NASDAQ$GSAT

Globalstar · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Globalstar experienced record growth, with operating income up over 150% and a significant reduction in GAAP net loss, driven by a nearly 80% increase in total revenue.

Globalstar reported a strong first quarter in 2023, marked by record revenue growth and significant improvements in operating income and net loss. The company's success was driven by growth in service revenue, particularly from wholesale capacity services and Commercial IoT, as well as increased subscriber equipment sales. Globalstar is focused on executing its strategy across wholesale, legacy, IoT, and terrestrial spectrum to drive sustainable revenue growth.

  • Total revenue increased by 79% to $58.6 million due to increases in both service revenue and subscriber equipment sales.
  • Service revenue increased by 80% due primarily to higher wholesale capacity service revenue and Commercial IoT.
  • Adjusted EBITDA increased by 216% to $32.6 million, with a healthy margin of 56%.
  • Net loss decreased to $3.5 million compared to $20.5 million for the first quarter of 2022.

Headline financials

Total Revenue

$58.6M

Previous: $32.8M+78.9%
EPS (adj)

$0.15

Previous: -$0.01+1600.0%
Adjusted EBITDA

$32.6M

Previous: $10.3M+216.1%
Capital Expenditures

-$6.49M

Previous: -$10M+35.2%
Free Cash Flow

-$9.97M

Previous: -$30.5M+67.3%
Net Income

-$3.48M

Previous: -$20.5M+83.0%
Operating Income

$7.19M

Previous: -$13.7M+152.4%
Cash & Equivalents

$20.5M

Previous: $11.5M+77.9%
Total Assets

$845M

Previous: $850M-0.7%

Revenue & EPS history

Globalstar · Revenue · Quarterly

$58.6M

Q1 2023+78.9%vs Q1 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Globalstar · $52.7M total across 4 segments · Q1 2023

  • Wholesale Capacity
    $30.4M
  • SPOT
    $11.3M+0.5%
  • Duplex
    $5.75M-6.4%
  • Commercial IoT
    $5.18M+10.9%

Forward guidance

Globalstar reiterates its financial guidance for full year 2023 (excluding revenue from terrestrial spectrum opportunities).

Tailwinds

  • Total revenue between $185 million and $230 million
  • Adjusted EBITDA margin of approximately 55%
  • Financial metrics are expected to continue to improve significantly by 2026
  • Total revenue expected to increase by approximately 35% compared to the 2023 forecast in 2026
  • New satellites are expected to be fully operational in 2026

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 2023

Historical avgQ1 2023

-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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