NextNav Inc. Q3 FY2024 earnings call

• NextNav submitted formal comments and reply comments to the FCC regarding reconfiguring the lower 900 megahertz band, emphasizing the need for a terrestrial PNT backup to GPS.
• Engaged in engineer-to-engineer dialogue with stakeholders like railroads, toll companies, NTIA, and Flex Association.
• Filed a detailed economic analysis by Brattle Group showing the economic impact of GPS outages and the benefit of NextNav's proposal.
• Continues to focus on executing its strategic vision and addressing the critical need for terrestrial PNT as a complement and backup to GPS.

NextNav's revenue in the third quarter was $1.6 million, a $0.6 million increase from $1.0 million in the prior year period. For the nine-month period, revenue was $3.8 million, a $1.1 million increase from $2.7 million in 2023. Operating expenses for the third quarter were $15.5 million, down approximately $0.1 million versus the same period last year. Net loss for the third quarter was $13.6 million. At the end of the quarter, the company had $86.8 million in cash, cash equivalents and short-term investments, and $53 million in debt, net of unamortized discount.

• Does not anticipate an NPRM (Notice of Proposed Rule-Making) in 2024.
• Will continue working closely with relevant government agencies and stakeholders to advance the terrestrial PNT initiative.

• Uncertainties around FCC approval timelines and potential opposition from stakeholders.
• Impact of regulatory changes and the need to navigate through potentially lengthy comment and review processes.

Q: Could you convey anything notable regarding discussions with Edison Electric Institute or the NTIA?

A: We've contacted over 110 stakeholders including tolls, railroads, unlicensed users, and amateurs to understand opposition views and will continue dialogue with them.

Q: What's your thought on the NTIA recommending the FCC grants a short-term experimental license for field testing?

A: We regard the NTIA call for testing as a helpful procedural tool to induce incumbents to engage and be responsive, and we're moving into a phase of collaborative analysis including engineer-to-engineer dialogue and potential testing.

Q: Given the administration change, is there any precedent for outgoing commissioners putting forth an NPRM?

A: We don't anticipate an NPRM in 2025 and won't speculate on timing for current or future administrations regarding an NPRM.

Q: Can you describe what's involved in swapping the bands in your proposed plan?

A: It's not really a swap but tweaking rules to make spectrum viable for 5G broadband, requiring new infrastructure like radios on towers and handsets accommodating the spectrum, and working with partners like existing MNOs.

Q: Regarding amateur operators, is it true they need to not cause interference to NextNav as the primary user?

A: Yes, both amateurs and Part 15 users need to operate on a non-interference basis per FCC rules.