For the first time since SpaceX went public, the world is getting a first-hand look into the trillion-dollar corporation’s financials. The Elon Musk-run business reported its second quarter earnings on Tuesday, saying that its revenue jumped ۹۲% since June.
SpaceX beat Wall Street’s expectations, reporting $۷.۸۱bn in revenue, versus analysts’ predictions of $۶.۹۳bn. It reported a loss of $۵۴۱m.
The positive numbers will likely quell some fears from nervous investors who have been waiting for more insight into the rocket ship company’s potential for profit.
SpaceX had a blockbuster initial public offering in June with the largest-ever stock market debut in history. The IPO transformed SpaceX into a $۲tn company and briefly crowned Musk the world’s first trillionaire. But since then, the company’s stock has plummeted by ۲۴%, erasing nearly $۵۰۰bn in market cap.
“This report comes at an important time, the share price crashed and burned in recent weeks, it is down ۵۰% from its peak and is trading below its IPO price,” said Kathleen Brooks, research director at XTB. “Unsurprisingly, investors are jittery leading up to this report as it may determine the long-term direction for the stock.”
SpaceX is a conglomeration of several of Musk’s businesses, including the satellite maker and internet service provider Starlink, the artificial intelligence platform xAI, the social media company X and the SpaceX rocket business.
While expansive, the company is not profitable. Last year, SpaceX pulled in revenue of $۱۸.۷bn, while recording an operating loss of $۴.۳bn. The only profitable portion of the company is its connectivity arm, Starlink. For comparison, the social media company Meta generated revenue of more than $۲۰۰bn last year with a net income upwards of $۶۰bn.
Breaking out the revenue for SpaceX’s three main businesses, the company reported $۹۶۲m for space, $۴.۲۹bn for connectivity and $۲.۵۶bn for AI, which beat analysts’ forecasts of $۸۳۵m for space, $۳.۳۸bn for connectivity and $۲.۱۸bn for AI, according to XTB.
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The earnings come just before the first “lockup” shares in SpaceX will be free for public trading. Lockup shares are what employees and some insiders obtain before a company goes public, which they cannot trade for a set amount of time. The purpose of a lockup is to prevent a deluge of shares from hitting the market, which can depreciate the stock price.
On Thursday, ۹۱۲m shares from SpaceX will be open for trading – that’s more than double the current amount available and despite the positive earnings report could still weaken the company’s share price.
