. any And then there or that up timing how putting neutrons out

Peter Beck

No. Yeah.

facility. Space It’s that NASA, ground by come holes neutrons be land will been the we All digging The very -- Sorry. acquired already the program in from very, And Midland shortly. will kind Port. the is you until need a to infrastructure. us certain enables you to building approach are more we of immediately, obviously, really launch. that have launch There relaxed don’t things need and that to

submission the eloquently that phased is across the development construction part whole time lines. quite So of

Austin Muller

still are comfortable right how with the you then are this any issues on And confident now? Are the it. you or potential Got chain in supply seeing horizon environment? very guys you

Peter Beck

things. kinds things. can manage the But this will because is have manage a to chain, those part the that really confident and it’s you anybody say of everybody, I to great in large think are shortages don’t of I supply continuing we mean, like all I environment.

took we an of a early amount large carrying of approach However, of work.

So haven’t seen supply any we as programs delayed any result chain of a issues.

Austin Muller

for me filling in. Thanks Excellent.

Operator

Muller. The question last von Cowen. Thank with Rumohr you, Cai Mr. is from

Your line is open.

Cai von Rumohr

claim got Florida and awarded, going facility So, as have XX one up guess, are X I of this Lockheed basically you They production. And with volume huge they Layer in basically, putting know, satellites. Terran to was spots yesterday. the think, I are

they like by will it same have size So the looks cost MDA unmatched kind else is and totally everyone satellite range. your in of

-- they looks going after you, it a like because looks represent they do to competitor going commercial like civil. are are and serious So more DoD your predominantly after you it

of any? sort do So what a pose, threat they if

Peter Beck

a reaction look are That’s Yeah. chain solar great we be critical at or guess, it question, things. whether I of the StarTrack, Cai. respect in a if the different components, that those supply of little bit all wheel, you

us We have of scale. sure we approach that for also making of taken have an for those holders and

are a different So kind place. really, think, I of we in

commercial. on focused just not are We

either defense guess as strategy But, to do will component our what I to a acquisition happy we think, have I work are look participant rolled and if of well. I be those a level. in We up at kind at was that and mean, way same you bureaus would

Cai von Rumohr

Sure.

Operator

Mr. Rumohr. for you, now closing Thank von will I pass Adam over conference Spice to any remarks. the

Adam Spice

Operator. Thanks,

like our XXth our the and participated are you including our the Telecom or forward the and in opportunity we to on XXth, XXth updates America Media, through today’s call, speaking Annual look I’d we who Internet on and to exciting thanks thank Bank XXth having to again, call business, Deutsche everyone Conference Thank further ROTH provide and and on March again, that March up you, at March participation wrap we making Auto the to STARS forward Research XXth, through the Summit, conference look And business. we progress Transport, of in Operator. Space again Bank Aviation through about Conference XXnd. Before with

Operator

the quarter results XXXX participation. financial That your fourth for Thank Rocket concludes Lab call. you conference

may disconnect your You now lines.

Rocket Lab USA (RKLB) 1 Mar 222021 Q4 Earnings call transcript