ASTS - Earnings call transcript Q4 2021

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Operator

Good day, and thank you for standing by. Welcome to the AST SpaceMobile Fourth Quarter 2021 Business Update Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. now today, hand Officer Scott SpaceMobile. would to conference of I speaker your Wisniewski, Instructions] like the to over AST [Operator Chief Strategy go Please ahead.

Scott Wisniewski

Strategy This Thank Scott afternoon, and AST everyone. you, Wisniewski, good Chief Officer of SpaceMobile. is

X to our disclaimer. Let presentation, Harbor the Slide refer which of me you contains Safe

factors expectations events make to as and a differ are subject we During statements. the on statements assumptions, today’s may forward-looking call, actual are this and These and could uncertainties. materially from call. Many risks forward-looking to certain based cause on current statements result

uncertainties, we For and of refer are cautioned more our would obligation as in Avellan; SEC the to information for starting XXXX our about statements, Financial that introduce these questions put Chief this Form submitted by to any to SpaceMobile’s update not documents the risks the section the reliance With remarks, and advance during AST Factors other statements time-to-time. may December on CEO, with and call Chairman Severson, forward-looking Q&A to with Officer, and our well. XX, I that, initial please the discussed Abel, Company forward-looking to and shareholders. over from you. Risk Readers XX-K undue disclaims year-ended the to Tom be specifically AST filed session Also will like by call. Abel after be SpaceMobile

Abel Avellan

as first public our Thanks, business year a marks Scott. update This company.

summarize key about of some those new SpaceMobile, you remind For achievements our and like AST would some to I fundamentals. to

GCMA, There over of space wireless not half worldwide, at of broadband. world huge based have do connect service billion mobile the to cellular SEA patented phones approximately the our And our at are market a everywhere X.X to airline opportunity market generates according revenue. trillion chasing approximately We’re cellular population annual $X broadband technology. and using people

facility broadband to access We we launch the of agreements leaders industry-leading Tower Our human we this believe And a is masses And to overall XXX,XXX operators, of going and Texas mobile subscribers. American Blue connectivity the indisputable MOUs and that of where partners development had global are months, which patent schedule the the We service our industry XXX,XXX space over Rakuten our now summer. plan that This to last right we indispensable. facility square a in headquarter. participate. acquisition few Walker our is of for companies in X,XXX network feet. our By think including industrialization major allows a over be billion Vodafone, and feet achieved claims. with now update, manufacturing like the that information with We are increases over X global X.X knowledge on represent the for square current scale. of and and for a technology, of patent have in the a our way square second pending quick milestones Texas. XX,XXX on we Together foot have total

to connectivity to a space broadband on industrialize mission allow our to based available be now the are technology cellular everywhere. We

on moving update. Now, Walker into Blue X

is on the all a is launch fly summer testing near RS for in X completion. testing plan Walker final and picture is you facility. into compatibility The this the this satellite pack configuration. are preparing the a to What little completed What Midland at Blue for is satellite see our detail test. our on Let’s After enter and us final RS start with is more and store microns final to Walker Blue integration schedule X. left

our items space the to patent environmental challenge that test. plan phased that by pending the moving to technology expect enable and modified distant of the enable four After from the block we XXX designed storing the mobile and spacecraft satellite the completed, are to build capable to engineering This our for last claims, can Falcon volume the and to key that into array not to produce last the developed integrate perform satellite X,XXX spacecraft a the is adapter, company is for cubic an the to into connect have space. on storing and ability Florida into process prior which to Turn phones. our The of have construction square but launch of our mounted building of taken environmental final knowledge The involved into hard of launch with approximately have test we launch the final following, company build spacecraft. Phased then to to spacecraft. created our will we need the a an broadband will our time. the with aperture and multiple process regular process directly of years many of take major feet to two Included years process of key X. and to over feet the to The square partners. weeks and from the Page limited is control last inspection seller this the of confident. system two It After patent First, over is X. we decide, store it no prior test, Blue a our vertically deploy the vehicle use least, ability And to a pack solve to Walker that a launch. X, XXX work components Array

IP our we portfolio. While spend continue to

update – current several steps moving purchased technology. with headquarters in we taking high industrialization drive the industry Extension offers quality facility update, development facility been second from short Texas, Now The December, in also technology in have of in our industrialization efforts, our we buildings our with property a shells. a parallel update. Midland. In to

facility built grow our chain capacity high land we and six aligning will space. or month more are pre-install build So out also been satellite We target. production additional This square to And XXX,XXX monthly of to satellites grids we for feet can help to supply possibly required. potential per from this our more. two if our a satellites manufacturing out

earmarked of making and panels have will be million approximately facility automated as the will for are for our industrialization We on technology. facility micron We of assembly extension major for the progress facility our the highly This focus great and the a around solar and step additional $XX consider planning renovation. on related extension assembly spacecraft. purchase and investment

pass would a provide I additional update. to off it Now, Scott to business

Scott Wisniewski

also the business in the advance progress to on side. industrialization technology Thank great addition the you, to-date, ball Page Starting Abel. and to X, AST on team the continues

commercial We’re the enhancing organization. opportunity, building our out

This now commercial MOU. little their will for MOU signing, testing recently XXX facilitate there X group are And by in an billion explore one talk Blue Walker network with the this country, operator additional agreements I With subscribers. announced will we whom to represented On collaboration opportunities bit a this more mobile further side, over about a subscribers African serve with opportunity X.X operators and also have a globally. subscribers with million in we moment. in new will MOU Orange

increased our a milestone Walker framework signed important brings an a beyond first for satellite launch Blue that This for the launches. Blue covering agreement X, and also certainty X. We business BlueBird multi is future Walker

targeting independently on mobile the countries. active frequencies initial six globally, band and commercial for operators, our regulatory for Supporting and together base of and approvals remain early front, days Lastly, despite the regulatory of in the V with network being both testing approvals service. it use XGPP we

to XXX count our XX our increased X,XXX. and the total as This and competitive December by patent and our team pending And organizational claims employees XX, a engineering to full-time full as and XXX increase XXXX. IP our brings employee third-party comprised provides actively side, mentioned, of patent also we advantage. Abel XXX we dedicated to continues On portfolio staff QX, consultants, which and during of us IP expand protect continue to

our the of X Moving that in billion Many These And facilitate leverage technology use our the relationships agreements Vodafone. critical out that found key will Direct-to-Cell are agreements highlight mobile to number wanted development activity they key spectrum network they expect are we and Page intended our these support our XXXX to the our Ultimately, elements relationships. put of MNO factors place relationships. a strategic the our starting to have understandings technology we XX, as a X.X terms business partner and the and to billion over been drive the lay with go commercial operator with our to mobile to in commercial few given of in and the today. to recent subscriber there success agreements mirror are market strategy. phones of moment take in here,

new operational. friction service, reduction solution fix a revenue a it will need will good click the designed fix upside. network easy be They MNO the First software problem. model us agreements costs because subscribers required. support quickly. customer share hardware because yes, allows where the the amidst and wholesale with signup revenue just offering in is message And let will because or new solution demand. churn text for the our could their MNO network super they MNOs is will it service. to real And grow to when drive expenses. It will Users improve with it our our limited a the us is to like with easy process a operating is insatiable like network receive limit no solution, will the real problem one will participate And And SpaceMobile AST once goals.

off financial pleasure to with Now hand to my it the it is Tom that, for update.

Tom Severson

our Since test our setup the be our satellites able we’ve preparing Scott. X infrastructure to To executing to of facility. satellite Midland are six the end, team on producing our industrial facilities company’s last we focused build the during and our our been of the you, per AIT goal and on preparation month been summer update, for Thank of laser launch, new has this at business meet XXXX. out BlueWalker

the investments the are a production line We state-of-the-art automated during QX processes. build be first and satellite to what construct machining other clean of room phase with will out expect complete to making

industrial componentry We also build Maryland. office our our operation located located out center to in engineering for progress to manufacturing for are support with an satellites our targeting subsystems solid XX,XXX BlueBird network launch average be satellite. of build foot systems, for $XX Lanham, also operation our reaffirm chain with team to our satellites. average to of to Based per will million are long be and environment on square which continue estimates for our enterprise $XX cost at we production full the build satellite satellites in in constellation, first working BlueBird satellites. cost $XX the our the production, of And supply ERP we and time procurement XX able the we still integrating Simultaneously, for satellite an million cost to center, of lead to our which the progress date, range and approximately the and Also on preparation will for million. make and continues launch are the XXX

Now debt, connection which was expense the of We to XXXX in move purchase AIT new to million and million QX Texas. financials cash and incurred current $XXX.X Midland, in trends. the operating total QX with with $X of on our facility ended of

increases and the set engineering fourth the $X.X efforts an expenses up quarter. and $XX.X of and due relating R&D services, investments BlueBird satellites preparation million, in This our from including the BlueBird to was These to infrastructure. relating and expenses, satellite our of engineering to our quarter, other our R&D prior to compared satellite improvements Walker million in increased completion supply G&A. the production, operating team, G&A the to X During company’s increases to of Blue increase operating our engineering the for the resulted across chain for cash

G&A costs our end and During this costs were range of expected we in XXXX. G&A roughly through cash million, the will fourth $XX.X quarter, quarterly the our remain

for our expect and During our continue BlueBird the these continue the prepares manufacturer to AIT fourth as quarter, costs during we see $X.X XXXX million, ramp of to were engineering to costs our cash satellites. team

engineering our will to We of and ground employees in-house consultants to approximately of XXX and electronics, development design AIT XXXX. To from infrastructure. invest by XXX end to the end of to the on continue you in BlueBird our to satellites a continue give We end focused the our scale, XXX this sense also and team at build plan QX team at QX. of grew

investments of Walker the our in complete. of in launch our $X million feet date, once In X in terms Midland, capital Texas. quarter. XX new Blue of feet we’ve purchase of production X the new The substantially facility Total this are square AIT believe out XXX,XXX the support the million build And for of million equipment satellite invested AIT fourth Blue these month six now We for industrial the of ISO facilities includes were manufacturing approximately space CapEx, investments we to and room room the XXX,XXX company and our property will the $XX.X our Walker complete, the satellites to end clean square our through XXXX. clean per complete approximately X has facilities of approximately build target sufficient during Midland. will be manufacturing And capacity. and have

game to I’ll manufacturing, our our summer technology. are the that, X plan confident it launched as Walker changing to we of for amazing execute and ability team its Finally, back we this turn ready and the with for plans full Blue in deliver prepare scale And company our Scott.

Scott Wisniewski

to questions, by of please address few we’d you questions Operator, analyst submitted a investors. off question? to call go like the of we of queue the could the with the start our Before first us ahead

Operator

a be sharing and X BlueBird We were Arizona redacted from dates during agreement. report? from BlueBird you for dates question launch the those both asked services the Steve Will X the from earnings have

Abel Avellan

flexibility satellite up for you recently and we by thank multi satellites plan our to designed to our signed And BlueBird satellites stop me launch XXXX during six XXXX. the provide production goal in of Well, Steve, saying launch later month. production Hi, begin we seek your to producing us towards X let BlueBird then of we question. was ramp it production per agreement to And year. capacity this our start that the

Operator

retail approval the or not for whether you whether FCC launch? We investors Can launch planned have required asked a confused possible seem question FCC it’s on to BWX clarify from not California Kevin approval. from is without summer or

Abel Avellan

the Kevin, you, for question. Thank

the all, launch. of FCC First we our come summer through on will believe time for

that will necessary, if our testing be launch. start it’s don’t think we And outside that FCC a do it’s is the think if we summer for we can However, necessary, United prerequisite States. necessary, not but

Operator

rural with from We asked, have Starlink Brian a you from competing be and undeserved constellation like SpaceX, will LEO providers Toronto question markets? directly

Abel Avellan

is cellular, broadband No, as to using question. where like to SpaceX see with ourself Brian, Hi, see directly competition systems don’t we other system. see that systems or a to we thank connectivity to legal you the explain handsets terminals way the for we other our as provide it one connect system as we The to home. Wi-Fi a connectivity cellular broadband

locations. of type the all So

So competition the we us direct do not see LEO with systems. other in

Operator

have We a for an a updated BlueBird? you Chan can Nevada question give in from building all cost single asked, from

Tom Severson

Thanks This is Chan. take one. I’ll Tom. that your for question,

more componentry manufacturing satellite process to XX akin reaffirm made to negotiations. benefit be and Since business current scale to and continue is our our materials on BlueBirds we to than into the update, the costs. production into $XX cost to in in automotive Thank approach the Chan. solid currently cost to the to first And million last estimate we targeted are the million meet satellite $XX per our We design build where a and you, during We legacy our supply rather launch we’ve consideration take based range. model. on an date, chain from progress manufacturer track progress

Operator

you. Thank

asked are if fully Nevada warrants? from capital your question a funded, Chan is calling have raising or yes beyond no, from what We phase for one plans

Tom Severson

well. again I’ll this your for take Chan, thank as one Mr. question. you

maintain strong until we capital the options. strong to balance cash be advantageous is through we various me strong cash terms point is cash our the financing And launch XX first will out approximately goal during one satellites end. capital at be market sheet a sheet self-funding BlueBird to XXX are and with sheet be year position which on the me additional always XXXX million to to our million, corporate of most are opportunistically that has is and between estimate $XXX monitoring let And manufacture a our continuously balance finance with to position. flow, start currently possible. Let principles required core Also million But raise that XXX expected we assessing saying conditions. with a asset XXXX. balance by and incurred And the investments we operating

that current to launch we seek service is will commercially. expectation Our before additional raise we space mobile capital the

Scott Wisniewski

the now. And questions with that, thank call like for to to I’d Operator, let’s these open questions. shareholders analyst our submitting

Operator

from comes Our of line Kraft Bryan first from Instructions] question [Operator Deutsche the Bank.

line now Your is open.

Bryan Kraft

securing Phase so SpaceX additional to build staying be seemingly the plan? And beyond capacity a Hi, the the on you satellite this X much war launch I think the for to in you million reiterated payments about other Ukraine, previously with that BlueBird you. afternoon. that industry will due you any plus be capacity gives disclosed. you relates Can lastly, it can And the couple then to there you agreement how Walker thanks. that due Good Tom, confident launch some of related had year cost certainty $XX in then launch as to Blue the already you your launch Thank related paid? how the the talk in coming X? out of satellites costs

Abel Avellan

SpaceX Bryan, the that also And production Blue regarding our how are was launch the the BBX, time. same secure the addressing – launches X at Well, you? Walker multi-launch the spacecrafts. were with operational Hey, done launch agreement they the our of initial also to

year ahead on first with – the we Walker what on to addressed agreement of six to Blue that’s something a that time. a agreement X, And with had we with we this that’s SpaceX. that the So tried SpaceX had the and the the BBX, months multi-launch do

Bryan Kraft

are that you think sort I it in BlueBird – for the – to covered launches. And alluded how agreement. far the agreement, framework launches much of future announce the How of the when a

I confidence availability you certainty know there, if in was of about the was what So gives launch that that. just curious of you just kind wondering I but could say don’t I or capacity. anything

Scott Wisniewski

say most than offer Yes. This space was the more So to much a another and launches and SpaceX currently and as is agreement making can’t to around world, is in as and payment first than us Scott We payment sorts reservation the here. flexibility for this more they well things, the right? then anyone rebooking of timing but an early doing gave for rides disclosed, those launch. satellite

So at of it gave increased flexibility us day. end the the

Bryan Kraft

And part last answer Thanks. asked Okay. had flow about can a Blue the you the perspective. additional curious payments I X Walker from the of that cash just question on

Tom Severson

Yes. Tom. This Sure, Bryan. is

We’re There $XX up, with a may to Currently, nothing million invested. about Walker few payments with the substantially finish but all X. more million material. complete Blue have we be

Bryan Kraft

Do Okay. industry the and confidence war the have And being I costs launch more view of you Tom, capacity in Russia, because – know out point? you some the you of a of or the on for that there still lot costs satellites. just given the build falling Ukraine any your risk fall to of reiterated at the this that

Tom Severson

moment see a the bridge the of coming into this And for good launch reason into advance. multitude And disagreement also address we a all that. we Well, amount significant at the is That’s market of the why agreement sources. we this don’t. in capacity

Bryan Kraft

Great.

much. very Okay. you Thank

Operator

you. Thank

Securities. from question Griffin Our Boss line the B. of next from Riley comes

is now Your open. line

Griffin Boss

Hi. for taking Yeah, thanks my questions.

affects and you all that to XX so the of networks. understand help hoping XG standard at if I given how, recent was focus could us this XGPP technology. release your the related supporting guys off, non-terrestrial First

Abel Avellan

have think we our supportive and advances the order that all you with of patents day, around satellite broadband are and in patents claims. IP need At all large the end in a XGPP connectivity X,XXX I own the direct-to-handset patent the really of to Well, technology.

connect from our from that a we go us So capability unique is But our that something for it approved we the is a to to unique help all directly want when It ENOV[ph] us. you beneficial to directly connect IP to technology, see directly the space from handset. is for it handset, our way actually to is think vendors. source it and that us that something more and is this

Griffin Boss

syndrome. to the Got you rise this perspective, and you thinking wondering could deploying of any us And was I for it. debris orbital line not of from Thanks, relates whether regulatory satellite anticipate with full the are concern industry the obviously talk LEO there’s XXX issues Abel, in appreciate I’m you curious understand timeline a deployments, if help in satellites? and your of odd a then how down and or lot implications constellation about about that the color. the as Kessler it

Abel Avellan

also proposed our different Yeah. feature thing hundreds say satellites. technology, I a a than satellite any first mean satellite. the in collisions make the movement that it than of any need any us don’t on thin thousands do need is only we had of direction I them will not other to really very that LEO We few of and profile more that we prone other regular

of to had based be that also basically the reducing thin number satellite prone order service. vitals the provide order to in service, profile And very in global collisions. by, required in space a, broadband be of the of to the incorporated not been in global crack design spacecraft to the So

Griffin Boss

it. Got

guys. me again. Okay, Thanks great. for it it. Appreciate That’s Thanks.

Operator

I’m to SpaceMobile back like to closing for turn At time no remarks. Thank over showing this Instructions] I you. [Operator the further would questions. AST call

Scott Wisniewski

Thank you operator.

thank company’s design the joining hope everyone with cellular network building and a the rest use everybody based a pocket Our the in week. for analysts questions. for to I broadband space for great shareholders both today. has the want your of the phone And

Abel Avellan

Thank time. you next you. See

Tom Severson

Thank you.

Operator

Thank call. conference for today’s concludes participating. you This

You may disconnect. now

AST SpaceMobile (ASTS) 1 Apr 222021 Q4 Earnings call transcript