Summary
AST SpaceMobile, Inc. (ASTS) reported its financial results for the quarter ended June 30, 2022. The company continues to focus on developing its satellite-based cellular broadband network, with significant progress made on the BlueWalker 3 (BW3) test satellite, which was nearing its launch. While revenues from its subsidiary Nano (now divested) saw an increase, the core business remains in the development phase, incurring substantial operating expenses. Financially, ASTS maintained a healthy cash position but continued to consume cash in operations and investing activities, driven by satellite development and infrastructure build-out. The company highlighted its ongoing need for future capital raises to fund the full constellation deployment. Key financial events include a gain from the remeasurement of warrant liabilities, offsetting some of the operating losses. The company is in active discussions for future financing and strategic partnerships.
Financial Highlights
48 data points| Revenue | $7.26M |
| Cost of Revenue | $2.20M |
| Gross Profit | $5.06M |
| R&D Expenses | $9.14M |
| Operating Expenses | $35.40M |
| Net Income | -$2.92M |
| EPS (Basic) | $-0.06 |
| EPS (Diluted) | $-0.06 |
| Shares Outstanding (Basic) | 51.87M |
| Shares Outstanding (Diluted) | 51.87M |
Key Highlights
- 1Total revenues increased by 162% to $7.3 million for Q2 2022, primarily driven by the subsidiary Nano's performance obligations.
- 2Operating expenses increased by 41% to $35.4 million, largely due to higher engineering and general administrative costs associated with increased headcount.
- 3The company reported a significant gain of $23.0 million from the remeasurement of warrant liabilities, compared to a loss of $41.7 million in the prior year period.
- 4Cash and cash equivalents stood at $202.4 million as of June 30, 2022, but the company used $88.5 million in operating activities and $33.6 million in investing activities during the first six months of the year.
- 5Capital expenditures for the design, assembly, and launch of the first 20 commercial satellites are estimated to be between $300 million and $340 million.
- 6ASTS has a Multi-Launch Agreement with SpaceX for future satellite launches and an experimental FCC license for testing.
- 7Subsequent to the quarter, the company entered into a definitive agreement to sell its 51% stake in Nano for an enterprise value of at least €65.0 million, expected to close in Q3 2022.