Iridium Communications Inc. (Nasdaq: IRDM), a global leader in satellite voice and data communications, has announced its financial results for the third quarter of 2024 and updated its full-year outlook. The company reported net income of $24.4 million, or $0.21 per diluted share, compared to a net loss of $1.6 million, or $0.01 per share, in Q3 2023. Operational EBITDA reached a record $124.4 million, up from $121.3 million in the same period last year. This growth was driven by higher service revenue, engineering and support revenue, and equipment sales, along with reduced operating expenses, primarily due to lower depreciation costs following an extension in the estimated lifespan of Iridium’s satellites.
Total revenue for the quarter hit a record $212.8 million, with $159.9 million from service revenue and $52.9 million from equipment sales and engineering projects. Service revenue, which accounts for 75% of total revenue, rose 5% year-over-year, largely driven by growth in commercial services and government contracts. Iridium ended the quarter with 2.48 million total billable subscribers, marking an 11% year-over-year increase, largely due to strong growth in commercial IoT subscribers.
Iridium’s commercial services represented 63% of total revenue, with $133.3 million in commercial service revenue, a 6% increase from last year. The commercial IoT segment saw 14% revenue growth, reflecting the rise in consumer personal communication devices and commercial users. The company also reported progress in its government business, with service revenue holding steady at $26.5 million. The U.S. government remains a key partner through the Enhanced Mobile Satellite Services (EMSS) contract, which guarantees substantial revenue for Iridium.
Equipment sales totaled $22.2 million, a 9% increase year-over-year, while engineering and support revenue surged 22% to $30.7 million due to increased work with the U.S. government. The company’s financial position remains solid, with $1.8 billion in gross term loan debt and $159.6 million in cash and equivalents.
Iridium continues to return capital to shareholders, repurchasing 4.7 million shares in Q3 at a total cost of $128.6 million. The company’s board has approved an additional $500 million in stock repurchases through 2027. Iridium also paid $49.1 million in dividends year-to-date.
Looking ahead, Iridium expects full-year 2024 service revenue growth of around 5% and Operational EBITDA between $465 million and $470 million. The company anticipates capital expenditures and equipment sales to align more closely with pre-2022 levels.
CEO Matt Desch highlighted the company’s robust growth in revenue and subscribers, alongside its commitment to shareholder returns, including dividends and stock repurchases. Desch emphasized that Iridium’s diverse commercial customer base and strong government contracts continue to drive sustainable growth.
The company will hold a conference call to discuss its Q3 results on October 17, 2024, at 8:30 a.m. Eastern Time.
Iridium remains the only satellite communications provider offering truly global voice and data services, supporting markets like maritime, aviation, oil and gas, and government agencies with critical communications solutions.
