Shares of AST SpaceMobile (ASTS) plummeted 19.22% in pre-market trading on Friday, following the space-based broadband company's disappointing third-quarter earnings report.
For the quarter ended September 30, AST SpaceMobile reported a staggering net loss of $171.95 million, or $1.10 per share, significantly wider than the $20.91 million loss, or $0.23 per share, in the same period last year. The company's losses also exceeded analysts' expectations of a $0.20 per share loss.
Revenue for the quarter came in at a mere $1.1 million, missing analysts' forecasts of $1.8 million, as the company continues to focus on developing its satellite technology and preparing for commercial operations.
The disappointing results can be attributed to the company's ongoing investments in building out its satellite network, which led to a significant increase in operating expenses such as engineering services, research and development, and general and administrative costs. Additionally, AST SpaceMobile incurred substantial non-cash losses related to fair value adjustments on warrant liabilities, further exacerbating the net loss for the quarter.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.