Iridium Q4 2024 Earnings Report

Key Takeaways

Iridium reported strong Q4 revenue growth of 9% YoY, driven by a 5% increase in commercial service revenue and a 20% rise in engineering & support services. Net income declined due to higher interest expenses, but the company maintained solid profitability.

Total Revenue

$213M

Previous year: $195M

+9.4%

EPS

$0.32

Previous year: $0.3

+6.7%

Voice & Data ARPU

$45

Previous year: $45

+0.0%

IoT Data ARPU

$7.29

Previous year: $7.12

+2.4%

Broadband ARPU

$268

Previous year: $294

-8.8%

Cash and Equivalents

$93.5M

Previous year: $71.9M

+30.1%

Iridium Revenue

Iridium EPS

Iridium Revenue by Segment

Forward Guidance

Iridium expects steady growth in 2025, forecasting a 5-7% increase in service revenue and OEBITDA of $490M-$500M, supported by IoT and government contracts.

Positive Outlook

Service revenue expected to grow between 5-7% in 2025.
OEBITDA projected to reach $490M-$500M in 2025.
Continued strong cash flow and capital return to shareholders.
Stable government revenue from long-term EMSS contract.
Engineering and support revenue expected to increase.

Challenges Ahead

Higher interest expenses impacting net income.
Broadband revenue declined YoY, reflecting shifting usage patterns.
Subscriber growth slowed due to changes in IoT customer plans.
Equipment sales remain below 2023 levels despite a Q4 increase.
Expected tax rate to increase after 2026, affecting profitability.