Returned a record $469 million to shareholders in 2024MCLEAN, Va., Feb. 13, 2025 /PRNewswire/ -- Iridium Communications Inc. (Nasdaq:IRDM) ("Iridium") today reported financial results for the fourth quarter and full-year 2024 and issued its full-year 2025 guidance. Net income was $36.3 million, or $0.32 per diluted share, for the fourth quarter of 2024, as compared to net income of $38.0 million, or $0.30 per diluted share, for the fourth quarter of 2023. Operational EBITDA ("OEBITDA")(1) for the fourth qu ...

MCLEAN, Va., Jan. 23, 2025 /PRNewswire/ -- Iridium Communications Inc. (Nasdaq: IRDM) ("Iridium"), a leading provider of global voice and data satellite communications, will host a conference call on Thursday, February 13, 2025 at 8:30 a.m. Eastern Time (ET) to discuss the Company's fourth-quarter and full year 2024 financial results. In advance of the call on February 13, 2025, Iridium will issue its fourth-quarter 2024 earnings press release, which will be available on the investor relations page of the C ...

MCLEAN, Va., Jan. 2, 2025 /PRNewswire/ -- Iridium Communications Inc. (Nasdaq: IRDM) ("Iridium"), a leading provider of global voice and data satellite communications, today announced that Company executives would participate at the 27th Annual Needham Growth Conference on Tuesday, January 14, 2025 at 4:30 p.m. ET. A presentation from the conference will be webcast on the Investor Relations section of Iridium's website at http://investor.iridium.com/events. The webcast will be archived at the same location ...

Iridium Communications Inc. (IRDM) recently partnered with Blynk, a top Low-Code IoT SaaS platform, to empower engineering teams and businesses worldwide by streamlining the creation and deployment of satellite-enabled IoT solutions. The collaboration introduces the Iridium Certus 9704 Development Kit, a comprehensive evaluation tool crafted specifically for the state-of-the-art Iridium Certus 9704 IoT Transceiver. Designed for seamless satellite connectivity, the kit ensures global communication capabiliti ...

The global demand for seamless connectivity is soaring, fueling a multi-billion dollar boom in the satellite communication sector, which is projected to grow from $220 billion to $630 billion over the next seven years. This unprecedented growth is driven by the need for reliable communication access to even the most remote locations, and it presents a unique opportunity for investors. But with multiple companies employing a diverse range of technologies and strategies, how can investors effectively navigate ...

MIAMI, Dec. 12, 2024 /PRNewswire/ -- Blynk, the leading Low-Code IoT SaaS platform, has partnered with Iridium Communications Inc. (NASDAQ: IRDM), a leading provider of global voice and data satellite communications, in support of the new Iridium Certus™ 9704 Development Kit, an end-to-end product evaluation tool for the Iridium Certus 9704 module. This partnership allows engineering teams to jumpstart their projects with Iridium's new hardware using Blynk's powerful IoT platform, creating an ideal environm ...

The new module is supported by the Iridium Certus 9704 Development Kit, and is ideal for data, audio messages and image transfers, while positioning companies as more future ready in anticipation of Satellite AIoTMCLEAN, Va., Dec. 12, 2024 /PRNewswire/ -- Iridium Communications Inc. (NASDAQ: IRDM), a leading provider of global voice and data satellite communications, today launched the Iridium Certus™9704, its newest  IoT module, and Iridium Certus 9704 Development Kit. This transformational new module, fea ...

Core Insights - Iridium Communications Inc. (IRDM) has partnered with Eutelsat Group's subsidiary Eutelsat America Corp. and OneWeb Technologies Inc. to provide Iridium Certus and Iridium Satellite Time and Location (STL) services to U.S. government clients [1] - The partnership aims to enhance government services with a GNSS-resilient LEO Ku-Band/L-band solution, improving connectivity and remote terminal management capabilities [2] - Iridium's acquisition of Satelles, Inc. has strengthened its STL service offerings, which are crucial in areas lacking GPS or GNSS signals, with a target of achieving $1 billion in annual service revenues by 2030 [3] Group 1: Partnership and Services - EACOWT will deliver Iridium Certus and STL services to U.S. government clients through contracts with the U.S. Space Force [1] - The combination of OneWeb Technologies' satellite network and Iridium's services provides a strong alternative for positioning, navigation, and timing (PNT) information [2] Group 2: Financial Performance and Projections - In Q3 2024, IRDM's total service revenues increased by 5% year over year to $159.9 million, driven by a growing subscriber base [3] - The Iridium STL business is projected to generate over $100 million in service revenue annually by 2030 [3]

Core Viewpoint - Iridium Communications (IRDM) reported a significant improvement in earnings for Q3 2024, with earnings per share (EPS) of 21 cents, surpassing the Zacks Consensus Estimate by 5% and recovering from a loss of 1 cent per share in the same quarter last year [1][2]. Financial Performance - Quarterly revenues reached $212.8 million, reflecting an 8% increase year-over-year, driven by growth in the Commercial service segment and Government Engineering and support services [2][4]. - Total service revenues rose 5% year-over-year to $159.9 million, contributing 75% to total revenues, supported by strong recurring revenues from increased subscriber engagements [3][6]. - Subscriber Equipment revenues increased by 9% to $22.2 million, while Engineering and support revenue surged 22% to $30.7 million due to heightened activity with the U.S. government [4][6]. Operational Metrics - Total operating expenses decreased to $157.9 million from $169.5 million in the prior-year quarter, primarily due to lower depreciation and amortization costs [6]. - Operational EBITDA (OEBITDA) increased by 2.5% year-over-year to $124.4 million, with operating income rising to $54.9 million from $28.2 million in the previous year [6]. Subscriber Growth - As of September 30, 2024, the company had 2,482,000 billable subscribers, an 11% increase from 2,236,000 in the prior-year quarter, with commercial IoT data subscribers growing 14% to 1.9 million [6]. - The commercial sector contributed significantly to subscriber growth, with 2,341,000 billable commercial subscribers, up from 2,094,000 in the previous quarter [6]. Liquidity and Share Repurchase - As of September 30, 2024, total cash and cash equivalents were $159.6 million, with net debt of $1.7 billion [6]. - In Q3 2024, the company repurchased 4.7 million shares worth $128.6 million and announced an additional $500 million share repurchase program through December 31, 2027 [7]. 2024 Outlook - Based on the strong Q3 performance, Iridium revised its full-year 2024 outlook, now expecting total service revenue growth of about 5%, up from the previous guidance of 4-6% [8]. - The company anticipates full-year OEBITDA to be between $465 million and $470 million, an increase from the previous range of $460 million to $470 million [8].

Financial Data and Key Metrics - Total revenue for Q3 2024 was $212.8 million, up 8% YoY, driven by growth in commercial business lines and strength in engineering and support revenue [15] - Operational EBITDA reached a record $124.4 million in Q3, with service revenue expansion being the primary driver [16] - Service revenue increased 6% YoY to $133.3 million, reflecting momentum in IoT and growth in hosted payload and other data services [16] - Commercial voice and data revenue rose 3% YoY to $57.7 million, driven by subscriber growth and demand for Push-to-talk services [16] - Commercial IoT revenue grew 14% YoY to $43.7 million, partly due to a 2-year contract with a large partner [17] - Government service revenue increased slightly to $26.5 million, reflecting a step-up in revenue under the EMSS contract with the US government [21] - Subscriber equipment revenue was up 9% YoY to $22.2 million, reflecting normalized demand after inventory buildup [21] - Engineering and support revenue rose 22% YoY to $30.7 million, driven by increased activity with the US government and the Space Development Agency [22] - Full-year 2024 guidance for service revenue growth was updated to approximately 5%, with operational EBITDA expected between $465 million - $470 million [23] Business Line Performance - Commercial IoT: Revenue increased 14% YoY to $43.7 million, driven by demand for personal satellite communications and industrial services [17] - Commercial broadband: Revenue held steady at $15.5 million, transitioning to a safety and companion service [19] - Hosting and other data services: Revenue rose 9% YoY to $16.4 million, primarily due to new revenue from Iridium PNT [20] - Government services: Revenue increased slightly to $26.5 million, reflecting higher bill rates under the EMSS contract [21] - Subscriber equipment: Revenue grew 9% YoY to $22.2 million, reflecting normalized demand after inventory buildup [21] Market Performance - Iridium NTN Direct: Progress on Project Stardust, with Iridium NTN Direct set to launch in early 2026, integrating Iridium technology into 3GPP Release 19 [7][8] - Garmin's inReach Messenger Plus: Launched in mid-September, leveraging Iridium Messaging Transport (IMT) for enhanced consumer satellite communication [9] - Iridium GMDSS for Mariners: New terminals combining broadband technology with maritime safety services (GMDSS, LRIT, SSAS) set to launch this quarter [10] - Space Development Agency (SDA) contract: Total contract value increased to approximately $400 million, with $260 million remaining to be recognized through 2029 [11] - Iridium PNT: Swift integration of Satelles, showcasing PNT capabilities at industry events, with growing interest from maritime and other users in Europe and Asia [12][13] Strategic Direction and Industry Competition - Iridium is positioning itself as a leader in IoT and mobility applications, expanding into new markets like PNT and standards-based IoT [4] - The company is actively returning capital to shareholders, with $146 million returned in Q3 through dividends and share repurchases [4] - Iridium's L-band cross-linked constellation and global partner ecosystem are key differentiators in the satellite communications industry [6] - The company is focused on direct-to-device (D2D) offerings, with Iridium NTN Direct set to integrate into industry-standard chipsets [7][8] - Iridium is addressing competition by leveraging its global, reliable network, which complements regional solutions like Starlink [36][38] Management Commentary on Operating Environment and Future Outlook - Management remains confident in Iridium's market position and growth opportunities, with a focus on expanding the ecosystem of global partners [5] - The company is on track to achieve the higher end of its full-year guidance, driven by strong revenue and subscriber growth [4] - Iridium expects to generate $1 billion in service revenue by 2030, supported by new product launches and strategic initiatives [14] - Management highlighted the growing threat of GPS jamming and spoofing, with Iridium PNT positioned as a secure alternative [13] - The company is optimistic about the adoption of Iridium NTN Direct and other new technologies, which are expected to drive growth in the coming years [7][8] Other Important Information - Iridium repurchased 4.7 million shares in Q3, reducing the outstanding share count by 4%, and has returned over $1 billion to shareholders since 2021 [5][24] - The company ended Q3 with a cash balance of $159.6 million and expects to return approximately $65 million to shareholders through dividends in 2024 [23][24] - Capital expenditures in Q3 were $18.6 million, with full-year 2024 CapEx expected to be around $70 million, primarily for new product development like Iridium NTN Direct [25] - Pro forma free cash flow for 2024 is projected at approximately $300 million, with a conversion rate of EBITDA to free cash flow of 64% [26] Q&A Session Summary Question: EBITDA guidance and spending trends on directed devices [32] - Iridium continues to invest in directed devices, with spending reflected in CapEx and R&D [32] - Project Stardust is progressing faster than expected, with Iridium NTN Direct set to launch in 2026 [33] Question: Service revenue growth and competition [35] - Iridium's service revenue growth is expected to be around 5% for 2024, with strong performance in Q3 [35] - The company differentiates itself through its global, reliable network, which complements regional solutions like Starlink [36][38] Question: ARPU trends and SDA contract impact [41] - Broadband ARPU is down slightly YoY, but expected to stabilize as the service transitions to a companion role [43] - The SDA contract is expected to contribute to engineering support revenue growth, with $260 million remaining to be recognized through 2029 [42] Question: IoT customer trends and revenue impact [49] - IoT revenue from a key customer is expected to grow materially in 2025 and 2026, driven by contractual agreements and product portfolio expansion [49] Question: Broadband segment performance and outlook [74] - Broadband revenue was better than expected in Q3, with the segment expected to return to growth in 2025 [74][75] Question: Satelles business development activity [77] - Satelles has seen increased business development activity due to growing threats of GPS jamming and spoofing, with expanded availability in Europe and Asia [77][79] Question: Aviation service certification and growth potential [67] - Iridium is on track to achieve aviation safety service certification in 2024, with products expected to launch in 2025 [67][68] Question: Maritime market dynamics and competition [70] - Iridium is positioning itself as the preferred companion service for maritime broadband, with new terminals combining safety and backup functions [70][71]