Connect with us

Geek Culture

Financial records from before Starlink show that SpaceX spent a lot of money on moonshot bets

blank

Published

on

blank

SpaceX’s 2018 and 2019 confidential financial records give us a first look at how much the company probably depends on its Starlink business unit and getting the Starship rocket online in order to start making money.

The detailed balance sheets are from five years ago, but they give a very close look at how one of the most important and mysterious private companies in the U.S. works. In November, people familiar with the matter told Bloomberg that SpaceX went from losing $2 billion in sales to supposedly making $9 billion in 2023 and $15 billion in 2024. These numbers help show what the company spent its money on and how much it spent it.

The company had two important years in 2018 and 2019: SpaceX launched its Falcon Heavy rocket for the first time in February 2018. In March of that year, the company failed a key flight test of its crew Dragon capsule, but a month later, the same capsule exploded while being tested on the ground. SpaceX was probably under a lot of pressure to give NASA astronauts a safe, reliable spaceship so that it could start making more money from the huge government contract it won to carry crews.

Also, SpaceX sent up its first 60 Starlink satellites that year. The company’s main goal is to build a colony of humans on Mars, or, as CEO Elon Musk often says, “to expand the light of consciousness” throughout the universe. The service has become an important part of those plans.

Let’s look at it

Comprehensive balance sheets from those years that were looked at show that the company made $1.98 billion in sales in 2018 and $1.45 billion in 2019, but it had a net loss of -$308 million in 2018 and -$501 million in 2019. SpaceX changed how it reported revenue from the percentage of a total contract that was completed to the percentage of discrete aspects of each contract that were completed because of a change in accounting rules, which is why revenue went down from 2018 to 2019. I saw the documents that explained this. I asked SpaceX for a word on this story, but they didn’t answer.

Most of the losses were due to “cost of revenue,” which is a broad term for all the costs that come with making and selling a product or service. In this item, it also lists the prices of its employees and contractors, as well as the rent and utilities. SpaceX even takes into account the costs of reusing launch vehicle gear that has lost value over time.

Additionally, the business spent a lot of money on R&D—$559 million in 2018 and $661 million the following year. Companies often put the costs of hiring people in this line item; this is the “development” part of R&D. In SpaceX’s case, though, the financial statement says that these costs were mostly for the Starlink and Starship projects. SpaceX launched the first batch of operational Starlink satellites in May 2019, which was a significant advancement for the program. At the end of 2018, the company had $868 million in cash and cash equivalents. In 2019, they will have $990 million.

The balance sheets cover the years after NASA gave SpaceX contracts to take people and things to and from the International Space Station. Getting contracts with NASA from the U.S. government brought in 37% of the money in 2018 and 83% of the money in 2019. This probably doesn’t come as a surprise.

The company’s value grew to $180 billion at the end of last year. Since May 2019, when 60 Starlink satellites were launched, it has made truly huge progress: More than 5,500 active satellites are now in space, and more than 2.5 million people have signed up to use them. This is clear from the fact that sales are through the roof.

When Starship gets there, things might change again. The huge rocket is currently being tested in space from the company’s launch site in Texas. It will be needed to keep up the launch schedule for the second-generation satellites. These satellites will weigh almost twice as much as the first generation of satellites. Adding more satellites to orbit will help end users get more room.

It was in May 2022 that Elon Musk, CEO of SpaceX, said that Starship “is the only thing that can carry the Starlink 2 satellites.”

“Falcon [9] does not have the volume or the mass-to-orbit capability that Starlink 2 needs,” he said.

A lot of people have questions about SpaceX’s most recent financials. The company uses its own rocket, the Falcon 9, to launch its Starlink satellites. This lets it send the internet satellites into space at a rate that has never been seen before. The company can spread out the cost of gear over time because the rocket booster can be used more than once. But it will take longer to get Starlink to millions more people around the world if Starship doesn’t go live right away.

As Editor here at GeekReply, I'm a big fan of all things Geeky. Most of my contributions to the site are technology related, but I'm also a big fan of video games. My genres of choice include RPGs, MMOs, Grand Strategy, and Simulation. If I'm not chasing after the latest gear on my MMO of choice, I'm here at GeekReply reporting on the latest in Geek culture.

Gaming

Are you eagerly anticipating what Absurd Ventures has in store for us in the coming years

blank

Published

on

blank

Activision has recently announced the establishment of a new studio, Elsewhere Entertainment, located in Warsaw. The studio has been entrusted with the exciting challenge of creating a groundbreaking AAA franchise that will captivate players with its immersive storytelling and innovative gameplay. A significant number of employees were let go by the large corporation after the completion of Microsoft’s acquisition of Activision Blizzard King earlier this year.

According to IGN, Activision made the announcement in a blog post, sharing that the team will be based in Poland with additional resources in the US. The studio has assembled a team of highly skilled individuals who have worked on acclaimed titles such as The Last of Us, Uncharted, The Witcher, Destiny, Far Cry, and Tom Clancy’s The Division.

Activision’s response to IGN’s request for a studio logo or official artwork was rather unconventional. Instead of providing the requested materials, they sent over the Cambridge University dictionary definition of the word “elsewhere.”. However, with a discerning eye, one may catch a glimpse of something lurking in the background. The publication acknowledges that, whatever it may be, it has no connection to Call of Duty. Elsewhere Entertainment has been granted full access to Activision’s extensive resources and cutting-edge tools, enabling them to further enhance their production and development capabilities. We may have to wait a while before we find out what they have in store for us.

Curious about Activision’s latest venture, Elsewhere Entertainment? Opening a new studio after numerous layoffs—is it a tasteless move or simply another harsh reality of the video game industry? Feel free to share your thoughts in the comments section below.

 

Continue Reading

Gaming

Rockstar Co-Founder Dan Houser is currently working on the development of an exciting new ‘Open World Action-Adventure’ game

blank

Published

on

blank

Last year, we reported that Rockstar co-founder Dan Houser had launched a new studio called Absurd Ventures, with the aim of developing original IP for all platforms and formats. The new outfit has recently started development on a game that boasts top-notch combat and third-person action in a variety of game modes.

This information is available, as Eurogamer discovered, from a recent job listing on the developer’s website. The company is looking for more people to join their team and contribute to an “open-world action-adventure game.”. According to Eurogamer, it seems that the project they are working on is still in its early stages. They are currently in the process of hiring for important positions like lead designer, lead gameplay designer, art director, and technical director.

Absurd Venture is dedicated to crafting immersive narrative experiences across a wide range of mediums, such as games, animation, books, graphic novels, live-action, and scripted podcasts. Their mission is to create captivating worlds, compelling characters, and engaging stories that span diverse genres. The former vice president of writing at Rockstar, who co-wrote both Red Dead Redemption games, has recently joined the studio. Additionally, Lazlow Jones, a former writer and producer at Rockstar, has also come on board.

Are you eagerly anticipating what Absurd Ventures has in store for us in the coming years? Feel free to share your thoughts in the comments section below.

 

Continue Reading

Gaming

Assassin’s Creed Shadows, the physical version, requires an online connection for installation

blank

Published

on

blank

Players who choose to go with a physical copy of the recently announced Assassin’s Creed Shadows will need an Internet connection in order to finish the installation. This is unlikely to pose a problem for most Ubisoft fans, but it does align with a trend that is worth mentioning. It follows a requirement that was initially introduced in 2023’s Avatar: Frontiers of Pandora and will also be the case with the upcoming Star Wars Outlaws.

As reported by VGC, pre-orders for the game are now available, and a notice on the front box art at retailers such as Best Buy and GameStop states: “Internet connection is necessary for game installation.” For Avatar, players had to install a day-one patch before being able to start the game. However, both Shadows and Outlaws come with a warning prominently displayed on the front of the box.

The lack of a clear explanation for this requirement raises concerns about the long-term preservation of the game, particularly if the servers are eventually shut down. In December, Ubisoft made the decision to delist the original The Crew, effectively ending its run. This unfortunate event may not be the last time we see a game meet a similar fate.

What are your thoughts on Ubisoft’s requirement of an online connection for the installation of its flagship games? Feel free to share your thoughts in the comments section below.

 

Continue Reading

Trending