AST SpaceMobile Provides Business Update and First Quarter 2024 Results
“I am grateful for our global team's unwavering dedication and hard work as we prepare for the launch of our first five commercial satellites and initial commercial service," said
Business Update
-
On target for July or August delivery of 5 Block 1 satellites to
Cape Canaveral - Signed milestone, 6-year definitive commercial agreement with AT&T for SpaceMobile Service
-
First 5 satellites allow
U.S. nationwide non-continuous service with 5,600+ cells in premium low-band spectrum -
Activities and discussions with government regulatory bodies, including
FCC , are advancing as expected - Continue to advance discussions with additional strategic partners, following the blueprint of commercial payments alongside commercial agreements
First Quarter 2024 Financial Highlights
-
As of
March 31, 2024 , we had cash, cash equivalents, and restricted cash of$212.4 million . We have additional liquidity of$51.5 million in gross proceeds available to draw under the Senior Secured Credit Facility, subject to certain conditions and approvals -
Total operating expenses for the first quarter of 2024 were
$56.0 million , including$24.9 million of depreciation and amortization and stock-based compensation expense. This represents a decrease of$4.9 million as compared to$60.9 million in the fourth quarter of 2023, due to a$6.5 million decrease in research and development costs and a$0.5 million decrease in engineering services costs, offset by a$1.7 million increase in general and administrative costs and a$0.4 million increase in depreciation and amortization expense -
Total Adjusted operating expenses for the first quarter of 2024 were
$31.1 million , a decrease of$7.5 million as compared to$38.6 million in the fourth quarter of 2023, due to a$6.5 million decrease in research and development costs, a$0.6 million decrease in Adjusted engineering services costs and a$0.4 million decrease in Adjusted general and administrative costs(1) -
As of
March 31, 2024 , we have incurred approximately$326.4 million of gross capitalized property and equipment costs and accumulated depreciation and amortization of$81.1 million . The capitalized costs include costs of satellite materials for BlueBird satellites, advance launch payments, BlueWalker 3 satellite, 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
Conference Call Information
About
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
Factors that may 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 1 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’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
First Quarter Financial Results
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Dollars in thousands, except share data) |
||||||||
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
209,973 |
|
|
$ |
85,622 |
|
Restricted cash |
|
|
2,467 |
|
|
|
2,475 |
|
Prepaid expenses |
|
|
5,033 |
|
|
|
4,591 |
|
Other current assets |
|
|
22,036 |
|
|
|
14,194 |
|
Total current assets |
|
|
239,509 |
|
|
|
106,882 |
|
|
|
|
|
|
|
|
||
Non-current assets: |
|
|
|
|
|
|
||
Property and equipment, net |
|
|
245,284 |
|
|
|
238,478 |
|
Operating lease right-of-use assets, net |
|
|
12,796 |
|
|
|
13,221 |
|
Other non-current assets |
|
|
4,139 |
|
|
|
2,311 |
|
TOTAL ASSETS |
|
$ |
501,728 |
|
|
$ |
360,892 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
14,528 |
|
|
$ |
20,575 |
|
Accrued expenses and other current liabilities |
|
|
15,593 |
|
|
|
23,926 |
|
Current operating lease liabilities |
|
|
1,505 |
|
|
|
1,468 |
|
Current portion of long-term debt |
|
|
255 |
|
|
|
252 |
|
Total current liabilities |
|
|
31,881 |
|
|
|
46,221 |
|
|
|
|
|
|
|
|
||
Non-current liabilities: |
|
|
|
|
|
|
||
Warrant liabilities |
|
|
11,746 |
|
|
|
29,960 |
|
Non-current operating lease liabilities |
|
|
11,429 |
|
|
|
11,900 |
|
Long-term debt, net |
|
|
160,827 |
|
|
|
59,252 |
|
Total liabilities |
|
|
215,883 |
|
|
|
147,333 |
|
|
|
|
|
|
|
|
||
Commitments and contingencies |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Stockholders' Equity: |
|
|
|
|
|
|
||
Class A Common Stock, |
|
|
14 |
|
|
|
9 |
|
Class B Common Stock, |
|
|
4 |
|
|
|
5 |
|
Class |
|
|
8 |
|
|
|
8 |
|
Additional paid-in capital |
|
|
373,773 |
|
|
|
288,404 |
|
Accumulated other comprehensive income |
|
|
121 |
|
|
|
227 |
|
Accumulated deficit |
|
|
(209,392 |
) |
|
|
(189,662 |
) |
Noncontrolling interest |
|
|
121,317 |
|
|
|
114,568 |
|
Total stockholders' equity |
|
|
285,845 |
|
|
|
213,559 |
|
|
|
|
|
|
|
|
||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ |
501,728 |
|
|
$ |
360,892 |
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Dollars in thousands, except share and per share data) |
||||||||
|
|
For the Three Months ended
|
|
|||||
|
|
2024 |
|
|
2023 |
|
||
|
|
|
|
|
|
|
||
Revenues |
|
$ |
500 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
||
Operating expenses: |
|
|
|
|
|
|
||
Engineering services costs |
|
|
19,511 |
|
|
|
16,483 |
|
General and administrative costs |
|
|
12,287 |
|
|
|
9,857 |
|
Research and development costs |
|
|
4,257 |
|
|
|
16,381 |
|
Depreciation and amortization |
|
|
19,945 |
|
|
|
1,733 |
|
Total operating expenses |
|
|
56,000 |
|
|
|
44,454 |
|
|
|
|
|
|
|
|
||
Other income (expense): |
|
|
|
|
|
|
||
Gain on remeasurement of warrant liabilities |
|
|
18,214 |
|
|
|
7,498 |
|
Interest (expense) income, net |
|
|
(2,222 |
) |
|
|
2,093 |
|
Other (expense) income, net |
|
|
(2 |
) |
|
|
(10,237 |
) |
Total other income (expense), net |
|
|
15,990 |
|
|
|
(646 |
) |
|
|
|
|
|
|
|
||
Loss before income tax expense |
|
|
(39,510 |
) |
|
|
(45,100 |
) |
Income tax expense |
|
|
(294 |
) |
|
|
(116 |
) |
Net loss before allocation to noncontrolling interest |
|
|
(39,804 |
) |
|
|
(45,216 |
) |
|
|
|
|
|
|
|
||
Net loss attributable to noncontrolling interest |
|
|
(20,074 |
) |
|
|
(28,898 |
) |
Net loss attributable to common stockholders |
|
$ |
(19,730 |
) |
|
$ |
(16,318 |
) |
Net loss per share attributable to holders of Class A Common Stock |
|
|
|
|
|
|
||
Basic and diluted |
|
$ |
(0.16 |
) |
|
$ |
(0.23 |
) |
Weighted-average shares of Class A Common Stock outstanding |
|
|
|
|
|
|
||
Basic and diluted |
|
|
121,447,138 |
|
|
|
71,845,206 |
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) (Dollars in thousands) |
||||||||
|
|
For the Three Months ended
|
|
|||||
|
|
2024 |
|
|
2023 |
|
||
|
|
|
|
|
|
|
||
Net loss before allocation to noncontrolling interest |
|
$ |
(39,804 |
) |
|
$ |
(45,216 |
) |
Other comprehensive loss |
|
|
|
|
|
|
||
Foreign currency translation adjustments |
|
|
(216 |
) |
|
|
(128 |
) |
Total other comprehensive loss |
|
|
(216 |
) |
|
|
(128 |
) |
Total comprehensive loss before allocation to noncontrolling interest |
|
|
(40,020 |
) |
|
|
(45,344 |
) |
Comprehensive loss attributable to noncontrolling interest |
|
|
(20,184 |
) |
|
|
(28,980 |
) |
Comprehensive loss attributable to common stockholders |
|
$ |
(19,836 |
) |
|
$ |
(16,364 |
) |
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollars in thousands) |
|||||||||
|
|
|
For the Three Months ended
|
|
|||||
|
|
|
2024 |
|
|
2023 |
|
||
|
|
|
|
|
|
|
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
|
||
Net loss before allocation to noncontrolling interest |
|
|
$ |
(39,804 |
) |
|
$ |
(45,216 |
) |
Adjustments to reconcile net loss before noncontrolling interest to cash used in operating activities: |
|
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
|
19,945 |
|
|
|
1,733 |
|
Gain on remeasurement of warrant liabilities |
|
|
|
(18,214 |
) |
|
|
(7,498 |
) |
Amortization of debt issuance costs |
|
|
|
900 |
|
|
|
- |
|
Stock-based compensation |
|
|
|
4,933 |
|
|
|
2,474 |
|
Changes in operating assets and liabilities: |
|
|
|
- |
|
|
|
- |
|
Prepaid expenses and other current assets |
|
|
|
(8,306 |
) |
|
|
(12,168 |
) |
Accounts payable and accrued expenses |
|
|
|
(8,396 |
) |
|
|
5,553 |
|
Operating lease right-of-use assets and operating lease liabilities |
|
|
|
(8 |
) |
|
|
6 |
|
Other assets and liabilities |
|
|
|
828 |
|
|
|
17,383 |
|
Net cash used in operating activities |
|
|
|
(48,122 |
) |
|
|
(37,733 |
) |
|
|
|
|
|
|
|
|
||
Cash flows from investing activities: |
|
|
|
|
|
|
|
||
Purchase of property and equipment and advance launch payments |
|
|
|
(39,568 |
) |
|
|
(15,388 |
) |
Net cash used in investing activities |
|
|
|
(39,568 |
) |
|
|
(15,388 |
) |
|
|
|
|
|
|
|
|
||
Cash flows from financing activities: |
|
|
|
|
|
|
|
||
Proceeds from debt |
|
|
|
110,000 |
|
|
|
- |
|
Repayments of debt |
|
|
|
(62 |
) |
|
|
(60 |
) |
Payment for debt issuance costs |
|
|
|
(5,162 |
) |
|
|
- |
|
Proceeds from issuance of common stock, net of issuance costs |
|
|
|
107,718 |
|
|
|
- |
|
Issuance of equity under employee stock plan |
|
|
|
- |
|
|
|
96 |
|
Employee taxes paid for stock-based compensation awards |
|
|
|
(314 |
) |
|
|
- |
|
Net cash provided by financing activities |
|
|
|
212,180 |
|
|
|
36 |
|
|
|
|
|
|
|
|
|
||
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
|
(147 |
) |
|
|
(475 |
) |
|
|
|
|
|
|
|
|
||
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
|
|
124,343 |
|
|
|
(53,560 |
) |
Cash, cash equivalents and restricted cash, beginning of period |
|
|
|
88,097 |
|
|
|
239,256 |
|
Cash, cash equivalents and restricted cash, end of period |
|
|
$ |
212,440 |
|
|
$ |
185,696 |
|
|
|
|
|
|
|
|
|
||
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
|
||
Non-cash transactions: |
|
|
|
|
|
|
|
||
Purchases of property and equipment in accounts payable and accrued expenses |
|
|
$ |
5,734 |
|
|
$ |
4,077 |
|
Right-of-use assets obtained in exchange for operating lease liabilities |
|
|
|
- |
|
|
|
5,507 |
|
Cash paid for: |
|
|
|
|
|
|
|
||
Interest |
|
|
$ |
2,205 |
|
|
$ |
52 |
|
Income taxes, net |
|
|
|
710 |
|
|
|
282 |
|
RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED MEASURES (UNAUDITED) (Dollars in thousands) |
||||||||||||
|
|
For the Three Months Ended |
|
|||||||||
|
|
GAAP Reported |
|
|
Stock-Based Compensation Expense |
|
|
Adjusted |
|
|||
|
|
|
|
|
|
|
|
|
|
|||
Engineering services costs |
|
$ |
19,511 |
|
|
$ |
(1,607 |
) |
|
$ |
17,904 |
|
General and administrative costs |
|
|
12,287 |
|
|
|
(3,326 |
) |
|
|
8,961 |
|
Research and development costs |
|
|
4,257 |
|
|
|
|
|
|
4,257 |
|
|
Depreciation and amortization |
|
|
19,945 |
|
|
|
|
|
|
19,945 |
|
|
Total operating expenses |
|
$ |
56,000 |
|
|
$ |
(4,933 |
) |
|
$ |
51,067 |
|
Less: Depreciation and amortization |
|
|
|
|
|
|
|
|
(19,945 |
) |
||
Adjusted operating expenses |
|
|
|
|
|
|
|
$ |
31,122 |
|
|
|
For the Three Months Ended |
|
|||||||||
|
|
GAAP Reported |
|
|
Stock-Based Compensation Expense |
|
|
Adjusted |
|
|||
Engineering services costs |
|
$ |
19,992 |
|
|
$ |
(1,475 |
) |
|
$ |
18,517 |
|
General and administrative costs |
|
|
10,528 |
|
|
|
(1,219 |
) |
|
|
9,309 |
|
Research and development costs |
|
|
10,766 |
|
|
|
|
|
|
10,766 |
|
|
Depreciation and amortization |
|
|
19,592 |
|
|
|
|
|
|
19,592 |
|
|
Total operating expenses |
|
$ |
60,878 |
|
|
$ |
(2,694 |
) |
|
$ |
58,184 |
|
Less: Depreciation and amortization |
|
|
|
|
|
|
|
|
(19,592 |
) |
||
Adjusted operating expenses |
|
|
|
|
|
|
|
$ |
38,592 |
|
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
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
View source version on businesswire.com: https://www.businesswire.com/news/home/20240515962345/en/
Investor Contact:
investors@ast-science.com
Media Contact:
Allison
917-547-7289
ASTSpaceMobile@allisonpr.com
Source: