AST SpaceMobile (ASTS) Q2 2024 earnings summary

Executive summary

• Completed and shipped first five commercial BlueBird satellites for a dedicated Falcon 9 launch in early September 2024, marking a major milestone for space-based cellular broadband service.

• Transitioned from R&D to full-scale production and commercialization, with technology validated and commercial ecosystem expanding; Block 2 production of 17 satellites underway.

• Secured major strategic partnerships and financing, including $100 million from Verizon, agreements with AT&T, Google, and Vodafone, and $35 million in convertible notes from Verizon.

• Achieved key regulatory milestones, including initial FCC license for U.S. space-based operations and progress with the International Telecommunication Union.

• Revenue for the quarter and six months ended June 30, 2024, was generated solely from U.S. Government contracts; no commercial service revenue yet.

Financial highlights

• Q2 2024 adjusted cash operating expenses were $34.6 million, up from $31.1 million in Q1 2024; total operating expenses were $63.9 million, driven by higher G&A and depreciation.

• Q2 2024 capital expenditures were $21.2 million, down from $26.6 million in Q1, reflecting Block 1 completion; gross property and equipment reached $347.5 million.

• Ended Q2 with $287.6 million in cash, up from $212.4 million at Q1, bolstered by $55 million from Verizon and $80 million via ATM equity facility.

• Net loss attributable to common stockholders was $72.6 million for Q2 2024, compared to $18.4 million in Q2 2023.

• Revenue was $0.9 million for Q2 2024 and $1.4 million for the six months, compared to zero in the prior year periods.

Outlook and guidance

• Launch of first five BlueBird satellites expected in early September 2024, with initial U.S. non-continuous service for AT&T and Verizon beta users a few months post-launch.

• Block 2 satellite production underway, with first launch targeted for Q1 2025 and subsequent launches as satellites are ready.

• Additional capital of $275–$325 million needed to fund launch and operation of 20 Block 2 satellites to reach commercial scale.

• Cash on hand expected to be sufficient for at least 12 months; further capital raises planned through equity, debt, or commercial arrangements.

• Adjusted cash operating expenses projected at $30–$35 million per quarter for the remainder of 2024, excluding ~$15 million in ASIC-related R&D.