Iridium(IRDM) - 2024 Q3 - Quarterly Results

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]