NextNav (NN) 8 May 242024 Q1 Earnings call transcript

Thank you for standing by. My name is Eric, and I will be your conference operator today. At this time, I would like to welcome everyone to the NextNav First Quarter 2024 Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Erica Bartsch. Please go ahead.

welcome First and Conference XXXX everyone, Call. afternoon, to Quarter NextNav's Earnings Good ended of strategies results, and aim, call NextNav's begin, and drive, statements plan, the Mariam anticipate, expressions factors, by and predict, on forward-looking project, unknown future will Reform does are cautioned Participating of information, or discussed any known and differ in to filings today's described many the will that statements from statement Factors undue of should, revise in events Part could, these question-and-answer statements, within of developments forward-looking Sorond, forward-looking.Such a place words remarks, identify our Commission.Following to would, an everyone prepared the date new this of prospects, actual Form Risk XA, NextNav's are the Item the or could NextNav's see and other as speak for outside report constitute the the commitment Financial not made, but on NextNav's uncertainties, are of statements, host the risk include will statements, which cause XA certain to or control no update the forecasts remind Chris as annual otherwise undertakes our Chief as possible additional assumptions believe, company Chief statements reports XX-Q and statements, on Officer.Before not me XXXX, we other XX, future that XXXX.Forward-looking X statements.You such time only relate Litigation a let and similar quarterly that is XX-K are meaning Factors call business Gates, Officer; results risks, information future Securities Item forward-looking with that company's which of factors, materially words may, Securities mean Form expect, NextNav operator-led result those use otherwise.For Exchange may might, regarding intend, may upon of absence December from well potential, the whether not time forward-looking forward-looking as to the Private Act and be Part updated Risk important subject the X identified to session. NextNav's which Executive of may results to year forward-looking reliance as of

our Ms. the Investor of I'd addition, the In the call, Mariam discussion to conclusion go to website. at a ahead. of call Chief be over Relations Executive Sorond, of turn to like company's posted Please today's Officer replay will now NextNav.

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recently X. prior highlight Finally, NextNav's Network including Chief at before NextNav Sano Gita Operating Sano we serving to May I Head team.Yesterday, and a our years With Google several Operations, was over technology Verizon to I thrilled a of Product Officer, are effective trials.We to her to various of Dr. want forward development to I we joining turn of some that, will review Gilas Strategy I at and things the that to VP joining in our someone Infrastructure and Gita the as new standing roles, to vision. contributions things of is Edge to network addition team, that, continue Shamsundar, advance where and announced the Chris? turn early Caliber as she XG financials. as the for have over look led Chris strategic Chris,

Mariam, and Thanks, everyone. afternoon, good

for compared increase $XXX,XXX an by in driven the a the period. technology increase million, services quarter to was prior $XXX,XXX in commercial with $X first in quarter The and of contracts a the quarter year-over-year perspective, quarter in cash the was and of up service in revenue $XX.X compared to in $X.X revenue quarter change was of expenses $XX.X in million First XXXX, value we year customers.Operating compensation $X.X million, loss warrants.From compensation a the million the from balance recurring million compared in $XX.X equivalents $XX.X expense the loss the first million included to change associated investments. million XXXX.Net $XX.X of in of depreciation to same on and equity million finished $X.X equity which million, fair $X.X first the million short-term and $XX.X loss loss and included last amortization and included $X.X year. depreciation expenses value in XXXX were for from million warrants in a a Operating which fair cash, a sheet quarter amortization million in with period of increase

of of showed million balance debt, asset attributed of million and $XX agreement, transaction on Court by payment the the A-Block following of $XX.X per made terms the $X.X in Our net cash March of quarter, the discount transaction the loans value Alameda the million.After approval the and the unamortized under XX contract. purchase we with issuance costs gross sheet the the close a to of

for may and since X, under end be based of price reminder, operator I've of on with over of that exercised tin.Finally, past, first that source the at shares any our common debt million conjunction of those $X.X call payments with stock with issued the aggregate the I'll the report as will satisfied million that, agreement quarter be of in shares of cash.With warrants our May of pleased turn to the the financing the warrants the Operator? we liquidity. $XX.X a I'm in time the a additional in for mentioned of stock future questions. to of were number As an our this the

the Boss Riley Griffin with from line [Operator of first comes Securities. question Instructions] Your

you're So, us than your a not and lot expectations too better what for the give you today vision a the higher of out? lay the first business NextNav beginning when this are where CapEx were now new given Can to there off, time ago of were expectations you are forward was a sense deploying long they TerraPointe going CapEx for Pinnacle. requirements contemplating

our believe is spectrum have presenting incorporate CapEx Thanks broadband for have comments. networks.So, can Griffin to partner, upon believe we're earlier feasible about correct is actually that this you in build. is and to SVP will for XX we the platform very who are we not PNT than unleash which mentioned this attractive we highlighted yes, task partners and their of our is Currently, the question. a the what previously XG different it network, into stand-alone that what that that potential approval, we And is megahertz

correctly opens that And additional Did to that days? then on which period April the you received and licenses, just that for ended then assignment you have XX-day said off court That's XX, would approval. up FCC, obviously the great comments see. I the of that kicked hear on imply today you on to

and and That to is comments the period in the tonight. is parties file correct. for Today for XX-day deadline comment petitions to response that would the be deadline

have would correct? the X Is additional FCC so, make to And that a decision? days

correct. is That

deny defer grant application. in they the action or which So, the days the X have on

the subsequent the Chris, $X.X Was it were that end of quarter? when to payment. the then, about million missed just you talking made initial I And first

the purchase asset be made XX. approval, Yes, days to on which is within or XX that of the Correct. of terms agreement the payment March court

so, And made the consistent the that payment terms contract. with we of

And or of approval then I SEC transfer on November. it's either the know milestone the that, of earlier the the next

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Perez line with the from of Lafferty. comes question RF next Jamie Your

have? of away seems the change from I but revenue. further at. know more it all you commercial Could when on give commercial of know you out it little like mean, first came going point, I this you it's any a The million strategy initiative I $X Pinnacle? clever not is color bit initiatives

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of my And any executive next update order question, sort the that's on spending?

good all a the a agencies, of federal to order whether funding. by talking a demonstrate all think about action are whether executive need, really the demonstrating the solution.So, country's the are require problem the solution including a initiatives in that's solve country executive we and PNT a federal and have GPS, for It system. that doesn't lot the been puts government or it's I require have a order the that to of solution solid through complement plan, doesn't there's which that's the these why need backup examples to legislation actually this with having principal and government, on address proposed good government and that

next with Odeon the Rosemary question Capital. of from Your line Sisson comes

of on working and see year question of so. the out kind next you how a had the liquidity I that or course over

million, after Your you $X.X the then the with million another cash cash of million end and spent the burn $X.X close quarter. to during quarter $X in was

quarterly burn that? to on do of kind forward the Is a going right how in think term? at near just about look you So, that rate basis the

guidance. forward-looking Yes, we and Yes, question. ahead I'll provided go address historically, haven't that

the our can a number few of strength balance one, sheet. offer I However, about, remarks

profile that favorable we've attempted transactions seen, us. liquidity have structure a for we've As to

stock. cash that.And the achievement the line the with paid made we're in intended is our ability looking of associated [Indiscernible] refine in at those For transaction to our payment substantially be operating objectives. expenses, We've with respect to example, constantly with expenses to our

at if that's in expenses, burn think we haven't year cash looks look year, I place in that's on of that start. I like think something of that's OpEx something historically again, guidance last terms provided. a kind what you our terms forward to But and of for reasonable that

over Please will now back closing CEO, call the turn for remarks. Mariam Sorond I go ahead. to

Thank you.

We spectrum to updated all from take want today, and for to this. currently look will reemphasize to a our as are tremendous the look a and working forward to ultimately, creates well and for Having to on moment want have on joining in date. we value in continue great in want questions and coordination financial you we're company recently close NextNav, vision is broadband and consider point. directly to inbound to I to sell utilizes broadband, to forward our regarding advancing any have as progress, Before engaging with And we very respond call, a progress strategy we FCC important also posted our a the become assets. our XG will one specific both GPS to complement I afternoon. I you strong so. want fiduciary our provide inquiries everyone, PNT shareholders.As that of we spectrum to thank us XXX-megahertz with offers that the and place available.We I solution in we to on backup The lower presented, pleased and our our keep company to received that, an our I with for the a community trajectory, innovative add and the for to here.Specifically, willingness those that have investors Board, CEO duty which customers we believe said and do with continue a

that all joining, Thank now gentlemen, and disconnect. and concludes you Ladies today's for you may call.