Iridium Q2 2022 Earnings Report
Key Takeaways
Iridium Communications Inc. reported a strong second quarter in 2022, with a 17% increase in total revenue and a 10% increase in service revenue compared to the prior-year period. Net income rose to $4.6 million, or $0.04 per diluted share, driven by broad-based revenue growth. The company ended the quarter with 1,875,000 total billable subscribers, reflecting a 16% year-over-year increase primarily due to growth in commercial IoT.
Total revenue increased by 17% year-over-year, reaching $174.9 million.
Service revenue grew by 10% year-over-year, amounting to $132.9 million.
Commercial service revenue was $106.4 million, up 11% from last year.
The company increased its full-year outlook for service revenue growth to between 7% and 9% and for OEBITDA to between $410 million and $420 million in 2022.
Iridium
Iridium
Iridium Revenue by Segment
Forward Guidance
Iridium updated its full-year 2022 outlook for total service revenue and OEBITDA.
Positive Outlook
- Total service revenue growth between 7% and 9% for full-year 2022.
- Full-year 2022 OEBITDA between $410 million and $420 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