NextNav(US:NN)2024-05-08 20:07NextNav Inc. First Quarter 2024 Financial Results Operational and Financial Highlights NextNav reported Q1 2024 results, marked by strategic progress with an FCC rulemaking petition for the Lower 900 MHz band, alongside revenue growth to $1.0 million, an operating loss of $16.2 million, and a net loss of $31.6 million, with $73.3 million in cash and equivalents - Filed a rulemaking petition with the FCC on April 16, 2024, proposing to rearrange the Lower 900 MHz band to enable terrestrial 3D positioning, navigation, and timing (PNT) services alongside 5G broadband136 - Received court approval on March 28, 2024, for the sale of licenses covering an additional 4 MHz in the Lower 900 MHz band, a key step towards obtaining FCC approval6 Financial Metric | Financial Metric | Q1 2024 | Q1 2023 | Change Driver | | :--- | :--- | :--- | :--- | | Revenue | $1.0 million | $0.83 million | Increased recurring service revenue | | Operating Loss | $16.2 million | $14.0 million | Higher stock-based compensation and payroll expenses | | Net Loss | $31.6 million | $16.3 million | Includes a $13.2M loss on fair value of warrants (vs. $2.8M loss in Q1 2023) | | Cash & Equivalents | $73.3 million | - | As of March 31, 2024 | | Short Term Investments | $5.9 million | - | As of March 31, 2024 | | Gross Debt | $70.0 million | - | As of March 31, 2024 | Financial Statements Condensed Consolidated Balance Sheets As of March 31, 2024, NextNav's balance sheet reported total assets of $165.6 million, an increase from year-end 2023, while total liabilities significantly increased to $108.4 million, primarily due to warrants, leading to a decrease in total stockholders' equity to $55.9 million Balance Sheet Items (in thousands) | Balance Sheet Items (in thousands) | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Current Assets | $96,788 | $91,220 | | Cash and cash equivalents | $73,317 | $81,878 | | Total Assets | $165,630 | $162,158 | | Total Current Liabilities | $24,140 | $9,803 | | Total Liabilities | $108,361 | $82,062 | | Warrants | $17,761 | $7,053 | | Long term debt, net | $49,890 | $48,447 | | Total Stockholders' Equity | $55,907 | $78,734 | Condensed Consolidated Statements of Comprehensive Loss For Q1 2024, NextNav's revenue increased to $1.05 million, but operating loss widened to $16.15 million due to higher expenses, and net loss significantly increased to $31.61 million, or ($0.28) per share, primarily driven by a $13.18 million non-cash loss from warrant fair value changes Income Statement Items (in thousands) | Income Statement Items (in thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenue | $1,046 | $830 | | Total operating expenses | $17,196 | $14,780 | | Operating loss | $(16,150) | $(13,950) | | Change in fair value of warrants | $(13,176) | $(2,800) | | Net loss | $(31,610) | $(16,349) | | Net loss per share - basic and diluted | $(0.28) | $(0.15) | - Revenue increased by 26% YoY, driven by higher recurring service revenue617 - The increase in net loss was primarily due to a $13.2 million loss on the fair value of warrants, compared to a $2.8 million loss in the prior-year period617 Condensed Consolidated Statements of Cash Flows In Q1 2024, NextNav used $7.0 million in cash for operating activities, while investing activities used $2.1 million and financing activities provided $0.5 million, resulting in an $8.6 million decrease in cash and equivalents, ending the period at $73.3 million Cash Flow Items (in thousands) | Cash Flow Items (in thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(6,985) | $(7,427) | | Net cash (used in) provided by investing activities | $(2,113) | $4,016 | | Net cash provided by financing activities | $516 | $(1) | | Net decrease in cash and cash equivalents | $(8,561) | $(3,417) | | Cash and cash equivalents at end of period | $73,317 | $43,813 | - The company's cash position decreased by $8.6 million during the quarter, compared to a $3.4 million decrease in the same period last year19