NextNav(US:NN)2024-11-13 21:10Management Commentary and Operational Highlights NextNav's Q3 2024 commentary highlights strategic advancements in terrestrial GPS backup, supported by FCC filings and reports on economic value and vulnerability - The company is actively engaged in engineer-to-engineer dialogue with stakeholders to support its petition for a terrestrial PNT service, aiming for an outcome that serves public interest and national security2 - A Brattle Group report estimated the total quantified value of having a terrestrial backup to GPS at $14.6 billion, comprising a $10.8 billion "insurance policy" against outages and $3.8 billion in benefits from increased resiliency34 - NextNav submitted comments and reply comments to the FCC in September 2024, supporting its petition to reconfigure the Lower 900 MHz Band for a 5G-based terrestrial PNT service4 - A white paper by Rear Admiral David Simpson (Ret.) from Virginia Tech emphasized the critical need for the U.S. to develop a robust terrestrial complement to GPS due to its vulnerabilities6 Financial Highlights NextNav's Q3 2024 saw revenue grow 60% to $1.6 million, with net loss decreasing to $13.6 million, and $86.8 million in cash Revenue Performance (Three and Nine Months Ended Sep 30, 2024) | Period | 2024 Revenue ($) | 2023 Revenue ($) | Change (%) | | :--- | :--- | :--- | :--- | | Three Months | $1.6 million | $1.0 million | +60.0% | | Nine Months | $3.8 million | $2.7 million | +40.7% | Profitability (Three and Nine Months Ended Sep 30, 2024) | Period | 2024 Operating Loss ($) | 2023 Operating Loss ($) | 2024 Net Loss ($) | 2023 Net Loss ($) | | :--- | :--- | :--- | :--- | :--- | | Three Months | $13.9 million | $14.6 million | $13.6 million | $23.2 million | | Nine Months | $45.3 million | $43.6 million | $69.6 million | $55.3 million | - The decrease in Q3 net loss was primarily driven by a $2.5 million gain on the change in fair value of warrants and liabilities, compared to a $6.7 million loss in the prior year period9 - As of September 30, 2024, the company held $86.8 million in cash, cash equivalents, and short-term investments, with $53.0 million in net debt (gross value of $70.0 million)10 Financial Statements NextNav's Q3 2024 financial statements show total assets at $171.7 million, liabilities at $106.1 million, and a nine-month net loss of $69.6 million Condensed Consolidated Balance Sheets As of September 30, 2024, NextNav's balance sheet shows total assets of $171.7 million, total liabilities of $106.1 million, and stockholders' equity of $65.6 million Key Balance Sheet Items (in thousands) | Account | Sep 30, 2024 (unaudited, in thousands) | Dec 31, 2023 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $67,905 | $81,878 | | Total current assets | $104,398 | $91,220 | | Total assets | $171,672 | $162,158 | | Long term debt, net | $52,974 | $48,447 | | Total liabilities | $106,101 | $82,062 | | Total stockholders' equity | $65,571 | $78,734 | Condensed Consolidated Statements of Comprehensive Loss NextNav's Q3 2024 revenue was $1.6 million, with a net loss of $13.6 million, while the nine-month net loss widened to $69.6 million Statement of Comprehensive Loss Highlights (in thousands, except per share data) | Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Nine Months 2024 (in thousands) | Nine Months 2023 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $1,607 | $1,027 | $3,758 | $2,657 | | Operating Loss | $(13,852) | $(14,620) | $(45,333) | $(43,600) | | Net Loss | $(13,609) | $(23,220) | $(69,609) | $(55,339) | | Net Loss Per Share | $(0.11) | $(0.21) | $(0.59) | $(0.51) | Condensed Consolidated Statements of Cash Flows For the nine months ended September 30, 2024, NextNav used $26.1 million in operations and $17.7 million in investing, offset by $29.7 million from financing activities Cash Flow Summary (Nine Months Ended Sep 30, in thousands) | Cash Flow Activity | 2024 (in thousands) | 2023 (in thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | $(26,060) | $(24,607) | | Net cash used in investing activities | $(17,662) | $(1,494) | | Net cash provided by financing activities | $29,736 | $69,005 | | Net (decrease) increase in cash | $(13,973) | $42,902 | | Cash and cash equivalents at end of period | $67,905 | $90,132 | Conference Call Information NextNav will host a conference call on November 13, 2024, at 5:00 pm ET, with webcast and replay available on its investor relations website - A conference call is scheduled for 5:00 pm ET on November 13, 202410 - A live webcast and replay will be available on the investor relations website at https://ir.nextnav.com/[12](index=12&type=chunk)