SpaceX Rises After Earnings
Shares in SpaceX ($SPCX) are up 2% in the after-hours after reporting 161% revenue growth for the third quarter, driven by the company’s artificial intelligence business and Starlink Subscriber growth.
The company reported net income of $4.4 billion more than double estimates. That’s compared to the net loss of $541 million the company reported last quarter, and Starlink showed growth in consumer subscribers, now at 13.6 million, up from 12 million subscribers in the last quarter according to Bloomberg.
AI operating income was a positive $431 million vs street estimates of a $13.5 million loss. Capex on the AI side was below consensus while total costs and expenses of its Space segment, which includes launch, were up $367 million year-over-year. Still the majority ($16.4 billion) of its $19.59 billion in capex for the quarter was for the AI (now SI) unit.
While notably the SI unit overtook Connectivity (Starlink) in terms of revenues, the connectivity business represented the majority of the company’s profits with $2.37 billion in the latest quarter.
