AST SpaceMobile, Inc. (NASDAQ:ASTS) Q3 2024 Earnings Conference Call November 14, 2024 5:00 PM ET Company Participants Scott Wisniewski - President and Chief Strategy Officer Abel Avellan - Founder, Chairman and Chief Executive Officer Andrew Johnson - Chief Financial Officer and Chief Legal Officer Conference Call Participants Mike Crawford - B. Riley Securities Christopher Schoell - UBS Chris Quilty - Quilty Analytics Bryan Kraft - Deutsche Bank Caleb Henry - Quilty Analytics Operator Good day and thank y ...

Satellite Launch and Development - The company launched five first generation commercial BB satellites on September 12, 2024, with a total cost incurred of approximately $119.0 million, an increase of 3.3% over the previous estimate of $115.0 million[141]. - The next generation Block 2 BB satellites are expected to support peak data rates of up to 120 Mbps and require less power, with a design featuring the largest communication array ever deployed in LEO for commercial use[144]. - The company plans to launch up to approximately 45 Block 2 BB satellites between 2025 and 2026, with the first satellite expected to be sent to the launch provider in March or April 2025[148]. - The company aims to achieve substantial service in targeted geographical areas with the launch and operation of approximately 95 BB satellites, with plans for additional satellites to enhance coverage and capacity[150]. - The company is actively engaged in planning and procurement for the Block 2 BB satellites to meet its planned launches in 2025 and 2026, leveraging expertise from the Block 1 BB satellite development[147]. Revenue Generation - The SpaceMobile Service has not yet generated any revenue, but the company plans to initiate a limited, noncontinuous service in targeted geographical areas, including the United States, and validate non-commercial government applications[142]. - Beginning in Q1 2024, the company expects to recognize revenue from a U.S. Government contract and anticipates generating revenue from the resale of gateway equipment and associated services to MNOs and other third parties throughout 2024[143]. - The company expects to continue recognizing revenue under a U.S. Government contract throughout 2024 as performance obligations are completed[160]. - Revenues for the three months ended September 30, 2024 were $1.1 million, a 100% increase compared to $0 in the same period of 2023[173]. - Revenues for the nine months ended September 30, 2024, were $2,500,000, representing a 100% increase compared to the same period in 2023, attributed to a U.S. Government contract[185][186]. Financial Performance - A loss of $236.9 million was recorded on the remeasurement of warrant liabilities for the three months ended September 30, 2024, compared to a gain of $7.5 million in the same period of 2023[179]. - The net loss attributable to common stockholders for the nine months ended September 30, 2024, was $264.2 million, a 375% increase compared to a loss of $55.6 million in 2023[185]. - Net loss attributable to noncontrolling interest was $131.1 million for the three months ended September 30, 2024, compared to $29.8 million in the same period of 2023[183]. Operating Expenses - Total operating expenses increased by $25.0 million, or 16%, to $186.5 million for the nine months ended September 30, 2024, driven by higher engineering services and general administrative costs[185]. - General and administrative costs rose by $4.6 million, or 41%, to $15.6 million for the three months ended September 30, 2024[176]. - General and administrative costs rose by $14.6 million, or 47%, to $45.7 million, primarily due to a $12.4 million increase in stock-based compensation[188]. - Engineering services costs increased by $2.3 million, or 12%, to $21.8 million for the three months ended September 30, 2024[175]. - Research and development costs increased by $5.3 million, or 56%, to $14.7 million for the three months ended September 30, 2024[177]. - Research and development costs decreased by $13.3 million, or 36%, to $23.4 million, attributed to the completion of certain satellite subsystems and infrastructure programs[189]. - Depreciation and amortization expenses increased by $20.0 million, or 57%, to $54.9 million, mainly due to the commencement of depreciation for the BW3 test satellite[190]. - Depreciation and amortization expense decreased by $4.5 million, or 24%, to $14.5 million for the three months ended September 30, 2024[178]. Capital and Financing - The company has entered into a new Equity Distribution Agreement to sell shares of Class A common stock with an aggregate sales price of up to $400.0 million through an "at the market offering" program[152]. - The company sold shares of Class A Common Stock under the 2024 Sales Agreement for an aggregate sales price of up to $400.0 million[208]. - The company estimates needing to raise approximately $120.0 million to $170.0 million to meet current working capital needs and fund the launch of 20 Block 2 BB satellites[200]. - The company plans to raise additional capital through various means, including equity and debt securities, to support its operational and strategic needs[202]. - The company issued Convertible Notes for an aggregate principal amount of $110.0 million to AT&T, Google, and Vodafone, with a 5.50% annual interest rate[220]. - Public Warrants redemption resulted in the exercise of 13,358,174 warrants, generating net proceeds of $153.3 million during the three months ended September 30, 2024[155]. - During the nine months ended September 30, 2024, 13,358,174 Public Warrants were exercised, resulting in net proceeds of $153.3 million[209]. Cash Flow - Cash used in operating activities decreased to $97.7 million for the nine months ended September 30, 2024, compared to $124.0 million for the same period in 2023, a decrease of $26.3 million[226]. - Cash used in investing activities was $92.1 million for the nine months ended September 30, 2024, down from $96.5 million in the same period in 2023[227]. - Cash provided by financing activities increased significantly to $620.4 million during the nine months ended September 30, 2024, compared to $117.4 million in the same period in 2023, an increase of $503.0 million[228]. - As of September 30, 2024, the company had $518.9 million in cash and cash equivalents, including $2.5 million of restricted cash, and raised $298.2 million in net proceeds from Public Warrants exercises[196]. - As of September 30, 2024, cash, cash equivalents, and restricted cash totaled $518.9 million, compared to $135.7 million in 2023[231]. Commitments and Agreements - Contractual commitments with third parties totaled $130.7 million related to satellite components and future launch payments, with minimum commitments under launch agreements of approximately $105.0 million[205]. - The company received an initial $20.0 million commercial payment from Verizon Wireless, which will be credited against future service revenue[223]. - The AT&T Commercial Agreement includes a non-refundable commercial payment of $20.0 million due upon the launch of the Block 1 BB satellites[225]. Compliance and Reporting - The company prepared its unaudited condensed consolidated financial statements in accordance with U.S. GAAP, requiring management to make complex judgments and estimates that could materially impact reported financials[235]. - As of September 30, 2024, the company had no off-balance sheet arrangements[236]. - The company qualifies as a smaller reporting company and is not required to provide additional market risk disclosures[237].

Financial Performance - Revenues for the three months ended September 30, 2024, were $1,100,000, compared to $0 for the same period in 2023[13] - Net loss attributable to common stockholders for the three months ended September 30, 2024, was $(171,946,000), compared to $(20,909,000) for the same period in 2023[13] - Basic and diluted net loss per share for the three months ended September 30, 2024, was $(1.10), compared to $(0.23) for the same period in 2023[13] - Total comprehensive loss attributable to common stockholders for the three months ended September 30, 2024, was $(171,645,000), compared to $(21,056,000) for the same period in 2023[14] - Total operating expenses for the nine months ended September 30, 2024, were $186,538,000, an increase from $161,489,000 in 2023, representing a 15.5% increase[13] Cash and Liquidity - As of September 30, 2024, the company had cash, cash equivalents, and restricted cash totaling $518.9 million, benefiting from a $153.3 million net proceeds from warrant redemption[4] - Cash, cash equivalents, and restricted cash at the end of the period were $518,886,000, compared to $135,726,000 at the end of September 30, 2023[15] - Net cash used in operating activities for the nine months ended September 30, 2024, was $(97,703,000), compared to $(124,041,000) for the same period in 2023, indicating a 21.3% improvement[15] - Proceeds from the issuance of common stock for the nine months ended September 30, 2024, were $338,911,000, compared to $65,003,000 for the same period in 2023[15] Operating Expenses - Total operating expenses for Q3 2024 were $66.6 million, an increase of $2.7 million from $63.9 million in Q2 2024, primarily due to a $10.3 million increase in research and development costs[5] - Adjusted operating expenses for Q3 2024 were $45.3 million, reflecting a $10.7 million increase compared to $34.6 million in Q2 2024[5] - Engineering services costs for the three months ended September 30, 2024, were $21,202,000, with stock-based compensation of $(2,032,000), resulting in adjusted costs of $19,170,000[17] - Adjusted operating expenses, engineering services costs, and general and administrative costs are non-GAAP financial measures used by the company to evaluate operating performance[18] - These measures are not standardized under U.S. GAAP, limiting their comparability with similar measures from other companies[18] - The company uses these adjusted measures for preparing annual operating budgets and financial projections[18] Assets and Liabilities - The total liabilities as of September 30, 2024, were $318.8 million, compared to $147.3 million as of December 31, 2023[12] - The accumulated deficit as of September 30, 2024, was $(453.9) million, an increase from $(189.7) million as of December 31, 2023[12] - The total stockholders' equity increased to $502.8 million as of September 30, 2024, compared to $213.6 million as of December 31, 2023[12] Business Developments - The first five commercial BlueBird satellites successfully entered initial operations and filed a Special Temporary Authority request with the FCC to begin beta service with AT&T and Verizon[3] - The company secured new launch services agreements with Blue Origin and SpaceX for launches during 2025 and 2026, enabling the orbital launch of up to approximately 60 Block 2 BlueBird satellites[3] - The initial validation of the AST5000 ASIC chip was achieved, with plans for commissioning during 2025, supporting peak data transmission speeds up to 120 Mbps[3] - The company added three new contract awards with the U.S. Government, expanding its customer ecosystem and leveraging existing in-orbit technology capabilities[3] Other Financial Metrics - The company reported a loss on remeasurement of warrant liabilities of $(236,912,000) for the three months ended September 30, 2024[13]

Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. AST SpaceMobile, Inc. (ASTS) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.AST SpaceMobile, Inc. is one of 619 companies in the Computer a ...

Superior solutions and a deep-seated, irrefutable long-term need make these three names overlooked winners.Identifying good stocks to own for the foreseeable future is one thing. Finding stocks with enormous growth potential to buy and hold for a full decade is another. It isn't enough to offer a superior product or service. It must also operate in an industry that's sure to grow -- a lot -- for the long haul.With that as the backdrop, here's a rundown of three monster stocks to consider adding to your port ...

AST SpaceMobile, Inc. (ASTS) is scheduled to report third-quarter 2024 earnings on Nov. 14. For the third quarter, the Zacks Consensus Estimate for revenues is pegged at $2 million. The Zacks Consensus Estimate for third-quarter earnings is pegged at a loss of 18 cents per share, suggesting a narrower loss than a loss of 23 cents per share in the year-ago quarter. Earnings estimates for ASTS have remained unchanged at a loss of $1.03 per share for 2024 and a loss of 51 cents per share for 2025 over the past ...

It's almost time for space exploration names to have their turn in the earnings confessional. Rocket Lab USA Inc (NASDAQ:RKLB) will announce third-quarter results before tomorrow's open, while peers AST SpaceMobile Inc (NASDAQ:ASTS) and Intuitive Machines Inc (NASDAQ:LUNR) will report before the open on Thursday, Nov. 14.RKLB is up 11% to trade at a two-year high of $15 at last check, while pacing for its fifth-straight daily gain. The stock has been in rally mode since bouncing off long-term support from i ...

Rocket Lab USA, Intuitive Machines, and AST SpaceMobile could all soar higher.Over the past three years, many space-focused start-ups went public by merging with special purpose acquisition companies (SPACs). Some of those stocks initially soared, but most of them fizzled out as rising interest rates highlighted their ugly losses and popped their bubbly valuations.Many of those SPAC-backed space companies also set overly ambitious growth targets, missed them by a mile, and struggled with severe delays and m ...

Since I last covered AST SpaceMobile (NASDAQ: ASTS ) in September, it has successfully launched five BlueBird satellites in low earth orbit, marking an important step in the path toward commercialization. The stock rocketed by above 15% but, atAs a tech-focused industry Research Analyst, I aim to provide differentiated insights, whether it is for investing, trading, or informational reasons. For this purpose, I am not a classical equity researcher from the financial sector, but, I come from the IT world as ...

Small deep value individual investor, with a modest private investment portfolio, split approx. 50%-50% between shares and call options. I have a B.Sc. in aeronautical engineering and over 6 years of experience as an engineering consultant in the aerospace sector. The latter statement is not relevant in any way whatsoever to my investment style, but I thought to add it for self-indulgent purposes. I have a contrarian investment style, highly risky, and often dealing with illiquid options. How illiquid? Well ...