AST SpaceMobile, Inc. Q4 FY2024 earnings call

• The past year and a half have been transformational, with acceleration in manufacturing, expansion of partner ecosystem, and demonstration of space-based durable products.
• 2024 validated AST SpaceMobile as a technology leader with over 3,500 patents/pending claims. In 2025, plans to leverage this for twist-pay connectivity.
• Secured $460 million convertible senior note offering, boosting balance sheet to ~$1 billion cash. Accelerated satellite manufacturing with 40 Block 2 Bluebird satellites in production and expanded global footprint.
• Secured large lower mid-band spectrum agreement, exercised launch contract options for 60 satellites. New $43 million contract with US Space Development Agency, and solidified regulatory framework with FCC.
• First five Bluebird satellites operational, with Vodafone, AT&T, and Verizon completing video calls over the in-orbit network.

No detailed product segment financial performance provided in the transcript. The focus is on company-wide operational milestones and progress.

• Accelerate manufacturing of 40 Block 2 Bluebird satellites. Plan to ramp monthly satellite production to 6 per month in the second half of 2025.
• Expect CapEx in Q1 2025 to be in the range of $150 to $175 million. Adjusted cash operating expense for Q1 2025 expected to be within $40 to $45 million.
• $43 million contract with the US Space Development Agency is expected to be recognized over the next twelve months or so, with linear recognition generally expected.

• Dependence on regulatory approvals from the FCC for full commercial constellation authorization.
• Uncertainties in launch timelines and potential manufacturing delays that could impact the ramp-up of satellite production.
• Competition in the space-based broadband market which could affect market penetration and revenue generation.

Q: When does AST SpaceMobile, Inc. expect to reach the sixth Bluebird per month manufacturing target?

A: We believe that by the second half of this year, we'll be at a rate of six per month. We have extended our facility in Midland to around 194,000 square feet of manufacturing and are adding additional facilities in Florida and Barcelona.

Q: What do the current satellites in orbit do for the company besides testing? Is there any progress on the defense or governmental part?

A: The current satellites are fully in operations. They have been approved to operate in the United States under an STA for testing with AT&T and Verizon, demonstrating full broadband capabilities. There is progress on the governmental front with a new $43 million contract with the US Space Development Agency based on testing done on BlueWalker 3 and operational satellites.

Q: Your agreements with the roughly 50 MNO partners represent three billion subscribers now. How many MNO subscribers could be addressed by this new Satco joint venture with Vodafone?

A: When looking at the full set of connections in Europe, it's around 600 million plus. This joint venture sets a plan for gateways across the continent, adding significant countries and operator potential for AST SpaceMobile.

Q: Are you still on track for an April launch or the next satellite? And can you give rough pacing for launches in 2025 and 2026?

A: We are on track, and we have secured launch capacity for up to 60 satellites during 2025 and 2026. We are planning to launch roughly 72 satellites per year once ramping up to six per month, with plans to start moving a launch cadence of around one launch every 45 days on the New Glenn later in the year.

Q: How does your technology differ versus what T-Mobile and Starlink are bringing to market and the advantages you have?

A: Our service offers voice, text, data, internet, video, etc., unlike T-Mobile and Starlink's more intermittent messaging service. We have a 10,000 megahertz of spectrum per satellite translating to 120 megabit per second data rate directly to phones without requiring any change on the phone, using premium existing 850 megahertz band, which is greatly differentiated.