NextNav Inc. Reports Third Quarter 2024 Results
NextNav Inc. (NASDAQ: NN) reported Q3 2024 financial results with revenue of $1.6 million, up from $1.0 million in Q3 2023. The company posted an operating loss of $13.9 million and a net loss of $13.6 million. A key highlight was The Brattle Group's report valuing a GPS backup system at $14.6 billion, comprising a $10.8 billion insurance policy against GPS outages and $3.8 billion in resiliency benefits. The company ended the quarter with $86.8 million in cash and equivalents and $53.0 million in net debt. NextNav continues to engage with stakeholders regarding its petition for a terrestrial PNT solution in the Lower 900 MHz Band.
NextNav Inc. (NASDAQ: NN) ha riportato i risultati finanziari del terzo trimestre 2024, con entrate di 1,6 milioni di dollari, in aumento rispetto a 1,0 milioni di dollari nel terzo trimestre 2023. L'azienda ha registrato una perdita operativa di 13,9 milioni di dollari e una perdita netta di 13,6 milioni di dollari. Un punto saliente è stato il rapporto di The Brattle Group che valuta un sistema di backup GPS a 14,6 miliardi di dollari, comprendente una polizza assicurativa di 10,8 miliardi di dollari contro le interruzioni del GPS e 3,8 miliardi di dollari in benefici di resilienza. L'azienda ha chiuso il trimestre con 86,8 milioni di dollari in contante e equivalenti e 53,0 milioni di dollari in debito netto. NextNav continua a interagire con le parti interessate riguardo alla sua petizione per una soluzione PNT terrestre nella Banda 900 MHz inferiore.
NextNav Inc. (NASDAQ: NN) reportó los resultados financieros del tercer trimestre de 2024, con ingresos de 1,6 millones de dólares, un aumento desde 1,0 millones de dólares en el tercer trimestre de 2023. La empresa presentó una pérdida operativa de 13,9 millones de dólares y una pérdida neta de 13,6 millones de dólares. Un aspecto destacado fue el informe de The Brattle Group que valora un sistema de respaldo GPS en 14,6 mil millones de dólares, que comprende una póliza de seguros de 10,8 mil millones de dólares contra cortes del GPS y 3,8 mil millones de dólares en beneficios de resiliencia. La empresa finalizó el trimestre con 86,8 millones de dólares en efectivo y equivalentes y 53,0 millones de dólares en deuda neta. NextNav continúa dialogando con las partes interesadas sobre su petición para una solución PNT terrestre en la Banda de 900 MHz inferior.
넥스트내브 주식회사 (NASDAQ: NN)는 2024년 3분기 재무 결과를 보고했습니다. 수익은 160만 달러로, 2023년 3분기의 100만 달러에서 증가했습니다. 회사는 운영 손실 1390만 달러와 순손실 1360만 달러를 기록했습니다. 주요 사항으로는 브래틀 그룹의 보고서가 GPS 백업 시스템을 146억 달러로 평가했다는 점으로, 이는 GPS 중단에 대한 108억 달러의 보험 정책과 38억 달러의 회복력 혜택으로 구성됩니다. 회사는 분기를 8680만 달러의 현금 및 현금성 자산과 5300만 달러의 순부채로 마감했습니다. 넥스트내브는 하위 900 MHz 대역에서 육상 PNT 솔루션을 위한 청원과 관련하여 이해관계자와 계속 협력하고 있습니다.
NextNav Inc. (NASDAQ: NN) a annoncé les résultats financiers du troisième trimestre 2024, avec des revenus de 1,6 million de dollars, en hausse par rapport à 1,0 million de dollars au troisième trimestre 2023. L'entreprise a affiché une perte opérationnelle de 13,9 millions de dollars et une perte nette de 13,6 millions de dollars. Un fait marquant a été le rapport de The Brattle Group, évaluant un système de sauvegarde GPS à 14,6 milliards de dollars, comprenant une police d'assurance de 10,8 milliards de dollars contre les pannes GPS et 3,8 milliards de dollars d'avantages en matière de résilience. L'entreprise a terminé le trimestre avec 86,8 millions de dollars en liquidités et équivalents et 53,0 millions de dollars de dette nette. NextNav continue à dialoguer avec les parties prenantes concernant sa demande de solution PNT terrestre dans la bande des 900 MHz inférieure.
NextNav Inc. (NASDAQ: NN) hat die finanziellen Ergebnisse des dritten Quartals 2024 veröffentlicht, mit Einnahmen von 1,6 Millionen Dollar, ein Anstieg von 1,0 Millionen Dollar im dritten Quartal 2023. Das Unternehmen verzeichnete einen Betriebsverlust von 13,9 Millionen Dollar und einen Nettoverlust von 13,6 Millionen Dollar. Ein herausragendes Merkmal war der Bericht der Brattle Group, der ein GPS-Backup-System mit 14,6 Milliarden Dollar bewertete, welches eine Versicherungspolice über 10,8 Milliarden Dollar gegen GPS-Ausfälle und 3,8 Milliarden Dollar an Resilienzvorteilen umfasst. Das Unternehmen schloss das Quartal mit 86,8 Millionen Dollar in bar und Baräquivalenten sowie 53,0 Millionen Dollar an Nettoschulden ab. NextNav engagiert sich weiterhin mit den Stakeholdern in Bezug auf ihr Gesuch um eine terrestrische PNT-Lösung im unteren 900-MHz-Band.
- Revenue increased 60% YoY to $1.6 million in Q3 2024
- Operating loss decreased to $13.9 million from $14.6 million YoY
- Strong cash position of $86.8 million in cash and equivalents
- Net loss of $13.6 million in Q3 2024
- Operating loss of $13.9 million indicates continued unprofitability
- Increased nine-month operating loss to $45.3 million from $43.6 million YoY
Insights
NextNav's Q3 2024 results reveal mixed performance with some concerning metrics.
The Brattle Group's valuation of
The strategic positioning in PNT technology and potential GPS backup infrastructure represents a compelling opportunity, but execution remains critical. The engineer-to-engineer dialogue with stakeholders and FCC engagement demonstrates progress in regulatory navigation, though monetization timeline remains unclear.
The Brattle Group's economic analysis validates the market opportunity, particularly the
The Brattle Group Analysis Finds Total Quantified Value of Having a GPS Backup is
NextNav Continues Engineer-to-Engineer Dialogue with Appropriate Stakeholders
RESTON, Va., Nov. 13, 2024 (GLOBE NEWSWIRE) -- NextNav Inc. (NASDAQ: NN) a leader in next generation positioning, navigation, and timing (PNT) and 3D geolocation, today reported financial results for NextNav’s third quarter ended September 30, 2024.
Mariam Sorond, NextNav CEO said, “In the third quarter, we continued efforts to advance our strategic vision and address the critical need for a terrestrial complement and backup to GPS. The NextNav team continues to hold active discussions with the appropriate stakeholders through engineer-to-engineer dialogue in support of our petition. We believe that collaborative analysis is essential to achieving an outcome that best serves the public interest and solves a national security problem.
“We are also excited about the outcome of the recent Brattle Group report whose analysis estimates a total quantified value of a having a terrestrial backup to GPS at
Recent Operational Highlights
- NextNav Submits Filings in Support of 3D Terrestrial PNT Solution: In response to the FCC’s Public Notice issued on August 6, 2024, NextNav filed comments on September 5, 2024, followed by reply comments on September 20, 2024, with the Federal Communications Commission (FCC) in support of the Company’s petition to reconfigure the Lower 900 MHz Band to enable a 5G-based terrestrial Positioning, Navigation and Timing service.
- The Brattle Group Issues Economic Report: On October 21, 2024, The Brattle Group issued a report finding that the adoption of NextNav’s proposal to reconfigure the Lower 900 MHz offers the US economy the equivalent of a
$10.8 billion insurance policy to protect against GPS outages without taxpayer funding, plus additional benefits of$3.8 billion from increased resiliency. This brings the total quantified value of having a backup to GPS to$14.6 billion , according to The Brattle Group’s analysis.
- Rear Admiral David Simpson (Ret.) Argues for Greater PNT Resiliency in the U.S.: In a white paper issued on September 3, 2024 by Virginia Tech University, Rear Admiral, USN (ret.) David Simpson discusses the critical role of PNT services, with a focus on U.S. dependency on space-based systems like GPS. Admiral Simpson highlights the vulnerabilities of GPS and stresses the need for the U.S. to develop a robust terrestrial complement and backup to GPS to ensure resiliency in critical infrastructure and military operations.
Three and Nine Months Ended September 30, 2024 Financial Highlights
- Revenue: was
$1.6 million in the three months ended September 30, 2024, as compared to$1.0 million in the prior year period. In the nine months ended September 30, 2024, Revenue was$3.8 million , as compared to$2.7 million . The increase in both the three and nine months ended September 30, 2024, was primarily driven by an increase in service revenue from technology and services contracts with government and commercial customers.
- Operating Loss: was
$13.9 million in the three months ended September 30, 2024, as compared to an operating loss of$14.6 million in the prior year period, primarily driven by lower stock-based compensation expense, partially offset by higher payroll-related expenses and professional services. In the nine months ended September 30, 2024, operating loss was$45.3 million , as compared to$43.6 million in the prior year period. The increase in operating loss was primarily driven by an increase in payroll-related expenses and professional services, partially offset by lower stock-based compensation expenses.
- Net Loss: was
$13.6 million in the three months ended September 30, 2024, including a gain on the change in fair value of warrants and liability associated with the Telesaurus asset purchase of$2.5 million , as compared to a net loss of$23.2 million in the prior year period, including a loss on the fair value of the warrants of$6.7 million . In the nine months ended September 30, 2024, net loss was$69.6 million including a loss on the fair value of warrants, net of gain associated with a change in liability with the Telesaurus asset purchase of$17.3 million , as compared to a net loss of$55.3 million in the prior year period, including a loss on the fair value of the warrants of$9.8 million .
- Balance Sheet: as of September 30, 2024, the Company had
$86.8 million in cash, cash equivalents, and short-term investments and has$53.0 million in debt net of unamortized discount attributed to transaction costs and the issuance of warrants, with a gross value of$70.0 million .
Conference Call Information
NextNav will host a conference call for analysts and investors at 5:00 pm ET on Wednesday, November 13, 2024.
Registration for the conference call can be completed by visiting the following website prior to, or on the day of, the conference call: https://registrations.events/direct/Q4I6293675922. After registering, each participant will be provided with call details and a registrant ID. Reminders will also be sent to registered participants via email. Alternatively, the conference call will be available via a live webcast.
To access the live webcast or a replay, visit the Company’s investor relations website at https://ir.nextnav.com/.
A replay of the call can also be accessed via phone through November 20, 2024 by dialing (800) 770-2030 from the U.S., or (647) 362-9199 from outside the U.S. The conference I.D. number is 62936.
About NextNav Inc.
NextNav Inc. (Nasdaq: NN) is a leader in next generation positioning, navigation and timing (PNT), enabling a whole new ecosystem of applications and services that rely upon 3D geolocation and PNT technology. Powered by low-band licensed spectrum, NextNav's positioning and timing technologies deliver accurate, reliable, and resilient 3D PNT solutions for critical infrastructure, GPS resiliency and commercial use cases.
For more information, please visit https://nextnav.com/ or follow NextNav on Twitter or LinkedIn.
Source: NN-FIN
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “forecast,” “intend,” “seek,” “target,” “anticipate,” “believe,” “expect,” “estimate,” “plan,” “outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements, which involve risks and uncertainties, relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable and may also relate to NextNav’s future prospects, developments and business strategies. In particular, such forward-looking statements include the achievement of certain FCC-related milestones and FCC approvals, the ability to realize the broader spectrum capacity and the advancement of NextNav’s terrestrial 3D PNT services, NextNav’s position to drive growth in its 3D geolocation business and expansion of its next generation terrestrial 3D PNT technologies, the business plans, objectives, expectations and intentions of NextNav, and NextNav’s estimated and future business strategies, competitive position, industry environment, potential growth opportunities, revenue, expenses, and profitability. These statements are based on NextNav’s management’s current expectations and beliefs, as well as a number of assumptions concerning future events.
Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside NextNav’s control that could cause actual results to differ materially from the results discussed in the forward-looking statements. These risks, uncertainties, assumptions and other important factors include, but are not limited to, those included in Part II, Item 1A, “Risk Factors” of the Company’s quarterly reports on Form 10-Q, and Part I, Item 1A, “Risk Factors” of the NextNav’s Annual Report on Form 10-K for the year ended December 31, 2023, as well as those otherwise described or updated from time to time in our other filings with the Securities and Exchange Commission (the “SEC”). You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, and NextNav undertakes no commitment to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
Contact:
Erica Bartsch
Sloane & Company
212-446-1875
| NEXTNAV INC. | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (IN THOUSANDS, EXCEPT SHARE DATA) | ||||||||
| September 30, 2024 (unaudited) | December 31, 2023 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 67,905 | $ | 81,878 | ||||
| Short term investments | 18,865 | 3,954 | ||||||
| Accounts receivable | 2,235 | 2,332 | ||||||
| Other current assets | 15,393 | 3,056 | ||||||
| Total current assets | $ | 104,398 | $ | 91,220 | ||||
| Network under construction | 1,678 | 1,676 | ||||||
| Property and equipment, net of accumulated depreciation of | 17,261 | 19,885 | ||||||
| Operating lease right-of-use assets | 18,640 | 19,267 | ||||||
| Goodwill | 18,185 | 17,977 | ||||||
| Intangible assets | 10,179 | 10,625 | ||||||
| Other assets | 1,331 | 1,508 | ||||||
| Total assets | $ | 171,672 | $ | 162,158 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 918 | $ | 391 | ||||
| Accrued expenses and other current liabilities | 17,059 | 6,592 | ||||||
| Operating lease current liabilities | 2,542 | 2,523 | ||||||
| Deferred revenue | 303 | 297 | ||||||
| Total current liabilities | $ | 20,822 | $ | 9,803 | ||||
| Warrants | 15,053 | 7,053 | ||||||
| Operating lease noncurrent liabilities | 15,377 | 15,145 | ||||||
| Other long-term liabilities | 1,875 | 1,614 | ||||||
| Long term debt, net of debt issuance cost and discount | 52,974 | 48,447 | ||||||
| Total liabilities | $ | 106,101 | $ | 82,062 | ||||
| Stockholders’ equity: | ||||||||
| Common stock, authorized 500,000,000 shares; 127,677,549 and 111,261,434 shares issued and 127,545,321 and 111,132,222 shares outstanding at September 30, 2024 and December 31, 2023, respectively | 14 | 12 | ||||||
| Additional paid-in capital | 893,584 | 837,416 | ||||||
| Accumulated other comprehensive income | 2,502 | 2,198 | ||||||
| Accumulated deficit | (829,836 | ) | (760,227 | ) | ||||
| Common stock in treasury, at cost; 132,228 and 129,212 shares at September 30, 2024 and December 31, 2023, respectively | (693 | ) | (665 | ) | ||||
| Total stockholders’ equity | $ | 65,571 | $ | 78,734 | ||||
| Non-controlling interests | — | 1,362 | ||||||
| Total liabilities and stockholders’ equity | $ | 171,672 | $ | 162,158 | ||||
| NEXTNAV INC. | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||||||||||||||
| (UNAUDITED) | ||||||||||||||||
| (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue | $ | 1,607 | $ | 1,027 | $ | 3,758 | $ | 2,657 | ||||||||
| Operating expenses: | ||||||||||||||||
| Cost of goods sold (exclusive of depreciation and amortization) | 2,585 | 3,232 | 8,270 | 9,397 | ||||||||||||
| Research and development | 3,545 | 5,007 | 12,325 | 14,579 | ||||||||||||
| Selling, general and administrative | 8,016 | 6,152 | 24,570 | 18,722 | ||||||||||||
| Depreciation and amortization | 1,313 | 1,256 | 3,926 | 3,559 | ||||||||||||
| Total operating expenses | $ | 15,459 | $ | 15,647 | $ | 49,091 | $ | 46,257 | ||||||||
| Operating loss | $ | (13,852 | ) | $ | (14,620 | ) | $ | (45,333 | ) | $ | (43,600 | ) | ||||
| Other income (expense): | ||||||||||||||||
| Interest expense, net | (2,217 | ) | (1,740 | ) | (6,706 | ) | (1,614 | ) | ||||||||
| Change in fair value of warrants | 2,143 | (6,737 | ) | (19,523 | ) | (9,800 | ) | |||||||||
| Other income (loss), net | 343 | (99 | ) | 2,091 | (166 | ) | ||||||||||
| Loss before income taxes | $ | (13,583 | ) | $ | (23,196 | ) | $ | (69,471 | ) | $ | (55,180 | ) | ||||
| Provision for income taxes | 26 | 24 | 138 | 159 | ||||||||||||
| Net loss | $ | (13,609 | ) | $ | (23,220 | ) | $ | (69,609 | ) | $ | (55,339 | ) | ||||
| Foreign currency translation adjustment | 1,005 | (670 | ) | 304 | (218 | ) | ||||||||||
| Comprehensive loss | $ | (12,604 | ) | $ | (23,890 | ) | $ | (69,305 | ) | $ | (55,557 | ) | ||||
| Net loss | (13,609 | ) | (23,220 | ) | (69,609 | ) | (55,339 | ) | ||||||||
| Net loss attributable to common stockholders | $ | (13,609 | ) | $ | (23,220 | ) | $ | (69,609 | ) | $ | (55,339 | ) | ||||
| Weighted average of shares outstanding – basic and diluted | 126,429 | 108,045 | 118,978 | 107,504 | ||||||||||||
| Net loss attributable to common stockholders per share – basic and diluted | $ | (0.11 | ) | $ | (0.21 | ) | $ | (0.59 | ) | $ | (0.51 | ) | ||||
| NEXTNAV INC. | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (UNAUDITED) | ||||||||
| (IN THOUSANDS) | ||||||||
| Nine Months Ended September 30, | ||||||||
| 2024 | 2023 | |||||||
| Operating activities | ||||||||
| Net loss | $ | (69,609 | ) | $ | (55,339 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 3,926 | 3,559 | ||||||
| Equity-based compensation | 11,162 | 12,643 | ||||||
| Change in fair value of warranty liability | 19,523 | 9,800 | ||||||
| Change in fair value of asset purchase agreement liability | (2,217 | ) | — | |||||
| Realized and unrealized gain on short term investments | (517 | ) | (501 | ) | ||||
| Equity method investment loss | 118 | 157 | ||||||
| Asset retirement obligation accretion | 51 | 51 | ||||||
| Amortization of debt discount | 4,526 | 1,771 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 97 | (569 | ) | |||||
| Other current assets | 269 | 1,246 | ||||||
| Other assets | 60 | 84 | ||||||
| Accounts payable | 527 | (102 | ) | |||||
| Deferred revenue | 6 | (23 | ) | |||||
| Accrued expenses and other liabilities | 5,144 | 2,140 | ||||||
| Operating lease right-of-use assets and liabilities | 874 | 476 | ||||||
| Net cash used in operating activities | $ | (26,060 | ) | $ | (24,607 | ) | ||
| Investing activities | ||||||||
| Capitalization of costs and purchases of network assets, property, and equipment | (182 | ) | (2,541 | ) | ||||
| Purchase of internal use software | (354 | ) | (708 | ) | ||||
| Purchase of marketable securities | (44,894 | ) | (33,494 | ) | ||||
| Sale and maturity of marketable securities | 30,500 | 35,249 | ||||||
| Payment for asset purchase agreement liability | (2,732 | ) | — | |||||
| Net cash used in investing activities | $ | (17,662 | ) | $ | (1,494 | ) | ||
| Financing activities | ||||||||
| Proceeds from senior secured notes | — | 70,000 | ||||||
| Payments towards debt issuance cost | — | (1,861 | ) | |||||
| Payments towards debt | (82 | ) | (82 | ) | ||||
| Proceeds from exercise of common warrants | 27,896 | 882 | ||||||
| Redemption of non-controlling interests | 40 | — | ||||||
| Proceeds from exercise of common stock options | 1,882 | 66 | ||||||
| Net cash provided by financing activities | $ | 29,736 | $ | 69,005 | ||||
| Effect of exchange rates on cash and cash equivalents | 13 | (2 | ) | |||||
| Net (decrease) increase in cash and cash equivalents | (13,973 | ) | 42,902 | |||||
| Cash and cash equivalents at beginning of period | 81,878 | 47,230 | ||||||
| Cash and cash equivalents at end of period | $ | 67,905 | $ | 90,132 | ||||
| Non-cash investing and financing information | ||||||||
| Capital expenditure included in Accrued expenses and other current liabilities | $ | 159 | $ | 120 | ||||
| Issuance of warrants | $ | — | $ | 22,843 | ||||
| Interest paid in shares of Common Stock | $ | 1,867 | $ | — | ||||
FAQ
What was NextNav's (NN) revenue in Q3 2024?
How much cash does NextNav (NN) have as of September 30, 2024?
What is the value of GPS backup according to The Brattle Group's analysis of NextNav (NN)?
