NASDAQ$IRDM

Iridium Communications Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Iridium reported record operational EBITDA driven by strong subscriber momentum and broad-based revenue growth across its commercial business lines.

Iridium Communications Inc. reported third-quarter 2023 financial results with a net loss of $1.6 million, or $0.01 per diluted share. However, the company achieved a record operational EBITDA of $121.3 million, a 12% increase year-over-year. Total revenue increased by 7% to $197.6 million, driven by strong growth in commercial service lines and an increase in engineering and support revenue.

  • Iridium's commercial service revenue was $125.5 million, up 12% from the prior year due to broad-based growth across all revenue lines.
  • Commercial IoT data revenue increased by 14% to $38.5 million, with subscribers growing 18% year-over-year, driven by continued growth in consumer personal communications devices.
  • The company ended the quarter with 2,236,000 total billable subscribers, a 13% increase year-over-year, driven by growth in commercial IoT.
  • Iridium updated its full-year 2023 outlook, expecting total service revenue growth of approximately 10% and OEBITDA between $460 million and $465 million.

Headline financials

Total Revenue

$198M

Previous: $184M+7.4%
EPS (adj)

-$0.01

Previous: $0.02-150.0%
Commercial Voice & Data ARPU

$46.00

Previous: $42.00+9.5%
Commercial IoT Data ARPU

$7.90

Previous: $8.24-4.1%
Capital Expenditures

-$57.3M

Previous: -$44.8M-28.0%
Free Cash Flow

-$58.9M

Previous: -$42.6M-38.3%
Net Income

-$1.64M

Previous: $2.15M-176.4%
Operating Income

$28.2M

Previous: $17.9M+57.5%
Gross Profit

$5.4M

Previous: $5.4M+0.0%
Cash & Equivalents

$67.9M

Previous: $219M-69.0%
Total Assets

$2.71B

Previous: $3.06B-11.7%
R&D Expense

$5.04M

No prior period
Stock-Based Comp

$15.9M

Previous: $13.7M+16.4%

Revenue & EPS history

Iridium · Revenue · Quarterly

$198M

Q3 2023+7.4%vs Q3 2022
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 updated its full-year 2023 outlook.

Tailwinds

  • Total service revenue growth of approximately 10% for full-year 2023.
  • Full-year 2023 OEBITDA of between $460 million and $465 million.
  • Negligible cash taxes in 2023.
  • Cash taxes are expected to be negligible through 2024.
  • Net leverage of approximately 3.0 times OEBITDA at the end of 2023, assuming the payment of four quarters of dividends and completion of expected share repurchases.

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 2023

Historical avgQ3 2023

+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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