Rocket Lab Sets New Record with 12th Launch of 2023, Secures Place as Leading US Rocket Launcher After SpaceX
Rocket Lab’s Rise in Rapid Launch Capabilities
Rocket Lab’s 12th launch, dubbed “We Love the Latitude,” exemplifies the company’s ability to deploy satellites at short notice—a feat not typically seen in the industry. This mission was executed in less than 10 weeks after the client signed the contract, illustrating Rocket Lab’s readiness to accommodate quick-turnaround missions, setting it apart from competitors like United Launch Alliance and Arianespace, where such timelines are less common.
Although Rocket Lab has not publicly shared details about the payload or the client, industry analysts speculate that the “confidential commercial customer” could be e-space, a satellite internet startup. Satellite industry news outlet SpaceNews suggests this theory, noting that e-space requested a “payload permit” from the New Zealand government in September, a strong indicator given Rocket Lab’s frequent launches from New Zealand.
Profit Margins: Rocket Launches vs. Space Systems
Despite the success of this latest launch, Rocket Lab’s primary profit driver isn’t solely in its rocket launches. According to S&P Global Market Intelligence, the gross profit margin for Rocket Lab’s launches stands at about 11%. While launch frequency certainly strengthens the company’s revenue, the real profitability lies in its “Space Systems” business segment, which focuses on building satellites and satellite components. Last year, Rocket Lab achieved a 25% gross margin in this sector, more than double the profitability of its launch operations.
This profitability dynamic positions Rocket Lab uniquely in the space industry, where launches serve not only as revenue-generating events but also as strategic opportunities to enhance capabilities in satellite production and related technologies.
Why Rocket Lab’s Stock Could Be a Worthwhile Investment
With its growing reputation for rapid, reliable satellite deployment and increasing frequency of launches, Rocket Lab is gaining the attention of investors looking for companies with sustainable, multi-revenue stream models in the space sector. The company’s ability to offer rapid launch solutions in less than three months also appeals to customers who traditionally face long wait times between contract signing and actual satellite deployment. This agility could provide Rocket Lab a competitive edge in the commercial space market.
Furthermore, the balance between launch revenue and the higher-margin Space Systems division showcases Rocket Lab’s diversified approach to growth. As the company continues to expand its capabilities in satellite manufacturing and parts, it positions itself as a more comprehensive solution provider, aligning it closer to the strategies of space industry giants like SpaceX while capitalizing on segments with higher profit potential.
