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Mar 31, 2024
Iridium Q1 2024 Earnings Report
Iridium's Q1 2024 financial results were announced, highlighting service revenue growth and the acquisition of Satelles, Inc.
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
Revenue by Segment
Commercial Voice & Data Revenue
CapyFin.comCommercial IoT Data Revenue
CapyFin.comHosted Payload & Other Revenue
CapyFin.comGovernment Services Revenue
CapyFin.comSubscriber Equipment Revenue
CapyFin.comEngineering & Support Revenue
CapyFin.com 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