10-QPeriod: Q1 FY2022

AST SpaceMobile, Inc. Quarterly Report for Q1 Ended Mar 31, 2022

Filed May 16, 2022For Securities:ASTS

Summary

AST SpaceMobile, Inc. (ASTS) reported its first quarter 2022 financial results, highlighting significant progress in its satellite development and testing. The company continues to invest heavily in its BlueWalker 3 (BW3) test satellite and the design of its BlueBird (BB) satellite constellation, which is crucial for its planned space-based cellular broadband network. Despite ongoing operational expenses and continued net losses, the company's focus remains on advancing its technology and securing strategic partnerships, evidenced by its agreement with SpaceX for future launches and ongoing discussions with major mobile network operators. Financially, ASTS's cash position remains robust, providing runway for at least 12 months of operations. However, the company anticipates substantial future capital expenditures for the full constellation deployment. Investors should monitor the company's ability to secure additional funding, the progress of BW3's launch and testing, and the execution of commercial agreements with partners, which are key catalysts for future revenue generation and the realization of its ambitious global connectivity vision.

Financial Highlights

46 data points
Beta

Revenue

$2.39M

17.0% Gross Margin

Net Income

-$10.72M

-447.8% Net Margin

EPS (Diluted)

$-0.21

Total Assets

$414.59M

Cash & Equivalents

$253.73M

Free Cash Flow

-$52.17M

Financial Statements
Beta
Revenue$2.39M
Cost of Revenue$1.99M
Gross Profit$408K
R&D Expenses$8.28M
Operating Expenses$32.74M
Net Income-$10.72M
EPS (Basic)$-0.21
Shares Outstanding (Basic)51.76M

Key Highlights

  • 1AST SpaceMobile is advancing its BlueWalker 3 (BW3) test satellite, with significant capitalized costs ($82.7 million) and a targeted launch in Summer 2022, indicating progress towards validating its satellite technology.
  • 2The company reported a net loss attributable to common stockholders of $10.7 million for the quarter, compared to $11.6 million in the prior year period, reflecting continued investment in R&D and operations.
  • 3Revenue increased by 152% to $2.4 million, primarily driven by the subsidiary Nano's sales of manufactured satellites and components, though this is not representative of the core SpaceMobile Service revenue.
  • 4Operating expenses increased significantly by 170% to $32.7 million, driven by higher engineering, general administrative, and research and development costs, reflecting the company's growth and development stage.
  • 5AST SpaceMobile has a strong liquidity position with $255.1 million in cash, cash equivalents, and restricted cash as of March 31, 2022, which the company believes is sufficient for at least 12 months of operations.
  • 6The company entered into a multi-launch agreement with SpaceX for future satellite launches, including BW3 and the first BlueBird (BB) satellite, and made significant pre-payments totaling $22.8 million.
  • 7AST SpaceMobile anticipates substantial future capital expenditures, estimating $260-300 million for the first 20 BB satellites and approximately $1.9 billion for the full constellation by 2025, underscoring the need for significant future fundraising.

Frequently Asked Questions

AST SpaceMobile is developing the first space-based cellular broadband network, aiming to provide global connectivity directly to standard mobile phones without requiring special hardware. The network will utilize a constellation of Low Earth Orbit (LEO) satellites.

The company continues to generate net losses as it invests heavily in R&D and satellite development. Revenues are growing but are primarily from its subsidiary Nano and not from the core SpaceMobile service. Operating expenses have significantly increased to support these development efforts. Despite the losses, the company maintains a substantial cash balance.

The BW3 test satellite is nearing completion, with significant costs capitalized ($82.7 million). It has undergone extensive testing and is targeted for launch in the Summer of 2022. This test satellite is critical for validating the company's technology before the broader constellation deployment.

AST SpaceMobile expects to require substantial future capital, estimated at approximately $1.9 billion for the full constellation. The company plans to raise this capital through a combination of equity offerings, debt financings, and potentially commercial partnerships. They have recently secured a common stock purchase agreement with B. Riley for up to $75.0 million.