AST SpaceMobile, Inc (ASTS) Q3 2024 Earnings Breakdown

Key Highlights:

• Successful Launch and Deployment of Block 1 Satellites: ASTS launched five first-generation commercial BlueBird (BB) satellites on September 12, 2024. The deployment of communication phased array antennas and Q/V antennas was completed in October 2024, marking the satellites ready for their intended use as of October 29, 2024. This marks a significant milestone for the company and its plans to initiate limited SpaceMobile Service.
• Continued Testing of BlueWalker 3 Satellite: The BlueWalker 3 test satellite continues to demonstrate successful two-way voice calls, 4G and 5G connectivity with download speeds exceeding 21 Mbps, and spectral efficiency of approximately 3 bits per hertz. The satellite is also undergoing testing for non-communication government applications.
• Financial Performance:Revenue: $2.5 million for the nine months ended September 30, 2024, generated from a U.S. government contract.
• Net Loss: $264.2 million for the nine months ended September 30, 2024. The loss was primarily driven by:
• Increased operating expenses, including a $12.4 million increase in stock-based compensation expense.
• A loss of $284.8 million on the remeasurement of warrant liabilities due to warrant exercises and the increase in share price.
• Liquidity: As of September 30, 2024, ASTS had $518.9 million in cash and cash equivalents. The company expects this, along with access to a $400 million at-the-market equity program, to be sufficient to meet its needs for the next 12 months.
• Capital Raising Activities: ASTS has been actively raising capital to fund its operations:
• Completed a $400 million at-the-market offering program.
• Redeemed all outstanding public warrants, generating $153.3 million in proceeds.
• Issued $145 million in convertible notes to strategic investors (AT&T, Google, Vodafone, and Verizon).
• Secured a $15 million capital equipment loan.
• Repayment of Senior Secured Credit Facility Loan: ASTS repaid the $54.9 million Senior Secured Credit Facility Loan on November 13, 2024. This resulted in the classification of the loan as a current liability in the Q3 2024 balance sheet.
• Legal Matters: ASTS is involved in several legal proceedings, including class action lawsuits in Delaware and Texas. The Delaware Stockholder Class Actions are scheduled for a hearing on a Motion to Dismiss on February 3, 2025. The Securities Class Action in Texas was voluntarily dismissed without prejudice. The Derivative Action in Texas was voluntarily dismissed with prejudice.
• Strategic Partnerships and Agreements:Entered into a space-based wireless connectivity agreement with AT&T Services to provide SpaceMobile Service in the continental United States (excluding Alaska) and Hawaii.
• Received a $20 million commercial prepayment from Verizon Wireless for future service revenue.
• Completed a series of transactions with Rakuten Mobile, Inc., leading to the acquisition of 28,520,155 shares of Class A Common Stock by Rakuten Mobile.
• Completed transactions with Antares Technologies LLC, resulting in the acquisition of 10,445,200 shares of Class A Common Stock by Antares.