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Mar 31, 2020

Iridium Q1 2020 Earnings Report

Iridium reported solid growth in total revenue and billable subscribers, driven by service revenue, engineering and support services, and equipment sales.

Key Takeaways

Iridium Communications Inc. reported a net loss of $31.7 million, or $0.24 per diluted share, for the first quarter of 2020. Total revenue increased 9% to $145.3 million, with service revenue growing 8% to $116.0 million. The company ended the quarter with 1,332,000 total billable subscribers, a 16% increase year-over-year.

Total revenue increased by 9% year-over-year, reaching $145.3 million.

Service revenue grew by 8% year-over-year, totaling $116.0 million.

The company reported 1,332,000 total billable subscribers, a 16% increase year-over-year.

Commercial service revenue was $91.0 million, up 7% from last year.

Total Revenue
$145M
Previous year: $134M
+8.7%
EPS
-$0.01
Previous year: -$0.18
-94.4%
Commercial Voice/Data ARPU
$40
Previous year: $40
+0.0%
Commercial IoT Data ARPU
$9.71
Previous year: $11.3
-14.2%
Cash and Equivalents
$67.3M
Previous year: $276M
-75.6%

Iridium

Iridium

Iridium Revenue by Segment

Forward Guidance

Given the current global shutdown and macroeconomic uncertainties, the Company updated its full-year 2020 outlook and currently anticipates growth in total service revenue and OEBITDA for full-year 2020.

Positive Outlook

  • Growth in total service revenue for full-year 2020.
  • Growth in OEBITDA for full-year 2020.
  • Negligible cash taxes in 2020.
  • Cash taxes are expected to be negligible through approximately 2023.
  • Net leverage of no more than 4.4 times OEBITDA at the end of 2020.