Core Insights - Iridium Communications reported revenue of $212.77 million for Q3 2024, reflecting a 7.7% increase year-over-year and a surprise of +3.45% over the Zacks Consensus Estimate of $205.68 million [1] - Earnings per share (EPS) for the quarter was $0.21, compared to -$0.01 in the same quarter last year, resulting in an EPS surprise of +5.00% against the consensus estimate of $0.20 [1] Revenue Performance - Total revenue from subscriber equipment was $22.17 million, slightly below the estimated $22.54 million, but showing an 8.6% increase year-over-year [1] - Service revenue reached $159.86 million, exceeding the average estimate of $157.10 million, with a year-over-year growth of 5.2% [1] - Engineering and support service revenue was $30.75 million, surpassing the estimate of $25.96 million, marking a significant year-over-year increase of 21.9% [1] Subscriber Metrics - Average Revenue Per User (ARPU) for commercial voice and data was $46, slightly below the estimate of $46.31 [1] - ARPU for commercial IoT data was $7.79, exceeding the estimate of $7.56 [1] - ARPU for commercial broadband was $309, significantly higher than the estimated $280.57 [1] - Total net billable subscriber additions were 69 thousand, below the average estimate of 99.82 thousand [1] Service Revenue Breakdown - Commercial service revenue was $133.31 million, above the estimate of $130.46 million, with a year-over-year increase of 6.3% [1] - Government service revenue was $26.55 million, slightly above the estimate of $26.51 million, reflecting a minimal year-over-year change of 0.2% [1] - Hosted payload and other data service revenue was $16.37 million, exceeding the estimate of $14.67 million, with a year-over-year growth of 9% [1] Stock Performance - Iridium's shares have returned +10.1% over the past month, outperforming the Zacks S&P 500 composite's +3.8% change [1] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [1]

Iridium Communications (IRDM) came out with quarterly earnings of $0.21 per share, beating the Zacks Consensus Estimate of $0.20 per share. This compares to loss of $0.01 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 5%. A quarter ago, it was expected that this satellite phone company would post earnings of $0.19 per share when it actually produced earnings of $0.27, delivering a surprise of 42.11%. Over the last four quart ...

Subscriber Growth - As of September 30, 2024, the company had approximately 2,482,000 billable subscribers, an increase of 246,000, or 11%, from 2,236,000 billable subscribers as of September 30, 2023[71]. Revenue Performance - Total revenue for the three months ended September 30, 2024, was $212.8 million, an increase of $15.2 million, or 8%, compared to $197.6 million for the same period in 2023[75]. - Total revenue for the nine months ended September 30, 2024, was $617.7 million, an increase of $21.7 million, or 4%, compared to the prior year[93]. - Commercial services revenue increased by $24.5 million, or 7%, for the nine months ended September 30, 2024, primarily driven by increases in IoT and voice and data service revenue[96]. - Commercial IoT revenue increased by $19.8 million, or 19%, for the nine months ended September 30, 2024, driven by a 14% increase in IoT billable subscribers[96]. Operating Income and Expenses - Operating income for the three months ended September 30, 2024, was $54.9 million, a significant increase of $26.7 million, or 95%, from $28.2 million in the prior year[75]. - Total operating expenses decreased by $11.5 million, or 7%, to $157.9 million for the three months ended September 30, 2024, from $169.4 million in the prior year[75]. - Selling, general and administrative expenses increased by $10.6 million, or 32%, for the three months ended September 30, 2024, primarily due to costs related to the acquisition of Satelles and higher headcount costs[85]. - Research and development expenses increased by $1.2 million, or 23%, to $6.2 million for the three months ended September 30, 2024[75]. - Research and development expenses increased by $5.4 million, or 37%, for the nine months ended September 30, 2024, due to increased spending on device-related features[102]. Net Income - The company reported a net income of $24.4 million for the three months ended September 30, 2024, compared to a net loss of $1.6 million in the same period of the prior year[75]. - Net income improved to $76.4 million for the nine months ended September 30, 2024, compared to a net loss of $22.6 million for the prior year period[109]. - Net income was $24.4 million for the three months ended September 30, 2024, compared to a net loss of $1.6 million for the prior year period, reflecting a $26.1 million increase in net income[91]. Cash Flow and Financial Position - Total cash and cash equivalents increased to $159.6 million as of September 30, 2024, up from $71.9 million as of December 31, 2023[110]. - Cash provided by operating activities was $271.2 million for the nine months ended September 30, 2024, an increase of $44.1 million compared to the prior year[115]. - Net cash provided by operating activities increased by $44.1 million for the nine months ended September 30, 2024, primarily due to a $40.6 million increase in working capital[116]. - Net cash used in investing activities increased by $89.1 million, mainly due to the acquisition of Satelles on April 1, 2024, with capital expenditures expected to average approximately $60.0 million per year through 2030[117]. - Net cash used in financing activities decreased by $232.2 million, primarily due to an additional $325.0 million in borrowings under the Term Loan[118]. Acquisitions and Investments - The company acquired Satelles, Inc. on April 1, 2024, to enhance its satellite-based time and location services[71]. Debt and Interest Expense - The outstanding aggregate balance under the Term Loan was $1,812.3 million as of September 30, 2024, with interest rates tied to SOFR plus 2.25%[121]. - Interest expense, net decreased by $10.4 million, or 30%, for the three months ended September 30, 2024, primarily due to lower fees associated with term loan refinancing[88]. - For every 25 basis points increase in SOFR above the Cap, the company expects an additional $2.0 million in annual interest expense related to the unhedged portion of the Term Loan[121]. Seasonal Trends - The company expects seasonal usage changes to affect results, with March through October being peak months for commercial voice services revenue[119]. Accounting Policies - There have been no changes to critical accounting policies and estimates from those described in the Annual Report for the year ended December 31, 2023[120]. - The company performs credit evaluations of customers and records reserves for estimated credit losses on accounts receivable[121]. - The company has experienced no significant changes in its financial condition or results of operations that would affect its accounting estimates[120].

Financial Performance - Net income for Q3 2024 was $24.4 million, compared to a net loss of $1.6 million in Q3 2023, driven by increased service revenue, engineering and support revenue, and equipment sales[1] - Total revenue for Q3 2024 reached a record $212.8 million, with service revenue accounting for $159.9 million (75% of total revenue), up 5% year-over-year[1] - Total service revenue for Q3 2024 increased by 5% to $159.855 million compared to $151.950 million in Q3 2023[16] - Operational EBITDA for Q3 2024 increased by 3% to $124.412 million compared to $121.266 million in Q3 2023[18] - Net income for Q3 2024 was $24.446 million, a significant improvement from a net loss of $1.642 million in Q3 2023[16] - Total revenue for the first nine months of 2024 grew by 4% to $617.691 million compared to $595.983 million in the same period of 2023[17] - Full-year 2024 OEBITDA guidance was updated to $465-$470 million, up from $463.1 million in 2023, with total service revenue growth expected at 5%[11] Revenue Breakdown - Commercial service revenue was $133.3 million, up 6% year-over-year, with IoT data revenue growing 14% to $43.7 million[3][4] - Government service revenue remained stable at $26.5 million, with the EMSS Contract annual rate increasing to $107 million starting September 15, 2024[7] - Equipment revenue increased 9% year-over-year to $22.2 million, while engineering and support revenue rose 22% to $30.7 million[8][9] - Commercial service revenue grew by 6% to $133.309 million in Q3 2024, driven by a 14% increase in IoT data revenue[18] - Government service revenue remained flat at $26.546 million in Q3 2024 compared to Q3 2023[18] - Subscriber equipment revenue increased by 9% to $22.169 million in Q3 2024[18] - Engineering and support service revenue rose by 22% to $30.747 million in Q3 2024, with government segment growing 24%[18] Subscriber Metrics - Total billable subscribers grew 11% year-over-year to 2,482,000, with commercial IoT data subscribers increasing 14% to 1,902,000[2][4] - Total billable subscribers increased by 11% to 2,482,000 as of September 30, 2024, compared to 2,236,000 in 2023[19] - Commercial IoT data subscribers grew by 14% to 1,902,000, up from 1,667,000 in 2023[19] - Government IoT data subscribers decreased by 4% to 78,000, down from 81,000 in 2023[19] - Commercial broadband subscribers increased by 1% to 16.7 million, up from 16.5 million in 2023[19] - Total net billable subscriber additions for commercial services decreased by 26% to 70,000 in Q3 2024, compared to 94,000 in Q3 2023[19] - Total government voice and data and IoT data service subscribers decreased by 1% to 141,000, down from 142,000 in 2023[19] - Net billable subscriber additions for government services decreased by 200% to -1,000 in Q3 2024, compared to 1,000 in Q3 2023[19] ARPU (Average Revenue Per User) - ARPU for commercial IoT data decreased by 1% to $7.79 in Q3 2024, compared to $7.90 in Q3 2023[19] - ARPU for commercial broadband decreased by 4% to $309 in Q3 2024, compared to $322 in Q3 2023[19] - ARPU for commercial voice and data remained flat at $46 in Q3 2024, unchanged from Q3 2023[19] Capital and Debt Management - The company repurchased 4.7 million shares (4% of outstanding shares) for $128.6 million in Q3 2024, with $552.2 million remaining authorized for repurchase[10] - Net leverage stood at 3.5x trailing twelve months OEBITDA, with a target to reduce it below 2.0x by the end of the decade[11] - Capital expenditures for Q3 2024 increased to $18.616 million from $11.998 million in Q3 2023[18] - Net debt as of Q3 2024 stood at $1.652 billion, up from $1.432 billion in Q3 2023[18]

MCLEAN, Va., Oct. 17, 2024 /PRNewswire/ -- Iridium Communications Inc. (Nasdaq:IRDM) ("Iridium"), a leading provider of global voice and data satellite communications, today reported financial results for the third quarter of 2024 and updated its full-year 2024 outlook. Net income was $24.4 million, or $0.21 per diluted share, for the third quarter of 2024, as compared to net loss of $1.6 million, or $0.01 per diluted share, for the third quarter of 2023. Operational EBITDA ("OEBITDA")(1) for the third quar ...

MCLEAN, Va., Oct. 15, 2024 /PRNewswire/ -- Iridium Communications Inc. (Nasdaq: IRDM), a leading provider of global voice and data satellite communications, today announced the Space Development Agency (SDA) has awarded the General Dynamics Mission Systems (GDMS) and Iridium team a $491.6 million contract modification in support of its Ground Management and Integration (GMI) program for the Proliferated Warfighter Space Architecture (PWSA). Of this amount, Iridium's share has a value of $239 million over fi ...

Iridium Communications (IRDM) is slated to release third-quarter 2024 earnings on Oct. 17, before market open. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. The Zacks Consensus estimate for revenues is pegged at $205.7 million, indicating an increase of 4.1% from the year-ago level. The consensus estimate for earnings per share is pegged at 20 cents, unchanged in the past 60 days. In the year-ago quarter, the company reported a loss of 1 cent. IRDM's earnings beat the Zacks Conse ...

Wall Street analysts expect Iridium Communications (IRDM) to post quarterly earnings of $0.20 per share in its upcoming report, which indicates a year-over-year increase of 2100%. Revenues are expected to be $205.68 million, up 4.1% from the year-ago quarter. The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period. Ahead of a compa ...

MCLEAN, Va., Oct. 9, 2024 /PRNewswire/ -- Iridium Communications Inc. (NASDAQ: IRDM), a leading provider of global voice and data satellite communications, today announced its collaboration with Nordic Semiconductor for early integration of its Iridium NTN Direct℠ service into Nordic's LTE-M/NB-IoT modules and chipsets. Nordic Semiconductor is a global leader in low power wireless connectivity solutions including cellular IoT (LTE-M, NB-IoT), Wi-Fi, Bluetooth LE, and Thread and is trusted by world leading b ...

One company that I have a really solid track record with is satellite owner and operator Iridium Communications (NASDAQ: IRDM ). For the most part, from my first article about the company in July of 2015 Crude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential. Subscribers get to use a 50+ stock model account, in-depth cash flow analyses of E&P firms, ...