SpaceX revenue jumps 92% in first earnings report
AI computing deals and Starlink satellite growth fuel results that beat analyst expectations by around US$1 billion.
In a recent earnings report, SpaceX revealed a staggering 92% increase in revenue, surpassing analyst projections by over US$1 billion. This surge in earnings came primarily from AI computing deals and the rapid growth of Starlink satellite service. The company's capital expenditures, however, remained substantial, with over US$18 billion spent in the quarter ending June.
More than 86% of this spending was directed towards the artificial intelligence division. Starlink's subscriber base grew to 12 million, more than doubling its numbers from the previous year. Despite the impressive growth, the company reported a net loss of US$541 million. During a post-earnings call, SpaceX's CEO Elon Musk and COO Gwynne Shotwell expressed their intentions to transform SpaceX into an AI-centric conglomerate, aiming to alleviate investor concerns about the company's future.
However, skepticism remains among investors, with shares dropping more than 7% in after-hours trading. Emarketer Senior Analyst Gadjo Sevilla noted that while investors are pleased with the earnings, they are more interested in the company's ability to convert its visions into tangible value quickly, rather than simply hearing promises about long-term goals such as a mission to Mars.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
