Iridium Q1 2024 Earnings Report
Key Takeaways
Iridium Communications Inc. reported a 1% decrease in total revenue, but a 7% increase in service revenue for Q1 2024. Net income increased to $19.7 million, or $0.16 per diluted share. The company completed the acquisition of Satelles, Inc. on April 1st, expanding its capabilities in satellite-based time and location services.
Total revenue was $203.9 million, a 1% decrease compared to the prior year, but service revenue increased by 7% to $148.6 million.
Net income increased to $19.7 million, or $0.16 per diluted share, compared to $9.8 million, or $0.08 per diluted share, in Q1 2023.
Commercial service revenue grew by 8% year-over-year, driven by broad-based growth across various sectors.
The company ended the quarter with 2,333,000 total billable subscribers, a 14% increase year-over-year, led by growth in commercial IoT.
Iridium
Iridium
Iridium Revenue by Segment
Forward Guidance
The Company reiterated its full-year 2024 outlook.
Positive Outlook
- Total service revenue growth between 4% and 6% for full-year 2024.
- Full-year 2024 OEBITDA between $460 million and $470 million.
- Cash taxes of less than $10 million per year from 2024 through 2026.
- Net leverage below 2.5 times OEBITDA as we exit 2026.
- Net leverage falling below 2.0 times OEBITDA by the end of the decade, assuming the completion of the Company’s share repurchase authorization and the payment of quarterly dividends.
Revenue & Expenses
Visualization of income flow from segment revenue to net income