Kratos ($KTOS) is going all-in on space services after growing investment in the division drove strong overall sales growth, the company revealed Wednesday in its Q1 financial results.
- Revenue = $231.8M, an 18% increase YoY
- Net income loss = -$7M
- Cash = $46.7M, down from $254.4M in Q1 2022
Breaking out space, satellite and cyber:
- Revenue = $88.8M, a 23% increase YoY
- Q1 bookings: $112.1M
In the first quarter, Kratos spent $10.2M on R&D, including significant investment in its growing OpenSpace software. OpenSpace is a satellite ground system that digitizes signals and analyzes data in the cloud. The platform provides a range of capabilities including, command & control, telemetry tracking, and simulations to satellite end markets.
Space growth: Kratos’ substantial investment in OpenSpace R&D resulted in net income and cash losses, but was also a significant driver of the company’s 18% YoY sales growth. Kratos has secured several major space contracts from the DoD, Intelsat, and OneWeb over the past few years.
+ Stock pulse check: $KTOS is flat in after-hours trading.