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Sep 30, 2024

Iridium Q3 2024 Earnings Report

Iridium reported record third-quarter results and improved its 2024 OEBITDA outlook.

Key Takeaways

Iridium Communications Inc. reported a record third-quarter total revenue of $212.8 million, driven by an 8% increase compared to the previous year, with growth in commercial service revenue and government engineering revenue. Net income was $24.4 million, or $0.21 per diluted share, compared to a net loss of $1.6 million, or $0.01 per diluted share, for the third quarter of 2023. The company ended the quarter with 2,482,000 total billable subscribers, an 11% year-over-year increase.

Total revenue increased by 8% year-over-year, reaching a record $212.8 million.

Commercial service revenue grew by 6%, primarily driven by IoT data and voice and data services.

The company ended the quarter with 2,482,000 total billable subscribers, an 11% increase year-over-year.

Iridium's Board of Directors authorized an additional $500 million for share repurchases through December 31, 2027.

Total Revenue
$213M
Previous year: $198M
+7.7%
EPS
$0.21
Previous year: -$0.01
-2200.0%
Commercial Voice/Data ARPU
$46
Previous year: $46
+0.0%
Commercial IoT Data ARPU
$7.79
Previous year: $7.9
-1.4%
Gross Profit
$156M
Previous year: $143M
+8.9%
Cash and Equivalents
$160M
Previous year: $67.9M
+135.1%
Free Cash Flow
$100M
Previous year: $59.1M
+69.2%
Total Assets
$2.75B
Previous year: $2.71B
+1.7%

Iridium

Iridium

Iridium Revenue by Segment

Forward Guidance

Iridium updated its full-year 2024 outlook.

Positive Outlook

  • Total service revenue growth of approximately 5% for full-year 2024.
  • Full-year 2024 OEBITDA between $465 million and $470 million.
  • Cash taxes of less than $10 million per year from 2024 through 2026.
  • Net leverage below 4.0 times OEBITDA through 2026.
  • Net leverage falling below 2.0 times OEBITDA by the end of the decade.

Revenue & Expenses

Visualization of income flow from segment revenue to net income