ASTS - Earnings call transcript Q4 2024

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Operator

Good day, and thank you for standing by. Welcome to the AST SpaceMobile Fourth Quarter 2024 Business Update Call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your host today, Scott Wisniewski, President of AST SpaceMobile. Please go ahead.

Scott Wisniewski

afternoon, good and you, everyone. Thank joined Today, Avellan; and Abel Chairman our I'm Chief also and Financial CEO, Johnson. by Officer, Andrew

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

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

please we uncertainties, on and and to time risks our Q&A the these about will the Exchange documents information by AST by AST section with report more SEC with other Factors Risk annual year questions XXXX, of Form to refer section SpaceMobile Securities shareholders. XX, For after from the Also, submitted for with and the remarks, be Commission time. ended SpaceMobile's our December starting filed initial XX-K our

who there in world, our of you we around to the still may but new X of and work live, in as today phones gaps experience over those mobile us are For use be mission, coverage many and travel. company billion

billions unmodified are directly everyday first remain global to cellular IP only we without touches and with and global broadband extensive patent devices In cellular us. of the broadband by portfolio. space unconnected problem markets massive, SpaceMobile and backdrop, this to are solving in building of and and our operate is AST economy. who The and network are supported important mobile is people the pursuing the there are Additionally, we nearly all

excited Avellan, the our call vision discuss over achievements who Chairman into and significant am and made have past the year, Abel progress to XXXX. and going our our will CEO, pass We to I

Abel Avellan

than we XXXX ecosystem industry. validated been will differentiated year capabilities. have And SpaceMobile in IP position cellular space-based Thank this as position a we expand partner broadband we expansive AST our and our accelerate for technology inventor months AST pocket to Scott. XXXX, are The device past new was demonstrate and patent alongside we this with partners, and unique X,XXX pace continue leader several put, space-based to transformational the manufacturing, you, SpaceMobile move leverage to entered and accelerated in claims, the your spectrum the property, funding now in in fast place. market. connectivity developing pieces and through patents technology business more of at to today. Simply talent access portfolio XXXX of pending intellectual further and and to our space in this and the Key and enable

in video us technology to has native our voice, truly the to with capacity AT&T operator integrate Verizon and differentiated Japan. in a initial broadband our our deliver making Kingdom will mobile and offering data, network and service Our cellular United now partner We're Vodafone and partners, Turkey, United States, for networks, moving with forward partners. which calls capabilities, enable the network and in other us Rakuten

with the constellation X about have approximately number network operator network globally, reach subscribers and continue to agreements We now of around year to building operators world. This the billion commercial our mobile grow. partners of XX world in which telecom partners Our some is service. existing the the nearly have largest include mobile operators

been our who completed designed beginning emergency SOS, partners, calls noted Vodafone, our and each AT&T, broadband, messaging just reminder, a network. not in-orbit by or support text has over As video our technology from as the Verizon to recently

update our voice last investors, data business We at call to several have milestones. services speed the modify capability for major we smartphones. Since achieved and with broadband

structure. which with are And speak we accelerating with First, sheet significant a manufacturing, we solidified our shortly. to with financing our will attractive I balance you that, an

the of operated spectrum high-value, once an partners. block our making with the that signed mid-band largest owned completed, provide by agreement and us we will our spectrum, Second, lower

accelerated components ecosystem, government Block XX our for with agreement and materials X we contracts. with satellites global with MNOs over manufacturing needed with the underway both additional Third, with Vodafone alongside expand of continue effort and commercial to the production and XX. planning satellite Fourth, we

announced fact, Agency, In this new SDA. million States a United of in just support $XX award Space past week, we the Development contract or

recent for Our U.S. last, regulatory to we the our for SEC. is with contract services the what continue just beginning with the solidify framework achieve we And expect to the of government.

approximately to million X.XX% the our with per minimize With cap these in for dilution secured the to of this $XXX billion senior we nearly shareholders Let cost me balance cap resulting note existing which sheet. We company. XX% on raise, achievements. with call briefly transactions, price. the increased conversion And capital of we Alongside offering, note the convertible elaborate of on reduced capital approximately at we share. to coupon, $X a price the each call, completed $XX significantly cash effective effective in conversion our effective

and appreciate and AT&T, of converted and support. The us enabled to sheet plans. financing Verizon welcome became aggressively balance Importantly, our shareholders. ongoing A and partners new their [Technical Vodafone our notes and manufacturing the Google, shareholders, existing of as we part loyal Class transaction, immediately We common and accelerate their our Difficulty]

fully materials us We needed of the have X satellites. Block BlueBird accelerated and assembly to fully procurement integrated for and components complete

complete array building procurement components the accelerated are us for and XX satellites microns, power over needed for to block assembled satellites. which and of have fully we materials Additionally, phased

assembly assemble procure in stage we As the track the integration process, first of we manufacturing one the to last and is on lead steps items ensure remain long and reminder, stages. a for

respectively. global have we in Barcelona, Spain manufacturing, Texas, square in XXX,XXX feet feet Florida, accelerating square footprint additional and to soon feet in XX,XXX our Homestead, of increased XX,XXX Midland. approximately square our part As

megahertz, the We bring of per will satellite to second. gigahertz ASIC up peak per XXX novel have processing of our data support completed initial XX and with up XX,XXX which validation up to megabits chip, bandwidth speed

year. this BlueBird later We into satellite expect Block ASIC our to incorporate X

we XXXX and us more during the satellites States. gets approximately exercised which U.S., United Europe continue contract capacity in and some service option outside selected XXXX, also Japan have now markets for our contracted to We XX launches, and load and for fully

agreement, and lower satellite Next, partners. cellular to existing upgrade up direct-to-device mid-band agreement penetration of which up an spectrum spectrum, low-band augment to working of the megahertz space. direct-to-device would the The capability for of spectrum the broadband for the application. consummated, with spectrum offers States XXX megahertz on pairing which and we nationwide an long-term in our access lower block This provide States. Spectrum United superior will attractive to resource with of XX XGPP the to coverage spectrum to spectrum agreement satellite for previous long-term spectrum agreement, the largest megahertz United our access United access plans XX high-quality signed when matches Continental MNO scarce States for with in available characteristics largest our position a enhanced is this in mid-band strategy band,

spectrum low-band support premium The spectrum dedicate we existing partners amplifies Our to services. are accessing our capacity.

Specifically, special STA operator testing strategic received directed groundbreaking United in This authority and with better commence smartphone. our service with commission, the FCC and us will more specialized shared the enable between to the broader Verizon a we and everyday software, while approval per partners speed and transmission underscore FCC us approvals AST without XXX States. with in means the BlueBird modified from technology our data service increased spectrum true test megabits additional partners. to asset. And need of This in subscriber of enable SpaceMobile space second ecosystem device valuable and and mobile integrating growth approval to a positions the capacity wireless strategic AT&T support satellite with temporary any up our feed for or goal updates. broadband place experience significant recently, smartphones ruling the our from connect and to soon, our network The just continue a U.S., the for reinforcing FCC anticipate we we

Block first launched in September satellites X X XXXX commercial fully operational. are The BlueBird

our a ever earth communication commercially other below [ than each the As largest array amasses space reminder, deployed international orbit station. satellite ] the

measuring the X,XXX Block upcoming satellites more approximately our context, feet. Xx square X For than of X Block size satellites, are

we network the point accelerate profile. I decrease our commercial to revenues result, first any path the a operators compared need as low am traditional report The earth much X orbit. satellites satellites smaller and expected. of our single risk in the and size to satellites our a of As number to very BlueBird design performing all failure, reducing pleased our of are satellites of

each messaging, to other smartphones. milestone that just calls unique our native unmodified shortly full video call not designed after. demonstrates and capabilities were but our for, have watch Valle, put fully our satellite exciting them video Verizon We AT&T space-based Vodafone a completed was complete tested and Margherita technology. satellites operational operations. completely text CEO, to using capabilities and It broadband Della This cellular into capabilities

with an a On support revenue the commercial for the But million Agency Space capabilities the details award contract government provide technology this prime through will specialized Development dual-use we for $XX applications. front, highlights government additional contractor. momentarily. our secured of recently Scott of

Our that restricted we to the With agreement, I unique you to to now of the tireless government to successful place. mobile can and progress. on to see our closer commercial proud technology, our bringing network every Scott move which in key partners, effort by am use us and clearer achieving the mission particularly for connecting in incredibly contract of from to ahead. I our now months details step, are pipeline the and over and operationalizing our strength, manufacturing team continues updates commercial cases will launch this our government driven of you point. months and new pieces you more show critical day. becoming are more to each forward our progress initial across look past connected provide the With pass several our get

Scott Wisniewski

Abel. you, Thank

have As Abel for SpaceMobile. mentioned, few the last truly AST months significant been

date. together we the business of are coming our in of nicely, All to position enter our and facets strongest XXXX

some achievements of company. mean Let me for the of on additional details and the they commercialization what provide the

follows the of our Just the X XXXX. last a $XX under contract with million testing Development prime a through in-orbit in we revenue contract test contractor. This on U.S. announced contract signed satellite week, Space BlueWalker previous successful Agency February

expect a in of our This but larger our delivered BlueBird potential not satellites Block rather revenue X and we is first to evaluation long-term contracts. our X alongside other capabilities as with as government receive satellites. our to and serve contract, this of in support contracts on service U.S. date, prepaid Importantly, recognize an contract, orbit

marks taking the the fifth Agency. Now this back, Space contract our third and a U.S. supporting with award our Development step government

space see a for to unique a applications strong in our about for set of and noncommunications the architecture, continue you facilitates particular, from in profile We which DoD, and applications. which diverse the demand communications read press can

is consumer used be programs. also can positioned same spacecraft both network the capable, for meaning government attractively Our as dual-use and

mobile XX approximately has alongside front, continue operators our calls initial On we excitement The video network increase and with Verizon AT&T Vodafone, that to like our high-profile with conversations the commercial partners, the depth advance today. these and business of the with we conducted. milestones recently to we have including agreements continued

our the U.S., building in During initial out XXXX, to with Europe, we government. the Japan strategic additional expect planned U.S. out the round footprint with MNOs, coverage markets and

you during a XXXX and Additionally, will or during of initial half the you will that first gateway for cash revenue. begin XXXX, bring also service see provide sales indicator bookings revenue will in leading markets the where see to and

to markets Vodafone to establishes partner XXXX. offer service as broadband long-term definitive through space-based particular. operators finalized cellular as connectivity commercial we a SpaceMobile in home to for program. framework the for markets well Vodafone December, agreement via Turning its in agreement This other its In

And means Vodafone of then accelerate the with partnership. just yesterday, many marking the agreement historic the space-based market of agreement of entity another Europe. advance This manufacturing with Barcelona, distribute step I our continent. further to land in years working our our we expansion, hub across turnkey off to mobile and commercialization Vodafone Our support Andy. connectivity, in cellular opening our European we in of together network increased that, is serve shared broadband space announced to Spain it long-term with our underscore This in solutions footprint research. enhance to strategic to our infrastructure expanding in SpaceMobile geographic exclusively to a to significantly deployment. Also our operators research European the hand boundaries manage culmination are This capabilities in validation And jointly and a earlier commitment with with the ground market will significant our support owned increase a service, and Europe. all smaller will expansion, addressable take-up and broadband along Malaga, will to

Andrew Johnson

continued we the of everyone. SpaceMobile, year Thanks, in XXXX. sentiment and echo expressed history Scott, rapid XXXX and a pivotal and was afternoon, good during by I QX our the AST of transformation Abel Scott. operating

X of on our customers, in in satellites Our BlueBird operational engagements. satellites with successful and to QX, us early of U.S. continue commercial achievement through September, positioned coupled expanding government those well full has our status our focus launch of Block intense X both

to a was communication satellite a company, direct-to-device came burgeoning XXXX close, As SpaceMobile the transformed poised AST industry. lead to

We our initiatives been manufacturing have periods. start bold of revenue our to of the coming scale financial accelerate continuation a resources in The of XXXX to our and significant progress. support deployment to an the has effort satellites in this the

is to As efforts increase satellites our and satellites and we a our Block we expand manufacturing balance sheet Production our mentioned production fully microns manufacturing X targets, in XX our underway the launch capital earlier, at total as phased plans BlueBird in of assembled support strengthened of through XX our globally. during raising, accelerated to and BlueBird X planning up satellites. satellite an with and facilitating including XXXX. well footprint line our strategic XX facilities array XXXX to production We Block

to metrics Moving the operating and slide.

key review metrics Let's XXXX. the for and full fourth year quarter the operating

incurred the third operating On the million chart, of the first expenses in adjusted versus non-GAAP fourth million $XX.X quarter. of $XX.X cash XXXX, quarter we for

operating a costs, operating reminder, non-GAAP noncash expenses As adjusted stock-based and depreciation amortization certain and exclude compensation. including

accelerated related $X.X partially bring-up costs resulted offset in in to engineering quarter-over-quarter increase from primarily plans services validation with decrease to commercial and million critical in slight investments to X costs a million a now connection $X.X adjusted $X.X million general Block our our and ASIC increase R&D completed satellites reduced and administrative related bolster our BlueBird administrative and and by of costs of This functions. initial work. adjusted our

by G&A cash XXXX, $XXX.X year more the adjusted reduction expenses million and as pivoted and full to manufacturing, related operating were our XXXX full cross-functional our satellite costs in than costs X to engineering in to totaled and X we with services Increased engineering internal for reduced significant support in the government U.S. a development satellites. XXXX. offset efforts For our efforts and year $XXX.X compared commercial third-party research R&D connection and BlueBird Block administrative non-GAAP deployment, Block and million engagement

the towards Turning chart on second this slide.

was made our additional million of on for labor expanded guidance the last X for materials $XX.X recently $XX update square and of up increase plan satellite in as versus executing in to expenditures November launch we payment due prior X and ultimately timing January have second on to to increase made and of the manufacturing ramp with our quarter fourth and slightly XXX,XXX figure capitalized XXXX facility approximately in of assembly, continuing less direct to satellites Midland, versus Our and BlueBird were continue are million equipment of Block integration in for call capital satellites expect business expenditures a approximately payments will commitments. Today, facilities campaign, continued foot production Overall, quarter of third for million expected, production related $XX approximately per December. expenditures the production provided million that satellite test launch just capital a capital and BlueBird half our Texas. This connection $XXX I of quarters. In than with amount XXXX. to XXXX. X X-year Block scaling our This monthly and compared as in to is we connection month our

in within the growth million first in the of make $XXX.X XXXX in be in with operating fourth to and CapEx the changes support the on our operating million the of final to across from not for on described, quarter. be delayed XXXX. range adjusted factors. And of in expenditures, to we $XXX up Timing quarter plans. first organization will that expenditures could adjusted fourth our of quarter at of I've million expenses critical million to just with we estimate range ended as come of realized slide, our we quarter capital variety a of $XX the chart end as $XXX.X million a million expect may third $XX of the this cash, We the of the due quarter investments continue XXXX, the in Consistent $XXX cash or

despite during We ATM, effective to result available capital facility, quarter of existing of currently approximately Our on maintain million fourth that disciplined our ability previous the expenditures facility credit facility. partially the and offset cash or discussed the ATM $XX senior a our use call. of above million our $XXX last at-the-market have was by repayment the increased our on I

our disciplined supplementing positioning to building this future move to facility launching opportunities, our in accelerating us and network. us effective has Our and and financing liquidity, revenue quickly allowed strategic use other initiatives increase well of

dilution commented cash offering position on by through effective attractive XXXX, share, of we to oversubscribed, opportunity earlier, million X-year The including notes long-term in our considerably a the that per believe Abel further XXX% connecting terms, to capped thus the in offering execution mission As $XXX the new senior was convertible than more unconnected. call price investor of and base the execution $XX.XX expand many approximately providing to minimizing to plan strengthened our a our holders that increased X%. conversion Xx

financing we committee to quasi-governmental key including make United progress Finally, milestones, can in of passed applications from States, we acceptance. having use transaction on these If capital the sources the are successful, continue nondilutive to institutions, like markets. proceeds opportunities In providing to financing projects. parallel, both development emerging cost-effective in services and explore ours financial debt through to source domestic large businesses we long-term funding continue global good of

focus capital prudent diversified plans continued use with market our are the we appropriate, that nondilutive our provide working and be fund balance revenue existing on our ATM can partner sheet, prepayments and accelerated refine to of will customer our updates access, banks advisers our we alternatives. With and further and confident with operational We will facility. profile as the growing we

We to forward a proud I of in keeping unfolds. focused it our start the this look remain our our update Scott. pass with updated made continue back on of completes on component XXXX. mission financial progress to as year are we I'll and that, the And to we call, presentation progress XXXX fast the as you business and

Scott Wisniewski

Andy. you, Thank

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

Operator

reach month to per New ASTS Lee asked, BlueBird target? X Zealand Ben from expect does when the manufacturing

Abel Avellan

Great New questions Zealand. from to see coming

XX on the the the we rate of in items second We lead year, per parts satellites, already of a long of all of which believe by which are that are X microns, We building this process the satellite, be working our block of and our of we'll them. manufacturing is XX and month. half key main are at

that, of feet XXX,XXX manufacturing of feet of we Midland in had manufacturing in adding around manufacturing. our extended feet tune manufacturing We're the For in in square to facility square XX,XXX and another Florida XX,XXX additional square facility of facility facility Barcelona.

Operator

asked, Netherlands the Is governmental progress testing? for the does company besides or do defense part? on the orbit from there what the current in Rick sats any

Abel Avellan

are point. they in this operation at fully well, Yes,

that the on testing planned that is program government they and on and XX be this we're building they already voice, of across X also, announced there that video them have next use We're operation. and nationwide in base the doing satellites that the for operational X the to year. now on Verizon. essence opportunity them done are the approved start. and we recently We BlueWalker year have government which intermittent got only including with With United become and full the orbit. capability in demonstrated as have a on new have We They're STA is satellites, to are with that about between in what with States, in United usage obviously, operate on it them, of are capabilities using under XX that an an that very government the text, testing fashion our AT&T will that to data bullish the broadband and States calling testing starting both can the satellites already in

Operator

Blue Origin beyond to planning York. X? expand and recently launch ISRO. New from you agreement The had announced Are campaign with Andreas SpaceX, those

Scott Wisniewski

One launch thought our as few the of careful were of that things satellite, in There's on So us a we've strategy, the it's about and we major to for design done for for vehicle and position launch we a our agnostic. lot so launch on launch is success. side each our of vehicles. to designs stackable they're commonalities configurable vehicles, the design the BlueBird

second a we've the as So talked that at year, last was X about. on looked selected available dive and the deep we market, capacity, these first the step we suppliers step. And was did

XX. beyond for We've up, And full and lot this consider that us that capacity So But got as market. ended ability build the order XXXX earlier, get to steps the question, those were launch to for a to time, more on like satellite during XX ability to have we've the for mentioned But early we wanted we frame. that sure. the we the and other we option of took. the the capacity XXXX supply direct satellites, over gives important to actually and providers we to XX the And your get XXXX in in we where target. use all us, we that, as XXXX, time call exercised capacity up we'll in

Operator

are constellation? a from FCC the asks, remaining what commercial the Maryland from full Brian for risks authorization to operating

Scott Wisniewski

to be rolling testing with we'll questions scale to service a paid something questions. our those allows for existing to Alongside the for working seen, and initial video for the ago. commercial services out I'd was received in As license, let's you follow few do we stages process thereafter. that, may the We're did and and STA then do like and submitting the authorization that the analyst with basis we're to also AT&T, satellites of calls them Operator, a both on. modification FCC that our our will And a of thank now. a call that's we the have from commercial with Verizon us that recently beta open for final that, shareholders weeks service

Operator

with [Operator first B. line of Griffin from Riley comes Boss question Instructions] Our Securities. the

Griffin Boss

So How many you your subscribers a with by can partners the this what SATCO XX agreements subscribers new be billion joint MNO with helpful more MNO now. would addressed be X Vodafone? opens represent entire the into, given subscribers if market, roughly tap is of the I us Or could yes, venture this already allow likely didn't of rough up includes number this have MNOs sense you European partnership to give which with. incremental could assume MOUs you that

Scott Wisniewski

and great why a key and Vodafone wanted we a reason put It's to question, it's this structure place. in

you at you So countries look the full look XXX of XX Vodafone set when the about to get at in before only connections when together. were market. plus home European we Europe, all covering you the And

So and a each at despite MNOs to it a contemplated of manage across continent that we sizes, an will gateways the same time, efficient bringing this smaller One, to, in originally countries things. provide quite country. orders new more country does be the for on able hadn't that and couple well plan sets path

is regulators beginning, it's going So a that frankly, really up for that important. can regard, to operator feel right? of from that, think network, managed, good it and comfortable had European probably how this for us. European covered European-based It's XX and really just countries certainly, extension Europe. important the operators. adds how in And this we having It's our the potential it's some traffic in we we big a although countries some countries kind about significant that think but operators significant great so is operator a step built And we Xx and an We that is extension that. of of for important built sovereign

Griffin Boss

X-part next related And it's That's are context. well, that, both related, not but to a but then related. me, great for question,

we to this and missile this sensing? to in able that million the time be then noncommunications contract see. $XX this you that and prepared is mentioned are color remarks? more you've to architecture Are us, support? think, some are is part with what that Yes, the can is tracking, And able discussed of It's to talking would detail question, you remote applications for great second, I noncommunication as now First PNT, to provide applications your these STA. helpful. Any for services provide

Scott Wisniewski

in said, it's offer we're that So we noncommunications we terms the the won't more this we definition bear, consistent bringing frequencies of and with operate. of it's like at time. capability to that that But

And say of satellite. off size XX it's months first earn the And further but this announced that X so noncommunications. terms to kind the the opportunity, February of the evaluation. importantly, next in And a what can of and that contract for we'll we last phase satellite is revenue that second earned that's the yes, we do, we've or the is this $XX this just million on against in expect Block satellites. satellites of so first And first X the is commercial another the and

it's And the be excited to general about. we revenue. deliver to very that's quite opportunity. milestones to frame need and time execute $XX we're of relative the total we the And we to small one the satellites believe, said, that opportunity, like So a large, million on the

Griffin Boss

Okay.

say, providing months? to might And are robust services linearly you that so should we next some months? the in, more recognized now over be X XX be Or expect that

Scott Wisniewski

There might next couple is linear it. be the of a generally going in months, in slight way speaking, getting the to lag but right model

Operator

comes question next Schoell with from of line Our Chris the UBS.

Christopher Schoell

as messaging and is there, service a data pricing I of And points lot their out they to own put your product? what its advantages remind and of ready Starlink and service. buzz bringing price full you the given to a appreciate voice T-Mobile the how you launch differs market have? versus how But your start. and you influence Can just strategy Starlink's does broadband saw this us technology with are recent messaging T-Mobile just We

Abel Avellan

messaging I Well, just that, in essence, for is now of quasi said that reflection which is what I is service. intermittent pricing think still a

data, services, system. is video, as through you do Our your Internet, to voice, you our everything do can text, on that it normally, you able know, be phone will

have connectivity translate we believe megabits the on or the premium service a it phone offer our spectrum spectrum they into much can your it's per very differentiate to that scale, phone allow to service. package, our the and full why the satellite per better second what with rate our will we packages to phone existing have adaptation consumer satellite, access any of a operators. to that data So XX,XXX XX gigahertz to requiring and that reason per using operator band XXX to get megahertz is partner change XXX basically of fledged without We enable greatly the directly megahertz differentiated when differentiated the

Christopher Schoell

then a one if I think that you But are XX-K and number the launch you have indicating how ability to the and more satellites, funding. raise I XX see just ATM. next appreciate help the the the XXXX funding in can with months the you the you need there the sizing for it. of moving on Got in amount different XX And capital fit language evaluate look sources? you need to you any as of pieces. to I still

Andrew Johnson

sheet campaign, very we process which kind is pro evaluate continue in have we're positioned to with a XX smart strong good for positioned capital statements said that both absolutely We're that. service that a get in very the near case positioned way about But to manufacture balance our and K, beyond first threshold months. feel opportunities, XX XX a that and in about for of we to forma We're of are in ability starts of term. next the under well satellites, we're the well the them. our It looking $X right launch As always billion, raising and the we'll we now. for our satellites XX well

Operator

Deutsche Bryan question from with of Kraft the Bank. comes line next Our

Bryan Kraft

had positive. of the I for still I said. the million at Just changed question a launches following to just And launches, and free could. or business about year XX cost last you if thing then that for scope you this 'XX questions per accelerate you from launch seems million track question. you plan the of give a the funding sort But roughly that's on like available, have want the regarding business cash up had the to how $XX how to to it's versus in if expect lot satellite, to the faster get and fund many the year? topic business launch last 'XX? We all much few, plan. that's more I funding you still need satellite? was funding if satellite? flow get guess, I to would it you'll about us expect on of on for $XX becomes think the the next pacing an are a first, I you sense ask up April per wider you of what next the and of the rough I can any plan And the you

need, really it? on more funding can and Is right terms raise much an you'd elaborate perspective? much not the anything you a there that attractive So about think it's you invest about from at how how but And way it's about return. on to attractive

Abel Avellan

we in when order, not a ] think base basis. only that see about the Goldman the we the and monetizing, you the a to communications application combine start we way [ but constellation, recent is by consumers, Yes, on satellite noncommunication it ability get as per for Brian, the

With combined are to that positive. have So with of be the us start believe to greatly with around that accelerated is sources getting positive other not that applications we with we pace infrastructure we to flow gave continue allow that, XX but built gateways production. guidance a satellites, enough revenue XX that with cash It's of that XX like to satellites, up we satellites. get noncommunications get last some we and cash service flow our our

$X building are putting As X.XX we capacity some need around XX our upgrading year, with basically year month, XX get to into entered Andy translate work we in United continued we year, billion which into that closed indicated, up and roughly will of in satellites per cash we the to to States. X into the the to service a

to start with get planning revenue how network financed is transactions. So basically than type equity we rather are that's our of basically or other buildup

satellites In continued some revenue to our of to Europe, early Japan where there selected secured customers access basically getting our that target are to which getting when call are we another will well launches, markets, we put that's XX terms that source be markets. of the be selected launch, and constellation, pay forward. and in we launched, going countries in XX service have in we utilizing U.S., obtaining

launch Glenn, launch With the on every a around in launch double of cadence to much that pretty we XX And possible moving per what of launch start the up can expect Glenn. year the new to X we is satellites X Falcon New to days the cadence with the later X.

advance been launches We have that also other in have to that. secured

XX. so we of in are process And manufacturing the

process We get cadence how will XX, of items of and long the lead that dictate them into the are space. in manufacturing of we

Bryan Kraft

satellite? per $XX the still at that you to million million all? in And Or that anything range? changed on $XX Has are cost

Abel Avellan

we're Yes, on cost not satellite. the per No. changing guidance

Bryan Kraft

Okay. just on And if follow could then funding. I up just

acceleration I still to flow get does line? understand XX Or cash I that expect time make to to just So at sort free satellites. want sure that the positive you right? of modify

Andrew Johnson

an qualifier is cash on I'd only basis. basis, at free see operating No, that this add that is we Andy. generate we'll flow The

actual So obviously, are to as in But back may going point opportunities on on operating cash the ramp launch Abel up an that are and CapEx basis, and our and flow. commitments made. satellites, time flexes. at We're believe a free generate dial explained, to yes, depending applications needs when we XX sufficient we

Bryan Kraft

follow-up operational you to XX positive, would to if And sorry, I trying but other that flow it's that that be funding more understand, just to guess, to understand understand free so pursuing. I that Or million just Okay. need last, money. the attractive roughly the can do you money cash you're And I'm be just in Is the then satellites, purposes? for for trying then refinance? quasi-government $XXX need

Scott Wisniewski

Scott. is is this while us one would of funding. another access markets, a plan, companies an long-term capital This say that to that I get do and to funding attractive way that has been diverse of a our lot And have like we strategy it's open up.

when prudent with Bryan, and it and we've right. And we'll that the the But use we'll this that a company seen able becomes when for assess we when of. great time conservative So to how and backdrop a use I and available, benefits funding is lot. we've our the for particular That we've to of of a been been the us, pocket generate company, it's middle life that available. months, the and like think X to funding process, one needs cash over and that last having assess is over to we're having good capital have of liquidity in very source the is

Bryan Kraft

not sources, get get Are on facility to can you it, draw is on? those it you the are that thing? you've Or on whole have and got that a more it those this got now you've quasi-government pay pile you it, like interest and once the you it service debt of once cash

Scott Wisniewski

some in But X foolish have going that ways recent to pound financing our one having be least delayed at thought have The not pursuing and different for moment be draw sort is least like with But of on milestone-based. them of We're fact, very delayed facilities key yes, cheap, that's And a or to one the you of could useful. draw, maintain the at penny-wise, capital. structures. the for the backdrop that's spectrum we of the that said, different you're I seriously we're described, the deal. at does component cost about although right, company. structure liquidity

Operator

from next with of line Canfield comes Colin Cantor. Our question the

Colin Canfield

the handset talk higher even how starting about more levels team respect the a chipset team Google OE of to is a a with chipset a either structure and maybe folks reflect like. bit can little with Maybe or working you the to off, little talk little your Vodafone, or and of that bit engineering about kind bit organizational at if level

Abel Avellan

think one clarification. I

it or Our new the on required not require ASIC is We used handsets. only. on chipsets the satellites platform, do

So basically the we organized programmable ourselves, field FPGAs, launching start that way we using have gate satellites arrays.

incorporating Now and second process half we're that the of of this them year. ASIC, have the in packaging start the completed into we

I exists So the have space. nodes wanted But gigahertz make the [indiscernible] certainly one one of today the market capacity, of do phones. most the any the a modification in processing we the that chipsets chip, clear on require XX on that not of we to advanced advanced most and

work Our system, designed have it modifying your pocket to without on phone it. on you anything that the in is

Colin Canfield

of Yes. big, just satellite sure understood making signals level chip teaming OEs AST. understood the being between and I on and the Fully frequency kind of

and about through cost year, progression the can As level we most just year think you talk think through expect the the growth step-up where the guide about maybe you of about of progress? you and OpEx current year the the the through non-GAAP how to

Scott Wisniewski

Andy?

Andrew Johnson

the production OpEx gave items, that feeds cost a ramp-up in guidance We be Otherwise, growth that our with the that CapEx and the on our about for consistent quarter line think talking will obviously mean, part year, of on in most microns of we'll flex. with QX. XX-plus I started QX. that have XX gave this based. I sort satellites. we taking guidance into We mean, CapEx. sort for It's ramping I That But lead on, I growth falls based in CapEx is and each long on up XX. of

investments. integrate. additional begin work fully make will we as costs We're down ASIC out We're commercial now. that finish come But enterprise a Our building muscle. to we'll and that becoming

are grow We administrative we a to investing company. operating full functions prepare the and be in across organization as

cost for a So my this but primarily down terms work R&D mentioned periods and come you're which lot look if was view expense. give to not remarks, prior difference has function, really based done. probably us a That been expense. ways in which it's our The of is I on incredible bring on in opportunity at worth clearly, in to restating. we're you quarterly, third-party we And forward. at the see going to any this operating you But have going you past how thinking point, about of in we'll

We now, are moving and have we in fully a to production satellite a you'll and developed see manufacturing. full-on engineered environment. investments that And is

space very remarks, his in Florida. space As Abel in excited Texas. mentioned Southern to we've space added and the very Barcelona, in in near We've in term added add we're Midland, manufacturing

scaling a company into production month optimizes feeding per those of X see second at you'll half the becoming year. investments that manufacturing of the satellite about in all sorts So

Colin Canfield

for towards little a more large of But chain from is something side, like the that the like services and growth, seems on supply approaches. for Got the $XX a won. the structure development It opportunity. lot STA, of track it. obviously kind ] kind say, it's prime clear manufacturing type we'll And aspirations that opportunities maybe AST U.S. for right, seen has the as [ there's where high-level million we've of, Iris leveraging to of acquisition on bit of there's European looking then upfront

types million think about should AST, win how approaches? or you your maybe kind $XX about like and service we you cost So talk fee contracts ability of the STA the can the whether that of from of rev and to structure expect, it's more delivery-based if rec

Andrew Johnson

I'll that Colin. Sure. one, take

rev on This technology rec. is this that is of just evaluation. kind given First, milestone-based

stuff well cost something, We positioned and would a that. for it. in desire of fixed on function firm where about minus XX well drive they're And evolves and or in the about say thinking We we price in talked contracts. space how buying that how rec delivered earlier. months, U.S. the an and the contracts so environment with they're different satellites about revenue will doing cost-plus of lot elements and there work we're And to know and buying really are has the you by terms all reports, of to the you're and we'll tests, structure of be government scale, activities But next look will think orbit, they kind that don't in I defense what supplier. how thinking that is plus of deliver that's pieces have as these we over the

use sales, they mission, discussed. But dual we're positive service the different deals. hardware we and a side we've dynamic. tend with and on evaluate the built our open versus fall And that's So how terms to service their as we've to structure we evaluate to how of ways and in satellites

on place that important But be return the on on our to fall and the that. can we obviously. service For we in a the in on sale, we've get than side it's investment tend hardware us, flexible to put network, more

Colin Canfield

Right.

in greatest of out? where or come expect you Okay. maybe whether expectations the And kind piece deal of one then kind Ligado of tracking last latest it's filings to core information me, terms for around of closing, and next

Andrew Johnson

Yes, again. Andy this is

are of deal, nicely. On deal when Ligado our tenets things had the disclosed publicly that main tracking we signed binding We the sheet. term

set to have but work that we within do time to be get complete to to where frame working of we're We've course, talked a out. strategic to the us, with the play and on making well needs that we need are lot to so. have So we're the But bankruptcy hard that. deal, for all proceedings, a parties initiative the And good we do about to progress. it. It's

Operator

comments. I'll Scott the And call over we closing back the Wisniewski have of And reached question-and-answer to turn session. now for the end

Scott Wisniewski

Thank you, operator.

joining analysts important to Just want you call again, of support all We very continued further for a have and look research providing our evening. forward great to and shareholders updates, our strong mission. of thank and the everyone's we

Operator

you time. your conference, And at you today's Thank this concludes may and your lines this for participation. disconnect

AST SpaceMobile (ASTS) 4 Mar 252024 Q4 Earnings call transcript