Iridium Sets Positive 2024 Outlook, Eyes Revenue Growth, Rising Subscriber Numbers

Iridium Communications Inc (NASDAQ: IRDM) reported flat fourth-quarter FY23 revenue growth to $194.74 million, beating the consensus of $194.03 million.

The company registered a quarterly EPS of 30 cents, beating the street view of EPS of $0.03. 

Commercial service revenue was up 10% Y/Y to $121.5 million, led by broad-based growth across all revenue lines.

Government service revenue remained flat Y/Y at $26.5 million, reflecting the contractual rate in the EMSS Contract.

Equipment revenue was down 60.1% Y/Y to $15.7 million, while Engineering and support revenue rose to $31.1 million from $17.8 million a year ago. 

Operational EBITDA grew 7% Y/Y to $114.1 million in the quarter.

Total billable subscribers rose 14% Y/Y to 2.28 million, driven by growth in commercial IoT customers.

The company ended the quarter with gross debt of $1.5 billion and cash and cash equivalents of $71.9 million. 

“Iridium executed well in 2023, delivering another solid year of commercial services growth. Strength was broad based with subscriber growth across all commercial service lines,” said Matt Desch, CEO, Iridium.

FY24 Outlook: Iridium expects service revenue growth of 4% – 6% and Operational EBITDA of $460 million-$470 million. 

Price Action: IRDM shares are up 1.17% at $35.45 premarket on the last check Thursday.

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