Workflow
AST SpaceMobile(ASTS) - 2024 Q4 - Earnings Call Transcript
ASTSAST SpaceMobile(ASTS)2025-03-05 07:30
Filings
Slide

Financial Data and Key Metrics Changes - For Q4 2024, non-GAAP adjusted cash operating expenses were 40.8million,downfrom40.8 million, down from 45.3 million in Q3 2024, primarily due to a 9.3 million reduction in R&D costs [39][41] - Full year 2024 non-GAAP adjusted cash operating expenses totaled 151.8 million compared to 154.6millionin2023[41]−CapitalexpendituresforQ42024wereapproximately154.6 million in 2023 [41] - Capital expenditures for Q4 2024 were approximately 86 million, significantly up from 26.5millioninQ32024,drivenbyBlock2Bluebirdsatelliteproduction[42]BusinessLineDataandKeyMetricsChanges−Thecompanyhasagreementswithapproximately50mobilenetworkoperatorsglobally,representingnearlythreebillionexistingsubscribers[9][31]−ThefirstfiveBluebirdsatellitesareoperational,demonstratingcapabilitiesforvoice,text,data,andvideocalling[23][24]MarketDataandKeyMetricsChanges−Thecompanyisexpandingitsmanufacturingfootprinttosupportincreasedproduction,withfacilitiesinMidland,Texas,Barcelona,Spain,andCompton,Florida[16][34]−Thecompanyanticipateslaunchingupto60Block2Bluebirdsatellitesduring2025and2026,withatargetofsixsatellitespermonthbythesecondhalfof2025[17][101]CompanyStrategyandDevelopmentDirection−ThecompanyaimstoleverageitsextensiveIPportfolioofover3,500patentstoenhanceconnectivityservices[7]−ThestrategicpartnershipwithVodafoneaimstoexpandtheaddressablemarketsignificantlyinEurope,establishingajointlyownedentityfordistribution[34]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedconfidenceinthecompany′spositionasatechnologyleaderinthedirect−to−devicesatellitecommunicationindustry,withastrongbalancesheettosupportgrowthinitiatives[37][46]−Thecompanyisoptimisticaboutgovernmentcontracts,witharecent26.5 million in Q3 2024, driven by Block 2 Bluebird satellite production [42] Business Line Data and Key Metrics Changes - The company has agreements with approximately 50 mobile network operators globally, representing nearly three billion existing subscribers [9][31] - The first five Bluebird satellites are operational, demonstrating capabilities for voice, text, data, and video calling [23][24] Market Data and Key Metrics Changes - The company is expanding its manufacturing footprint to support increased production, with facilities in Midland, Texas, Barcelona, Spain, and Compton, Florida [16][34] - The company anticipates launching up to 60 Block 2 Bluebird satellites during 2025 and 2026, with a target of six satellites per month by the second half of 2025 [17][101] Company Strategy and Development Direction - The company aims to leverage its extensive IP portfolio of over 3,500 patents to enhance connectivity services [7] - The strategic partnership with Vodafone aims to expand the addressable market significantly in Europe, establishing a jointly owned entity for distribution [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position as a technology leader in the direct-to-device satellite communication industry, with a strong balance sheet to support growth initiatives [37][46] - The company is optimistic about government contracts, with a recent 43 million contract with the US Space Development Agency highlighting strong demand for its technology [12][28] Other Important Information - The company completed a 460millionconvertibleseniornoteoffering,resultinginnearly460 million convertible senior note offering, resulting in nearly 1 billion in cash on its balance sheet [13][46] - The company received special temporary authority from the FCC to commence service with AT&T and Verizon, enabling testing with unmodified smartphones [20] Q&A Session Summary Question: When does AST SpaceMobile, Inc. expect to reach the sixth Bluebird per month manufacturing target? - The company believes it will reach a rate of six satellites per month by the second half of the year, supported by expanded manufacturing facilities [54] Question: What do the current satellites in orbit do for the company besides testing? - The satellites are fully operational, demonstrating broadband capabilities, and the government is starting to test them for various applications [56][58] Question: Are you planning to expand beyond the current launch agreements with SpaceX, Blue Origin, and ISRO? - The company has designed its satellites to be launch vehicle agnostic and is open to using other launch providers in the future [60][62] Question: What are the remaining risks to full authorization from the FCC for operating a commercial constellation? - The company is in the final stages of the process for commercial modification of its existing license and is rolling out a beta service for scale testing [65] Question: How many MNO subscribers could be addressed by the new Satco joint venture with Vodafone? - The partnership with Vodafone could potentially address around 600 million subscribers across Europe, significantly expanding the company's market reach [70][72] Question: Can you provide more detail on the 43millioncontractwiththeSDA?−Thecontractisfornon−communicationsapplications,andthecompanyexpectstorecognizethisrevenueoverthenexttwelvemonths[75][78]Question:HowdoesyourtechnologydifferfromT−MobileandStarlink?−Thecompany′sserviceoffersfullconnectivitycapabilities,includingvoice,text,data,andvideo,withoutrequiringmodificationstoexistingsmartphones[87]Question:Whatistheexpectedcostpersatellite?−Thecostpersatelliteremainsintherangeof43 million contract with the SDA? - The contract is for non-communications applications, and the company expects to recognize this revenue over the next twelve months [75][78] Question: How does your technology differ from T-Mobile and Starlink? - The company's service offers full connectivity capabilities, including voice, text, data, and video, without requiring modifications to existing smartphones [87] Question: What is the expected cost per satellite? - The cost per satellite remains in the range of 19 million to $21 million [103]