AST SpaceMobile (ASTS) has announced two major deals over the past week, securing agreements with a telecommunications giant and the U.S. government.
On Monday, the space-based broadband company revealed a partnership with Vodafone Group (VOD) to launch a joint venture called SatCo, which will serve mobile network operators across European markets.
Last week, AST SpaceMobile also announced a $43 million contract to support the U.S. Space Development Agency (SDA) with its Block 2 BlueBird satellites.
CEO Abel Avellan highlighted the company’s progress on both commercial and government fronts in a statement released Monday alongside its Q4 earnings.
“The many pieces of our plan are rapidly coming into place,” Avellan said. “We advanced our customer ecosystem, formalized definitive commercial agreements, and expanded our U.S. government capabilities.”
‘Our vision has never been clearer’
AST SpaceMobile reported a net loss of $35.9 million in Q4, significantly narrowing from a $172 million net loss in Q3. Investors reacted positively, sending ASTS shares up 13% on Tuesday.
The company also posted $1.9 million in Q4 revenue, up from $1.1 million in the previous quarter. It ended the quarter with $565.7 million in cash, cash equivalents, and restricted cash.
AST launched its first five BlueBird satellites last September atop a SpaceX Falcon 9 rocket after receiving a special grant from the U.S. Federal Communications Commission to beta test its service with Verizon and AT&T customers.
Both telecom giants said last week that they have successfully completed their first cellphone-to-satellite video calls using AST SpaceMobile’s technology.
With its latest deals with Vodafone and SDA, AST SpaceMobile shows no signs of slowing its aggressive expansion. Avellan signaled that the company is eyeing further growth in 2025.
“We are laser-focused on building and deploying satellites and expanding our commercial agreements during 2025, moving toward commercial-scale revenues,” he said in Monday’s statement. “Our vision has never been clearer, and we believe we have the resources and capabilities to execute our plans.”
Will institutional investors join in on the space race?
Analysts are bullish on space stocks—citing untapped growth potential in both commercial markets and government contracts. And while SpaceX dominates both sectors, a wave of startups, including AST SpaceMobile, is catching on.
ASTS ended 2024 up 249.9% for the year and has surged 880.5% over the past 12 months. The rally, however, has been mainly driven by individual investors, according to Brian Macauley, co-portfolio manager at the Hennessy Focus Fund, which holds a position in ASTS.
“There are some passionate and very capable retail investors that have done excellent research on the business and published that research,” he told Marketwatch. “I think the institutional investment world, which we’re part of, has been slow to come around and understand this story.”
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