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Mar 31, 2022
Globalstar Q1 2022 Earnings Report
Reported an increase in total revenue and a decrease in net loss compared to the same period last year.
Key Takeaways
Globalstar announced its Q1 2022 results, reporting a 22% increase in total revenue driven by higher service revenue from engineering services, and a $15.9 million improvement in net loss due to lower interest expense and favorable changes in foreign currency and derivative losses. The company is focused on expanding its satellite business and terrestrial spectrum opportunities.
Total revenue increased by 22% compared to Q1 2021, primarily due to higher service revenue from engineering services.
Commercial IoT revenue increased by 8% despite component part shortages.
Net loss improved by $15.9 million year-over-year due to lower interest expense and favorable changes in foreign currency and derivative losses.
Adjusted EBITDA increased by 72% compared to the prior year's quarter.
Revenue by Segment
Forward Guidance
Globalstar is focused on expanding its satellite business and terrestrial spectrum opportunities. The company expects to resume production during the second quarter to fulfill back-orders and return to healthy inventory levels.
Positive Outlook
- New satellites will ensure continuity of service to existing and future subscribers.
- Vast majority of capital expenditures are reimbursable.
- Meaningful progress towards building Commercial IoT ecosystem.
- Multiple projects underway that will deliver more robust products.
- Signed a term sheet with a large, global customer to begin deploying Band 53 in the US and beyond.
Challenges Ahead
- Component part shortages are causing headwinds.
- Several thousand units on back-order of most popular and profitable Commercial IoT products.
- Expect component part shortage trend to continue through at least the second quarter of 2022.
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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