AST SpaceMobile, Inc. Q3 FY2024 earnings call

Key Points

• Launched and deployed 5 Block 1 BlueBird satellites, the largest commercial phase arrays in LEO.
• Secured launch capacity for up to 60 satellites, including agreements with Blue Origin, SpaceX, and ISRO.
• Achieved initial validation of AST5000 ASIC chip, a 5-year, $45M development effort.
• Filed FCC Special Temporary Authority request for beta services in US with AT&T and Verizon.
• Selected by Space Development Agency as prime contractor under HALO program, with government contracts showing growth potential.

In the third quarter, non-GAAP adjusted cash operating expenses were $45.3 million (vs. $34.6 million in Q2). Capital expenditures were $26.5 million (vs. $21.2 million in Q2). Cash balance ended at $518.9 million, up from $287.6 million. Block 1 BlueBird satellites are operational, and ASIC validation was achieved. Block 2 development is ongoing with launch capacity secured for up to 60 satellites.

Forward-Looking

• Anticipates CapEx in Q4 2024 to be ~$100M.
• Adjusted cash operating expenses for Q4 expected to be $30M-$35M.
• Block 2 constellation average costs per satellite increased to $19M-$21M due to launch costs.
• Sees potential for additional funding from constellation operation and government contracts.

Risks

• Potential delays in launch schedules, especially with New Glenn rocket.
• Uncertainty in regulatory approvals from FCC and other agencies.
• Variability in manufacturing and operational timelines due to various factors.

Q: What's the timeline for delivery of ASIC chips?

A: Tape out, bring up, initial test of production; ASIC included in launches mid-2025 to Q3 2025.

Q: How many potential subscribers with 45-60 satellites?

A: Estimated hundreds of millions in key markets like US, Europe, Japan.

Q: Timeline for testing and commercial service of launched satellites?

A: Submitted FCC STA for nationwide coverage in US, pending authorization, but satellites are operational.