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Sep 30, 2023
Iridium Q3 2023 Earnings Report
Iridium reported record operational EBITDA driven by strong subscriber momentum and broad-based revenue growth across its commercial business lines.
Key Takeaways
Iridium Communications Inc. reported third-quarter 2023 financial results with a net loss of $1.6 million, or $0.01 per diluted share. However, the company achieved a record operational EBITDA of $121.3 million, a 12% increase year-over-year. Total revenue increased by 7% to $197.6 million, driven by strong growth in commercial service lines and an increase in engineering and support revenue.
Iridium's commercial service revenue was $125.5 million, up 12% from the prior year due to broad-based growth across all revenue lines.
Commercial IoT data revenue increased by 14% to $38.5 million, with subscribers growing 18% year-over-year, driven by continued growth in consumer personal communications devices.
The company ended the quarter with 2,236,000 total billable subscribers, a 13% increase year-over-year, driven by growth in commercial IoT.
Iridium updated its full-year 2023 outlook, expecting total service revenue growth of approximately 10% and OEBITDA between $460 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
Iridium updated its full-year 2023 outlook.
Positive Outlook
- Total service revenue growth of approximately 10% for full-year 2023.
- Full-year 2023 OEBITDA of between $460 million and $465 million.
- Negligible cash taxes in 2023.
- Cash taxes are expected to be negligible through 2024.
- Net leverage of approximately 3.0 times OEBITDA at the end of 2023, assuming the payment of four quarters of dividends and completion of expected share repurchases.
Revenue & Expenses
Visualization of income flow from segment revenue to net income