Q3 2024 Earnings Summary
Reported on Feb 18, 2025 (After Market Close)
Pre-Earnings Price$26.80Last close (Nov 14, 2024)
Post-Earnings Price$23.18Open (Nov 15, 2024)
Price Change
$-3.62(-13.51%)
- Secured significant government contracts with potential for substantial revenue growth: AST SpaceMobile has been selected by the Space Development Agency to compete directly as a prime contractor under the HALO program, which could generate tens of millions of dollars and potentially grow into programs of record with hundreds of millions of annual revenues alongside important missions for U.S. national security.
- Strong progress in commercial agreements with major mobile network operators: The company has a definitive commercial agreement with AT&T and is working on similar agreements with other large partners. The pipeline of agreements is strong, supported by the successful deployment of satellites, and they are prioritizing strategic markets such as the United States, Europe, and Japan, potentially reaching hundreds of millions of subscribers.
- Secured launch agreements to deploy up to 60 satellites, enabling continuous service coverage: AST SpaceMobile has secured launch contracts with Blue Origin, SpaceX, and ISRO to launch up to approximately 60 satellites through 2025 and 2026, allowing them to provide continuous space-based cellular broadband service in key markets, including the United States, Europe, Japan, and others.
- Regulatory Approval Pending for Beta Services: AST SpaceMobile's ability to commence beta services with their first 5 satellites in the United States is pending FCC authorization, which could potentially cause delays in service deployment.
- Increase in Satellite Production and Launch Costs: The company has raised the estimated average cost per satellite for their Block 2 constellation from $16-18 million to $19-21 million due to higher actual launch costs, leading to increased capital expenditure requirements.
- Delay in Incorporating ASIC Technology: The significant capacity improvements from the AST5000 ASIC chip will not be included in satellites until mid to late 2025, as the company will continue to use FPGAs in the interim, which may impact network capacity and service offerings.