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Mar 31, 2020
Globalstar Q1 2020 Earnings Report
Globalstar's financial results were announced for the quarter ended March 31, 2020, with total revenue increasing by 7% year-over-year, driven by engineering service revenue, while the company faced challenges due to the COVID-19 pandemic impacting subscriber equipment sales and service pricing.
Key Takeaways
Globalstar reported a 7% increase in total revenue for Q1 2020 compared to Q1 2019, primarily due to engineering service revenue. However, the company experienced a net loss due to a non-cash derivative loss and foreign exchange rate changes. The COVID-19 pandemic negatively impacted subscriber equipment sales and service pricing, particularly in the oil and gas and retail industries.
Total revenue increased by 7% due to engineering service revenue, offsetting declines in other revenue streams.
Commercial IoT service revenue increased by 17% due to growth in the average subscriber base and higher ARPU.
The company faced challenges due to COVID-19, impacting subscriber equipment sales and service pricing.
Adjusted EBITDA increased to $11.0 million due primarily to increased revenue and decreased operating expenses.
Revenue by Segment
Forward Guidance
Globalstar expects its revenue to continue to be negatively impacted by the industry downturn, which is reflected in both a reduction in the volume of subscriber equipment sales and lower service pricing.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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