Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- NextNav Inc (NN, Financial) has shown revenue growth, with a $0.6 million increase in the third quarter compared to the previous year.
- The company is actively engaging with stakeholders, including the FCC and NTIA, to advance its terrestrial PNT services.
- NextNav Inc (NN) has received support from significant stakeholders like the California and Massachusetts Fire Chiefs Association and Fairfax County, Virginia.
- The company has a strong cash position with $86.8 million in cash, cash equivalents, and short-term investments.
- NextNav Inc (NN) is the only viable wide-scale terrestrial PNT proposal currently available, offering a potential $14.6 billion economic benefit as a GPS backup.
Negative Points
- Operating expenses remain high at $15.5 million for the third quarter, only slightly reduced from the previous year.
- The company reported a net loss of $13.6 million for the third quarter, despite a gain from changes in warrant liability.
- There is ongoing opposition from unlicensed stakeholders and concerns from licensed operators about the impact of NextNav Inc (NN)'s system.
- The FCC process is lengthy, with no NPRM expected in 2024, potentially delaying regulatory approval.
- NextNav Inc (NN) faces technical challenges in ensuring coexistence with existing licensed operations and minimizing disruptions.
Q & A Highlights
Q: Can you provide any updates on discussions with stakeholders like the Edison Electric Institute or NTIA regarding your petition?
A: We have contacted over 110 stakeholders, including tolls, railroads, unlicensed users, and amateurs, to understand their opposition views. We are committed to continuing fact-based, engineer-to-engineer dialogue to move forward with progress as anticipated. - Miriam Cron, CEO
Q: Is there a possibility of obtaining a short-term experimental license for field testing operations as recommended by NTIA?
A: We view NTIA's call for testing as a helpful procedural tool to engage incumbents. We have done testing in the past and are moving towards collaborative analysis, which may include further testing. - Miriam Cron, CEO
Q: How does the terrestrial PNT service complement space-based PNT efforts, and are you in talks with companies involved in space-based PNT?
A: We agree with the Department of Transportation's view that a system of systems, including both satellite and terrestrial networks, is necessary. We are the only viable wide-scale terrestrial PNT proposal currently on the table and are in discussions with various industry stakeholders. - Miriam Cron, CEO
Q: With the change in administration, is there any expectation for the timing of an NPRM (Notice of Proposed Rulemaking)?
A: We do not anticipate an NPRM in 2024. We will continue working with current FCC leadership and expect to engage with new leadership once appointed in 2025. We are not speculating on the timing of NPRM actions. - Miriam Cron, CEO
Q: Why is a terrestrial network necessary for PNT services, and how does it address vulnerabilities?
A: A terrestrial network is necessary to overcome vulnerabilities such as spoofing and jamming that affect satellite signals. Terrestrial networks provide stronger signals that penetrate indoors and urban canyons, offering a more resilient complement to satellite-based systems. - Miriam Cron, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
