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  Title	AST SpaceMobile Provides Business Update and Fourth Quarter and Full Year 2024 Results
  ID	7445175
  External ID	211500747
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  Published Date	March 3, 2025, 3:15 p.m.
  Summary	Unlock stock picks and a broker-level newsfeed that powers Wall Street. Upgrade Now AST SpaceMobile Provides Business Update and Fourth Quarter and Full Year 2024 Results Business Wire Mon, Mar 3, 202
  Tags	press-release
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  Content ID	4750421
  Key	0fac0974-ebb3-4328-9980-674c4cf7c0e4
  Content	Unlock stock picks and a broker-level newsfeed that powers Wall Street. Upgrade Now AST SpaceMobile Provides Business Update and Fourth Quarter and Full Year 2024 Results Business Wire Mon, Mar 3, 2025, 4:15 PM 19 min read In This Article: ASTS +15.88% ASTSW +9.85% MIDLAND, Texas, March 03, 2025 --( BUSINESS WIRE )-- AST SpaceMobile, Inc. ("AST SpaceMobile") (NASDAQ: ASTS), the company building the first and only space-based cellular broadband network accessible directly by everyday smartphones, and designed for both commercial and government applications, is providing its business update and results for the fourth quarter and full year ended December 31, 2024. "2024 was a milestone year for AST SpaceMobile, and we enter 2025 even better positioned to lead the emerging direct-to-device satellite communications industry that we invented," said Abel Avellan, Founder, Chairman and CEO of AST SpaceMobile. "The many pieces of our plan are rapidly coming into place. We advanced our customer ecosystem, formalized definitive commercial agreements, and expanded our U.S. Government capabilities. Finally, we completed a carefully structured financing transaction with minimal dilution to current shareholders, enabling us to accelerate our manufacturing efforts and start 2025 stronger than ever." "With nearly $1.0 billion in cash on our balance sheet pro forma for the recent offering of convertible notes, an alliance of industry leading partners, and our proprietary technology, we are well-positioned for continued success," added Avellan. "We are laser-focused on building and deploying satellites and expanding our commercial agreements during 2025, moving toward commercial-scale revenues. Our vision has never been clearer, and we believe we have the resources and capabilities to execute our plans." Business Update Significant advancement in commercialization of SpaceMobile network with new commercial agreements with Vodafone and the U.S. Government Vodafone definitive commercial agreement through 2034 establishes framework to offer SpaceMobile service in its 20+ countries across Europe and Africa Secured contract for $43.0 million in expected revenue with the U.S. Space Development Agency (SDA) through a prime contractor, following successful testing on BlueWalker-3 Announced plans to form European distribution entity, jointly owned with Vodafone to accelerate commercialization across European continent Company has agreements with approximately 50 mobile network operators globally, which have nearly 3.0 billion existing subscribers globally Achieved full operational status for first five BlueBird commercial satellites, each the largest-ever commercial communications arrays deployed in low Earth orbit (LEO) Successfully conducted capability demonstrations of two-way video call transmission with AT&T, Verizon, and Vodafone using unmodified smartphones in premium low-band wireless spectrum Preparing to begin testing service with AT&T and Verizon in the U.S., Vodafone in the UK and Turkey, and Rakuten in Japan Received FCC grant of Special Temporary Authority (STA) with AT&T and Verizon in the U.S. to facilitate initial services, targeting approximately 100% nationwide coverage from space with over 5,600 coverage cells Accelerated satellite manufacturing with planning and production of 40 Block 2 BlueBird satellites underway at AST SpaceMobile manufacturing facilities in Midland, Texas Additionally, accelerated the procurement of components and materials needed to complete fully assembled microns and phased array for over 50 satellites in total Exercised option for additional orbital launches, with full contracted launch capacity now for approximately 60 satellites during 2025 and 2026 Completed bring-up and initial validation of novel ASIC, a custom, low-power chip designed to support up to 10,000 MHz in processing bandwidth per satellite with peak data transmissions speeds of up to 120 Mbps Block 2 BlueBird satellites span an unprecedented 2,400 square feet, more than 3x larger than the first five BlueBird satellites in orbit today Spectrum agreement for long-term access to up to 45 MHz of premium lower mid-band spectrum in the U.S. for direct-to-device applications will enable peak data transmission speeds of up to 120 Mbps nationwide Enhances existing shared cellular spectrum strategy with mobile network operator partners, expanding potential subscriber capacity and services in the U.S., the most valuable wireless market in the world Matches 80+ year usage rights for a large block of attractive spectrum with technology leadership and largest-ever LEO communications arrays for direct-to-device cellular broadband Strengthens position within broader wireless ecosystem with additional core strategic asset Robust balance sheet with nearly $1.0 billion in cash, cash equivalents, and restricted cash (as of December 31, 2024), pro forma for convertible notes offering Closed $460.0 million of gross proceeds from 7-year convertible senior notes offering, structured with an effective conversion price of $44.98 per share of Class A common stock, a premium of 100% over last sale dated January 22, 2025, and approximately 3% dilution to current shareholders Continue to prioritize raising strategic capital through non-dilutive approaches, including commercial prepayments and commitments from mobile network operator partners Progress made with quasi-governmental sources of capital, with applications in process for over $500.0 million in potential non-dilutive capital from multiple U.S. and International agencies Story Continues Fourth Quarter and Full Year 2024 Financial Highlights As of December 31, 2024, we had cash, cash equivalents, and restricted cash of $567.5 million Total operating expenses for the fourth quarter of 2024 were $60.6 million, including $19.9 million of depreciation and amortization and stock-based compensation expense. This represents a decrease of $6.0 million as compared to $66.6 million in the third quarter of 2024, due to a $9.3 million decrease in research and development costs and a $6.1 million decrease in depreciation and amortization expense, partially offset by a $9.1 million increase in engineering services costs and a $0.3 million increase in general and administrative costs Adjusted operating expenses (1) for the fourth quarter of 2024 were $40.8 million, a decrease of $4.5 million as compared to $45.3 million in the third quarter of 2024, due to a $9.3 million decrease in research and development costs, partially offset by a $4.2 million increase in Adjusted engineering services costs (1) and a $0.6 million increase in Adjusted general and administrative costs (1) As of December 31, 2024, we have incurred approximately $460.0 million of gross capitalized property and equipment costs and accumulated depreciation and amortization of $122.4 million. The capitalized costs include costs of satellite materials for BlueBird satellites, advance launch payments, Block 1 and BlueWalker 3 satellites, assembly and integration facilities including assembly and test equipment, and ground antennas (1) See reconciliation of Adjusted operating expenses to Total operating expenses, Adjusted engineering services costs to Engineering services costs and Adjusted general and administrative costs to General and administrative costs in the tables accompanying this press release. Non-GAAP Financial Measures We refer to certain non-GAAP financial measures in this press release, including Adjusted operating expenses, Adjusted engineering services costs and Adjusted general and administrative costs. We believe these non-GAAP financial measures are useful measures across time in evaluating our operating performance as we use these measures to manage the business, including in preparing our annual operating budget and financial projections. These non-GAAP financial measures have no standardized meaning prescribed by U.S. GAAP, and therefore have limits in their usefulness to investors. Because of the non-standardized definitions, these measures may not be comparable to the calculation of similar measures of other companies and are presented solely to provide investors with useful information to more fully understand how management assesses performance. These measures are not, and should not be viewed as, a substitute for their most directly comparable GAAP measures. Reconciliation of non-GAAP financial measures and the most directly comparable GAAP financial measures are included in the tables accompanying this press release. Conference Call Information AST SpaceMobile will hold a quarterly business update conference call at 5:00 p.m. (Eastern Time) on Tuesday, March 4, 2025. The call will be accessible via a live webcast on the Events page of AST SpaceMobile’s Investor Relations website at https://ast-science.com/investors/ . An archive of the webcast will be available shortly after the call. About AST SpaceMobile AST SpaceMobile is building the first and only global cellular broadband network in space to operate directly with standard, unmodified mobile devices based on our extensive IP and patent portfolio, and designed for both commercial and government applications. Our engineers and space scientists are on a mission to eliminate the connectivity gaps faced by today’s five billion mobile subscribers and finally bring broadband to the billions who remain unconnected. For more information, follow AST SpaceMobile on YouTube , X (Formerly Twitter) , LinkedIn and Facebook . Watch this video for an overview of the SpaceMobile mission. Forward-Looking Statements This communication contains "forward-looking statements" that are not historical facts, and involve risks and uncertainties that could cause actual results of AST SpaceMobile to differ materially from those expected and projected. These forward-looking statements can be identified by the use of forward-looking terminology, including the words "believes," "estimates," "anticipates," "expects," "intends," "plans," "may," "will," "would," "potential," "projects," "predicts," "continue," or "should," or, in each case, their negative or other variations or comparable terminology. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside AST SpaceMobile’s control and are difficult to predict. Factors that could cause such differences include, but are not limited to: (i) expectations regarding AST SpaceMobile’s strategies and future financial performance, including AST’s future business plans or objectives, expected functionality of the SpaceMobile Service, anticipated timing of the launch of the Block 2 BlueBird satellites, anticipated demand and acceptance of mobile satellite services, prospective performance and commercial opportunities and competitors, the timing of obtaining regulatory approvals, ability to finance its research and development activities, commercial partnership acquisition and retention, products and services, pricing, marketing plans, operating expenses, market trends, revenues, liquidity, cash flows and uses of cash, capital expenditures, and AST SpaceMobile’s ability to invest in growth initiatives; (ii) the negotiation of definitive agreements with mobile network operators relating to the SpaceMobile Service that would supersede preliminary agreements and memoranda of understanding and the ability to enter into commercial agreements with other parties or government entities; (iii) the ability of AST SpaceMobile to grow and manage growth profitably and retain its key employees and AST SpaceMobile’s responses to actions of its competitors and its ability to effectively compete; (iv) changes in applicable laws or regulations; (v) the possibility that AST SpaceMobile may be adversely affected by other economic, business, and/or competitive factors; (vi) the outcome of any legal proceedings that may be instituted against AST SpaceMobile; and (vii) other risks and uncertainties indicated in the Company’s filings with the Securities and Exchange Commission (SEC), including those in the Risk Factors section of AST SpaceMobile’s Form 10-K to be filed with the SEC on March 3, 2025. AST SpaceMobile cautions that the foregoing list of factors is not exclusive. AST SpaceMobile cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk Factors in AST SpaceMobile’s Form 10-K to be filed with the SEC on March 3, 2025. AST SpaceMobile’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov . Except as expressly required by applicable securities law, AST SpaceMobile disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. Fourth Quarter and Fiscal Year 2024 Financial Results AST SPACEMOBILE, INC. CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except share data) December 31, 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 564,988 $ 85,622 Restricted cash 2,546 2,475 Prepaid expenses 7,887 4,591 Other current assets 24,825 14,194 Total current assets 600,246 106,882 Non-current assets: Property and equipment, net 337,669 238,478 Operating lease right-of-use assets, net 14,014 13,221 Other non-current assets 2,632 2,311 TOTAL ASSETS $ 954,561 $ 360,892 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 17,004 $ 20,575 Accrued expenses and other current liabilities 12,195 23,926 Contract liabilities 41,968 - Current operating lease liabilities 1,856 1,468 Current portion of long-term debt, net 2,919 252 Total current liabilities 75,942 46,221 Non-current liabilities: Warrant liabilities 41,248 29,960 Non-current operating lease liabilities 12,652 11,900 Long-term debt, net 155,573 59,252 Total liabilities 285,415 147,333 Commitments and contingencies Stockholders' Equity: Class A Common Stock, $.0001 par value, 800,000,000 shares authorized, 208,173,198 and 90,161,309 shares issued and outstanding as of December 31, 2024 and 2023, respectively. 20 9 Class B Common Stock, $.0001 par value, 200,000,000 shares authorized, 11,227,292 and 50,041,757 shares issued and outstanding as of December 31, 2024 and 2023, respectively. 4 5 Class C Common Stock, $.0001 par value, 125,000,000 shares authorized, 78,163,078 shares issued and outstanding as of December 31, 2024 and 2023. 8 8 Additional paid-in capital 969,004 288,404 Accumulated other comprehensive (loss) income (176 ) 227 Accumulated deficit (489,745 ) (189,662 ) Noncontrolling interest 190,031 114,568 Total stockholders' equity 669,146 213,559 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 954,561 $ 360,892 AST SPACEMOBILE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except share and per share data) Year Ended December 31, 2024 2023 2022 Revenues $ 4,418 $ - $ 13,825 Operating expenses: Costs to fulfill Nano contracts (exclusive of items shown separately below) - - 6,714 Engineering services costs 93,491 78,811 54,212 General and administrative costs 61,566 41,601 48,332 Research and development costs 28,783 47,486 45,620 Depreciation and amortization 63,340 54,469 4,711 Total operating expenses 247,180 222,367 159,589 Other income (expense): (Loss) gain on remeasurement of warrant liabilities (268,627 ) 8,986 19,114 Interest expense (18,681 ) (4,511 ) (216 ) Interest income 14,164 7,186 2,849 Other income (expense), net 1,867 (10,290 ) 21,521 Loss on extinguishment of debt (10,963 ) - - Total other (expense) income, net (282,240 ) 1,371 43,268 Loss before income tax expense (525,002 ) (220,996 ) (102,496 ) Income tax expense (1,328 ) (1,681 ) (617 ) Net loss before allocation to noncontrolling interest (526,330 ) (222,677 ) (103,113 ) Net loss attributable to noncontrolling interest (226,247 ) (135,116 ) (71,473 ) Net loss attributable to common stockholders $ (300,083 ) $ (87,561 ) $ (31,640 ) Net loss per share attributable to holders of Class A Common Stock Basic and diluted $ (1.94 ) $ (1.07 ) $ (0.58 ) Weighted-average shares of Class A Common Stock outstanding Basic and diluted 154,501,344 81,824,122 54,437,073 AST SPACEMOBILE, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Dollars in thousands) Year Ended December 31, 2024 2023 2022 Net income loss before allocation to noncontrolling interest $ (526,330 ) $ (222,677 ) $ (103,113 ) Other comprehensive loss Foreign currency translation adjustments (586 ) (6 ) (295 ) Total other comprehensive loss (586 ) (6 ) (295 ) Total comprehensive loss before allocation to noncontrolling interest (526,916 ) (222,683 ) (103,408 ) Comprehensive loss attributable to noncontrolling interest (226,430 ) (135,120 ) (71,704 ) Comprehensive loss attributable to common stockholders $ (300,486 ) $ (87,563 ) $ (31,704 ) AST SPACEMOBILE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Dollars in thousands, except share and per share data) For the Three Months Ended December 31, 2024 2023 2022 Revenues $ 1,918 $ - $ - Operating expenses: Engineering services costs 30,945 19,992 16,004 General and administrative costs 15,889 10,528 10,698 Research and development costs 5,348 10,766 14,651 Depreciation and amortization 8,460 19,592 1,254 Total operating expenses 60,642 60,878 42,607 Other income (expense): Gain (loss) on remeasurement of warrant liabilities 16,212 (12,468 ) 17,445 Interest expense (3,949 ) (3,024 ) (53 ) Interest income 5,277 1,389 1,665 Other income (expense), net 206 (55 ) (1,669 ) Loss on extinguishment of debt (10,963 ) - - Total other (expense) income, net 6,783 (14,158 ) 17,388 Loss before income tax expense (51,941 ) (75,036 ) (25,219 ) Income tax (expense) benefit (156 ) (2,088 ) 130 Net loss before allocation to noncontrolling interest (52,097 ) (77,124 ) (25,089 ) Net loss attributable to noncontrolling interest (16,239 ) (45,198 ) (16,860 ) Net loss attributable to common stockholders $ (35,858 ) $ (31,926 ) $ (8,229 ) Net loss per share attributable to holders of Class A Common Stock Basic and diluted $ (0.18 ) $ (0.35 ) $ (0.14 ) Weighted-average shares of Class A Common Stock outstanding Basic and diluted 199,219,379 90,008,459 60,799,275 AST SPACEMOBILE, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (Dollars in thousands) For the Three Months Ended December 31, 2024 2023 2022 Net income loss before allocation to noncontrolling interest $ (51,941 ) $ (77,124 ) $ (25,089 ) Other comprehensive loss Foreign currency translation adjustments 190 520 1,570 Total other comprehensive loss 190 520 1,570 Total comprehensive loss before allocation to noncontrolling interest (51,751 ) (76,604 ) (23,519 ) Comprehensive loss attributable to noncontrolling interest (16,486 ) (44,894 ) (15,789 ) Comprehensive loss attributable to common stockholders $ (35,265 ) $ (31,710 ) $ (7,730 ) AST SPACEMOBILE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands) Years Ended December 31, 2024 2023 2022 Cash flows from operating activities: Net loss before allocation to noncontrolling interest $ (526,330 ) $ (222,677 ) $ (103,113 ) Adjustments to reconcile net loss before noncontrolling interest to cash used in operating activities: Gain on sale of Nano - - (24,542 ) Depreciation and amortization 63,340 54,469 4,711 Amortization of debt issuance costs 3,734 1,155 - Write off of unamortized debt issuance costs 5,483 - - Loss on disposal/sale of property and equipment 2,221 110 305 Loss (gain) on remeasurement of warrant liabilities 268,627 (8,986 ) (19,114 ) Stock-based compensation 32,039 13,289 9,391 Paid-in-kind ("PIK") interest expense 2,959 - - Issuance of common stock for commitment shares - - 332 Changes in operating assets and liabilities: Accounts receivable - - (1,993 ) Inventory - - (2,461 ) Prepaid expenses and other current assets (14,016 ) 12,082 (24,588 ) Accounts payable and accrued expenses (6,257 ) (149 ) 18,438 Operating lease right-of-use assets and operating lease liabilities 349 48 40 Contract liabilities 41,968 - 2,395 Other assets and liabilities (260 ) 1,717 (16,265 ) Net cash used in operating activities (126,143 ) (148,942 ) (156,464 ) Cash flows from investing activities: Purchase of property and equipment (174,127 ) (118,807 ) (57,284 ) Proceeds from sale of Nano, net of cash deconsolidated and transaction costs - - 25,932 Net cash used in investing activities (174,127 ) (118,807 ) (31,352 ) Cash flows from financing activities: Proceeds from debt 145,000 63,500 230 Repayments of debt (48,752 ) (242 ) - Payment for debt issuance costs (9,435 ) (9,653 ) - Proceeds from issuance of common stock 551,947 64,639 104,770 Payments for third party equity issuance costs (12,151 ) (872 ) (2,747 ) Proceeds from warrant exercises 153,618 - 14 Issuance of equity under employee stock plan 4,941 225 73 Employee taxes paid for stock-based compensation awards (5,201 ) (865 ) - Net cash provided by financing activities 779,967 116,732 102,340 Effect of exchange rate changes on cash, cash equivalents and restricted cash (260 ) (142 ) 195 Net increase (decrease) in cash, cash equivalents and restricted cash 479,437 (151,159 ) (85,281 ) Cash, cash equivalents and restricted cash, beginning of period 88,097 239,256 324,537 Cash, cash equivalents and restricted cash, end of period $ 567,534 $ 88,097 $ 239,256 Supplemental disclosure of cash flow information: Non-cash activities: Right-of-use assets obtained in exchange for operating lease liabilities $ 2,238 $ 6,739 $ 1,129 Non-cash investing and financing activities: Purchases of property and equipment in accounts payable and accrued expenses $ 9,309 $ 18,409 $ 4,926 PIK interest paid through issuance of PIK notes 2,959 - - Settlement of warrant liabilities by issuing shares 257,337 - - Cash paid during the fiscal year for: Interest $ 11,988 $ 3,243 $ 224 Income taxes, net 1,669 492 684 AST SPACEMOBILE, INC. RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED MEASURES (UNAUDITED) (Dollars in thousands) For the Three Months Ended December 31, 2024 GAAP Reported Stock-Based Compensation Expense Adjusted Engineering services costs $ 30,945 $ (8,347 ) $ 22,598 General and administrative costs 15,889 $ (3,075 ) 12,814 Research and development costs 5,348 5,348 Depreciation and amortization 8,460 8,460 Total operating expenses $ 60,642 $ (11,422 ) $ 49,220 Less: Depreciation and amortization (8,460 ) Adjusted operating expenses $ 40,760 For the Three Months Ended September 30, 2024 GAAP Reported Stock-Based Compensation Expense Adjusted Engineering services costs $ 21,828 $ (3,431 ) $ 18,397 General and administrative costs 15,551 (3,379 ) 12,172 Research and development costs 14,724 - 14,724 Depreciation and amortization 14,543 - 14,543 Total operating expenses $ 66,646 $ (6,810 ) $ 59,836 Less: Depreciation and amortization (14,543 ) Adjusted operating expenses $ 45,293 Adjusted operating expenses, Adjusted engineering services costs and Adjusted general and administrative costs are alternative financial measures used by management to evaluate our operating performance as a supplement to our most directly comparable U.S. GAAP financial measure. We define Adjusted operating expense as Total operating expenses adjusted to exclude amounts of stock-based compensation expense and depreciation and amortization expense. We define Adjusted engineering services costs and Adjusted general and administrative costs as engineering services costs and general and administrative costs adjusted to exclude stock-based compensation expenses. We believe Adjusted operating expenses, Adjusted engineering services costs and Adjusted general and administrative costs are useful measures across time in evaluating our operating performance as we use these measures to manage the business, including in preparing our annual operating budget and financial projections. Adjusted operating expenses, Adjusted engineering services costs, and Adjusted general and administrative costs are non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP, and therefore have limits in their usefulness to investors. Because of the non-standardized definitions, these measures may not be comparable to the calculation of similar measures of other companies and are presented solely to provide investors with useful information to more fully understand how management assesses performance. These measures are not, and should not be viewed as, a substitute for their most directly comparable GAAP measure of Total operating expenses, Engineering services costs and General and administrative costs. View source version on businesswire.com: https://www.businesswire.com/news/home/20250303501320/en/ Contacts Investor Contact: Scott Wisniewski investors@ast-science.com Media Contact: Allison Eva Murphy Ryan 917-547-7289 ASTSpaceMobile@allisonpr.com View Comments Terms and Privacy Policy Privacy Dashboard More Info Recommended Stories
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