Apple's Satellite Connectivity Provider Globalstar's Q2 Revenue Grows 10% On Wholesale Capacity Surge, Hikes FY24 Outlook

Globalstar, Inc (NYSE: GSAT) reported fiscal second-quarter 2024 sales growth of 10% year-on-year to $60.4 million, beating the analyst consensus estimate of $57.2 million. Revenue jumped on increases in service revenue.

The Apple Inc AAPL mobile satellite connectivity provider’s EPS loss for the quarter was $(0.01), compared with the consensus of $0.00. The stock price gained after the results.

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Adjusted EBITDA was $32.6 million in the quarter, an increase of 20% year over year primarily due to an increase in high-margin service revenue.

The loss from operations was $(1.4) million versus an income from operations of $2.6 million Y/Y.

Net loss was $(9.7) million in the quarter, compared to a net income of less than $0.1 million a year ago.

GSAT held cash and equivalents of $64.3 million as of June 30, 2024.

“Globalstar reported record revenue during the second quarter, driven primarily by growth in wholesale capacity services and other recent business initiatives. The high-margin nature of this revenue contributed to a 20% increase in Adjusted EBITDA and an increase in cash on hand to $64 million as of June 30, 2024,” commented Rebecca Clary, Chief Financial Officer.

FY24 Outlook: Globalstar expects revenue of $235 million–$250 million (prior $225 million–$250 million) against the consensus of $237.5 million.

It expects adjusted EBITDA margin of approximately 53% (prior approximately 50%).

Price Action: GSAT shares are trading higher by 7.34% at $1.17 at the last check Thursday.

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