NEXTNAV INC. Q4 FY2023 earnings call

• Mariam Sorond joined as CEO, bringing over 30 years of technology, spectrum, and product leadership experience.
• NextNav acquired additional lower 900-megahertz spectrum licenses, totaling 3.5 billion megahertz PoPs of low band spectrum.
• Focus on developing next-generation PMT technology for single-digit accuracy everywhere, leveraging 5G.
• Engaged in discussions with government agencies and industry entities regarding PMT solutions, including responding to DOT RFQ.
• Reviewed financials, including spectrum transaction details and debt financing (senior secured notes of ~$70 million with warrants).

Fourth quarter revenue increased 50% to $1.2 million compared to $803,000 in the prior year period, driven by increased recurring services revenue from technology and service contracts with commercial customers. For full year 2023, revenue was $3.9 million, flat versus the prior period, with recurring service revenue from commercial customers offsetting a decline in integration revenue. Operating expenses in the fourth quarter were $21.1 million, up from $15.3 million in the same period last year due to increased equity-based compensation expense, CEO transition costs, etc. Excluding stock-based compensation and depreciation and amortization, operating expenses were $10.7 million compared to $8.4 million in the prior period. For the full year, operating expenses were $67.4 million, down from $69.5 million, with the reduction driven by a decrease in SG&A, partially offset by increases in depreciation and amortization and R&D expenses. The balance sheet closed the year with $81.9 million in cash and cash equivalents and $4 million in short-term investments, and $48.4 million in net debt.

• Continued focus on developing next-generation PMT technology leveraging 5G.
• Need for court and FCC approval for spectrum transaction, with primary focus on developing technology while awaiting approvals.
• Spectrum acquisition timing dependent on court approval and subsequent FCC approval.

• Forward-looking statements subject to known and unknown risks, including regulatory approvals, market acceptance, intellectual property, financial resources (ability to maintain operational funds, raise capital), macroeconomic factors, and outcome of litigation/regulatory proceedings.

Q: Griffin Boss asked about thoughts on additional 900 MHz spectrum licenses and progress with testing/FCC process, and Tier 1 chip manufacturer agreement.

A: Mariam Sorond mentioned the spectrum acquisition enhances the portfolio, testing was positive in Bay Area, and PMT remains a focus with fresh look at advancing technology.

Q: Timothy Horan asked about spectrum coverage, geographic, contiguousness, and potential for more acquisitions.

A: Mariam Sorond explained current spectrum details, A block noncontiguous, focus on current licenses, and need for FCC approval before discussing future combinations.