SAN JOSE (California), Aug 5 — Elon Musk’s space company SpaceX on Tuesday reported a net loss of US$541 million for the quarter ending with its record initial public offering (IPO), compared with a loss of about US$1 billion a year earlier, reported German Press Agency (dpa).
Revenue, meanwhile, rose almost 92 per cent year-on-year to US$7.8 billion, well above analysts’ average expectation of around US$6.9 billion.
SpaceX’s main revenue driver remains its Starlink satellite internet service.
In the past quarter, Starlink’s revenue grew by almost two-thirds year-on-year to around US$4.3 billion, with a growing number of airlines among its customers.
Operating profit rose 80 per cent to around US$1.66 billion.
The number of Starlink customers grew from 10.3 million to 12 million in three months.
SpaceX plans to use new satellites to connect smartphones directly to the Starlink network, potentially putting it in competition with telecommunications companies.
SpaceX went public in mid-June with a record IPO raising US$75 billion.
At an issue price of US$135, Musk’s company debuted with a valuation of nearly US$1.8 trillion – a stark contrast to its current financial performance, though SpaceX justified the valuation with ambitious plans in the field of artificial intelligence.
In the weeks following the IPO, the share price climbed – driven in part by retail investor interest – to just over US$225.
The stock has since fallen below its issue price, closing Tuesday’s regular United States (US) trading session at around US$125.
In an initial reaction, the share fell by as much as eight per cent in after-hours trading.
On Thursday, the lock-up period expires for additional shares held by company insiders and early investors, which could then enter the market.
SpaceX has become indispensable to the US space programme in recent years.
The company is currently investing heavily in its large Starship rocket, which is still conducting test flights and is intended to significantly reduce the cost of carrying payloads into space.
