SpaceX reported better-than-expected revenue for the second quarter in the company’s first earnings report since its record IPO in June. The stock dropped about 8% in extended trading as capital expenditures soared.
Here’s how the company did compared with analysts’ estimates, according to LSEG
- Revenue: $7.81 billion vs. $6.93 billion expected
- Loss per share: Loss of 9 cents vs. loss of 26 cents expected
Revenue jumped 92% from $4.1 billion a year earlier, SpaceX said in a statement on Tuesday, while the company’s net loss narrowed to $541 million from $1 billion.
It was the first time for Elon Musk’s reusable rocket maker to face Wall Street in this capacity, and investors were jittery. Since opening at $150 on June 12, SpaceX’s stock has dropped by 16% as of Tuesday’s close.
SpaceX lost $4.9 billion last year, largely due to hefty investments in artificial intelligence infrastructure. The company merged with Musk’s xAI in February, saying at the time that the vision was to build data centers in space. But even the launch business, which counts on large contracts from NASA, is losing money.
Most of SpaceX’s revenue last year, and its only source of profit, came from its connectivity segment, which consists of its Starlink satellite internet service. Starlink is sold directly to consumers, as well as to government and military agencies.
Here’s how SpaceX performed in the second quarter in its three segments in terms of revenue:
- Space: $962 million vs. $835 million expected, according to StreetAccount
- Connectivity: $4.29 billion vs. $3.83 billion expected, according to StreetAccount
- AI: $2.56 billion vs. $2.18 billion expected, according to StreetAccount
The operating loss for the the space unit was $542 million, while the AI unit lost $1.26 billion. Connectivity remained profitable, with operating income in the period of $1.66 billion.
CNBC’s reporters are covering SpaceX earnings from bureaus in San Francisco and Englewood Cliffs, New Jersey.
