NASDAQ$IRDM

Iridium Communications Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Iridium's Q1 2024 financial results were announced, highlighting service revenue growth and the acquisition of Satelles, Inc.

Iridium Communications Inc. reported a 1% decrease in total revenue, but a 7% increase in service revenue for Q1 2024. Net income increased to $19.7 million, or $0.16 per diluted share. The company completed the acquisition of Satelles, Inc. on April 1st, expanding its capabilities in satellite-based time and location services.

  • Total revenue was $203.9 million, a 1% decrease compared to the prior year, but service revenue increased by 7% to $148.6 million.
  • Net income increased to $19.7 million, or $0.16 per diluted share, compared to $9.8 million, or $0.08 per diluted share, in Q1 2023.
  • Commercial service revenue grew by 8% year-over-year, driven by broad-based growth across various sectors.
  • The company ended the quarter with 2,333,000 total billable subscribers, a 14% increase year-over-year, led by growth in commercial IoT.

Headline financials

Total Revenue

$204M

Previous: $205M-0.7%
EPS

$0.16

Previous: $0.08+100.0%
Commercial Voice & Data ARPU

$45.00

Previous: $44.00+2.3%
Commercial IoT Data ARPU

$7.57

Previous: $7.22+4.8%
Capital Expenditures

-$14.6M

Previous: -$22.9M+36.4%
Free Cash Flow

$5.09M

Previous: -$13.1M+138.8%
Net Income

$19.7M

Previous: $9.78M+101.1%
Operating Income

$49.8M

Previous: $23.1M+115.0%
Gross Profit

$3.1M

Previous: $5.4M-42.6%
Cash & Equivalents

$174M

Previous: $127M+37.5%
Total Assets

$2.74B

Previous: $2.87B-4.7%
R&D Expense

$7.2M

No prior period
Stock-Based Comp

$14M

Previous: $12.8M+9.7%

Revenue & EPS history

Iridium · Revenue · Quarterly

$204M

Q1 2024-0.7%vs Q1 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Iridium · $182M total across 6 segments · Q3 2023

  • Commercial Voice and Data
    $56.2M+11.8%
  • Commercial IoT Data
    $38.5M+13.8%
  • Government Services
    $26.5M+0.0%
  • Engineering and Support Services
    $25.2M+47.3%
  • Subscriber Equipment
    $20.4M-27.0%
  • Commercial Hosted Payload & Other Data
    $15M+1.2%

Forward guidance

The Company reiterated its full-year 2024 outlook.

Tailwinds

  • Total service revenue growth between 4% and 6% for full-year 2024.
  • Full-year 2024 OEBITDA between $460 million and $470 million.
  • Cash taxes of less than $10 million per year from 2024 through 2026.
  • Net leverage below 2.5 times OEBITDA as we exit 2026.
  • Net leverage falling below 2.0 times OEBITDA by the end of the decade, assuming the completion of the Company’s share repurchase authorization and the payment of quarterly dividends.

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 2024

Historical avgQ1 2024

+1.7%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+1.8%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+25.9%

Q3 2015

Best reaction

-18.1%

Q2 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.8%-7.5%+21.0%
Q4 2025+21.3%+27.5%+34.7%
Q3 2025-7.6%-11.9%-18.4%
Q1 2025-6.9%-0.2%+10.0%
Q4 2024+15.4%+17.1%-0.5%
Q3 2024+4.6%-4.3%-6.3%
Q2 2024+2.1%+12.2%+2.0%
Q1 2024+10.9%+16.3%+27.4%
Q4 2023-14.0%-16.6%-22.9%
Q3 2023-12.1%-13.7%-14.9%
Q2 2023-15.0%-9.8%-19.9%
Q1 2023+14.7%+9.9%+2.3%
Q4 2022+13.8%+11.8%+3.8%
Q3 2022+0.1%+1.7%+10.0%
Q2 2022+10.0%+12.3%+16.8%
Q1 2022+4.2%-5.8%-9.8%
Q4 2021+4.9%+5.2%+15.0%
Q3 2021+5.3%+2.3%+1.9%
Q2 2021+10.6%+8.9%+3.5%
Q1 2021-2.0%-2.1%-2.7%
Q4 2020+0.0%+3.2%-12.7%
Q3 2020-0.5%-3.5%+14.6%
Q2 2020+3.4%+0.1%+3.8%
Q1 2020-3.8%-9.0%-4.9%
Q4 2019+1.7%-5.9%-19.5%
Q3 2019+0.4%-1.6%-6.4%
Q2 2019+4.6%+7.7%-2.7%
Q1 2019-0.3%+2.3%-15.3%
Q4 2018+5.6%+2.6%+20.6%
Q3 2018+0.6%+2.3%+22.3%
Q2 2018+3.7%+7.1%+14.7%
Q1 2018-2.4%-6.8%+6.4%
Q4 2017-0.4%-6.0%-9.2%
Q3 2017+16.5%+10.1%+10.6%
Q2 2017-5.0%-9.2%-5.5%
Q1 2017+4.4%+5.4%-1.0%
Q4 2016-2.7%-4.4%-2.2%
Q3 2016+1.2%+0.6%+13.1%
Q2 2016-2.7%-6.1%-8.9%
Q1 2016-0.5%
Q4 2015-2.4%
Q3 2015+25.9%
Q2 2015-3.9%
Q1 2015-7.2%
Q4 2014-1.3%
Q3 2014+4.6%
Q2 2014+2.6%
Q1 2014+14.4%
Q4 2013+4.3%
Q3 2013-10.5%
Q2 2013-18.1%
Q1 2013+7.8%
Q4 2012-5.7%
Q3 2012-11.3%
Q2 2012-17.1%
Q1 2011-1.1%
Q1 2012-1.1%
Q4 2009+18.4%
Q4 2011+18.4%
Q3 2011+9.2%
Q3 2010+9.2%
Q2 2010-4.4%
Q2 2011-4.4%
Q4 2010-4.4%
Q1 2010+4.5%

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