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Compared to the same quarter last year, Iridium experienced a 1% decrease in total revenue, primarily due to lower equipment revenue. Despite this, service revenue, which constitutes the bulk of the company’s recurring income from its expanding subscriber base, grew by 7% from the previous year and represented 73% of the total revenue for the quarter. The company ended the quarter with 2,333,000 total billable subscribers, a 14% increase from the year-ago period, driven by growth in commercial IoT.
CEO Matt Desch attributed the strong service revenue growth to the company’s robust subscriber base and demand for Iridium’s mission-critical applications. “Subscriber growth and demand for Iridium’s mission-critical applications are driving new service development and free cash flow,” said Desch.
The company’s recent acquisition of Satelles, Inc., completed on April 1, positions Iridium as a leading provider of satellite-based time and location services. Desch expressed enthusiasm about the acquisition, stating, “With the prevalence of GPS jamming and location spoofing on the rise, our new Satellite Time and Location service will allow us to protect critical infrastructure and expand resilient time-synchronization for enterprises and governments around the world.”
Iridium reiterated its full-year 2024 outlook, expecting total service revenue growth between 4% and 6%, with service revenue for the previous year at $584.5 million. The forecast for full-year 2024 Operational EBITDA (adjusted EBITDA) is between $460 million and $470 million, compared to $463.1 million for 2023.
The positive market response, indicated by the 7.5% uptick in Iridium’s stock, reflects investor confidence in the company’s financial performance and strategic initiatives.
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