Space Exploration Technologies Corp.‘s (NASDAQ:SPCX) Chief Financial Officer Bret Johnsen says the company has closed another compute agreement that would help the Elon Musk-led space giant reach its intended $100 billion ARR target by year-end.
$1 billion Starting in December
During Goldman Sachs Group Inc.‘s (NYSE:GS) Communacopia and Technology Conference on Thursday, Johnsen touted the new compute deal. “We closed another hosting deal, and that translates into about $1.11 billion a month starting December 1st of this year,” Johnsen said.
He added that the figure adds over $13 billion in annual recurring revenue (ARR) for SpaceX as it charts a path to hitting $100 billion in ARR for SpaceX. “We have even more conviction now about that $100 billion ARR target by the end of this year,” he added.
Johnsen did not provide additional details about the agreement, nor did he say who SpaceX had entered into a compute agreement with.
$10 Trillion Valuation
X Prize Foundation‘s Peter Diamandis, following SpaceX’s first-ever earnings call since going public, said that he saw the commercial spaceflight giant reaching a valuation of $10 trillion, citing Musk’s efforts to build a “civilizational” level of infrastructure with SpaceX.
SpaceX has compute agreements in place with Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) and Anthropic. Musk also said that the company had a non-zero chance of reaching $1 trillion in revenue by 2030.
Starlink’s New Router, Starbase Louisiana
SpaceX also unveiled the fourth-generation Starlink router, touting faster peak speeds, as well as better connectivity in congested areas, water resistance and Wi-Fi 7 technology. SpaceX also said that the company will provide Starlink connectivity to residents around SpaceX’s upcoming Starbase Louisiana at half price.
Price Action: SPCX shares were up 0.70% to $149.22 during overnight trading on Thursday.
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