Iridium Communications Raises 2021 Guidance - Quick Facts

(RTTNews) - While reporting third-quarter results on Tuesday, Iridium Communications Inc. (IRDM) said it ended the quarter with 1,690,000 total billable subscribers, compared to 1,429,000 for the year-ago period and is up from 1,616,000 for the quarter ended June 30, 2021. Total billable subscribers grew 18% year-over-year, driven by growth in commercial IoT customers. In light of strong underlying demand and continued subscriber momentum, the company increased its full-year guidance for 2021.

For the full year, Iridium now expects total service revenue growth of between 5% and 6%, revised from previous outlook for total service revenue growth of between 4% and 5%. Full-year 2021 operational EBITDA or OEBITDA is projected to be approximately $375 million, revised from prior outlook for OEBITDA of between $365 million and $375 million.

Net loss was $2.1 million, or $0.02 per share, for the third quarter of 2021, compared to net loss of $4.0 million, or $0.03 per share, a year ago. On average, seven analysts polled by Thomson Reuters expected the company to report a loss per share of $0.02, for the quarter. Analysts' estimates typically exclude special items. The company said the decrease in net loss was primarily the result of operating profit improvements and lower net interest expenses. Operational EBITDA for the third quarter was $100.2 million, compared to $93.4 million for the prior-year period, a year-over-year increase of 7%.

Iridium reported third-quarter total revenue of $162.2 million, compared to $151.5 million, last year. Analysts expected revenue of $153.71 million, for the quarter. Total revenue increased 7%, while service revenue grew by 9%. Service revenue, which represents primarily recurring revenue from Iridium's growing subscriber base, was 79% of total revenue for the third quarter of 2021.

Matt Desch, CEO, Iridium, said, "We continue to generate stronger free cash flow as we attract new subscribers to our network, which sets us up well as we plan for 2022."