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SpaceX revenue jumps 92% in first earnings report / Photo: Patrick T. Fallon - AFP/File
SpaceX revenue jumps 92% in first earnings report
SpaceX's revenue jumped 92 percent in the second quarter, beating analyst expectations by around $1 billion in its first earnings report since going public in June, the company announced Tuesday.
AI computing deals and Starlink satellite growth fueled the results, the company said in a statement. But it also continued to spend heavily, with capital expenditures exceeding $18 billion in the three months ending in June.
More than 86 percent of that spending went to its artificial intelligence division.
Starlink's satellite connectivity service grew to 12 million subscribers, doubling from a year earlier.
The company reduced its net loss to $541 million.
During a call with analysts Tuesday afternoon, CEO Elon Musk and COO Gwynne Shotwell both sought to reassure investors that SpaceX is successfully evolving from being primarily a rocket company into a conglomerate with AI at its core.
SpaceX shares dropped more than 7 percent during after-hours trading.
Investors remain skeptical even with SpaceX beating expectations, Emarketer Senior Analyst Gadjo Sevilla told AFP.
"I don't think people want to hear promises about the next five years or a mission to Mars," Sevilla said. "Everyone knows that will take time. They want to see how the value can be turned around as quickly as possible."
F.Davis--SMC
