NASDAQ$IRDM

Iridium Communications Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Iridium reported a net income of $32.3 million and total revenue of $201.1 million, driven by growth in commercial IoT and government engineering revenue.

Iridium Communications Inc. reported strong second-quarter results with a 4% increase in total revenue to $201.1 million. Net income was $32.3 million, a significant improvement from the previous year's net loss. The company saw growth in commercial IoT data and voice and data services, as well as higher government engineering revenue. Iridium reiterated its full-year 2024 outlook and continues to focus on returning capital to shareholders.

  • Total revenue increased by 4% year-over-year to $201.1 million, driven by commercial service revenue and government engineering revenue.
  • Commercial service revenue grew by 6% year-over-year, primarily due to growth in IoT data and voice and data services.
  • The company ended the quarter with 2,413,000 total billable subscribers, a 13% increase year-over-year.
  • Iridium reiterated its full-year 2024 outlook for total service revenue growth between 4% and 6%.

Headline financials

Total Revenue

$201M

Previous: $193M+4.1%
EPS

$0.27

Previous: -$0.24+212.5%
Commercial Voice & Data ARPU

$46.00

Previous: $46.00+0.0%
Commercial IoT Data ARPU

$7.70

Previous: $7.48+2.9%
Capital Expenditures

-$27M

Previous: -$45.3M+40.4%
Free Cash Flow

$5.33M

Previous: -$76M+107.0%
Net Income

$32.3M

Previous: -$30.7M+205.2%
Operating Income

$43.6M

Previous: -$16M+373.3%
Gross Profit

$3.1M

Previous: $5.3M-41.5%
Cash & Equivalents

$63.5M

Previous: $103M-38.6%
Total Assets

$2.72B

Previous: $2.78B-2.3%
R&D Expense

$6.51M

No prior period
Stock-Based Comp

$19.3M

Previous: $16.8M+15.2%

Revenue & EPS history

Iridium · Revenue · Quarterly

$201M

Q2 2024+4.1%vs Q2 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

Iridium reiterated its full-year 2024 outlook and updated its longer-term guidance on net leverage.

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.
  • Expect that the longer-term cash tax rate will move closer to the statutory rate in 2028.
  • Net leverage below 4.0 times OEBITDA through 2026 and 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 consistent with the current level.

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 Q2 2024

Historical avgQ2 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro