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Dec 31, 2023

AST SpaceMobile Q4 2023 Earnings Report

AST SpaceMobile's Q4 2023 results reflected increased operating expenses and ongoing strategic investments.

Key Takeaways

AST SpaceMobile reported a net loss attributable to common stockholders of $31.9 million, or $0.35 per share, for the fourth quarter of 2023. Total operating expenses for the quarter were $60.9 million, including $22.3 million of depreciation and amortization and stock-based compensation expense. The company ended the quarter with $88.1 million in cash, cash equivalents, and restricted cash.

Strategic financing milestone validates AST's technology and business model.

Fixed-firm-price contract with the U.S. Government is expected to generate initial revenue in Q1 2024.

Production of Block 1 BlueBird satellites faced supplier-related delays.

Launch contract secured for the first next-generation Block 2 BlueBird satellite, with launch window from December 2024 to March 2025.

Total Revenue
$0
0
EPS
-$0.35
Previous year: -$0.14
+150.0%
Gross Profit
-$19.6M
Previous year: $2.78M
-805.0%
Cash and Equivalents
$85.6M
Previous year: $239M
-64.1%
Free Cash Flow
-$47.2M
Total Assets
$361M
Previous year: $438M
-17.7%

AST SpaceMobile

AST SpaceMobile

Forward Guidance

AST SpaceMobile is focused on launching its Block 1 BlueBird satellites and the first next-generation Block 2 BlueBird satellite. The company is also working on securing additional strategic partners and advancing non-dilutive quasi-governmental funding sources.

Positive Outlook

  • Milestone strategic financing is a vote of confidence in AST’s tech and business model
  • Fixed-firm-price contract award announced with the United States Government through a prime contractor, expected to produce initial revenue in Q1 2024
  • Necessary funding on-hand to execute near-term strategic plan for the launch of five 700 sq. ft. Block 1 BlueBird satellites and first next generation 2,400 sq. ft. Block 2 BlueBird satellite, which will surpass Block 1 BlueBird satellites as the largest commercial phased array in low Earth orbit
  • FCC Approves Framework for the Use of Terrestrial Spectrum for SpaceMobile (Direct-to-Device)
  • Progressing Non-Dilutive Quasi-Governmental Funding Sources With Non-Binding Letters of Interest from Three Institutions

Challenges Ahead

  • Production of five 700 sq. ft. Block 1 BlueBird satellites was impacted by two suppliers, leading to delays in integration and testing
  • The company incurred a net loss before allocation to noncontrolling interest of $77.124 million for the three months ended December 31, 2023
  • The company had negative operating income of $60.878 million for the three months ended December 31, 2023
  • The company had no revenues for the year ended December 31, 2023
  • AST SpaceMobile cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made.