AST SpaceMobile, Inc. (“AST SpaceMobile”) (NASDAQ: ASTS), the
company building the first and only space-based cellular broadband
network accessible directly by everyday smartphones, and designed
for both commercial and government applications, is providing its
business update for the third quarter ended September 30, 2024.
"We achieved many significant milestones in the quarter and
continue our momentum with several key pieces now in place," said
Abel Avellan, Founder, Chairman and CEO of AST SpaceMobile. "With
the first five BlueBird satellites successfully unfolded and
entering initial operations, our business is progressing according
to plan. We’ve advanced our strategy across multiple efforts
including progress on securing orbital launch capacity, growing our
manufacturing capability, and expanding our customer
ecosystem."
Business Update
- First five commercial BlueBird satellites achieved
successful initial operations and filed Special Temporary Authority
(STA) request with FCC to begin beta service with AT&T and
Verizon
- All five satellites successfully unfolded as of late October,
completing a key post-launch activity
- Preparing satellites for operational readiness through ongoing
integration with partner networks
- Secured orbital launch capacity to enable continuous
space-based cellular broadband service coverage in key markets,
including U.S., Europe, Japan, the U.S. Government and other
strategic markets globally
- Launch services agreements with Blue Origin and existing launch
vehicles for launches during 2025 and 2026
- The agreements enable the orbital launch of up to approximately
60 Block 2 BlueBird satellites
- Achieved initial validation of our AST5000 ASIC chip, with test
software, test equipment, procedures, and main infrastructure in
place to commission during 2025
- Combination of novel ASIC and larger Block 2 array will offer
beams designed to support a capacity of up to 40MHz, enabling peak
data transmission speeds up to 120Mbps, supporting voice, full data
and video applications
- Expanded the AST SpaceMobile customer ecosystem, adding
three new contract awards with the U.S. Government and continued to
advance discussions with multiple commercial partners
- Selection by the Space Development Agency (SDA) to compete
directly as a prime contractor under the Hybrid Application for
proliferated low Earth orbit (HALO) program
- Added three new contract awards with U.S. Government to
leverage and expand existing in-orbit technology capabilities,
directly and through prime contractors
- Growing pipeline of government opportunities for non-commercial
applications demonstrates significant advantages of AST
SpaceMobile’s dual-use technologies
- Strong balance sheet with $518.9 million in cash, cash
equivalents, and restricted cash, benefiting from warrant
redemption and ATM program
- Received $153.3 million in net proceeds from the redemption of
publicly traded warrants
- Repaid $48.5 million of Senior Secured Credit Facility in Q4,
lowering go-forward interest expense
- Filed formal application with the Export-Import Bank of the
United States (EXIM) for debt financing
- Continue to prioritize raising strategic capital through
non-dilutive approaches, including commercial prepayments and
commitments from our MNO partners
Third Quarter 2024 Financial Highlights
- As of September 30, 2024, we had cash, cash equivalents, and
restricted cash of $518.9 million
- Total operating expenses for the third quarter of 2024 were
$66.6 million, including $21.4 million of depreciation and
amortization and stock-based compensation expense. This represents
an increase of $2.7 million as compared to $63.9 million in the
second quarter of 2024, due to a $10.3 million increase in research
and development costs and a $0.6 million increase in engineering
services costs, partially offset by a $2.3 million decrease in
general and administrative costs, and a $5.9 million decrease in
depreciation and amortization expense
- Adjusted operating expenses(1) for the third quarter of 2024
were $45.3 million, an increase of $10.7 million as compared to
$34.6 million in the second quarter of 2024, due to a $1.2 million
increase in Adjusted general and administrative costs(1), and a
$10.3 million increase in research and development costs, partially
offset by a $0.8 million decrease in Adjusted engineering services
costs(1)
- As of September 30, 2024, we have incurred approximately $374.0
million of gross capitalized property and equipment costs and
accumulated depreciation and amortization of $113.9 million. The
capitalized costs include costs of satellite materials for BlueBird
satellites, advance launch payments, Block 1 and BlueWalker 3
satellites, assembly and integration facilities including assembly
and test equipment, and ground antennas
(1) See reconciliation of Adjusted
operating expenses to Total operating expenses, Adjusted
engineering services costs to Engineering services costs and
Adjusted general and administrative costs to General and
administrative costs in the tables accompanying this press
release.
Non-GAAP Financial Measures
We refer to certain non-GAAP financial measures in this press
release, including Adjusted operating expenses, Adjusted
engineering services costs and Adjusted general and administrative
costs. We believe these non-GAAP financial measures are useful
measures across time in evaluating our operating performance as we
use these measures to manage the business, including in preparing
our annual operating budget and financial projections. These
non-GAAP financial measures that have no standardized meaning
prescribed by U.S. GAAP, and therefore have limits in their
usefulness to investors. Because of the non-standardized
definitions, these measures may not be comparable to the
calculation of similar measures of other companies and are
presented solely to provide investors with useful information to
more fully understand how management assesses performance. These
measures are not, and should not be viewed as, a substitute for
their most directly comparable GAAP measures. Reconciliation of
non-GAAP financial measures and the most directly comparable GAAP
financial measures are included in the tables accompanying this
press release.
Conference Call Information
AST SpaceMobile will hold a quarterly business update conference
call at 5:00 p.m. (Eastern Time) on Thursday, November 14, 2024.
The call will be accessible via a live webcast on the Events page
of AST SpaceMobile’s Investor Relations website at
https://ast-science.com/investors/. An archive of the webcast will
be available shortly after the call.
About AST SpaceMobile
AST SpaceMobile is building the first and only global cellular
broadband network in space to operate directly with standard,
unmodified mobile devices based on our extensive IP and patent
portfolio, and designed for both commercial and government
applications. Our engineers and space scientists are on a mission
to eliminate the connectivity gaps faced by today’s five billion
mobile subscribers and finally bring broadband to the billions who
remain unconnected. For more information, follow AST SpaceMobile on
YouTube, X (Formerly Twitter), LinkedIn and Facebook. Watch this
video for an overview of the SpaceMobile mission.
Forward-Looking Statements
This communication contains “forward-looking statements” that
are not historical facts, and involve risks and uncertainties that
could cause actual results of AST SpaceMobile to differ materially
from those expected and projected. These forward-looking statements
can be identified by the use of forward-looking terminology,
including the words “believes,” “estimates,” “anticipates,”
“expects,” “intends,” “plans,” “may,” “will,” “would,” “potential,”
“projects,” “predicts,” “continue,” or “should,” or, in each case,
their negative or other variations or comparable terminology. These
forward-looking statements involve significant risks and
uncertainties that could cause the actual results to differ
materially from the expected results. Most of these factors are
outside AST SpaceMobile’s control and are difficult to predict.
Factors that could cause such differences include, but are not
limited to: (i) expectations regarding AST SpaceMobile’s strategies
and future financial performance, including AST’s future business
plans or objectives, expected functionality of the SpaceMobile
Service, anticipated timing of the launch of the Block 2 BlueBird
satellites, anticipated demand and acceptance of mobile satellite
services, prospective performance and commercial opportunities and
competitors, the timing of obtaining regulatory approvals, ability
to finance its research and development activities, commercial
partnership acquisition and retention, products and services,
pricing, marketing plans, operating expenses, market trends,
revenues, liquidity, cash flows and uses of cash, capital
expenditures, and AST SpaceMobile’s ability to invest in growth
initiatives; (ii) the negotiation of definitive agreements with
mobile network operators relating to the SpaceMobile Service that
would supersede preliminary agreements and memoranda of
understanding and the ability to enter into commercial agreements
with other parties or government entities; (iii) the ability of AST
SpaceMobile to grow and manage growth profitably and retain its key
employees and AST SpaceMobile’s responses to actions of its
competitors and its ability to effectively compete; (iv) changes in
applicable laws or regulations; (v) the possibility that AST
SpaceMobile may be adversely affected by other economic, business,
and/or competitive factors; (vi) the outcome of any legal
proceedings that may be instituted against AST SpaceMobile; and
(vii) other risks and uncertainties indicated in the Company’s
filings with the Securities and Exchange Commission (SEC),
including those in the Risk Factors section of AST SpaceMobile’s
Form 10-K filed with the SEC on April 1, 2024.
AST SpaceMobile cautions that the foregoing list of factors is
not exclusive. AST SpaceMobile cautions readers not to place undue
reliance upon any forward-looking statements, which speak only as
of the date made. For information identifying important factors
that could cause actual results to differ materially from those
anticipated in the forward-looking statements, please refer to the
Risk Factors in AST SpaceMobile’s Form 10-K filed with the SEC on
April 1, 2024. AST SpaceMobile’s securities filings can be accessed
on the EDGAR section of the SEC’s website at www.sec.gov. Except as
expressly required by applicable securities law, AST SpaceMobile
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise.
Third Quarter Financial Results
AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS (UNAUDITED)
(Dollars in thousands, except
share data)
As of
September 30, 2024
December 31, 2023
ASSETS
Current
assets:
Cash and cash equivalents
$
516,389
$
85,622
Restricted cash
2,497
2,475
Prepaid expenses
7,073
4,591
Other current assets
19,662
14,194
Total current assets
545,621
106,882
Non-current
assets:
Property and equipment, net
260,068
238,478
Operating lease right-of-use assets,
net
12,088
13,221
Other non-current assets
3,872
2,311
TOTAL ASSETS
$
821,649
$
360,892
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current
liabilities:
Accounts payable
$
8,962
$
20,575
Accrued expenses and other current
liabilities
16,480
23,926
Contract liabilities
22,468
-
Current operating lease liabilities
1,534
1,468
Current portion of long-term debt
44,635
252
Total current liabilities
94,079
46,221
Non-current
liabilities:
Warrant liabilities
57,460
29,960
Non-current operating lease
liabilities
11,057
11,900
Long-term debt, net
156,252
59,252
Total liabilities
318,848
147,333
Commitments and contingencies
Stockholders'
Equity:
Class A Common Stock, $.0001 par value;
800,000,000 shares authorized; 170,039,305 and 90,161,309 shares
issued and outstanding as of September 30, 2024 and December 31,
2023, respectively.
17
9
Class B Common Stock, $.0001 par value;
200,000,000 shares authorized; 39,747,447 and 50,041,757 shares
issued and outstanding as of September 30, 2024 and December 31,
2023, respectively.
4
5
Class C Common Stock, $.0001 par value;
125,000,000 shares authorized; 78,163,078 shares issued and
outstanding as of September 30, 2024 and December 31, 2023,
respectively.
8
8
Additional paid-in capital
762,426
288,404
Accumulated other comprehensive income
353
227
Accumulated deficit
(453,888
)
(189,662
)
Noncontrolling interest
193,881
114,568
Total stockholders' equity
502,801
213,559
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY
$
821,649
$
360,892
AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in thousands, except
share and per share data)
For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
2024
2023
2024
2023
Revenues
$
1,100
$
-
$
2,500
$
-
Operating
expenses:
Engineering services costs
21,828
19,523
62,546
58,818
General and administrative costs
15,551
10,995
45,677
31,073
Research and development costs
14,724
9,418
23,435
36,721
Depreciation and amortization
14,543
19,029
54,880
34,877
Total operating expenses
66,646
58,965
186,538
161,489
Other income
(expense):
(Loss) gain on remeasurement of warrant
liabilities
(236,912
)
7,481
(284,839
)
21,454
Interest (expense) income, net
(1,386
)
495
(5,846
)
4,311
Other income (expense), net
1,410
507
1,661
(10,237
)
Total other income (expense),
net
(236,888
)
8,483
(289,024
)
15,528
Loss before income tax (expense)
benefit
(302,434
)
(50,482
)
(473,062
)
(145,961
)
Income tax (expense) benefit
(646
)
(266
)
(1,172
)
408
Net loss before allocation to
noncontrolling interest
(303,080
)
(50,748
)
(474,234
)
(145,553
)
Net loss attributable to noncontrolling
interest
(131,134
)
(29,839
)
(210,008
)
(89,918
)
Net loss attributable to common
stockholders
$
(171,946
)
$
(20,909
)
$
(264,226
)
$
(55,635
)
Net loss per share attributable to holders
of Class A Common Stock
Basic and diluted
$
(1.10
)
$
(0.23
)
$
(1.89
)
$
(0.70
)
Weighted-average shares of Class A Common
Stock outstanding
Basic and diluted
155,644,888
89,514,621
139,485,036
79,065,471
AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)
(Dollars in thousands)
For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
2024
2023
2024
2023
Net loss before allocation to
noncontrolling interest
$
(303,080
)
$
(50,748
)
$
(474,234
)
$
(145,553
)
Other comprehensive loss
Foreign currency translation
adjustments
529
(358
)
190
(526
)
Total other comprehensive loss
529
(358
)
190
(526
)
Total comprehensive loss before allocation
to noncontrolling interest
(302,551
)
(51,106
)
(474,044
)
(146,079
)
Comprehensive loss attributable to
noncontrolling interest
(130,906
)
(30,050
)
(209,944
)
(90,226
)
Comprehensive loss attributable to common
stockholders
$
(171,645
)
$
(21,056
)
$
(264,100
)
$
(55,853
)
AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in thousands)
For the Nine Months Ended
September 30,
2024
2023
Cash flows from operating activities:
Net loss before allocation to
noncontrolling interest
$
(474,234
)
$
(145,553
)
Adjustments to reconcile net loss before
noncontrolling interest to cash used in operating activities:
Depreciation and amortization
54,880
34,877
Amortization of debt issuance costs
3,047
374
Loss on disposal of property and
equipment
2,221
-
Loss (gain) on remeasurement of warrant
liabilities
284,839
(21,454
)
Stock-based compensation
20,617
10,595
Paid-in-kind ("PIK") interest expense
2,959
-
Changes in operating assets and
liabilities:
Prepaid expenses and other current
assets
(7,940
)
1,601
Accounts payable and accrued expenses
(7,998
)
(6,215
)
Operating lease right-of-use assets and
operating lease liabilities
357
54
Contract liabilities
22,468
-
Other assets and liabilities
1,081
1,680
Net cash used in operating activities
(97,703
)
(124,041
)
Cash flows from investing activities:
Purchase of property and equipment
(92,095
)
(96,462
)
Net cash used in investing activities
(92,095
)
(96,462
)
Cash flows from financing activities:
Proceeds from debt
145,000
63,500
Repayments of debt
(187
)
(180
)
Payments for debt issuance costs
(9,435
)
(9,653
)
Proceeds from issuance of common stock
338,911
65,003
Payments for equity issuance costs
(6,903
)
(1,527
)
Proceeds from warrants exercises
153,307
-
Issuance of equity under employee stock
plan
3,058
225
Employee taxes paid for stock-based
compensation awards
(3,325
)
-
Net cash provided by financing
activities
620,426
117,368
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
161
(395
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
430,789
(103,530
)
Cash, cash equivalents and restricted
cash, beginning of period
88,097
239,256
Cash, cash equivalents and restricted
cash, end of period
$
518,886
$
135,726
Supplemental disclosure of cash flow
information:
Non-cash activities:
Right-of-use assets obtained in exchange
for operating lease liabilities
$
-
$
6,709
Non-cash investing and financing
activities:
Purchases of property and equipment in
accounts payable and accrued expenses
$
5,086
$
7,120
PIK interest paid through issuance of PIK
notes
2,959
-
Settlement of warrant liabilities by
issuing shares
257,337
-
Cash paid for:
Interest
$
6,694
$
1,071
Income taxes, net
1,135
510
AST SPACEMOBILE, INC.
RECONCILIATION OF GAAP
REPORTED TO NON-GAAP ADJUSTED MEASURES (UNAUDITED)
(Dollars in thousands)
For the Three Months Ended
September 30, 2024
GAAP Reported
Stock-Based Compensation
Expense
Adjusted
Engineering services costs
$
21,828
$
(3,431
)
$
18,397
General and administrative costs
15,551
(3,379
)
12,172
Research and development costs
14,724
-
14,724
Depreciation and amortization
14,543
-
14,543
Total operating expenses
$
66,646
$
(6,810
)
$
59,836
Less: Depreciation and amortization
(14,543
)
Adjusted operating expenses
$
45,293
For the Three Months Ended
June 30, 2024
GAAP Reported
Stock-Based Compensation
Expense
Adjusted
Engineering services costs
$
21,202
$
(2,032
)
$
19,170
General and administrative costs
17,839
(6,842
)
10,997
Research and development costs
4,460
-
4,460
Depreciation and amortization
20,392
-
20,392
Total operating expenses
$
63,893
$
(8,874
)
$
55,019
Less: Depreciation and amortization
(20,392
)
Adjusted operating expenses
$
34,627
Adjusted operating expenses, Adjusted engineering services costs
and Adjusted general and administrative costs are alternative
financial measures used by management to evaluate our operating
performance as a supplement to our most directly comparable U.S.
GAAP financial measure. We define Adjusted operating expense as
Total operating expenses adjusted to exclude amounts of stock-based
compensation expense and depreciation and amortization expense. We
define Adjusted engineering services costs and Adjusted general and
administrative costs as engineering services costs and general and
administrative costs adjusted to exclude stock-based compensation
expenses.
We believe Adjusted operating expenses, Adjusted engineering
services costs and Adjusted general and administrative costs are
useful measures across time in evaluating our operating performance
as we use these measures to manage the business, including in
preparing our annual operating budget and financial projections.
Adjusted operating expenses, Adjusted engineering services costs,
and Adjusted general and administrative costs are non-GAAP
financial measures that have no standardized meaning prescribed by
U.S. GAAP, and therefore have limits in their usefulness to
investors. Because of the non-standardized definitions, these
measures may not be comparable to the calculation of similar
measures of other companies and are presented solely to provide
investors with useful information to more fully understand how
management assesses performance. These measures are not, and should
not be viewed as, a substitute for their most directly comparable
GAAP measure of Total operating expenses, Engineering services
costs and General and administrative costs.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241114769845/en/
Investor Contact: Scott Wisniewski
investors@ast-science.com
Media Contact: Allison PR Eva Murphy Ryan 917-547-7289
ASTSpaceMobile@allisonpr.com
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