SpaceX released its first-quarter financial results as a public company, showing revenue nearly doubling driven by Starlink and AI, while investment in AI surged more than 20-fold.
On August 5, 2569 at 09.14:XNUMX a.m., Reuters reported that SpaceX has released its first earnings report since going public, showing revenue in the second quarter of 2016 (April-June) nearly doubled compared to a year earlier. Driven by the growth of its Starlink satellite internet business and AI operations, the company continues to invest heavily in expanding its data centers, AI computing systems, and next-generation space programs.
Elon Musk's company reported second-quarter revenue of $7.8 billion, up from $4.1 billion in the same period last year and exceeding Wall Street analysts' expectations.
Revenue from Starlink, which accounts for more than half of total revenue, increased 66%, while revenue from the AI business, which Musk positions as the future growth engine, surged by approximately 250%.
During a meeting with investors, Musk stated that the company expects an annual revenue run-rate of $100 billion by December, and confirmed that investments in AI infrastructure will pay for themselves in less than a year. In addition, SpaceX aims to launch at least 1,000 new Starlink V3 satellites within a year and is preparing to expand into the mobile phone services market to compete with major network providers.
These earnings are considered the first major test for investors since SpaceX went public with a valuation of $1.75 trillion. The company is using profits from its Starlink business to fund investments in AI, data centers, and the Starship rocket project, which is still under development and requires significant investment.
Although AI businesses are starting to generate commercial revenue, executives acknowledge that scaling AI computing power still requires massive investment.
“We believe SpaceX is building the world’s fastest-growing large-scale AI infrastructure, and our AI models are constantly evolving.” Musk said.
Investment in AI surges more than 20 times.
In the past quarter, SpaceX spent more than $18,000 billion in capital expenditure, up from $2,830 billion the previous year. In particular, investment in AI surged to $15,830 billion from just $749 million the previous year, an increase of more than 20 times.
Brett Johnsen, Chief Financial Officer (CFO) specify that The company will continue to maintain this level of investment for at least the next 2-3 quarters.
Losses have decreased, but stock prices remain volatile.
Despite aggressive investment, SpaceX's operating loss decreased significantly to $143 million from $970 million in the same period last year. The AI business saw reduced losses, while Starlink's operating profit increased by 79%.
however Investors remain concerned about the company's massive investment spending, causing SpaceX shares, which had risen 9.4% during the day, to fall 7.5% in after-market trading following the company's earnings announcement.
Furthermore, SpaceX shares have fallen 8% since their IPO in June and may face additional pressure from the end of the lockdown period on August 6th, which could lead existing shareholders and early investors to gradually sell off their shares into the market.
Starlink is also the primary engine.
Starlink remains the company's most significant source of revenue, with the number of users growing to 12 million, or double the amount from the previous year. Due to the expansion of services to general customers, the business sector, aviation, shipping, and government agencies.
However, average revenue per user (ARPU) decreased by 22% as the company expanded into international markets and launched budget-friendly packages to increase its customer base.
meanwhile Chairman of the company, Gwynne Shotwell. revealed that SpaceX aims to attract customers from major U.S. mobile carriers, including T-Mobile, AT&T, and Verizon, through its Starlink service, while continuing to build a terrestrial network alongside satellite systems to develop a comprehensive mobile phone service in the future.
AI has become a booming business.
SpaceX's AI businesses, including xAI, Grok, Platform X (formerly Twitter), and large data centers, are becoming the company's most invested businesses.
SpaceX currently generates revenue from providing AI computing infrastructure services to leading companies such as Anthropic, Google, and Reflection AI, although some of this revenue was not recognized as accounting income this quarter.
Musk revealed that the company will have more than 2 gigawatts of AI processing capacity this year and will increase it to almost 10 gigawatts by the end of next year, with all data centers primarily using Nvidia chips.
The space industry continues to grow.
The space business segment, which encompasses commercial rocket launches, government missions, and Starship development, saw revenue increase 29% year-on-year, although it remains the company's most capital-intensive and uncertain area.
Analysts believe that the first-quarter earnings as a publicly traded company reflect that SpaceX is beginning to generate revenue from AI, and is no longer solely reliant on Starlink as in the past. However, the company's long-term success also depends on its ability to transform its massive investments in AI and Starship into a sustainable, profitable business in the future.
refer : www.reuters.com
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