NASDAQ$GSAT

Globalstar · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Globalstar's third quarter saw revenue increase due to higher service revenue, particularly in wholesale capacity, despite challenges in subscriber equipment sales. The company also experienced a significant net loss due to a non-cash charge related to the abandonment of second-generation Duplex assets.

Globalstar's Q3 2022 total revenue increased by 15% year-over-year, driven by a rise in service revenue. However, the company reported a net loss of $204.4 million, primarily due to a non-cash charge of $174.5 million related to the abandonment of its second-generation Duplex assets. Adjusted EBITDA increased by 35% to $14.2 million.

  • Total revenue increased by 15% compared to Q3 2021, driven by higher service revenue.
  • Service revenue increased due to higher wholesale capacity service revenue and a 5% increase in Commercial IoT service revenue.
  • Net loss was $204.4 million, impacted by a $174.5 million non-cash charge from abandoning second-generation Duplex assets.
  • Adjusted EBITDA increased by 35% to $14.2 million due to higher revenue offset partially by higher operating expenses.

Headline financials

Total Revenue

$37.6M

Previous: $32.6M+15.4%
EPS (adj)

-$0.11

Previous: -$0.02-450.0%
Adjusted EBITDA

$14.2M

Previous: $10.6M+34.6%
Capital Expenditures

-$91.1M

Previous: -$29M-214.6%
Free Cash Flow

-$296M

Previous: -$59.9M-393.7%
Net Income

-$204M

Previous: -$30.9M-561.7%
Operating Income

-$187M

Previous: -$14.7M-1168.5%
Gross Profit

-$8.5M

Previous: $18.8M-145.2%
Cash & Equivalents

$14.7M

Previous: $11.3M+30.5%
Total Assets

$747M

Previous: $884M-15.6%
Stock-Based Comp

$2.05M

Previous: $858K+139.3%

Revenue & EPS history

Globalstar · Revenue · Quarterly

$37.6M

Q3 2022+15.4%vs Q3 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Globalstar · $32.4M total across 4 segments · Q3 2022

  • SPOT
    $11.8M-1.0%
  • Duplex
    $9.02M-6.3%
  • Wholesale Capacity
    $6.97M
  • Commercial IoT
    $4.67M+4.8%

Forward guidance

Globalstar provided financial guidance for full-year 2023, excluding revenue from terrestrial spectrum opportunities, expecting total revenue between $185 million and $230 million and an Adjusted EBITDA margin of approximately 55%.

Tailwinds

  • Total revenue in 2023 between $185 million and $230 million.
  • Adjusted EBITDA margin of approximately 55%, up from 36% during the nine months ended September 30, 2022.
  • 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.

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 Q3 2022

Historical avgQ3 2022

-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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