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Mar 31, 2023
Globalstar Q1 2023 Earnings Report
Globalstar experienced record growth, with operating income up over 150% and a significant reduction in GAAP net loss, driven by a nearly 80% increase in total revenue.
Key Takeaways
Globalstar reported a strong first quarter in 2023, marked by record revenue growth and significant improvements in operating income and net loss. The company's success was driven by growth in service revenue, particularly from wholesale capacity services and Commercial IoT, as well as increased subscriber equipment sales. Globalstar is focused on executing its strategy across wholesale, legacy, IoT, and terrestrial spectrum to drive sustainable revenue growth.
Total revenue increased by 79% to $58.6 million due to increases in both service revenue and subscriber equipment sales.
Service revenue increased by 80% due primarily to higher wholesale capacity service revenue and Commercial IoT.
Adjusted EBITDA increased by 216% to $32.6 million, with a healthy margin of 56%.
Net loss decreased to $3.5 million compared to $20.5 million for the first quarter of 2022.
Revenue by Segment
Forward Guidance
Globalstar reiterates its financial guidance for full year 2023 (excluding revenue from terrestrial spectrum opportunities).
Positive Outlook
- Total revenue between $185 million and $230 million
- Adjusted EBITDA margin of approximately 55%
- Financial metrics are expected to continue to improve significantly by 2026
- Total revenue expected to increase by approximately 35% compared to the 2023 forecast in 2026
- New satellites are expected to be fully operational in 2026
Historical Earnings Impact
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Avg. Return Before/After Earnings
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