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Mar 31, 2022

Iridium Q1 2022 Earnings Report

Iridium reported record equipment sales and subscriber growth driven by commercial IoT demand.

Key Takeaways

Iridium Communications Inc. reported a strong first quarter in 2022, with a 15% increase in total revenue to $168.2 million. Net income was $2.8 million, or $0.02 per diluted share, compared to a net loss of $5.2 million in the prior year period. The company reiterated its full-year 2022 outlook.

Total revenue increased by 15% year-over-year, reaching $168.2 million.

Service revenue grew by 9% year-over-year, totaling $126.1 million.

The company ended the quarter with 1,781,000 total billable subscribers, a 17% increase year-over-year.

Commercial IoT data revenue increased by 15% year-over-year, reaching $28.4 million.

Total Revenue
$168M
Previous year: $147M
+14.8%
EPS
$0.02
Previous year: -$0.04
-150.0%
Commercial Voice/Data ARPU
$40
Previous year: $39
+2.6%
Commercial IoT Data ARPU
$7.78
Previous year: $8.39
-7.3%
Gross Profit
$124M
Cash and Equivalents
$232M
Previous year: $222M
+4.4%
Free Cash Flow
$52.2M
Total Assets
$3.08B

Iridium

Iridium

Iridium Revenue by Segment

Forward Guidance

The Company reiterated its full-year 2022 outlook:

Positive Outlook

  • Total service revenue growth between 5% and 7% for full-year 2022.
  • Full-year 2022 OEBITDA between $400 million and $410 million.
  • Negligible cash taxes in 2022.
  • Cash taxes are expected to be negligible through approximately 2024.
  • Net leverage of between 2.5 and 3.5 times OEBITDA at the end of 2023, assuming the completion of the Company’s total $600 million in authorized share repurchases.

Revenue & Expenses

Visualization of income flow from segment revenue to net income