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Sep 30, 2020

Iridium Q3 2020 Earnings Report

Iridium reported a net loss of $4.0 million and total revenue of $151.5 million, driven by record net subscriber additions.

Key Takeaways

Iridium Communications Inc. reported financial results for the third quarter of 2020, featuring a net loss of $4.0 million, total revenue of $151.5 million, and a record 67,000 net subscriber additions. The company also updated its full-year 2020 outlook, raising guidance for operational EBITDA to approximately $355 million.

Iridium delivered a record 67,000 net subscriber additions during the quarter.

Subscriber equipment sales increased by 18% year-over-year.

Iridium is raising its full-year guidance for 2020 and now expects to generate approximately $355 million in operational EBITDA.

Company ended the quarter with 1,429,000 total billable subscribers.

Total Revenue
$151M
Previous year: $145M
+4.6%
EPS
-$0.03
Previous year: -$0.14
-78.6%
Commercial Voice/Data ARPU
$41
Previous year: $41
+0.0%
Commercial IoT Data ARPU
$9.48
Previous year: $11.4
-16.5%
Cash and Equivalents
$183M
Previous year: $172M
+6.5%

Iridium

Iridium

Iridium Revenue by Segment

Forward Guidance

Iridium updated its full-year 2020 outlook for total service revenue, OEBITDA and net leverage.

Positive Outlook

  • Total service revenue growth of approximately 3% for full-year 2020.
  • Full-year 2020 OEBITDA of approximately $355 million.
  • Negligible cash taxes in 2020.
  • Cash taxes are expected to be negligible through approximately 2023.
  • Net leverage of approximately 4.0 times OEBITDA at the end of 2020.