Iridium Communications Inc. (Nasdaq: IRDM) has reported financial results for the second quarter of 2023 and reiterated the firm’s full-year 2023 outlook.
Net loss was $30.7 million, or $0.24 per diluted share, for the second quarter of 2023, as compared to net income of $4.6 million, or $0.04 per diluted share, for the second quarter of 2022. Operational EBITDA (“OEBITDA”)(Subscribers as of the end of the respective period) for the second quarter was $115.8 million, as compared to $105.9 million for the prior-year period, representing a year-over-year increase of 9%.
The net loss was primarily the result of the write-off of Iridium’s remaining ground spare satellite following the successful launch of five of its six ground spare satellites in May. This charge offset the benefits of strong revenue growth in Iridium’s Commercial Service lines and an increase in Engineering and Support revenue.
Iridium reported second-quarter total revenue of $193.1 million, which consisted of $145.1 million of service revenue and $48.0 million of revenue related to equipment sales and engineering and support projects. Total revenue increased 10% 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 75% of total revenue for the second quarter of 2023.
The Company ended the quarter with 2,140,000 total billable subscribers, which compares to 1,875,000 for the year-ago period and is up from 2,051,000 for the quarter ended March 31, 2023. Total billable subscribers grew 14% year-over-year, driven by growth in commercial IoT.
“We had another great quarter of double-digit growth in subscribers and commercial service revenue, which drove record operational EBITDA. Iridium’s strong cash flow continues to support ongoing business investment and the return of capital to our shareholders.” — Matt Desch, CEO, Iridium
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