WEBVTT - Closing Bell: SpaceX Reports First Earnings Since IPO

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>This is the closing bell on this stock movers report.

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<v Speaker 2>The company's making moves at the close of US trading

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<v Speaker 2>with Carol Masser, Tim Stenebeck, Romain Bostik, and Katie Greifeld.

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<v Speaker 3>SpaceX that first number coming the second quarter revenue seven

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<v Speaker 3>point eight billion and Romain that is above the estimate

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<v Speaker 3>of six point eighty one billion.

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<v Speaker 1>Absolutely here, we're going to wait for some of these

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<v Speaker 1>other numbers to trickle out. This is going to be

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<v Speaker 1>a complicated report. Remember, we're basically talking about three primary businesses.

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<v Speaker 1>Their space business, which is effectively the launch, the connectivity business,

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<v Speaker 1>which of course is star Link in the AI business,

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<v Speaker 1>and a lot of people not only want to see

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<v Speaker 1>what it did on the quarter, but more importantly here

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<v Speaker 1>what type of long term forecast the company will give

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<v Speaker 1>with regards to that. Also, Tim, obviously the idea of

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<v Speaker 1>where we might go with reguards to a more of

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<v Speaker 1>a map show up a lot of speculation about what

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<v Speaker 1>could happen with Tesla, whether that gets absorbed into SpaceX,

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<v Speaker 1>and the idea here as to what sort of deals

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<v Speaker 1>in partnership SpaceX can actually announce to keep investors playcated

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<v Speaker 1>in the short term. We got a little taste of

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<v Speaker 1>that just a few moments ago tim when they announced

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<v Speaker 1>that they are partnering within Video to use in Video's

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<v Speaker 1>rubinships here on these orbital data centers that is trying

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<v Speaker 1>to build out.

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<v Speaker 4>Yeah, that's the starlind AI on satellite compute payload, the

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<v Speaker 4>company partnering with Nvidia to design the satellite compute payload.

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<v Speaker 4>I want to remind people too that that connectivity business

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<v Speaker 4>is the vast majority of its main business in terms

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<v Speaker 4>of revenue twenty in twenty twenty five. For the year,

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<v Speaker 4>sixty one percent of the business was connectivity. That includes

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<v Speaker 4>the enterprising consumer versions of Starlink. Space accounts for about

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<v Speaker 4>twenty two percent of the business, and AI as of

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<v Speaker 4>twenty twenty five was about seventeen percent of the company's revenue.

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<v Speaker 3>Another headline coming SpaceX second quarter AI segment operating loss

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<v Speaker 3>of one point twenty six billion is an estimate that

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<v Speaker 3>the street was looking for higher number two point thirty

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<v Speaker 3>nine billion dollars. Right now, we're seeing space X shares

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<v Speaker 3>which rallied big time today, just up about eight tens

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<v Speaker 3>of a percent.

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<v Speaker 1>Remain absolutely and these numbers continue to trickle out. Here,

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<v Speaker 1>the company says that ebatah in the most recent quarter

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<v Speaker 1>three point five billion dollars. That's well above what the

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<v Speaker 1>street was looking for for two billion dollars. Again, that's

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<v Speaker 1>for the company as a whole. It also says that

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<v Speaker 1>it reached twelve million star Link subscribers at the end

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<v Speaker 1>of the second quarter. And here's your CAPEX number, which

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<v Speaker 1>of course a lot of people are paying attention to,

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<v Speaker 1>eighteen point three seven billion, basically eighteen billion dollars in

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<v Speaker 1>cap beex. Now that's backwards looking. That is for the

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<v Speaker 1>second quarter. Will be interesting to see what the next

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<v Speaker 1>couple of quarters look like. Here, the company did say

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<v Speaker 1>that it did end the second quarter with one hundred

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<v Speaker 1>billion dollars in cash and cash equivalents.

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<v Speaker 4>Yeah, the yesser was actually for higher than that. The

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<v Speaker 4>estim was for eighteen point six billion dollars. Some other

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<v Speaker 4>numbers to highlight here, SpaceX reach twelve million Starlink subscribers

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<v Speaker 4>at the end of the second quarter. As you mentioned,

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<v Speaker 4>the AI segment operating loss one point twenty six billion dollars.

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<v Speaker 4>The estimate was for a loss of two point three

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<v Speaker 4>nine billion dollars. Shares bouncing around in the after hours,

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<v Speaker 4>now just down about one point three percent, but shares

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<v Speaker 4>surged in today's trading session, still off quite a bit

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<v Speaker 4>from that high Earlier this year. The estimate for a

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<v Speaker 4>second quarter starlink subscribers was twelve point one to nine,

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<v Speaker 4>so that was that was within expectations. The company also

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<v Speaker 4>expecting that Cursor deal to close this quarter, that is

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<v Speaker 4>the third quarter of the year. Once again, these headlines

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<v Speaker 4>are continuing to trickle out. SpaceX shares down just by

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<v Speaker 4>about two point six percent.

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<v Speaker 3>Our team putting its first story out on the Bloomberg.

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<v Speaker 3>SpaceX's revenue exceeded Wall Street's expectations in the company's first

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<v Speaker 3>quarterly financial report following its blockbuster IPO back in June.

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<v Speaker 3>The satellite space in AI conglomerate reported revenue of seven

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<v Speaker 3>point eight billion dollars, greater than the six point eighty

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<v Speaker 3>one billion that Alys pulled by Bloomberg expected on average.

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<v Speaker 3>Unveiled an operating loss of one point two six billion

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<v Speaker 3>from its Ai business, better than the consensus expectation for

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<v Speaker 3>a loss of two point thirty nine billion, but we

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<v Speaker 3>should point out it was the largest IPO we've seen

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<v Speaker 3>quite a roller coaster. After a couple of days initially

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<v Speaker 3>out of the gate, when an iPod to moving higher,

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<v Speaker 3>we've seen the stock pull back and short interest has

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<v Speaker 3>been very high, and that is something to keep in

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<v Speaker 3>mind as this company goes through the release and the

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<v Speaker 3>analyst call, to see what kind of shortcovering if the

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<v Speaker 3>news is really.

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<v Speaker 2>Up be Well.

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<v Speaker 1>That's what I'm curious about too, is how much of

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<v Speaker 1>the share price reaction today is even going to be

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<v Speaker 1>actually tied to the earnings themselves. I think it's over

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<v Speaker 1>two hundred million shares were short of just coming into today.

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<v Speaker 1>My guess is that number one higher as we got

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<v Speaker 1>closer to this earning support. You have six hundred plus

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<v Speaker 1>million shares now out there floating around, and you have

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<v Speaker 1>a lock up expery in two days. That's going to

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<v Speaker 1>potentially add nine hundred and eleven million more shares, Not

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<v Speaker 1>to mention you get almost double that when you get

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<v Speaker 1>towards the end of the year. So that's going to

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<v Speaker 1>put potentially put some downward pressure on this stock. But

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<v Speaker 1>of course a lot will depend on the conference call,

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<v Speaker 1>which kicks off about thirty minutes time, and we're going

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<v Speaker 1>to hear from Elon Musk and he's going to have

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<v Speaker 1>to say, look, you know, I got a plan. Either

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<v Speaker 1>you believe me or you don't.

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<v Speaker 4>That's the Elon premium that Max Schafkin was writing about

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<v Speaker 4>for the Business Week Daily newsletter earlier today. I also

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<v Speaker 4>want to point out that we're seeing a relatively muted

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<v Speaker 4>reaction as of now just to these numbers, like you said,

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<v Speaker 4>remain a lot of it will likely come on the

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<v Speaker 4>call and going into As of this morning, the options

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<v Speaker 4>market was pricing a move of upwards of fourteen percent

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<v Speaker 4>to the upside or the downside getting a little more

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<v Speaker 4>information from the company about the most recent quarter government contracts.

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<v Speaker 4>Interestingly enough, six billion dollars in multi year US government contracts.

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<v Speaker 4>That's for Starshield, our own down hole reporting. SpaceX shares

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<v Speaker 4>up right now by about one percent.

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<v Speaker 3>And let's not forget Lauren Grush, who wrote a preview

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<v Speaker 3>and covers this company and the space industry, said, you

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<v Speaker 3>know what's really important is getting also updates on Starship specifically,

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<v Speaker 3>are there any technical setbacks because this is certainly key

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<v Speaker 3>in terms of getting satellites out into the sub orbital

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<v Speaker 3>or they've only been suborbital, but getting them further out

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<v Speaker 3>and that's part of the idea of getting either data

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<v Speaker 3>centers in space, but this is so important, certainly to

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<v Speaker 3>the company story going forward.

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<v Speaker 2>The Stockmovers report from Bloomberg Radio. Check back with us

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