SpaceX’s first-ever earnings show higher revenues and huge spending
SpaceX has delivered its first-ever quarterly business report, which showed that revenue nearly doubled while spending skyrocketed.
SpaceX revealed its initial quarterly business report, revealing a 92% revenue increase to $7.8 billion, outpacing a year ago, while expenses surged by over 550% to $18.3 billion, accompanied by a $2 billion net loss in the first half of the year. Following the presentation, SpaceX's shares dropped nearly 9% in after-hours trading.
Elon Musk, SpaceX's CEO, expressed during a financial analyst and investor call that people may have "underestimated" SpaceX. He highlighted Starlink, the company's profitable arm, generating $1.6 billion in the second quarter, with projections of exponential growth in the coming years. Musk suggested that Starlink could potentially manage most of the world's internet at some point.
He also discussed the rapid expansion of SpaceX's compute power business for artificial intelligence (AI) projects, currently valued at $2.5 billion, which is expected to grow to 10 gigawatts of capacity by next year.
In addition to AI, SpaceX's data center business, though currently operating at a $542 million net loss, is anticipated to grow significantly, with Musk stating that data centers are a "trivial problem compared to making reusable rockets." SpaceX's core business, rocket manufacturing, remains its primary focus, but the company's AI business incurred a $1.2 billion loss during the quarter.
Musk revealed that SpaceX's capital spending would remain "very similar" throughout the year. Nevertheless, Musk forecasted that the company could reach $1 trillion in revenue by 2030, an earlier estimate than six weeks prior. Despite the optimistic outlook, SpaceX's stock declined by more than 7% in after-hours trading, erasing the gains made during the day.
Since its historic initial public offering and briefly surpassing larger companies like Microsoft and Amazon in market valuation, SpaceX has encountered difficulties in sustaining investor interest, with its stock gradually declining since its June debut, trading below the initial $135 per share price for weeks.
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