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

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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.

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Contacts

Investor Contact: 
Scott Wisniewski
[email protected]

Media Contact: 
Allison
Eva Murphy Ryan
917-547-7289
[email protected]

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