- Earnings call transcript Q3 2022

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Operator

Good afternoon, everyone, and welcome to NextNav's Third Quarter 2022 Earnings Conference Call. Participating on today's call are Gary Parsons, NextNav's Chairman; Ganesh Pattabiraman, NextNav's Co-Founder and CEO; and Chris Gates, NextNav's Chief Financial Officer.

Before we begin, please note that during today's presentation, the company will make forward-looking statements, either in our prepared remarks or in the associated question-and-answer session. These statements, which involve risks and uncertainties relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable and may also relate to NextNav's future prospects, developments, and business strategies. In particular, such forward-looking statements include statements about NextNav's position to drive growth in its 3D geolocation businesses and expansion of its next-generation GPS platform, the business plans, objectives, expectations, and intentions of NextNav, NextNav's partnerships, and the potential success thereof NextNav's estimated and future business strategies, competitive position, industry environment, and potential growth opportunities. on risks or cause and to materially. based subject and actual are differ certain to uncertainties statements current belief expectations are results These that may uncertainties, subject which the of outside forward-looking discussed differ NextNav's cause and Such material factors, could are to that statements. results statements other important are unknown forward-looking in risks, actual assumptions, control from and many results known to the NextNav to, to other important to factors but the These ability key uncertainties, limited of both within in notable assumptions, and traction the risks, with U.S. platforms continue partners, are gain include, and not markets, and line be pandemic; and and maintain including in TerraPoiNT ability the Commission retain NextNav possibility relationships generate internationally; of with with and including competitive balance network, to its profitably, filed the factors, customers, to ongoing its key employees; and flexibility management partners, maintain the strategies; manage by effectively from and solution indicated and to NextNav. suppliers, uncertainties growth NextNav's Exchange economic risks of and/or the Securities documents it's other the with sheet to ability with and grow ability respect and and XXX coronavirus COVID-XX affected by deploy -- the adversely and capital business business may other impact NextNav time-to-time that economic Pinnacle

may us. is us to for affect impossible predict uncertainties it or and and risks events how time-to-time, New they from arise these

factors in as are impact NextNav most of as or no place may information, update to a performance the commitment filings. not cautioned upon whether our And our identified otherwise. events, statements, or new forward-looking speak are recent reliance undertakes statements, result revise SEC Risk future of You that forward-looking which date made. undue only to

the Following session. will operator-led remarks, an the company question-and-answer host prepared

Chairman, website. ahead. Please, call, the NextNav's today's of over call conclusion company's Gary Relations to Investor Parsons. will go on our the discussion replay a that, at addition, I'll With be posted of the In turn

Gary Parsons

operator, of third you, today, to CFO, here and excited have are heard, all me discuss Thank We're Ganesh eventful results. you I'm as new are our on call NextNav's everyone. Gates. quarter joining us pleased with to opportunities about you And good and quarter and afternoon, today It front another the our for Chris of us. business that Pattabiraman; was in CEO, NextNav's the

Before we shareholder to want drive to of frame I business quarter we our into dive view the discussion step specifically, back how and how the we value.

NextNav's technology cost navigation provide operating capabilities with result to synchronized to synergies savings. improving Ganesh of understood highly signals dramatically technology intelligently would Specifically, dedicated us the The and technology, the investment synergistic nationwide therefore key XD to terrestrial in capability, longer-term underlying around unleashing include our we've own our Prior by and resilient and and timing we And to these Nestwave, finally, that data-carrying goals capabilities to color PNT securing allocation. Those expanding PNT achieve significantly global our ability priorities. our PNT; full significant and TerraPoiNT XD of more deliver three our these around strategic prior value LTE Nestwave's will Chris efforts bring were networks near goals even global system. XG and allows oriented spectrum positioning, combination our the resilient efficiency with TerraPoiNT future existing and to cost. acquisition enabling along accelerates leader objectives expenses deployment LTE spectrum; capabilities spectral in reducing lowering the Nestwave's being XG and industry dramatically however, of the network from or our time combine and to take fruition. capital reach.

solution fact There is this the know PNT continues internationally it very Because Japan a resilient acquisition markets government deliver ready. international this allow of we that with address market in for to Japan to and growing in and a backup need vulnerabilities. move in United and in us our and presence now in select XD States based technology, like the globally. services significant, is Notably, PNT Pinnacle to Nestwave can around integration place And already internationally services in allocations deployment the greater new GPS MetCom our from service markets even foothold and additional that timing will Ganesh to asset. us both technology resilient interest spectrum France, will GPS more underlying in finally, a drive our market critical integration without for the also to and also we existing We also expect. with enables along helps efficiency establish spectrum well-known forward then, with moment. those expand scale to the that a in PNT European initial Nestwave in a us strong on be to spectral

X.X covering XX% As pops an all including band NextNav and areas. megahertz population, a the U.S. billion reminder, urban low contiguous asset of owns almost megahertz spectrum X

gain As and discuss speed Ganesh compatibility, efficiency high by oriented services. data wave Nestwave's the unique NextNav will form capacity spectral and technology LTE for significant can XG release software leveraging the underlying spectrum

review the additional an enables ecosystem. With a Ganesh to me NextNav's global Ganesh? let of turn handset and of of waveform LTE over applications the As broader technology benefit also standard that, and much XG quarter. provide penetration to it across device

Ganesh Pattabiraman

afternoon, update We're good an happy the Thanks, on and to be here Gary, provide business. everyone. to

will Nestwave. had our our the shareholder three we're that acquisition strategy we accelerate what expand strategic following Gary would In As long-term drive like on and and value. my on Gary around of focused remarks shared context today, I PNT objectives key provide capabilities resilient to mentioned, believe

before, said PNT resilient being we're to leader in services. we've committed as the First,

the cutting our in of had work market the of diligently day edge to by From be one, solutions PNT U.S. technology to a results. bring manner. at proven evidenced test Our Transportation to as quickly advanced efficient technology Department XXXX we capital and

towns our next-gen to GPS XD, the and X,XXX terrestrial deployed and Our equal country cities and network and continue internationally, in markets across Pinnacle industry-leading service build TerraPoiNT. select is we already

have both of even an the these are unique ahead by compelling us us, While opportunity that a to more adding entity. technologies capability as we Nestwave technological combined significant of brings

technology combining in transmitters locations network and federal Gary the acquisition, PNT for sectors. viable to we seller incorporate increasingly highly and infrastructure, with the meet address TerraPoiNT's needs PNT the public energized XG national accurate government this will resilient is and the solutions for As greatest security. to around With existing and to critical critical interference unique technology LTE protect other GPS rapidly mentioned, a a government we us finding only assets allow full safety, create highly that growing resilience signals, TerraPoiNT synchronized By utilizing network, with need.

estimates. services from services our As be believe approximately a achieved deployment. States separate in cost. result, across PNT basing without spectrum would in ahead resilient operating million including we technologies, timing new TerraPoiNT or By associated reduction of will fraction now fact, our excess flexibility a global these We include a at may of initiative have also a prior be United in allocation. initial This of facilitating the of some service achievable full $XXX CapEx thus XX% commensurate combining the in reduction cost, early enormous network even signal future a deployment a

just of critical here the continue also to but not GPS U.S. see in interference, We issue overseas, the

and airport weeks air XX, Dallas-Fort flights. safety on experienced GPS and as October two For example, ago impacting jamming traffic recently Worth rerouting as XX

federal As I anticipate solutions spring and in agencies increasingly globally attention U.S., in PNT of both Executive Notably governments is released Order XXXXX and more towards noted, that their review, XXXX. actionable putting the requirements begin PNT be to will including address the order we are the resilience. U.S. completing direct finding time the interagency to resilience key in to After procurements. in expected

enable local efficiency a usage also to to use in governments the across of certain seeks order users applications, require a our the spectrum solutions critical The and underlying current resilient acquiring of spectrum GPS would resiliency. the for this PNT many reminder, sectors. believe also We bill thereby tap the they technologies state infrastructure increases grants the As incorporate as acquisition asset. into portion of broader

last are additional on become to PNT unleashing could spectrum be full transmitters NextNav resiliency such we're about where TerraPoiNT available locations talked committed as private more requirements, call, we of use value quarterly By critical for leveraged As deploying the only meet our that places this asset. the to in networks.

network. functionality. intend waveforms we capacity we addition about our forward, these dramatically optimized to Use experimental As the to XD of will our allow to more XG PNT of in license the data-carrying adoption LTE TerraPoiNT's widespread in new spectrum core XG to evaluate utilize months and facilitate moving think optimizing expand including a LTE waveforms coming configurations,

Pinnacle agreement an public wireless within Pinnacle service, with increased new awareness QX nation's quarter. to-date, of XXX the additional the this see expect and commercially signing make later of of especially location, our follow. we to With we we and in expect handset carriers EXXX, adoption continued year, announced vertical Regarding traction in available safety. them In one for technology our carrier largest to Pinnacle we partnerships, fourth

to We're are as handset their to X use example operating including, our for upcoming name technology few. with scheduled Pinnacle bring know, may phone Alcatel carrier's systems manufacturers network. The is ensure a recent release closely Apple you phones, wide Kyocera, have One a Mobile handsets, of our Android Tier these and their just there device. Pepper or capabilities Pinnacle is variety As in with of feature don't embedded particularly agreement they to many Sonim, XXXX. on working which XXX feature Hot our devices affordable iOS to consumer in phone

Pinnacle technology moving safety Pinnacle with the the U.S. Search NextNav's for with yesterday, implementation of This XXX the in of an and and standards launch wireless capabilities solutions leverages partnership commercial Day of loan partners scale Japan. milestone their celebrated MetCom in Pinnacle history commercial bringing system just launch access rescue Our Firefighter several management the industry partnership are forward quarter our expertise MetCom National of on with first of highly emergency to our ahead XXXX. also outside Pepper deployment step our Pinnacle the globalization and and pushing Z Hot of location exciting worker another Tokyo, technology. with large and It's first towards We're Pinnacle existing deep is in and service. NextNav's notably, our and accurate yet internationally, services is your to services. expected to

our exciting in further the we traction XG we can our as even allocation. Pinnacle globally is our with But continued PNT necessarily XD not timing what trials services seeing is and without combined deliver spectrum and even service solutions international for how LTE immediate we're speak addition, active parties today. expansion Pinnacle with In and technology, amplify resilient various and our a services more

the in a are PNT European resilience to the companies have conducted publish path the recall, on implementation We very let financials. year. confident one bringing and final manner. to to test, If we plan market the we unit right of me expect in the the the and right XXXX. to in the Union and Overall, over in that, Chris? us towards trial a we of we move of the quarter that as its PNT the the Chris right alternate you European earlier get forward. right solutions report it were team, feel believe for cost With a seven We technology of time efficient we turn there first review

Chris Gates

Good afternoon, Ganesh. Thanks, everyone.

to Nestwave. financials Let the our dig into tied first acquisition of me

NextNav such up in million, Nestwave of close. our X.X consisting value will of on issuance common in stock an employee NextNav million certain common million, of an a million issued in of and common The enterprise As the the of detailed to million anniversary All first lockup cash resulted we acquired stock. $XX.X and transaction transaction of shares close shares X million be stock consideration upon release, were to aggregate Nestwave upon $XX subject $X.X in of exercise options. of shares for $XX expiring

U.S. CapEx highlighted While that capital to excess $XXX we costs, decreasing have prior a only to expect required our whereas reduce approximately like future transaction by increase estimates. needs compared this the OpEx in broad network TerraPoiNT and Gary it the substantially I'd our in Ganesh XX% by our operational for million deployment is reiterate marginally to to expected of

As outlined facilitates previously, it expansion also our plans. global

into loss expenses were and Operating expense $XX.X also non-cash $X.X compensation net and expenses. for depreciation an operating expense. turn $XXX,XXX quarter million of revenue year-to-date of includes and operations $XXX,XXX we loss included quarter number Starting Total in transaction-related quarter $XX.X for $XX.X million, the network operating with is the This expenses the our top-line, million. $XXX,XXX, stock-based results. of me of let recognized $XXX,XXX quarter Now, and of amortization and third million. this

change In warrant the million related a loss $X net our in value of addition previous liability. non-cash charges, to to element of a non-cash fair included expense

we an $X.X nine months stock-based transaction-related months depreciation million, discussed. For amortization, $XX which expenses $XXX,XXX the reported first in $XXX,XXX non-cash also for loss previously of includes million and nine expenses. $X.X million Operating of revenue operating operating XXXX, $XX.X in expenses compensation, XXXX in and included of of and million in the first network

for the XX, was warrant of non-cash $XX.X of loss ending million, in included change the and element net Our value September related nine-month income $XX.X period our million to fair liability. a

Managing our expenses before optimize and in business the adapt costs, stock non-cash $XX.X million of position our expenses, depreciation, expenses Now economic environment. continually second with of is with the in changes expense company, light for our the and of substantially in liquidity to work network cash to quarter, a one-time priority and compensation our operating and our growth line quarter. the operations to acquisition-related

maintain managed as and short-term as mentioned, expenses, investments flexibility, cash approximately debt XX. excuse September we we've As free sheet, expenses, of equivalents continue continue and maintain our $XX million -- substantial a cash, we in to to balance me, we've capital

mentioned pops by pursue operator With PNT are in X.X attractive to reduced back first as new Now, the capabilities, acquisition, Operator? be we initiatives driven inherent capital into continue XXXX, we and that, megahertz turn call value given of the our to which earnings bring on Ganesh, tremendous revenue to products expect spectrum. as questions. Nestwave unique government call the and I'll course service, we by for now to in customers very even lumpy the billion the now our more outlined requirements our our over our as

Operator

Instructions]. Thank [Operator you.

Your line B. with first question from comes of the Riley. Mike Crawford

is open. line now Your

Mike Crawford

available on and such wireless to you. how given able just magnitude networks make expound is for of envisioned? beacons previously for will be bit Can spectrum a little need further less you Thank a NextNav more TerraPoiNT

Gary Parsons

that the already and Let weeks it Nestwave if me the integrate fewer XG beacons the that off to, of want technology and on a pure I to on allows and with explained Nestwave place when TerraPoiNT hit made but technologically can expand Ganesh are existing to carriers some we've even signals first from signals. announcement ago, and few there wireless you the think us XG that we conversion

machine. historically timing positioning with LTE and now also core to waveform very GPS capability waveform, PNT data-carrying and an to GPS or LTE TerraPoiNT the in pretty accuracy been because inherent system While that good that exist of to have simultaneous we're being still this we TerraPoiNT able we yet, synchronized maintaining very our awesome have capabilities. our able But own resiliency, signals, and limited carry highly that for PNT timing frailties signal ability a carriage the have then obviously data over using our own level Obviously, to keep those in by moving existing renowned correct backup system. our same has migrating of that we in

element what do is a capability. network, a So as in we that the data-carrying of raw inherently got deploy we've first

and able Secondly, whatever the using of utilize require. a normal capability megahertz, that X all X the would amount to by be, LTE across an may megahertz, whether we're X spans megahertz, waveform, its LTE we spectrum signal what

forward decide that we amount finally, So may a then, we mentioned the additional think his as too, the core as of in we're would and PNT alternate or from case. I to in for exist signal. capabilities our pure is And that well that little flexibility private functionality long any campus use obviously spectrum using a in as the deploy more gives us bit comments something PNT that also the maybe an of Ganesh of case that perspective, or carrying a be if as beacons, network

Is of an us the in now PNT order channels is what it any even LTE a more data-carrying gives magnitude we'll worth deploy fact full capability. capability in sense, So for Mike? of helpful also that that

Mike Crawford

Gary. regulatory these be you any services? offer anyone or need additional authorization able the It Would in order from to is, to FCC

Gary Parsons

subtleties that's exist and thing the the is interested on are of front. doesn't that in they're only underlying requirements who it at for Well, some spectrum that it it but investors in if worth quite the particularly value the primary are license is for probably are you interested for -- The that noting look spectrum PNT. obviously PNT, to restrict

this as capabilities, So providing physician monitoring navigation as carried with manner. capability the location or a you fact in timing data is of that providing long any it's it's not capability, that do the what that's else restricted a and service

that dedicated limited waveforms that enforcing could have example, in we are even use, within obviously packets the those existing GPS performance. them are using and throughput their we For currently data but fairly

do and in the So system from that been -- yes, for particular ability is restricted that we capabilities It's place the the you have not license on license. in one-way right the already we now the capability signal. got do existing sense not signal underlying existing to in system two-way it's MDS there. a The standpoint, put our have while two-way underlying actually that waivers we a do

comments, a some FCC number was the years that of for I do to Ganesh’s expect with in have we've we and test we've prior worked the country different we in number and licenses Now, in experimental locations order script of various a think there configurations. OET that had mentioned in the around

able also provide that these carriage capability. additional PNT in additional prove configurations but to we data expect waveforms fact, including capability, We are underlying only to some the a be testing to of not

and licenses, And certainly, do certainly for meet awareness now situational many we I services, is that of a but we responders yes, ensuring and of fact not the FCC proof putting that. many some we've are that agencies public government good the that relationship and right the and safety, are the first for requirements also interactions be the of with have that EXXX will we backup highly and years, aware with the element emergency, in interested very what there GPS in. forward something on along FCC governmental proving think we the have our of only valuable been is very accomplished that what but that So all FCC

governments something into It's the be of mean, get And encouraging at to would under most want government and and we government. cost be bill they and governmental federal possible. be grants. see in out infrastructure in I what to requests a way to coming to in huge position we so basis and that both can to able depth the those governments desires I do the local we on us on an effective expeditious state that that expense a the demands without respond think to more

Mike Crawford

Okay. Thank you.

stop, Just block to then can your for one that and spectrum Gary, on but broadcast versus ahead go X tack are or likely one X more maybe LTE, does try whole block over I'll X and other given and to repurposed more --? your this mean megahertz you that megahertz megahertz and you just broadcast less now that get

Gary Parsons

We'll doing would trying utilize both full is be all external having would I the set necessarily the set and work use to with of but megahertz that. that, don't that that Those or a options doesn't yes, and licenses. configurations, licenses X and using want of PNT potential And picking those we be XG you're the question. it with X, both that you exist, implementation going up Mike, would you rather what at will the answer X. use that But using or a we in it we're other but the be to going on likelihood there think good we was future. payload. will which a the but the most what noted payload surplus X surplus the achieving insightful determined with in We stick potential waveforms, of than that's all look it to There's potential clearly greater is payload. on simply know full a are powerful very only partner those to surplusing testing license megahertz we yet, of the that with, of -- that mean to one of X or that, X the to we're entire just LTE of

Mike Crawford

But Thank down amortization and was XX our depreciation, then, de-SPAC, of long-term issued about way projections would make you I'm that in ago with in revenue there today." a Spartacus I XXXX. mean, a business improved, the are you wondering numbers Clearly, And of Okay. any estimates question. say, you enabled had final "robust, comments projections incredible plan you. just revenue I well Nestwave. slide CapEx the that months in come previously where And advance what can given long-term so by projections if the such

Gary Parsons

mean pre-SPAC. from pipe the original presentations You on

Mike Crawford

Yes.

Gary Parsons

Yes.

address this I standpoint. think I will from I -- think guess that I

revenue in first in very note which lumpy our Our able adoption is would control. user we customers significantly point became board, quickly earnings revenue putting of be not that that out, on how a public company, call at costs that just not our normal because when integration from it roll be to likely partners, tried be it clearly expected to time necessarily of progression recurring a within we some we're to fact, but and our would they're costs, impacted we that from by end

for that, So continue with certainly Tier say we're that's and the doing. will and to today. for have we XXX the We near-term Pinnacle deals have service where adoption on certainly upcoming year the carrier guidance handset do safety the have to be last and the And good of to obviously some continuing the for work and forward-looking within FirstNet revenue. AT&T both public reason, declined are the our to thing. we partner on that consistently a provide we'll though; X service and that I

on the the I as able can. the tap largest PNT and people that we to But big the spectrum exists when if with have and opportunities aggressively also encourage GPS and shareholders, talk working revenues will actualize be as hard us to that that something our numbers. resilient they government we service. into will that And driving underlying exist progress this is these value unique of focus that to value are we the on, to say backup and So we we

that that reason, ensure but to focus we strategic on our be what we to going continuing on is as revenues as forward rapidly we're to the For Not is. our not we possible, say eye hard bring that as as push to can want to keep prize.

Operator

from Your line Horan next of question with comes Timothy Oppenheimer. the

Your line is now open.

Timothy Horan

on to you you And do what services? And megahertz? the guys. want meet with spectrum? to those you requirements just megahertz X And own Thanks, does be do spectrum, rest clear the meet location-based kind once for the the can the all requirements, X of of you have all

Gary Parsons

We megahertz. all do own X

markets. it brought is Just even that And the mean, from have That's B it listening services would being side-by-side for position XXX we to not Both and the on an as of them an what the something being have timing. location end that not with that service, revenue into -- a was needs continue license spectrum we what that navigation purpose and generator of we understanding that is that's we and expect that underlying for. potentially. primary corollary. But that that for is the are when may as together, be be, that generally up It it's now like that who X used answer the to usage for. And the Mike with these to have those to now, its those consistent the nuanced side-by-side I may example, question, is megahertz the certainly right is using somewhat reminder which be consistent -- a in folks gave either a may which licenses to It's do megahertz. but that more co-located, a C we than I continuous. separately they're that, or permission that, FCC so use say prior block, from to as of not most block, X like it, aware they're

Timothy Horan

that signal, sorry, And of send would signal, if just you Because you were best can XG because up or can almost an --? all be of then LTE the to right? mean pick and worlds, it I a every device kind

Gary Parsons

kilobits whether Yes, point. of currently. because remarks suddenly you can't just there to have capability a really LTE or mega And And from of it's different gigabits but data-carrying to that not a and under good of of remember said both handsets earlier, may data-carrying the capability LTE we be implementations, plans wonderful all the favorable go used in actually I those of what globally capabilities I the it. out really, there XG. the are virtually that which XG. that that But numbers Europe those are is use is within part actually of And band do spectrum part versus in use LTE this band

that ourself user are handsets end produced and why the those to signals Obviously, got -- we pick that those forward they processing other devices, they lower those aren't the of very But today it's cost have. capability for disciplining What that's taking with and Matter know, more LTE effectively antennas devices, mass already timed, to now particular whether poorly atomic the superior up signals. clock timing LTE you So the rely to very GPS fact, the going with LTE our timed. can consistent they're handsets signals. get you've and waveform. doing or be be even is upon well much as

Timothy Horan

what and yet, I before mobile level don't but a really that, know And power allowed stronger typical ask carrier a to we know can? well, are send signal you I out than a at

Gary Parsons

blast for factor often, stuff, at and No. able -- milliwatts that link but limiting quite it not hertz to at the a if be rather ends tend the being carriers for doesn't And large factor -- signals the to than so for design. We're out return frankly, the that thing. that's very network you isn't it's since it your handset limiting look network RF design from up

Timothy Horan

it think you open on? do you But built Yes.

Sorry.

Ganesh Pattabiraman

add, configurations. may I of be those as I our Sorry, part it Gary, think and we experimenting of elements experimentations as if would is one Tim

Gary Parsons

point. that That's to actually XXX have. levels had the actually license previously lots. XX experimental good currently we to up allowed us We go a go are And license beyond to have slices higher allowed to our of fact, power that in

Ganesh Pattabiraman

XXX lots, yes.

Gary Parsons

in there trials number and using design. of tests license use lock final a that experimental the the before be So network we different will will we with

Timothy Horan

for piece areas very and powerful to the even had hard And small particular, of I really right? improved services in reach all you a that's Right. would if it signal, need a mean, massively location-based

Gary Parsons

part would And is location we key our to is it. PNT services. be think I using for understand that certainly our of will for be important that real the a service, there But

existing We will signals be carriers, using all already. wireless

require and that it other limited doesn't of to have that beacons a So our the some ensure number accurate we trilateration deployment clocking than -- -- necessarily capabilities.

Timothy Horan

And to beacons your like need equals Is a one requirement? Is it that process? so Is do mix in why do that you that? one matching? and even plus XX

Gary Parsons

able cellular of necessarily a lot improves the tremendously signals coming systems angularity of we're where if have beacons the the levels, place accuracy don't It to right in.

bit resilience timing us the think obviously that but source the way allocation which we having hit it. But a from if desperately a provided jumpstart initial to now our very basis. that were another desirable least that able has still beacons, a actually MetCom dedicated spectrum the significant without in value not spectrum least them at well accurate using done TerraPoiNT to noted to the allocation. also as ability start. some into some links add capabilities we detail very desire that to may why on provide dedicated perpetuating that getting track is portion this back We before Ganesh But a of a of absolutely be able would separate if and even country. timing without location it limited clocking. right best particularly believe be you And capability at beacons the of accuracy do providing as does I So and this is as timing for X for timing the that little have mean, a large maybe you of backup do go central you'd can a without if allocation to Japan to for now now, will in like, and to a source number an that it's I like this then spectrum government consistent be unique clock But essential megahertz country, a best it. and a of across area also a to to you'd that's more

Timothy Horan

how beacons it And of it. if you Got using your improvement spectrum it. Got think? much an and do is

Gary Parsons

it’s Ganesh on depends jumping the and hate for ethical part. I and on what's and a depends It available location -- It

Ganesh Pattabiraman

which -- it's with think solution of Well, think our the is footprint. XXX Tim, TerraPoiNT get entire -- yes, would I you the sub think dedicated I type Cadillac it about -- a network, think you timing in, I was way to clocked nanoseconds could say I get in could

order XXX or of number nanosecond with with X combined sub that magnitude. -- looking that XXX, cellular signals Now you are systems, at our probably

combination lot give the that's you require LTE we the systems. it don't will clocking we position also some a for. of -- TerraPoiNT and that capability microsecond, that aviation, of that with or systems too automotive that very as good a to the along such why not still dedicated not that their you bring So clocks which have good. a applications, is requirements system bad say the but course, positioning And higher on it's want own really because resiliency capability, applications probably for as the closer to are it is for And whereas of

Timothy Horan

it. it. Got you a to decision make I go? which the get Yes, of trials now you Got to how do before take going here completely way long's to it And kind it.

Ganesh Pattabiraman

of of sort going be activities think lot of a that's our there on for some determinations half first I year. the we to from then would position out. to the be in a I And make think

Timothy Horan

you help -- And so with can

Gary Parsons

how I to year's it's capabilities the front, because together. of would it's put that that say month, we well important know not situation on type a pretty a

out that Now and to to limited test want we it areas deploy truly to prove be it. of enough in able

Timothy Horan

the I And is using How reflected can revenues us to many many Maybe of major or is going quarter's magnitude, -- are next order And use revenue? next you Pinnacle of fully a this it sense give now? some what's carriers one guess that can year? year? how drive carrier generate in

Gary Parsons

No.

Ganesh Pattabiraman

Yes.

couple a terms is So giving announced on I Pepper our necessarily on new -- -- using different solution said I bit, that. little the public to just right? and guidance. Hot device the for And a them we are mean carriers that we're in in of that the safety? XXX spoke device, a of carrier. using many think a we already based think not and which How is between least we've as are I at then --

some say X form would think in XXX So I public I purposes. shape are or And using for of and the a carriers -- our lot solution safety Tier

Gary Parsons

that there his saying we of streams -- that that bit we've of had weigh you actually that let -- where But operation to quarter. front the fourth the actual in from the the might say Chris will revenue commercialization with just clarify be integration our Tier a that on were a that, versus want Ganesh, X little in that's there carrier commercial XXX later process in to in

So really element that it's -- not

Chris Gates

is and just all operational of -- is we're if Pinnacle of to with like kind fully carriers, range a trying generating I what somewhat ultimately, three revenue a that quarterly. get Well,

-- outside on. nowhere near have We don't Yes. from we know the obviously, what's all going at

Timothy Horan

Sure.

Gary Parsons

safety we the or presently folks live that some be are the of front, place, in think are then public middle have now, hence go and which deals will in announced think number of I carriers they're that. in have actually, the we've our partners of XXXX partners that partnerships that as to but the added on be will first we that implementing will a quarter. that several we -- number be And part of now, will put in public of carrier right that goodly of will onto first right safety not And going other occurring the a

Timothy Horan

is million fully per -- running Pinnacle up and Can is quarter. And so give you when just $XXX $XX million us per quarter,

Gary Parsons

mean you. that of able they where out to from love I'd in lumpiness again, that guidance and it's to avoid be we to come I something when really trying of sort situation. Yes. a -- for But type are lay

Timothy Horan

$X by it's I No, totally asking implemented fully no, be is quarter what rough here it of of completely lumpiness. it millions? -- going on no, when implemented. million, not idea. We're $XXX it all revenue, I'm we $XX I'm no Is have Is the fully sitting when to outside, $X billion? it's and the million, millions? is this millions? Is hundreds asking carriers, a and Just idea million tens in per

Ganesh Pattabiraman

Cumulatively is you're that across -- what sort XXX, all of

Timothy Horan

the Yes, implemented, what's yes. run Quarterly, revenue once Pinnacle's rate? it's fully once fully --

Gary Parsons

other for XXX, just like the looking the what we're But asking saying, -- is elements you're element and Pinnacle something because in that I loan gaming safety worker, -- not the we of applications along. that you're think not coming it's Well, but obviously other only it XXX mean be public will the

Timothy Horan

be a can -- mean idea would Well, it rough between I break can and if helpful. mean, if XXX just you really break I down you else, everything yes,

Gary Parsons

believe. Tier that's that we that there. that out. that thing the I can currently only believe the don't we the have think I that place carrier we announced out existing rolling have number X have for we in don't I Well, amounts we have

Chris Gates

in don't. that be -- it'll not quarter. current first disclosed fourth we implementation anticipate of portion If of and looks don't, We Gary, sort maintains, We like. will in have be -- what the that that broadly schedule the reflected it'll but quarter a the we fully reflected

Timothy Horan

Okay.

so be of -- that. the carry quarter the of other two carrier the implemented one will for XXX will largely then, And first carriers, end rough the one year, have of by and reflected So fully the it. timing

Ganesh Pattabiraman

rolling will quarter per are -- be slightly the model. some would those but be on of different. rather first as mentioned It in in device -- think XXXX, carrier would model we've the I these of than be the out those the devices per that

timeframe, would numbers QX skew, model and time type over -- again it's that end a a think I of so which on carrier be from variation being So QX about, the it'd it of probably will per -- where that's those talked will basis. of be the Tim. slight Chris But but the in aggregate,

Timothy Horan

Okay.

revenue is for second run year's the Pinnacle XXX So like next to going be fully the half rate? reflected in

Gary Parsons

For for probably that's XXX case. -- the

Timothy Horan

much get fine. the free but point? Okay. you -- need cash range -- of burn do raise cash you think, wide -- us And this no positive range, to this you I how know to give you point, to do how okay, And can your need flow cash much so then at at a I a it's kind of

Gary Parsons

a a they're whether countries capital the partner other upon criteria. with sort like like Well, model some in fact bearing of adoption forward whether depends basis, the it, where beacons so and with been purchasing us in or going us these of of that expense they're have that the potentially things from implementation you're on for of that MetCom, going we're we an using

a way sub or million is originally think biggest what's million. the is that nationwide in -- $XXX $XXX had I million the CapEx the model program of it think now for I $XXX put we expansive doing TerraPoiNT build-out

with direction. likely that So can if be go numbers debt and to of -- we covered sort want those

or careful a that So we do being by the operation have capital more have at partners we from funds a use on of of the currently. we to debt into and some TerraPoiNT the now. now our that conservancy bring how government much fixed that But some system sort manageable which borne with ability situation, which may believe assets grants, by borne cost, of may right be be we based we're

the capital that's probably it. of or looking at So from standpoint way a best needs capital standpoint,

Timothy Horan

Yes.

question. last my sorry, And

United TerraPoiNT do States? largely you when a majority gets think the shut-on So for of

Gary Parsons

we've of you hit that looked let because implementations at that. one I'll various Ganesh,

Ganesh Pattabiraman

Yes.

I I that -- half PNT within we period think first be hopeful have the the of implementations think be we're in of we XX-month to a we be certain various year. of -- think sort will configurations the would -- evaluations I we And marketplace. resilient will I of like -- in in it the a can said, making position

Gary Parsons

you beacons reasons to look those markets, obviously to when there already And are that previous the of is, in TerraPoiNT is service lot in densified, of that's get without the in sufficient, population, accuracy an to often are markets. in frankly levels that's in would've to a additional the markets us the final have country, which conceivable we've roughly longer much top XX the half partially want adding beacons that under provide deployment at more sufficient It one biggest know that number had have XX those markets, a initial ever top before close -- viewed we've it significantly a Those It's by requirements timeframe for be or totally before. spoken implementations the our to that the and PNT we we not put would deployed bills. not I but been the out implementation service. those quite a commercial maybe early that a way

the to -- think FCC. Chris, as meet we've we're and building modest we'll got construction and have quarter I capital quarter expenditures as our also also before markets we've year fourth out next additional milestones mentioned, some with first

So underway. those are already actually

does view pretty that now. that So potential year comprehensive from might the facilitate our that in we a have a service that

Operator

of comes Jaime with line question from Perez RF the next Your Lafferty.

open. now is Your line

Jaime Perez

taking question Yes. day, A good and everybody. question, key --? my for TerraPoiNT on Thanks

Gary Parsons

Jamie. Hey,

Jaime Perez

separate Hey for be network use is or a you're there since any On building --? doing? government it be going surveillance national Gary, to because you're the infrastructure that imagine is TerraPoiNT, for to defense the and how for security, going

Gary Parsons

No.

Jaime Perez

Crossover or security? No.

to going be network? one complete all it's So

Ganesh Pattabiraman

No.

Gary Parsons

capability. no, dual specific they're the year commercial provided order for networks. -- separate of the use that more us network resiliency now cyber need dedicated government military, of that wanted DHS and protection be something that is rather actually would frankly, us the would procurements current for fortunately towards in they their But levels did they single in fairly governmental including using far isolated of infrastructure. a services, Quite service. and protection last put they For beacons grants to They the even a critical secure that that is even order the pointing than confidence to towards trend them in across our

Ganesh Pattabiraman

me a that bit, Jaime. let And address Yes. just little

is entities. key government. And I I infrastructure one the by I really elements by that that it that resilient can is critical view there It's this with that right? their think I needs. combination all really fundamentally And a those network that that be own is is the not and government's think with that's And XX% along mean a that if think network, of needs. served just domestically type here. is think about owned the of I secure of owned serves think private you to with those

Jaime Perez

government, a a thing that's give find to bit. mess good they Maybe up a way Yes. it because a things to little

Gary Parsons

Yes.

Jaime Perez

-- you far government going are as is blanket to revenues are or are the collecting creating going for contracts, for the a the the and as that to developers government? that, Now government fees be coverage from pay you the apps solutions

Ganesh Pattabiraman

the for single No, sort pays there PNT isn't of a fee that a Yes. resilience. so government

ensure purposes. mentioned would as their But believe is the available process, the passed of federal other the the PNT with through state cyber think the order satisfied local it resilience grants and through we their Order resilience by procurement at the once and be also they they is XXXXX the infrastructure some -- fees Executive all for that pay. for we've the would made I procurement the call government funds as levels along

that were the these types to or those include types of schemes -- I believe place funds been the -- have types in infrastructure -- capabilities of would those be as So put we there's of in bill. would of part met that through funding be envisioned

Jaime Perez

right. All

Now, looking X of in the Page slide at the that acquisition. put I'm you

to that it be some -- is you limitations type there as let's mentioned is limitation in mean I put on on example, I mean as after, on you Yes. met? that? far Now, with that terrain campus you Slide post-Nestwave. or pre-Nestwave and in of a example, then there valleys limitations For sublevel, or on any something for could there's have have like any mean, needs But equipment, if there. that I you any say, or terrain beacons a is has there X Because

Ganesh Pattabiraman

Yes.

different are two I questions. two So think -- those

valleys I On is and sort the have so I put the mean, signal here reach on to the from we're the first benefit same that same by in because think other that governed from our the part, in in terms physics, Yes. of of to where able laws are to places? -- LTE of own there carriers signals. impact, signals have but LTE is addition using different out we ambient -- limitations we're

then we maybe are bad as don't not one good as necessarily carrier. take area. as cellular in It's much, are of or listen operators We that. probably able some And limitations all the of as advantage it's just coverage, but the to the to the

whatever get So capability available of because from any we would is better reception you may actually take the a operators.

Jaime Perez

All right.

for and all a for my the but have great questions So that's have I taking thanks evening. questions tonight,

Gary Parsons

Great. Thanks, Jaime.

Ganesh Pattabiraman

Jaime. Thanks,

Operator

the turn to question-and-answer Parsons. This concludes our Gary back I like call session. to would

Gary Parsons

Well, operator, thank today. everyone appreciate and very much, in we dialing you

can't they next than As We time rapidly that we it we say, had very for We resilient everybody's the in that do acquisition. forward put We're before. our is can get spectrum calling and call. capability business sure of today very, us. exciting that pleased wait an with lot. actualize since the forward more to recent to PNT manifested into then appreciate asset. hopefully look you hosting full much Thanks expected we plan And our that a the on to what underlying right make the things value

Operator

you for concludes call. Thank This today's conference attending.

disconnect. may You now

NextNav (NN) 12 Nov 222022 Q3 Earnings call transcript