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Sep 30, 2022
Iridium Q3 2022 Earnings Report
Iridium reported record results and increased its 2022 outlook.
Key Takeaways
Iridium Communications Inc. reported a net income of $2.1 million for Q3 2022, a notable shift from the $2.1 million net loss in Q3 2021. This improvement was largely driven by broad-based growth in total revenue. Total revenue reached $184.1 million, with service revenue accounting for $139.0 million and equipment sales and engineering support contributing $45.1 million. The company's Operational EBITDA also saw an 8% increase, reaching a record $107.8 million.
Total revenue increased by 14% compared to the same period in 2021, driven by growth in service revenue and equipment sales.
Service revenue grew by 9% year-over-year, representing 76% of total revenue, driven by an expanding subscriber base.
The company ended the quarter with 1,973,000 total billable subscribers, a 17% increase from the previous year, primarily due to growth in commercial IoT.
Iridium is increasing its full-year outlook for service revenue growth and OEBITDA, anticipating another record year in 2022.
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
Iridium updated its full-year 2022 outlook for service revenue growth and OEBITDA and currently anticipates:
Positive Outlook
- Total service revenue growth between 8% and 9% for full-year 2022.
- Full-year 2022 OEBITDA of approximately $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