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Mar 31, 2021
Globalstar Q1 2021 Earnings Report
Globalstar's financial performance declined due to lower engineering service revenue, but saw recovery signs in Commercial IoT sales and strategic advancements in network infrastructure and terrestrial spectrum monetization.
Key Takeaways
Globalstar reported a decrease in total revenue by 16% compared to Q1 2020, primarily due to a decline in engineering service revenue. However, the company saw positive signs of recovery in the Commercial IoT sector and made strategic advancements in network infrastructure and terrestrial spectrum monetization. The company also completed second lien warrant exercises, satisfying loan agreement requirements.
Commercial IoT sales channel showed signs of recovery with service and equipment revenue exceeding pre-pandemic levels.
Strategic decisions were made to align the business model with growth expectations in the Commercial IoT space.
Progress was made in upgrading gateway equipment to support large opportunities and enhance network performance.
Terrestrial spectrum effort is progressing well with multiple transformative announcements including Qualcomm’s inclusion of band 53 in their upcoming modem and Nokia’s announcement of the deployment at the Port of Seattle.
Globalstar
Globalstar
Globalstar Revenue by Segment
Revenue by Segment
Commercial IoT Revenue
CapyFin.comSPOT Revenue
CapyFin.comDuplex Revenue
CapyFin.com Forward Guidance
Globalstar is focusing on expanding its revenue streams, particularly through Commercial IoT opportunities and monetizing its ground station assets. The company anticipates growth in these areas, supported by strategic initiatives and infrastructure upgrades. They are also confident and focusing on the terrestrial spectrum effort.
Positive Outlook
- Commercial IoT sales channel is showing signs of recovery.
- Strategic decisions are being made to align the business model with growth expectations in the Commercial IoT space.
- Progress is being made in upgrading gateway equipment to support large opportunities and enhance network performance.
- The company is exploring revenue-generating opportunities outside of traditional satellite services.
- The completion of the second lien warrant exercises has strengthened the company's financial position.
Challenges Ahead
- Total revenue decreased by 16% compared to the first quarter of 2020.
- Service revenue decreased due to lower engineering service revenue and fewer Duplex and SPOT subscribers.
- Loss from operations increased due to lower revenue.
- ARPU will decrease over time, particularly in periods with a high volume of activations.
- The company's operating performance has material limitations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income