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NN Nasdaq· NextNav Inc
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NN Nasdaq· NextNav Inc
Earnings report Q3 2023

NN Reports Decreased Revenue in Latest Quarter

Segments of revenue

NN's revenue for the nine months ended September 30, 2023, decreased by $466 thousand, or 14.9%, compared to the same period in 2022. The decrease was primarily driven by decreased integration revenue, partially offset by increased recurring service revenue from technology and services contracts with commercial customers.

Strengths

Despite the overall decrease in revenue, NN's recurring service revenue from technology and services contracts with commercial customers showed growth. This indicates the company's ability to maintain and expand its customer base in the technology and services sector. Additionally, management comments highlight the importance of these contracts in driving revenue growth.

Challenges

NN faced a decline in integration revenue, which contributed to the overall decrease in revenue for the nine months ended September 30, 2023. This suggests a potential challenge in securing new integration projects or a slowdown in demand for such services.

Noteworthy

It is worth noting that for the nine months ended September 30, 2023, one customer accounted for 80% of total revenue, compared to 91% in the same period in 2022. This indicates a decrease in reliance on a single customer for revenue generation, which may contribute to a more diversified revenue stream.

Summary

NN experienced a decrease in revenue for the nine months ended September 30, 2023, primarily driven by decreased integration revenue. However, the company showed strength in growing its recurring service revenue from technology and services contracts with commercial customers. The decrease in reliance on a single customer for revenue generation is also noteworthy. Going forward, NN may need to address the challenge of declining integration revenue and focus on expanding its customer base in order to drive revenue growth.

Source documents

Form 10-Q  filed on Nov 08, 2023
7 pages scanned

Reference data

Company financials Q3 revenue 503k
Analyst estimates Q3 EPS beat by 20.00%
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