Rocket Lab (RKLB 50.96%) The stock lived up to its name this morning as shares were up 44% as of 10:45 a.m. ET following an encouraging earnings report Tuesday evening.

Heading into the third-quarter report, analysts predicted that Rocket Lab would lose $0.11 per share on quarterly revenue of $102.3 million. The company instead reported revenue of $104.8 million and a loss of $0.10 per share.

Rocket Lab Third Quarter Results

Rocket Lab’s revenue increased by 55%. To be sure, losses have also increased, up 25% from $0.08 per share a year ago. However, if we step back to look at the bigger picture and smooth out the quarterly irregularities, year-to-date losses are only $0.28 per share, a level similar to that of the ‘last year.

Furthermore, it’s not Rocket Lab’s current losses that interest investors. Wall Street analysts say that Rocket Lab will not become profitable until 2027, so losses were to be expected in the third quarter. What investors were really looking for in last night’s report was progress toward possible profitability – and Rocket Lab delivered in spades.

This manufacturer of small rockets and spacecraft signed $55 million in new Electron launch contracts in the third quarter, more than enough to replenish quarterly launch revenue. It forecasts fourth-quarter revenue of between $125 million and $135 million, implying revenue will be at least double from last year’s fourth quarter haul of just $60 million. And later, Rocket Lab promised even more revenue from its launch business, hiring an undisclosed customer to perform “multiple launches” on the new Rocket Lab. Neutron Medium Transport Vehicle.

In fact, trust in Neutron is so great right now that this customer is apparently considering using the rocket to deploy its entire planned satellite constellation.

Translation: Attention, SpaceX. Rocket Lab is coming to your biggest market.

Is Rocket Lab stock a buy?

Priced at 22 times sales and infinitely (and beyond) times earnings (which it doesn’t have), it’s hard to defend Rocket Lab’s stock price in terms of valuation. Fortunately for Rocket Lab, for the moment reserved for investors think of it as a growth stock. As long as Rocket Lab continues to grow, the stock price should continue to outperform.