NASDAQ$IRDM

Iridium Communications Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Iridium reported a net loss of $4.0 million and total revenue of $151.5 million, driven by record net subscriber additions.

Iridium Communications Inc. reported financial results for the third quarter of 2020, featuring a net loss of $4.0 million, total revenue of $151.5 million, and a record 67,000 net subscriber additions. The company also updated its full-year 2020 outlook, raising guidance for operational EBITDA to approximately $355 million.

  • Iridium delivered a record 67,000 net subscriber additions during the quarter.
  • Subscriber equipment sales increased by 18% year-over-year.
  • Iridium is raising its full-year guidance for 2020 and now expects to generate approximately $355 million in operational EBITDA.
  • Company ended the quarter with 1,429,000 total billable subscribers.

Headline financials

Total Revenue

$151M

Previous: $145M+4.6%
EPS (adj)

-$0.03

Previous: -$0.14+78.6%
Commercial Voice & Data ARPU

$41.00

Previous: $41.00+0.0%
Commercial IoT Data ARPU

$9.48

Previous: $11.36-16.5%
Capital Expenditures

-$29.3M

Previous: -$103M+71.5%
Free Cash Flow

-$33.3M

Previous: -$121M+72.4%
Net Income

-$4.01M

Previous: -$18M+77.8%
Operating Income

$12.7M

Previous: $8.01M+58.9%
Gross Profit

$5.4M

Previous: $5.4M+0.0%
Cash & Equivalents

$183M

Previous: $172M+6.5%
Total Assets

$3.37B

Previous: $3.83B-12.1%

Revenue & EPS history

Iridium · Revenue · Quarterly

$151M

Q3 2020+4.6%vs Q3 2019
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Iridium · $142M total across 6 segments · Q3 2020

  • Commercial Voice and Data
    $42.7M-4.4%
  • Commercial IoT Data
    $25.4M+0.3%
  • Government Services
    $25.1M-1.9%
  • Subscriber Equipment
    $25.1M+17.5%
  • Commercial Hosted Payload & Other Data
    $14.5M+20.6%
  • Engineering and Support Services
    $9.44M+24.9%

Forward guidance

Iridium updated its full-year 2020 outlook for total service revenue, OEBITDA and net leverage.

Tailwinds

  • Total service revenue growth of approximately 3% for full-year 2020.
  • Full-year 2020 OEBITDA of approximately $355 million.
  • Negligible cash taxes in 2020.
  • Cash taxes are expected to be negligible through approximately 2023.
  • Net leverage of approximately 4.0 times OEBITDA at the end of 2020.

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 2020

Historical avgQ3 2020

+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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