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Jun 30, 2021

Iridium Q2 2021 Earnings Report

Iridium reported strong second-quarter results, driven by subscriber growth and increased service revenue, and updated its full-year outlook.

Key Takeaways

Iridium Communications Inc. reported a net income of $3.8 million for the second quarter of 2021, a significant improvement compared to the net loss of $12.4 million in the same period last year. Total revenue increased by 7% to $149.9 million, with service revenue reaching $121.3 million, also up 7% year-over-year. The company's subscriber base grew to 1,616,000, driven by strong demand for IoT and broadband services. Iridium raised its full-year outlook for service revenue growth to between 4% and 5%.

Iridium posted record subscriber growth in Q2 2021.

Total revenue and service revenue both increased 7% year-over-year.

Commercial service revenue was $95.6 million, up 8% from last year.

The company increased full-year 2021 service revenue growth outlook to between 4% and 5%.

Total Revenue
$150M
Previous year: $140M
+7.0%
EPS
$0.03
Previous year: -$0.09
-133.3%
Commercial Voice/Data ARPU
$40
Previous year: $40
+0.0%
Commercial IoT Data ARPU
$8.69
Previous year: $8.91
-2.5%
Gross Profit
$11.6M
Cash and Equivalents
$219M
Previous year: $119M
+84.2%
Free Cash Flow
$65.4M
Total Assets
$3.2B

Iridium

Iridium

Iridium Revenue by Segment

Forward Guidance

The Company updated its full-year 2021 outlook for total service revenue and currently anticipates total service revenue growth of between 4% and 5% for full-year 2021 and full-year 2021 OEBITDA between $365 million and $375 million.

Positive Outlook

  • Total service revenue growth of between 4% and 5% for full-year 2021
  • Full-year 2021 OEBITDA between $365 million and $375 million
  • Negligible cash taxes in 2021
  • Cash taxes are expected to be negligible through approximately 2023
  • Net leverage of below 3.5 times OEBITDA at the end of 2022, assuming $300.0 million in share repurchases.

Revenue & Expenses

Visualization of income flow from segment revenue to net income