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Jun 30, 2023
Iridium Q2 2023 Earnings Report
Iridium reported Q2 2023 results, with record operational EBITDA driven by double-digit growth in subscribers and commercial service revenue.
Key Takeaways
Iridium Communications Inc. reported a net loss of $30.7 million for Q2 2023, compared to a net income of $4.6 million in Q2 2022. However, the company achieved a record operational EBITDA of $115.8 million, a 9% increase year-over-year. Total revenue increased by 10% to $193.1 million, driven by growth in commercial service lines and engineering and support revenue.
Total revenue increased 10% year-over-year, reaching $193.1 million.
Commercial service revenue was $118.6 million, up 12% from the prior year.
The company ended the quarter with 2,140,000 total billable subscribers, a 14% increase year-over-year.
Iridium reiterated its full-year 2023 outlook, expecting total service revenue growth between 9% and 11% and OEBITDA between $455 million and $465 million.
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 2023 outlook:
Positive Outlook
- Total service revenue growth between 9% and 11% for full-year 2023. Total service revenue for 2022 was $534.7 million.
- Full-year 2023 OEBITDA between $455 million and $465 million. OEBITDA for 2022 was $424.0 million.
- Negligible cash taxes in 2023. 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 $600.0 million share repurchase authorization
- The payment of four quarters of dividends.
Revenue & Expenses
Visualization of income flow from segment revenue to net income