SpaceX documents reveal losses and high hopes for a new business

[Buster's Uncle]

SpaceX documents reveal losses and high hopes for a new business
CNBC.com
Robert Ferris | 21 Hours Ago



SpaceX's Falcon 9 rocket lifting off from space launch complex 40 at Cape Canaveral, Florida, June 28, 2015. It exploded minutes later.    Bruce Weaver | AFP | Getty Images



A new report has lifted the curtain on SpaceX's finances and plans, showing past losses suffered and the company's big bet on satellite-based internet services.

Internal documents obtained by the Wall Street Journal and interviews with former SpaceX employees reveal the commercial space company suffered a $260 million loss in 2015, after a rocket bound for the International Space Station exploded after launch.

SpaceX representatives were not immediately available for comment from CNBC, but issued a statement earlier to the Journal.

"We have more than 70 future launches on our manifest representing over $10 billion in contracts," SpaceX Chief Financial Officer Bret Johnson told the Journal. "The company is in a financially strong position and is well positioned for future growth." Johnson also said SpaceX has over $1 billion in cash and no debt.

However, the company enjoyed profitable years in 2013 and 2014 after contracts from NASA and satellite companies pushed revenue from $680 million to $1 billion.

The report also revealed the high hopes SpaceX has for a business using satellites to provide internet service, which so far is still in the planning stages.

The documents obtained by the Journal contain projections of 40 million subscribers and more than $30 billion in revenue for the satellite internet business by 2025.

SpaceX is scheduled to launch another rocket on Saturday. It will be the company's first launch since a Falcon rocket exploded on a launchpad at Cape Canaveral in early September. The rocket was carrying a satellite meant to provide internet services to Africa for an initiative launched by Facebook's Mark Zuckerberg.


http://www.cnbc.com/2017/01/13/spacex-documents-reveal-losses-and-high-hopes-for-a-new-business.htm