Elon Musk-led aerospace giant SpaceX grew revenue by 161% over three months ending in September compared with the same period a year earlier, according to an earnings release issued on Tuesday.
The surge in revenue was owed in large part to a significant expansion of the company's businesses centered on artificial intelligence and Starlink, a satellite internet service, the earnings showed.
SpaceX said it earned overall profit of $4.40 billion in its most recent quarter, turning around from a loss of $1.05 billion in the same three-month period a year earlier.
The company also recorded a loss in the previous quarter ending in June, meaning the latest earnings report marked a turn into profitability.
Shares of SpaceX jumped nearly 4% in after-hours trading after the earnings release, putting the price of a share at about $153.30.
The company, which Musk helms as founder and CEO, boasts a valuation of nearly $1.95 trillion. The earnings amounted to the company's second-ever quarterly financial disclosure since it went public in June.
In its first earnings release, in August, SpaceX said it generated $7.8 billion in revenue over three months ending in June. That figure marked an increase from $4 billion in revenue over the same period a year earlier, but the revenue failed to keep up with costs.
SpaceX builds and operates spacecraft, including thousands of satellites deployed in support of its Starlink satellite internet service. The company also oversees xAI, which offers a chatbot in competition with the likes of OpenAI's ChatGPT and Anthropic's Claude.
Starlink, the main driver of the company’s profits, received attention from investors ahead of the release.
Earlier this month, Starlink acquired nationwide, low-band spectrum, suggesting the company will seek to compete with U.S. mobile carriers, Paul Golding, senior digital infrastructure and payments analyst at Macquarie, said in a statement to ABC News.
"We'll be listening for launch timing, terrestrial build plans and appetite for more spectrum," Golding said.
On Tuesday, SpaceX announced $5.2 billion in revenue over the most recent quarter from its connectivity segment, which includes Starlink. That figure indicates a rise of 69% from the same quarter a year earlier, earnings showed.
Elon Musk speaks with guests at a viewing of the launch of the sixth test flight of the SpaceX Starship rocket on November 19, 2024 in Brownsville, Texas.
Brandon Bell/Getty Images
SpaceX has spent significantly on efforts to develop AI infrastructure, such as data centers. Last quarter, the company's AI unit recorded an operating loss of $1.26 billion, in part because AI spending more than doubled from the previous quarter.
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The AI unit turned positive over three months ending in September, however, registering $431 million in income from operations.
The earnings release arrived a day after Musk vowed to give every child in the United States a share of stock in aerospace giant SpaceX.
"Next year, I will give one of my SpaceX shares to every kid in America. This will be the first of many," Musk said in a post on X.
The latest U.S. Census data estimated about 73 million people in the U.S. under age 18. Using that figure and given the company's share price of about $150 on the day of Musk's announcement, the giveaway would total nearly $11 billion. As of Tuesday afternoon, the share price has fallen slightly to about $148 a share.
Musk's net worth stands at $927.4 billion, the most recent Fortune data shows, meaning the donation would amount to about 1.1% of his wealth.
The pledge from Musk came amid scrutiny from some policymakers, investors and the general public about the potential impact of AI on the labor market and wider economy.
A surge in AI spending has helped boost the U.S. economy in recent quarters, but some economists have warned the industry may increase inflation and harm job prospects for some workers.
A series of autonomous AI hacks in recent months, meanwhile, has elicited concern from some industry insiders and public figures about severe risks the technology could pose for key institutions with digital systems
Analysts who previously spoke to ABC News disagreed sharply about the likelihood of an AI-induced calamity. Some said such an outcome is likely if the industry fails to impose adequate safeguards, while others characterized it as vague and far-fetched.