Rocket Lab's recent launch of a Capella Space radar imaging satellite on Aug. 11, 2024, highlighted the flexibility offered by small launch vehicles but also the challenges facing them.
The Electron lifted off from Launch Complex 1 in New Zealand, deploying the Acadia-3 satellite into a 615-kilometer orbit. This was the fourth in the Acadia line of SAR satellites, with improvements over earlier versions.
Rocket Lab CEO Peter Beck emphasized Electron's role in enabling constellation building. “Electron is a reliable constellation builder, providing precise and dedicated deployment to unique orbits that allows satellite operators like Capella to iteratively build out their constellation when and where they need to,” he stated.
While the launch showcased flexibility, Rocket Lab projects only one more Electron launch this quarter, falling short of earlier projections. Customer readiness, rather than production constraints, is cited as the reason for the delays.
Rocket Lab CFO Adam Spice explained, "When we look at the manifest that we had coming into 2024, there hasn’t been a mission on that manifest that we couldn’t support from a production perspective. Any volatility we’ve seen versus that manifest has all been customer-delay related.”
Beck also addressed the company's revenue recognition model, which is tied to launch dates. “The most common metric we get held to is number of launches per quarter and the resulting point-in-time revenue recognition,” he said, adding that "can at times fail to reflect the underlying strengths in our business given the constructive cash flow nature of the launch business where we collect cash well in advance of revenue recognition.”
Capella Space, a customer that has utilized both dedicated and rideshare launches, highlights the value of flexibility. Frank Backes, CEO of Capella Space, said, "For us, it’s about who can take our satellite to where we need to go in the most economical fashion. If you can put me into exactly the right inclination at exactly the right altitude, I save fuel that might translate into six months more life in orbit. Six months pays for the launch.”