🚀 SpaceX Financials Revealed

Plus $ARKX buys 126k $RKLB shares, DISH's financing offer, Space Capital releases Q1 report, and more! The latest space investing news and updates.

April 12, 2024

The Space Scoop

Week Ended 04.12.2024

Happy Friday! It was a busy week on the newswire with Space Symposium and some rumored SpaceX financials. Lets dive in.

Market Max-Q

Forward

Top Stories

1) SpaceX's Starlink financials, according to sources, are rumored to still be burning through more cash than previously reported. On Wednesday, BNN Bloomberg released an article that provided a more recent insight in the cash flows of Starlink. Highlights include: 

  • Company accounting is described as “more of an art than a science” and note that SpaceX is "not actually profitable based on an operational and ongoing basis."

  • Per the balance sheet, profitable quarters have been less consistent than Elon has suggested to investors when he celebrated having achieved “breakeven cash flow” in an X post last November.

  • Starlink has, at times, "lost hundreds of dollars on each of the millions of ground terminals shipped."

  • One source familiar with the company’s financials said "Starlink’s cash generation improved toward the end of 2023 and that its now more consistently profitable."

  • Sources also note that "SpaceX has met or exceeded revenue projections over the past three years" and the company "forecasts sales to grow to $15B this year, from $4.7B a year ago."

The following day TechCrunch also released an article covering 2018-2019 financials. Highlights include:

  • 2018:

    • Revenue: $1.98B

    • R&D: $559M

    • Net Loss: $(308)M

    • Cash & Equivalents: $868M

  • 2019:

    • Revenue: $1.45B

    • R&D: $661M

    • Net Loss: $(501)M

    • Cash & Equivalents: $990M

2) Space Capital released their Q1 2024 Space Investment report. Key highlights include:

  • Q1 investment totaled $6.5B, which grew +33% YoY across 103 companies.

  • Late stage companies accounted for $4.3B, or ~66%, and investment rounds in this category remain elevated.

  • Growth stage investments decreased -51% YoY.

  • Early stage deal investment remains healthy and accounted for ~64% of total round activity.

  • The IPO market has been rejuvenated with new issues which could bode well for space companies looking to tap the public markets.

In Other News

ARK Acquires Rocket Lab Shares

(TSI)

On Monday, Cathie Wood's ARK Space Exploration & Innovation ETF ($ARKX) acquired 126.3k shares in the $3.73 to $3.84 share price range. As of Friday, Rocket Lab is the 17th largest holding of the fund at 2.25% weight with ~1.4M shares.

Iridium Signs Five-Year Contract with L3Harris 

The agreement comes after the recent announcement of $IRDM Satellite Time and Location (STL) service via the Satelles acquisition. Under the terms of the agreement, Iridium will provide the STL service to more than 36+ L3Harris-operated ($LHX) communications network backbone nodes and a similar amount of FAA facilities throughout the U.S.

DISH Reportedly Received Financing Offer from Private Credit Firm(s) 

$SATS closed the day +7.6% amid a report that the heavily indebted satellite-TV network has received financing offers from private credit firms, including at least one offer of more than $1B in financing linked to a unit that's free to incur debt. Among the options being considered is debt collateralized by Dish's wireless spectrum, according to sources.

Chart of the Week

Space Capital Q1 Investment Overview (Source)

Links

• Hughes ($SATS) Awarded Production Contract by General Atomics Aeronautical Systems• Tata Advanced Systems and Satellogic ($SATL) Announce TSAT-1A Satellite Launch Success• Planet ($PL) and PG&E ($PCG) Expand Contract To Use Satellite Data• Redwire ($RDW) Introduces SabreSat Orbital Drone: A New Breed of Satellite• Rocket Lab ($RKLB) Awarded Space Force Launch Contract for Space Test Program-S30• Sidus ($SIDU) Announces Second Agreement with HEO for Non-Earth Imaging Payload and Data Services• Rocket Lab ($RKLB) Returns Previously Flown Electron to Production Line in Preparation for First Reflight• Rocket Lab ($RKLB) Selected by Space Systems Command to Build and Launch Spacecraft for TacRS Mission• FAA: "No Current Plans to Tax Commercial Space Launches"

Opinion

• Musk Outlines Plans to Increase Starship Launch Rate and Performance• Planet Labs ($PL) CEO Explains How They Leverage AI• Rocket Lab ($RKLB): 2024 Is Likely Going To Be A Pivotal• Viasat ($VSAT): Integration Synergies Starting To Deliver

Earnings Calendar

• $IRDM: Apr 18 - Before Market Open• $LMT: Apr 23 - Before Market Open• $BA: Apr 24 - Before Market Open• $GD: Apr 24 - Before Market Open• $NOC: Apr 25 - Before Market Open• $RKLB: May 6 - After Market Close

*Company confirmed dates only.