AST SpaceMobile (ASTS.US) reported a widening loss in Q3 but key contract signings are driving the expansion of the space network.

As a competitor and partner of SpaceX, AST SpaceMobile (ASTS.US) showed significantly lower-than-expected performance in its latest quarterly earnings report, despite announcing a key contract to expand its space telecommunications network. Specifically, the company's third-quarter loss widened to $171.95 million, far exceeding the $20.91 million from the same period last year, with a loss per share of $1.10, lower than analysts' expectations of $0.90. However, revenue reached $1.1 million, slightly higher than expected. The increase in operating expenses was mainly attributed to an increase in research and development costs and engineering service costs, rising from $58.9 million to $66.6 million. Furthermore, AST SpaceMobile announced significant progress during its financial conference call: the first batch of five commercial BlueBird satellites has successfully entered the initial operational phase, and new launch service agreements have been signed with Blue Origin and SpaceX to achieve continuous global space cellular broadband coverage in major markets. Moreover, AST SpaceMobile plans to launch approximately 60 satellites into low Earth orbit from the Cape Canaveral Space Force Station in Florida in 2025 and 2026, using existing launch vehicles and Blue Origin's New Glenn rocket for launch missions, and plans to collaborate with the Indian Space Research Organization for future launches. These actions will ensure that AST SpaceMobile can provide continuous space-based cellular broadband services in the United States, Europe, Japan, as well as to the U.S. government and other strategic markets. It is worth noting that AST SpaceMobile's satellite services have some competitive relationship with SpaceX's subsidiary Starlink. In terms of market response, AST SpaceMobile's stock price fell by over 12% in pre-market trading on Friday. In contrast, Rocket Lab (RKLB.US) saw a 15% increase in its stock price after announcing earnings, with a cumulative increase of nearly 30% this week, as analysts raised their target price following better-than-expected performance. However, AST SpaceMobile's stock price has still risen over 343% so far this year. In conclusion, although AST SpaceMobile faces challenges of expanding losses, it has demonstrated ongoing efforts and potential in the field of space telecommunications through signing key contracts and advancing satellite launch plans. However, the market's response to its stock price has been more negative, indicating investors' concerns about short-term performance.