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Dec 31, 2021
Globalstar Q4 2021 Earnings Report
Globalstar reported a slight increase in revenue driven by growth in SPOT and Commercial IoT services, while also making progress in terrestrial spectrum development and securing a satellite procurement agreement.
Key Takeaways
Globalstar's Q4 2021 results showed a 4% increase in total revenue compared to Q4 2020, driven by growth in service revenue and subscriber equipment sales. The company also made significant progress in terrestrial spectrum development and secured a satellite procurement agreement to replenish its existing constellation. Adjusted EBITDA increased by 26% year-over-year.
Total revenue increased by 4% year-over-year, driven by growth in service revenue and subscriber equipment sales.
SPOT service revenue increased by 6% due to higher average subscribers.
Commercial IoT service revenue increased by 9% due to increases in both ARPU and average subscribers.
Adjusted EBITDA increased by 26% year-over-year.
Globalstar
Globalstar
Globalstar Revenue by Segment
Revenue by Segment
Commercial IoT Revenue
CapyFin.comSPOT Revenue
CapyFin.comDuplex Revenue
CapyFin.com Forward Guidance
Globalstar anticipates continued growth in its IoT business and plans to expand its terrestrial spectrum applications. The company expects to complete a senior secured financing and refinance its 2019 senior credit facility.
Positive Outlook
- Continued growth in IoT business.
- Expansion of terrestrial spectrum applications.
- Expected completion of senior secured financing.
- Refinancing of 2019 senior credit facility.
- New satellite procurement agreement with MDA and Rocket Lab.
Challenges Ahead
- Supply chain disruptions may impact equipment sales.
- Engineering services revenue is generally milestone-based, leading to sporadic revenue recognition.
- Attrition in Duplex subscriber base due to industry shift to IoT.
- Dependence on Terms Agreement customer for future revenue and reimbursement of satellite costs.
- Uncertainty in timing of terrestrial spectrum approvals in certain countries.
Revenue & Expenses
Visualization of income flow from segment revenue to net income