Rocket Lab (RKLB -3.31%) stock got thrown for a loop Friday morning, first crashing more than 18% in response to a disappointing earnings report, then recovering as investors took time to digest the news. As of 11:30 a.m. ET, Rocket Lab is up 2%.

Analysts had forecast the small rocket company would lose $0.07 per share in the fourth quarter of 2024, on sales of $130.6 million. In fact, revenue exceeded targets at $132.4 million, but the loss was bigger than expected: $0.10 per share.

Rocket Lab by the numbers

"2024 was a record-setting year for Rocket Lab," said CEO Peter Beck, "with our highest annual revenue ever posted of $436.2 million and a record Q4 2024 revenue of $132.4 million -- a 382% increase compared to Q4 2021."

Rocket Lab launched 16 times in 2024, its highest-ever launch cadence. Still, net losses increased about 4% both for Q4 and for the full year, and Rocket Lab's per-share loss held steady at $0.10 for the quarter, and $0.38 for the year, showing no improvement in profitability despite significant gains in revenue.

Investors apparently were initially upset with guidance, with Rocket Lab predicting Q1 revenue of about $120 million (versus the $135.7 million estimate that Wall Street anticipated), a loss on earnings before interest, taxes, depreciation, and amortization (EBITDA), and giving no guidance for earnings as calculated according to generally accepted accounting principles (GAAP).

Rocket Lab: Beyond the numbers

Management had a few other significant announcements that may have tempered investors' discontent. The company has signed a new eight-launch deal with Japan's iQPS satellite company. Rocket Lab also announced two new products:

  • Flatellite is a new mass-produceable and easily stackable (for launch) satellite "tailored for large constellations."
  • Return on Investment is a new ocean-going landing barge that Rocket Lab says it will use for landing first-stage Neutron rockets, once those begin launching, and returning them to base for reuse.

Now, Rocket Lab just needs to make money and investors would be happier.