SpaceX generated about US$8 billion in profit last year ahead of IPO: sources
Musk expects Starship to start launching payloads into space this year
[NEW YORK] SpaceX generated about US$8 billion in profit on US$15 billion to US$16 billion of revenue last year, two sources familiar with the company’s results said, providing fresh insight into the financial health of Elon Musk’s space company that is expected to go public later this year.
SpaceX’s most recent financials, which have not been previously reported, led some banks to estimate that the company could raise more than US$50 billion at a valuation exceeding US$1.5 trillion, said the sources, who asked not to be named to discuss private conversations. Reuters reported on Thursday (Jan 29) that SpaceX is also in talks with Musk’s artificial intelligence company, xAI, about a merger ahead of the initial public offering (IPO).
SpaceX did not immediately return a request for comment.
The profit figure was earnings before interest, taxes, depreciation and amortisation, a key measure of operating performance. Musk’s satellite-based Internet system Starlink is the main revenue driver, accounting for about 50 to 80 per cent of the total, the sources said.
The rapid launch of 9,500 Starlink satellites since 2019 has made SpaceX the world’s largest satellite operator with over nine million users of the broadband Internet service. The Internet service, along with government contracts associated with Starlink and military-grade satellite network Starshield, has generated key revenue to help fund development of the company’s next-generation Starship rocket that Musk wants to use to loft more powerful Starlinks into orbit.
The company bought US$19 billion worth of wireless spectrum rights from EchoStar last year as it expands Starlink into the direct-to-device market, in which mobile phones can connect directly with Starlink satellites without the need for a Starlink user terminal.
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The satellite and rocket company is planning the biggest IPO in the world, close to Musk’s 55th birthday on Jun 28, the sources said.
Musk expects Starship, which has test-launched 11 times since 2023, to start launching payloads into space this year. The billionaire expects to use Starship to eventually launch space-based AI data centres, a risky and nascent pursuit tied to the company’s proposed merger with xAI. REUTERS
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