NextNav Inc. Reports Fourth Quarter and Full Year 2022 Results
NextNav Inc. (NASDAQ: NN) announced significant progress in FY 2022, focusing on being a leader in Position, Navigation, and Timing (PNT). The company launched E911 services on Verizon and expanded its relationship with NASA for urban drone PNT services. Revenue reached $803,000 in Q4 2022, up from $20,000 YoY, and $3.9 million for the full year, compared to $763,000 in 2021. However, the operating loss increased to $14.5 million in Q4 and $65.5 million for the year, primarily due to rising expenses. NextNav also aims to enhance technology integration following the Nestwave acquisition, while expanding globally, including a commercial launch in Tokyo.
- Revenue increased to $803,000 in Q4 2022 from $20,000 in Q4 2021.
- Full-year revenue rose to $3.9 million compared to $763,000 in 2021.
- Successful launch of E911 services on Verizon.
- Expanded partnership with NASA for urban drone PNT services.
- Acquisition of Nestwave expected to enhance technology and reduce costs.
- Commercial launch of Pinnacle service in Tokyo.
- Increased operating loss to $14.5 million in Q4 2022 from $14.2 million YoY.
- Full-year operating loss increased to $65.5 million from $42.4 million in 2021.
- Continued high net losses, totaling $40.1 million for 2022.
Launches E911 Services on Verizon in FY 2022
Signs New Device Agreements with Leading Providers, Including Sonim Technologies
Expands Relationship with NASA; Delivering PNT Services for Agency's Urban Drone Program
We also expanded our relationship with NASA, having recently been selected to deliver PNT services for its urban drone program at the
Finally, we continue to expand our global reach with the commercial launch of our Pinnacle service with MetCom in
We are excited by our progress and believe we are well positioned to continue to pursue initiatives that will advance our leadership position in PNT resilience. We look forward to the opportunities ahead and driving value for our shareholders."
Recent Operational Highlights:
- Technology Integration: Following the close of the Nestwave acquisition, now NextNav France, in
October 2022 , the company is focused on the integration and implementation of the overall technology. This acquisition is expected to allow us to dramatically improve the spectral efficiency of our operations through the integration of LTE / 5G technologies. This will enhance the technical capabilities of our spectrum and is expected to dramatically reduce the capital and network operating expenditures associated with the deployment of our TerraPoiNT technology. Based on progress to date,NextNav expects to have initial implementations of the combined technologies ready for internal testing in the second quarter of 2023. - E911/Public Safety:
NextNav recently signed several new agreements in the E911 and public safety sector, including Verizon, Sonim Technologies, Prepared, and Convey911. InJanuary 2023 , the company announced the integration of its Pinnacle vertical location capabilities into Sonim's XP3plus flip phone, which is now available to all Verizon and Verizon Frontline Customers. This is the first device launch underNextNav's agreement with Verizon and the company expects to launch additional devices, including with other Tier One operators in the coming months. In addition, inFebruary 2023 ,NextNav announced the integration of Pinnacle z-axis capability in Public Safety applications with Radio IP, a leader in secure mobile communications. - NASA: On
December 6, 2022 ,NextNav announced that it was selected by NASA inMountain View, California , to deliver PNT services for its urban drone program, expanding on their deployment at theLangley Research Center inHampton, Virginia . UtilizingNextNav's commercially deployed TerraPoiNT network in theSan Francisco Bay area, NASA Ames will capture in-flight horizontal and vertical location data to validate drone flight safety at itsMountain View, California , facility.
Three and Twelve Months Ended
- Revenue: was
in the three months ended$803 thousand December 31, 2022 , as compared to in the prior year period. For the twelve months ended$20 thousand December 31, 2022 , revenue was , as compared with$3.9 million in the prior year period. The increase in both periods was driven by increased revenue from technology and services contracts with commercial customers.$763 thousand - Operating Loss: was
in the three months ended$14.5 million December 31, 2022 , as compared to an operating loss of in the prior year period. For the twelve months ended$14.2 million December 31, 2022 , operating loss was , as compared to$65.5 million in the prior year period, primarily driven by increases in stock-based compensation and payroll-related expenses.$42.4 million - Net Loss: was
in the three months ended$12.5 million December 31, 2022 , including a gain on the fair value of warrants of , as compared to a net loss of$1.5 million in the prior year period, including a loss on the fair value of warrants of$46.2 million . For the twelve months ended$23.1 million December 31, 2022 , net loss was , including a gain of$40.1 million related to the change in fair value of warrants, as compared to a net loss of$24.7 million in the prior year period, including a loss of$144.7 million related to the change in fair value of warrants.$84.3 million - Balance Sheet: As of
December 31, 2022 , the Company had in cash, cash equivalents and short-term investments.$55.4 million
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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
Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside
Source: NN-FIN
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CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||
2022 | 2021 | |||||||
(in thousands) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 47,230 | $ | 100,076 | ||||
Short Term Investment | 8,216 | — | ||||||
Accounts Receivable | 2,168 | 1,740 | ||||||
Other current assets | 3,576 | 4,516 | ||||||
Total current assets | $ | 61,190 | $ | 106,332 | ||||
Network under construction | 3,574 | 494 | ||||||
Property and equipment, net of accumulated depreciation of | 19,180 | 21,757 | ||||||
Operating lease right-of-use assets | 10,143 | — | ||||||
17,493 | — | |||||||
Intangible assets, net | 10,397 | 4,095 | ||||||
Other assets | 1,811 | 4,145 | ||||||
Total assets | $ | 123,788 | $ | 136,823 | ||||
Liabilities, preferred interests, and stockholders' equity (deficit) | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,019 | $ | 448 | ||||
Accrued expenses and other current liabilities | 5,241 | 4,600 | ||||||
Short term lease liabilities - operating | 2,532 | — | ||||||
Deferred revenue | 95 | 1,632 | ||||||
Total current liabilities | 8,887 | 6,680 | ||||||
Warrants | 4,200 | 28,875 | ||||||
Long term lease liabilities - Operating | 5,290 | — | ||||||
Other long-term liabilities | 1,547 | 1,311 | ||||||
Total liabilities | $ | 19,924 | $ | 36,866 | ||||
Stockholders' equity (deficit): | ||||||||
Common Stock, authorized 500,000,000 shares; 106,418,442 and 96,546,611 shares issued | $ | 12 | $ | 11 | ||||
Additional paid-in capital | 787,130 | 747,928 | ||||||
Accumulated other comprehensive income (loss) | 1,371 | (121) | ||||||
Accumulated deficit | (688,492) | (647,861) | ||||||
Common stock in treasury, at cost, 1,177 and zero shares at | (4) | — | ||||||
Total stockholders' equity (deficit) | $ | 100,017 | $ | 99,957 | ||||
Non-controlling interests | 3,847 | — | ||||||
Total liabilities, preferred interests, stockholders' equity (deficit) and non-controlling interests | $ | 123,788 | $ | 136,823 | ||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) | ||||||||
Year Ended | ||||||||
2022 | 2021 | |||||||
(in thousands, except per share amounts) | ||||||||
Revenue | $ | 3,926 | $ | 763 | ||||
Operating expenses: | ||||||||
Cost of goods sold (exclusive of depreciation and amortization) | 11,806 | 18,390 | ||||||
Research and development | 17,059 | 9,465 | ||||||
Selling, general and administrative | 36,926 | 13,555 | ||||||
Depreciation and amortization | 3,671 | 1,782 | ||||||
Total operating expenses | 69,462 | 43,192 | ||||||
Operating loss | (65,536) | (42,429) | ||||||
Other income (expense): | ||||||||
Interest income (expense) | 901 | (17,842) | ||||||
Change in fair value of warrants | 24,675 | (84,317) | ||||||
Other loss, net | (184) | (26) | ||||||
Loss before income taxes | (40,144) | (144,614) | ||||||
Benefit (Provision) for income taxes | 28 | (52) | ||||||
Net loss | $ | (40,116) | $ | (144,666) | ||||
Foreign currency translation adjustment | 1,492 | 25 | ||||||
Comprehensive loss | $ | (38,624) | $ | (144,641) | ||||
Net loss | $ | (40,116) | $ | (144,666) | ||||
Change in redemption value of preferred interests | — | (13,831) | ||||||
Net loss attributable to common stockholders | $ | (40,116) | $ | (158,497) | ||||
Weighted average of shares outstanding – basic and diluted | 101,029 | 23,561 | ||||||
Net loss attributable to common stockholder per share – basic and diluted | $ | (0.40) | $ | (6.73) | ||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||
Year Ended December 31, | ||||||||
2022 | 2021 | |||||||
(in thousands) | ||||||||
Operating activities | ||||||||
Net loss | $ | (40,116) | $ | (144,666) | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 3,671 | 1,782 | ||||||
Equity-based compensation | 26,501 | 1,675 | ||||||
Change in fair value of warranty liability | (24,675) | 84,317 | ||||||
Realized and unrealized gain on marketable securities | (72) | — | ||||||
Fixed asset write-off | — | 96 | ||||||
Issuance of warrants for rent expense | — | 9,033 | ||||||
Equity method investment income (loss) | 230 | — | ||||||
Asset retirement obligation accretion | 56 | 236 | ||||||
Amortization of debt issuance costs and discount | — | 9,257 | ||||||
Accrued payment in kind ("PIK") interest on debt | — | 4,714 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivables | (428) | (1,663) | ||||||
Other current assets | 593 | (3,634) | ||||||
Other assets | 161 | (879) | ||||||
Accounts payable | 486 | (7,020) | ||||||
Deferred revenue | (1,537) | 1,632 | ||||||
Accrued expenses and other liabilities | (2,501) | (2,812) | ||||||
Operating lease right-of-use assets and liabilities | 536 | — | ||||||
Net cash used in operating activities | $ | (37,095) | $ | (47,932) | ||||
Investing activities | ||||||||
Capitalization of costs and purchases of network assets, property, and equipment | (2,964) | (1,022) | ||||||
Purchase of equity method investments | (1,125) | — | ||||||
Purchase of marketable securities | (13,644) | — | ||||||
Sale and maturity of marketable securities | 5,500 | — | ||||||
Purchase of business, net of cash acquired | (2,890) | — | ||||||
Purchase of internal use software | (613) | (260) | ||||||
Net cash used in investing activities | $ | (15,736) | $ | (1,282) | ||||
Financing activities | ||||||||
Proceeds from debt | — | 24,638 | ||||||
Payments towards debt | (17) | (96,871) | ||||||
Proceeds from exercise of stock option | 57 | — | ||||||
Proceeds from issuance of common stock | 7 | 2 | ||||||
Net cash contribution from Business Combination and PIPE financing, net of transaction and | — | 207,872 | ||||||
Purchase of common stocks (withholding taxes) | (4) | — | ||||||
Net cash provided by financing activities | $ | 43 | $ | 135,641 | ||||
Effect of exchange rates on cash and cash equivalents | (58) | (20) | ||||||
Net increase (decrease) in cash and cash equivalents | (52,846) | 86,407 | ||||||
Cash and cash equivalents at beginning of period | 100,076 | 13,669 | ||||||
Cash and cash equivalents at end of period | $ | 47,230 | $ | 100,076 | ||||
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