NASDAQ$GSAT

Globalstar · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Globalstar's financial performance declined due to lower engineering service revenue, but saw recovery signs in Commercial IoT sales and strategic advancements in network infrastructure and terrestrial spectrum monetization.

Globalstar reported a decrease in total revenue by 16% compared to Q1 2020, primarily due to a decline in engineering service revenue. However, the company saw positive signs of recovery in the Commercial IoT sector and made strategic advancements in network infrastructure and terrestrial spectrum monetization. The company also completed second lien warrant exercises, satisfying loan agreement requirements.

  • Commercial IoT sales channel showed signs of recovery with service and equipment revenue exceeding pre-pandemic levels.
  • Strategic decisions were made to align the business model with growth expectations in the Commercial IoT space.
  • Progress was made in upgrading gateway equipment to support large opportunities and enhance network performance.
  • Terrestrial spectrum effort is progressing well with multiple transformative announcements including Qualcomm’s inclusion of band 53 in their upcoming modem and Nokia’s announcement of the deployment at the Port of Seattle.

Headline financials

Total Revenue

$26.9M

Previous: $32.2M-16.4%
EPS (adj)

-$0.02

Previous: -$0.02+0.0%
Adjusted EBITDA

$5.99M

Previous: $11M-45.7%
Capital Expenditures

-$4.31M

Previous: -$1.22M-253.4%
Free Cash Flow

-$40.6M

Previous: -$39.4M-3.0%
Net Income

-$36.3M

Previous: -$38.2M+4.9%
Operating Income

-$19.3M

Previous: -$14.1M-36.7%
Gross Profit

$15M

Previous: $20.8M-28.2%
Cash & Equivalents

$8.37M

Previous: $10.5M-20.0%
Total Assets

$913M

Previous: $939M-2.8%
Stock-Based Comp

$1.09M

Previous: $1.28M-14.8%

Revenue & EPS history

Globalstar · Revenue · Quarterly

$26.9M

Q1 2021-16.4%vs Q1 2020
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Globalstar · $22.1M total across 3 segments · Q1 2021

  • SPOT
    $11M-9.4%
  • Duplex
    $6.66M-13.2%
  • Commercial IoT
    $4.48M+4.0%

Forward guidance

Globalstar is focusing on expanding its revenue streams, particularly through Commercial IoT opportunities and monetizing its ground station assets. The company anticipates growth in these areas, supported by strategic initiatives and infrastructure upgrades. They are also confident and focusing on the terrestrial spectrum effort.

Tailwinds

  • Commercial IoT sales channel is showing signs of recovery.
  • Strategic decisions are being made to align the business model with growth expectations in the Commercial IoT space.
  • Progress is being made in upgrading gateway equipment to support large opportunities and enhance network performance.
  • The company is exploring revenue-generating opportunities outside of traditional satellite services.
  • The completion of the second lien warrant exercises has strengthened the company's financial position.

Headwinds

  • Total revenue decreased by 16% compared to the first quarter of 2020.
  • Service revenue decreased due to lower engineering service revenue and fewer Duplex and SPOT subscribers.
  • Loss from operations increased due to lower revenue.
  • ARPU will decrease over time, particularly in periods with a high volume of activations.
  • The company's operating performance has material limitations.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.3%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+4.8%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+24.0%

Q4 2021

Best reaction

-18.0%

Q3 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.6%+0.8%-0.6%
Q4 2025+7.5%+5.9%+10.9%
Q3 2025+4.6%+33.4%+41.9%
Q1 2025-12.9%-7.6%-1.4%
Q4 2024+0.1%+7.1%-1.3%
Q3 2024+6.5%+2.2%+18.8%
Q2 2024+7.3%+11.0%+14.7%
Q1 2024-6.2%-9.3%-15.5%
Q4 2023-10.3%-20.1%-15.5%
Q3 2023+1.4%-2.9%+10.7%
Q2 2023+5.4%+11.6%+32.1%
Q1 2023-0.8%+8.5%+25.5%
Q4 2022-7.0%-9.4%-9.4%
Q3 2022-6.5%-10.6%-13.8%
Q2 2022+2.5%-3.1%+26.7%
Q1 2022-7.4%-12.4%+9.9%
Q4 2021+24.0%+25.0%+53.1%
Q3 2021+1.2%+5.5%-20.0%
Q2 2021+7.0%+10.1%+70.5%
Q1 2021-8.3%-8.3%-2.5%
Q4 2020-16.6%-18.3%-17.8%
Q3 2020+9.7%+10.0%+10.0%
Q2 2020-3.5%+0.0%-18.4%
Q1 2020+4.1%-3.2%+12.9%
Q4 2019-13.0%-6.4%-27.7%
Q3 2019-2.2%-2.5%+0.0%
Q2 2019-3.2%-7.1%-11.9%
Q1 2019+6.8%+15.1%+5.7%
Q4 2018-7.1%-10.0%-14.0%
Q3 2018+9.2%+2.9%+11.4%
Q2 2018-14.5%-3.6%-7.3%
Q1 2018+10.2%+10.0%-15.0%
Q4 2017-0.7%+3.3%-23.9%
Q3 2017+1.8%-1.2%-4.8%
Q2 2017+2.6%+7.9%+5.8%
Q1 2017-1.1%+3.9%+14.4%
Q4 2016-3.5%-4.2%+14.7%
Q3 2016-5.8%+12.5%-8.0%
Q2 2016+1.7%+1.7%+26.3%
Q1 2016-12.0%
Q4 2015+3.9%
Q3 2015+5.5%
Q2 2015+2.1%
Q1 2015-2.5%
Q4 2014+0.8%
Q3 2014+5.6%
Q2 2014+0.3%
Q1 2014+3.4%
Q4 2013-0.8%
Q3 2013+6.1%
Q2 2013+1.6%
Q1 2013+6.1%
Q1 2010-2.9%
Q4 2012+1.4%
Q3 2012-12.5%
Q1 2011-6.4%
Q2 2012+4.9%
Q1 2012+16.3%
Q2 2011-6.3%
Q4 2009-6.3%
Q4 2011-6.3%
Q3 2010-18.0%
Q3 2011-18.0%
Q4 2010+16.7%
Q2 2010+16.7%

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