Iridium Announces Third-Quarter 2023 Results; Reports Record Operational EBITDA; Updates Guidance

 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 2023 and updated its full-year 2023 outlook. Net loss was $1.6 million, or $0.01 per diluted share, for the third quarter of 2023, as compared to net income of $2.1 million, or $0.02 per diluted share, for the third quarter of 2022. Operational EBITDA ("OEBITDA")(1) for the third quarter was $121.3 million, as compared to $107.8 million for the prior-year period, representing a year-over-year increase of 12%. The net loss was primarily the result of costs incurred in connection with the successful refinancing of Iridium's credit facility during the quarter, which extends the maturity to September 2030 and reduces the interest rate. These refinancing costs fully offset strong revenue growth in Iridium's commercial service lines and an increase in engineering and support revenue.

Iridium reported third-quarter total revenue of $197.6 million, which consisted of $152.0 million of service revenue and $45.6 million of revenue related to equipment sales and engineering and support projects. Total revenue increased 7% versus the comparable period of 2022, while service revenue grew 9% from the year-ago period. Service revenue, which represents primarily recurring revenue from Iridium's growing subscriber base, was 77% of total revenue for the third quarter of 2023.

The Company ended the quarter with 2,236,000 total billable subscribers, which compares to 1,973,000 for the year-ago period and is up from 2,140,000 for the quarter ended June 30, 2023. Total billable subscribers grew 13% year-over-year, driven by growth in commercial IoT.

"Iridium continues to enjoy strong subscriber momentum and broad-based revenue growth across its commercial business lines, which drove record operational EBITDA," said Matt Desch, CEO, Iridium. Desch added, "We are generating exceptional cash flow, which should continue well into the future as we projected at our recent Investor Day in September."