AST SpaceMobile Stock (NASDAQ: ASTS) Gains Pre-Market As Earnings Beat

AST SpaceMobile stock (NASDAQ: ASTS) was pulled lower by markets on Monday, giving back some of the year-to-date gains of 25% leading into the session. After a drop of 5.5% to start the week, earnings have given some new impetus, with ASTS trading up 2% through this morning's pre-market.

The company has faced questions regarding its financial health in recent times, yet shrugged some of this off by beating on EPS for the first time in three. Earnings per share came in at -$0.18 against the expected -$0.21, whilst revenues missed, as the $1.92million reported failed to hit the $2.38 million expected.

CEO, and Founder Abel Avellan was bullish on the performance, and cash position, now indicated at $1.0 billion on the balance sheet pro forma.

“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. 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.

AST SpaceMobile reported a considerable loss of $171.9 million in Q3 2024, with operating expenses exceeding $66 million. The deployment costs for 60 BlueBird satellites could potentially reach up to $1 billion, emphasising the financial challenges ahead.

AST SpaceMobile is striving to establish the first space-based cellular broadband network. This initiative aims to provide 4G and 5G connectivity directly to smartphones, especially in remote and underserved regions. Having already launched five commercial BlueBird satellites, the company has laid significant groundwork in its space infrastructure.

AST SpaceMobile has been proactive in securing non-dilutive funding options. This includes a long-term partnership with AT&T through 2030, and pursuing government contracts, having secured its first and actively competing for more federal projects. Additionally, the company is focusing on commercial prepayments from mobile partners to maintain operations without diluting shares. However, skepticism arose following a $400 million debt offering, underscoring the need for clarity on future funding strategies.