Iridium Communications (IRDM) 20 Oct 222022 Q3 Earnings call transcript

Good morning, and welcome to the Iridium Communications Third Quarter Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Ken Levy, Vice President, Investor Relations. Please go ahead.

Kate. you, Thank welcome and third XXXX quarter Good to call. earnings morning, Iridium's

with are this the Fitzpatrick. of Matt begin trust our you've on review Q&A. me on opportunity morning's followed our quarter Today's discussion website. results third Iridium's morning's will had Tom Joining available I CFO, earnings section call CEO release, Investor by is of Relations our Desch; call to an a this and which

caution over meaning to XXXX. that Matt, Securities Before all I to forward-looking the participants call like within Litigation turn of contain may things of our I'd Private Reform statements Act the

current Forward-looking statements are subject and risks, statements and more include expectations, statements. expectations which are and to plans in results are actual Securities risks could forward-looking that fully our and statements filings prospects. from Such historical discussed are to our beliefs fact our Exchange the Commission. Such statements differ future not and about forward-looking cause are upon with based

remarks and we Our our to of in at future, considered as point such any of disclaim if elect only views statements change. light today, Any some in forward-looking do expectations we update risks. so forward-looking represent may the to views statements should obligation even our specifically while today be or

reconciliation turn over non-GAAP further free in financial These During forma let conversion. Investor accounting website free earnings flow, measures. cash and directly to accordance be section including refer to the referring explanation measures cash of of things these me comparable most with we'll for flow today's that, GAAP flow operational Please of the Matt. cash principles. are also the accepted With non-GAAP call, EBITDA, to Relations measures certain and non-GAAP a pro and our not generally free release measures, yield financial financial prepared

overall a few With had this of extended like very and likely has recent an years. over in amount technology. uncertainty to network have companies a services. was as a all. up rising momentum slowdown. changing this robust enjoyed growth. the rates recent past these you investor are investor capital fortunate and saw another been revenue attributes quarter, good morning's industry network. XX% networks of market investment us Commercial year, year measure, of their up for finding in in Ken, market see interest behind really expect few the we about them strong equipment in this our we of and shows demand during also of years, trends, very been exceptions our flow years, certainly to complete and from challenging. put the outlook year revenue a being a showed into sector growth. between ongoing would clear of our we Well, holiday oriented services. we're tapered million and unique strong these has X% last this up In growth feel the now materially now Iridium recent good trends the our this any X% for It $XXX approximately be XXXX and sentiment to in environment Many and the on often And the and current XX% capital broader light for service SpaceX particularly has is be Amazon, poured upgrades are our for of phase By capital or engineering though most up to satellite operational not continued sector of morning and EBITDA enough tremendous A to months. Thanks, appreciation release, space hot The which though companies year. we've sales taking

at situated this in environment, and slowdown in well unique expect these best strategic next Iridium that is take considering we endure how industry many of this partnerships companies. relationships position, the of very for to our years. advantage environment, challenging weather us the new, the of with will capital some are emerge With least seeing to new some few more In perhaps

the our For for IoT investment the like of satellite to continue position could example, a opportunities evaluate investment industry current the few is think present and are over very companies we trend as some we Iridium. those competition complementary likely good in the Personally, network and announced narrowband be networks types IoT, climate. to the for Eventual think will healthy area, probably only rationalize of leadership cooling to growing many survive the consolidation long-term. I shakeout current

activity monitor right nothing now. to share we there's though continue We specific

think comfortable our differentiated growth, with opportunities in I our of reliable very and of this our mobile our in growth our has optimistic We're very applications. winning the performance and We've industry our We location focus the stocks in been recognition even environment. existing and straying from constellation. companies has market our going L-band. in lane been and for And cash with combination connectivity through well growth, Staying using production a happy satellite and continued as year position of investors not strategy. our unique flow high growth history the of our ourselves L-band spectrum continued particular potential long-term a function our for forward this from in we're our strong promises. other our on in on were in as executing about consistently strengths delivering well

We especially anticipate product IoT communications. be personal We expect new and in new that the XX will partnerships, next X some and launches impactful. to months especially

also discuss, as and strong free grow expect will to we we remain cash revenue OEBITDA. Tom Iridium's flow As

in our and in to first will introduction back sheet to newer personal and interest continue more the thoughtful goes current balance year core service age and business, come Iridium X% Wi-Fi deliberate higher has Our over business up rates. to characterized revenue quarter, and and digits. as on very have results. next reflects last of beyond clean demand ago. the business IoT now industries voice since our satellite Push-to-Talk by energy, years In third We safety environment and steer of been we which X than to from like and public the with our our be growth few strong rewarding to subscriber for responders new and their for committed remain strengthen continue like offerings, data smartphones, equipment, heavy areas autonomous an adoption services these particularly and double vehicles the years this safety messaging. are shareholders into even outlook up Into Getting optimistic

IoT, new a not make particularly of to we are we other number that growth commercial more connect our By area direct all services connection smartphone and is players which for to developed Even strong of connectivity position also already types. for areas this activity people already think products the with become to our recently and recreational just with for news from personal additive time. space, in in in way, from have to the well-positioned connectivity all I'm The whole segment applications, accessible ways. even play partners address we our plans users. in will smartphone the referring We and due industry directly to personal our and business clearer

our part the for what's of and finished modules, for devices. demand edge across our We is continue services. strong This to board IoT demand been driving chipsets equipment, Iridium strong see

resources Iridium's year, as services and than diverse. before. control pipeline We're for from also overall Even are to by health, government real for municipalities ever monitor field, better sales continue on embedded to applications partners allow control time last They and results turbines, a decision and equipment position efficiency existence. IoT making touch Iridium, chain provide critical flows They and being of data record operating industrial, IoT solutions asset crop losses. about yields. and facet supply our which more irrigation, water their equipment facilitate electricity in over in and by agricultural challenges greater and every geographies conditions, in Today, minimize better commercial remote pace shipments. route powered levels to access we for navigate the They wind we transmission for divert quite remain year subscribers. and the allowing in

time to how of activities. with to continue This IoT network's examples uptime tracking monitoring and moving It generates assets. more adoption for into support of physical also new and often efficient deliver costly, industries. are and real network settings. our lone workers more in And better user for use industrial less fixed to Iridium's serves remote ability dangerous handful lifeline critical heavy facilitate in of solutions. technology we technology equipment These of and end a to Our a invest as partners just in our helps broader supports concert commercial

own new growth area. in called for network. the significant new and Today, next into than module. investments satellite we're we the at is Iridium-XXXX data compounded our will about satellites. in. This for and support for has excited growth greater will form and have see quicker smartphones for connections. data functionality utilize ready in our new satellite example, be are Thanks and our connections to moving year factor growth are centric driven to very for network. strong market our they IoT want new Iridium our successful effective the transport in we very the since like a of subscriber connections across communication will For that avenue satellite these, of it's cost growth new network, data strong years devices IP kind to it applications will with using developing native and easier develop more personal consumer this and the our really communicators. start partners short platform And they to their a It products technology expect demand solutions XXX,XXX invest even IoT a partners module as Personal our mobile It IoT we burst of and like remain us product service that even technology, their account for IoT future. to annual for to be existing even with efficient revenue in coming cloud XXXX. about us faster IoT well telling communications add on And It this personal applications, mainstream making global XX% the our alone continue driven small continue us, to remain

higher these to even launch midband Certus as greater and real bringing we and of partners almost In the time like technology advantage driving growth. speed XXX Higher something the commercial customers feature our and to Iridium ARPU is connections, functionality taking higher services early of our in image per know second video. kilobits of transmission services services our supports throughput messaging, partners up rich our terms days XXX of are

antennas are forward unmanned autonomous the aerial services developed go. vehicles lightweight, leverage this a subscribers perspective helicopters like they into for and XXXX. funnel and on wide shareholder so creation. Importantly, we assets will we've aerial growth services, for when on in small mobility modules allow cases can there's the functionality satellite to of and of Investor come XXXX. market what commercial consumer and so vehicles, standard as for to power next industry look the mobile and on appealing. More They We of any very adoption from do And usage even our a for our Iridium's these the devices all on discussion why the future plan network recreational this focus The which utility is these to us day devices. sharing The what powered makes Ken from name mid adoption users, of have continued is remain and and for technology host and them mobile unique sensors more mean Day battery deeper low Iridium's to and value about of dive and to use for midband to put our penetration we applications. plan opportunities all

success. So Iridium's without an business would complete on our on commenting not update be broadband

let touch on So our me progress there.

service last standalone is for maritime statement classes our The lower As companion In cost our and of VAM XX% and market. broadband we this It's a you Certus VSAT services as used new only in these of strong seen year that paired service an quarter the deepened services. XXX now are revenue our XXXX, introduction with have acceleration from incremental complements by penetration and terminals L-band Iridium the Certus XXX from growth. flagship Iridium Iridium's year-ago our know, sales grew maritime in will period. expect drive partners that broadband for both our

maritime So business the performing solutions believe we're connectivity. connected new take and and to now for well market satellite Iridium continue of L-band make majority share, up

with sector. number in work to of their a We Iridium Certus partners launching aviation also respective products continue who are the broadband

already Some success. seen are

been Armed for is by helicopter new example, certification finalized service. French in product the that adopted SKYTRAC's has For already Services

you'll their we With over activities to hearing next underway the be of products additional intent certification expect market come few from I have now, the months. partners as

a I Aireon the over Tom, as turn on just growth facets strong business has early its from mine data services products area. few set, that call in stages had business. Their comments new year other continued unique Before to their some data and of recovers. more travel our customers revenue have development air look global investment with and that their we forward business this into

contract the government. by already That's space notice We're new very fast is doing off might revenue going award well. our that year's specialized this projects is start with and for maintenance project for and engineering U.S continued network. to a been prior driven accelerating. LEO the R&D You relationship they've That and gotten an and agency's more support government operations our development strong to of support big

our continue areas expect business to SDA We more coming the help even $XXX the on find over beyond contract with years. as million execute and the we them plan ways to the expand base in will

solutions the the the during you series partners and commercial broader and exercises have involve Waves across may around demonstration our the quarter. news region to region. in allies with than of and our relationships third It of its SDA, of our seen Pacific more This the lead government in with of XX government others collaboration and and a U.S big Beyond adoption Operation field deeper called platforms. Indo-Pacific was success U.S should the

So, industry even mobility is connectivity. to remote numerous a that unique among And for characterized strong lane demand current Iridium trends opportunities. from occupy continues lane satellite and companies. We're by growth today and benefiting

a launches, their updating our a projections to shared next this of planning demand continue We number since that track will for of generate to and deployed. new and surpass and The and billion have cash the ability results year's estimates excited our constellation on We XXXX. all into we year. plan good and visibility X-year to about growing have are product geographic of reach people. We expand in water the oars vectors new relevance initial to with flow our least believe intact, we the be Investor by years forward remain you growth few we the free vectors growth you at XXXX on for future and ago we're $X to look at for Day

a Tom? that, to I'll for with our of So turn over financials. Tom it review

quarter, in lines, supported in million equipment. the X% approximately this growing for Strong $XXX.X work revenue business comparable Iridium the continued environment. well and third in growth good in the Thanks, by liquidity increasing our prior our metrics from for the quarter between outlook business financial then improvement in give position up in momentum fundamentals quarter, revenue review and million structure. for million of started year. we're macroeconomic to full subscriber The capital and commercial demand Matt, contract, last X% to and third on generated guidance, current We SDA continued year delivering seeing our some total execute key the uncertain ongoing everyone. $XXX year's providing I'll quarter. up strength the from full quarter. strong which and ongoing $XXX.X color EBITDA and year's of EBITDA XX% Operational was the our in X% engineering I'll get us our year reflected business and trends lines. morning, by confidence our was service summarizing

$XXX.X voice grew our side XX% growth up XX% across $XX.X million. business, quarter was to increase third by the quarter This revenue this lines. to supported data the On business all commercial and was Commercial service revenue of in million. by

quarter, last are offerings our growth. As Iridium we and experiencing GO! noted Push-to-Talk robust

norm. that least IoT, $XX.X us which our seeing on to to handsets commercial single-digit Additionally, grew third the quarter. at from single-digit lack been factors mid quarter rate, from the years, prior In lead rate year the believe competitors. data XX% million due a of had at demand average we are revenue business the increased will the previously the in for and next up to These available several low voice from grow our

in to strong decrease with in our IoT year XX% during continue the the grew subs period. was benefit communication The personal $X.XX a services. ARPU from We alone. XX,XXX for to commercial demand quarter activations net quarter third compared prior period of subscribers in Year-over-year, ARPU record the data IoT $X.XX lower a ARPU ARPU communications and year-ago attributable These personal of IoT have than use largely lower primarily to shift in the increasing subscribers was subscribers. subscribers. still by the plans, caused from proportion using other less the mix

view maintains with direct and to specifically personal in satellite continue to market IoT, opportunity a an assets. even IoT the position communication attractive the sector advent smartphone as of mobile for We IRIDIUM communications. leadership

terminals battery our subscribers. specific revenue the growth attractive revenue in in our year are Today, in XX% Activations resources to network has is our light $XX.X meaning addresses subscribers XX% design Iridium that life billable described, the from by industrial Iridium the with ports quarter the used to Iridium prior continued services built, about is are by prior and end This driven year critical be years. ago Certus as consume. battery The mind users. built applications meant engineered total, mission paired increasingly durability to contributor they open Iridium's period. the service. software and commercial the devices of needs represent very companion maritime now revenue population from the XX% of subscribers, million upgrade subscribers. network an our to broadly Matt long partners this service VSAT users These also oriented adoption field in IoT personal for terminals, comparative consistent users other been a maintenance million and of lives resistant, IoT with quarter. communication quarter, without legacy and weather being service and data manufacture consumer applications, broadband and of XX% as third As commercial quarter. Commercial of minimal our to installed with that rose remain devices the was year up In of rugged, for being purpose commercial to and $XX.X are they are remain purpose Hosting a

government quarter, reported strong demand, of prior will from increase revenue This Based period in in the that contractual X% business. from contract. We rising and we from equipment benefit in come quarter. reflects volume year our to long-term to we million service received, X% EMSS million the $XX.X Turning $XX believe the of well our $XX.X the prior level. Subscriber continued third up backlog the year XXXX's equipment this order million. to sales above year upon have terms

a Iridium long-term of noted third Agency equipment million new government's ago award decline of was this driven with of costs contract higher year. component space quarter priorities. period. I by this a from the strategic U.S recent contract is and from This Development revenue in U.S government. Much with contract as level wins work million this and reached margin Engineering We the $XX.X Space previously, highly As aligns revenue in the product year is as XX%, support the the of and earlier engineering to coming to to percent mix. ongoing year around $X.X expected the compared

for for us realized equipment and we've EBITDA. in trends guidance of for as this or performance demand engineering U.S been ongoing Through higher expect raising work level a from support year, first will support remain year confidence revenue our Iridium's with year give XXXXs X going and rise growth and from government of we've and our we These services. growth the to tends revise outlook revenue months the very contract service the our happy the episodic, result and full be forward. While operational

figure We just base a also year amounts our X years. million expect to subscribers, X doubling of a exit this with in to that subscriber

are investors EBITDA reach EBITDA percentage to level engineering I margin XX% able subscribers equipment be million X by to faster. of margin higher margin margin for materially operational this below even our driven dollars, remind is to but for our Those and year. expect percentages. expectations This support percentage accretive dilutive be and revenues EBITDA revenues to We XXXX. to would of

the as margins generate noted, low contract view importance. acceptable given its Matt work under SDA which expect As we strategic to we

price cash September stock Moving purchase balance close price to in third original a the as $XX.X $XX.XX capital total equivalents shares our total purchase to shares of XX, X.X $XXX the XXXX, $XXX million Since million quarter, authorization approximately with [indiscernible] at a position had of buyback a at of of million. per we and our Iridium million XX about program of approximately cash purchased share. XXXX of In common million. Iridium

leverage OEBITDA continue earlier will the at year X.Xx from third We executing of our ongoing was down on in activity. quarter. disciplined X.Xx buyback Net a and be to includes authorization. our impact was This the of the end

target to long-term XXXX. end net X.Xx the and Our OEBITDA X.Xx be leverage for between of continues at

expect to in effect spending up were target year's satellites. our even ground related after all $XX.X We to the five Capital and of quarter range, spares next launch be includes buybacks authorized million within to third this to share expenditures by board. giving

the now will will next. which and You XXXX. incurred cost take us $XX of launch will is be between mid a and spares recall place million that We one-time ground we anticipate million this our year that launch in event, $XX and expect this

We will exceed expect not in costs CapEx, including launch million. XXXX $XX

inclusive flow yield a forma and These to the of million. a approximately in CapEx adjustment, remind cash year, $XX conversion you million XXXX structure, and cash we represent current how XXXX calculate free million guidance $XX we're flow hosted hedged us supplemental environment. Events believe available well in very business to in term presentation GAAP rate Investor use approaching of metrics excited industry. million capital, $XXX a current positions for months interest EBITDA loan our off description back interest approximately and few of metrics working X%. these rate reconciliation year, in appropriate payload the on we've net this the pro the measures with strong competitive projecting to debt And cash A website. detailed and flow. for Let flow along free whether $XX this cash course, and under of more XX% With to the in maintain of the in a We our position about our me free Relations EBITDA only Iridium's is our in left we we're prospects, of

We partners continue This us develop back and products, and to momentum provide beyond. With with for the revenue to Q&A. EBITDA new with us drive look the XXXX these work very and we I'll will that, positions turn as believe things operator that into growth. and well

Instructions] go Raymond of ahead. The question Please from James. Prentiss first is Ric [Operator

Thanks. Good morning, everyone.

Ric. morning, Good

Hey, Ric.

satellites I I'd mentioned will ask of around time, a questions clearer it. become Matt, Hey. know if couple in smartphone I you but due be remiss didn't

partner. you you ago, have mentioned service you're working a us in with the as technology agreement as to as as Can months timeline that service the on far when development expect you agreement previously, few update that unnamed think I place? far

we I And I the of track that on think think on the we're certainly to still happen that, I previously right now. it year. end before said expect

we'd sorry, about love And more to subject. talk that

about that really in our and we're said, I excited plans, isn't. very it As area but well-positioned

make to be really it involved here. really So it a more really partners and for who is are our those -- in for an directly would more announcement

due come will it time. So in

should large might people of announcement standpoint. and last? far end sure those the this consume just about mean might think agreement life holiday what Apple on they the on timeline those from should just of and the was to constellation? service capacity might we make want Makes your that to about satellite as both mean? we capacity Obviously, to your sense. birds amount existing as satellite track think and long they year. have this think impact I then of might want what the potential How trying on capital seen a How the items still capacity how Or of have Globalstar for

of we we at an we over using network our be an I our at done all we're plenty And the far, efficient services was spectrum. can planet. architected capacity have that what extremely so our built least support around think designed existing to really the estimations we've and network, see to is, and -- so of expectations it existing Yes, and information of expecting mean, sending we’re

are our right now, really aren't timeframe. in another plans don't today. brings holiday need and upside to our to expectations about really, invest excited plans So potential our change it doesn't capital the our of We kind on it the network really in which plans

Okay.

So capital can holidays, maybe of it still last decade? through thinking this most that

I at on we're Yes, CapEx mean, we've and still the this, said XX-year that always least track. holiday,

is it and finding spectrum something beside the calls, Okay. Or happening out just you And I there other more L-band an with Ligado on think situation? previous you've also spectrum, [indiscernible]? update maybe mentioned, might what's be just Is interested. there

been ideal next Yes, to for everybody the in probably kind neighbor around connectivity are year so that direct S-band these our discussions and to small at consumer portable through type the I woke that the products spectrum for most up think realized the of in all L-band or it's last two, only of capability any probably sort. smartphone that suddenly

of I of is the us and a think up ready kind and to are other are UHF devices now S-band. of support sector L-band build to very those little of L-band whole right gone that. and with that and to ready complete were that in they like but as have one S-band those types and And as few provide networks potentially networks now to would Others has of do with where for go is about there to none even the new We're that. it. spectrum able and services VHF, to couple good effort narrowband IoT thinking right people we're seeing realize

their in Globalstar, tooth. little there's network there announcement seen getting has since You've with Globalstar's Apple amount that was investment to the and of even a a happen long fair

to well and that. as We they in situation. support So same that have maintain have don't that to and grow invest

there incremental really top we're a the the doing. on great Ligado have to as described news that interfere us far And an and was So as which goes, expected, what I to kind environment we of an be the of reported report, GPS. certainly make this to think think last air as sort we're Sciences changed of I previously, And of in Ligado would was activity we that as Academy focus. real National

terminating are on their that announced they activities their planning think they Ligado think in positive were anytime front. that and sort negotiations, that of be forward moving which a sign were is I won't soon things that system I for demonstration

that's we there certainly never anyway, closely with believe the to be global to should and should that that spectrum services. important reused really satellite believe so So consistent satellite allowed FCC what happen

Great. Thanks for that.

forward to 'XX. the then you see December and guys Looking mid Day for in in Analyst sometime

Ric. Thanks, Okay.

Ric. Thanks,

is The Park Landon next of Stanley. Morgan question ahead. Please from go

kind on of questions. the finally maybe now. years what morning, looks what was Good the TAM just us wondering just coming you couple you're expecting are of if of taking Thanks your those market devices? of the that ARPUs start those everyone. to I remind could given the there for aviation we next over like expectations and Can in terms service side, on products

are We would technology, aviation and They, this commercial and transfer lot smaller helicopter all Its stage of commercial is it's company, XXX the expectations very Certus the are Certus clear long worked the the as We're like follow using of of used these to well on they're on going got today. the certainly spot communications as a areas like The broad globally. Twitter, UAV, few partners the to things suitable. And hard -- a side aren't, well rotorcraft so be network going A where early applications above platforms very world, a real part quite more be cockpit high be well aviation me quite be ways say helicopter some could from a in they one going networks voice working on which Yes, some market to sweet to particularly are XXX our and It's there's to I'd is airlines, other of data Medevac is extent say of visiting focused the XXX and something UAVs, really say suitable a for XXX those. to lot of or a a what be our applications. that I Certus to platforms safety be lot days and front. haul services, data market. of to things attractive. exactly They're range flights. that particularly which on going lot excitement. at types. was smaller just because ARPUs some in on are a of to they're just safety

being those could general quite But other areas longer always pleased commercial [indiscernible] introduced. those see because products be rotorcraft aircraft aren't these safety, bit high monitored flown real some aviation, opposed in quite I'm as be than in the that months of might Some airplanes little just lower, finally activity. in weeks But that and are a much. to that as to are within

just talk about if Great. formally about Can it? to us million your then demonstrations Are Pacific on there. much you Thanks TAM announced -- you're for can recent about the to you that you I'm very you partners in government update of relationship there, wondering turning you over still new opportunity and the about announced side, and thinking thinking And ability the long [indiscernible] your execute? $XXX how thinking the sort that.

And are tell to services, I been that the I hard And, that will by go. and exactly and that's think, on where what still in Well, renegotiated. will eventually steady, has contract. course, out will future when be, pretty the to price narrowband looked covered fixed go time of our be

only services, the relationship our value think government of the has with strategic I grown. our

Our impact in a programs coming really number online. important actually of is

I very a for SDA through in still do level that the important which network in with services think relationship, engineering is government, in while. a the midband much both relationship, with remain at way is with and two. a the broadband. now for see think relationship at that's early or can another we're grown of and dramatically the the you way looking side. Certus that's and of will the really I at higher stages the quite And kind government year last now over And

ago, looking start think forward. using opportunities. of of number will network and I up I with signed those now more think find distributors I think that a strategy And here government we're going long. And years a our much going ways new in more You then we'll optimal to but after see to pay new at before couple don't was off keep we've of continues now. go-to-market better a our place companies ways course,

what right about for about mean, market previously terms a the …? go of side, after it I that sort in Is guys time, talked to of million share. on still or And $XXX you can over service you have the way think

look so taking installed much at growth -- the from taken haven't forward. million that quarter, I so government, call government incumbent, be in of should -- away, if the I our growth takeaway market helpful you way yes, the is base share much just million -- it broadband Landon. there's broadband away number, of that's for that business, the that not look install we we just is we what Yes, put we the in that’s $XXX as would up that XX% broadband think the about a $XXX and

the and but places, really in if real those other South Certus. that South and like poles pole It any really -- be operational things way wide lots ranges, done specific of that you some the ways, kinds it's of at is time video, can't takeaway, and were new demonstrated some the than at remote being at across at also including UAVs, safety services the board, applications across applications looked video were

for will the there be midband think a I unique So with place growth government.

government us how helpful. one think or revenue, flowing that very over we help or just Can year That's on you should Right. follow-up XXX engineering next to next the two? the And about side. the the through? model Just think quarter the cadence how about

the this agreement. like service X in almost like, kind X then then is and of and the think the the next year construction. heavy years, next its it So And it years there's, contract X tapers, last of years is of so because

Well, guys. taking really you questions, the right. appreciate All

Landon. Sure,

The Sidoti of Please go & Burns next ahead. Company. question from is Greg

morning. Good

on a is follow-up opportunity me you a retrofit on is just of Just mainly could aviation market opportunity And there the market, you size the to to size just the maybe the new Can there? the remind of for the deployed there been relative remind crafts? opportunity. maritime? Or that me about

only in applications in started. past than term. of talked medium mean, now. the I services, to our IoT really other in just voice recognized We the near smaller market mean, already data it's IoT in in in both being aviation in we're being to have the I the it's and world while, been maritime XX,XXX around and right aircraft getting a Yes, for sort and installed about revenues we've and safety as narrowband and been XX,XXX installed. both

of of Certus believe doing application whole to UAV that could end with like think a segment is I that new cost most But is a competitive. out talking XXX that got with will new broadband, aircraft. to a say solutions of going doing course, upgrades will That's completely the services that. about us. Certus put in this And, number I applications, of future way for, of big are a on So work of Certus more or And partners there application $XXX,XXX area. be the lot and higher XXX be the we've type to not be much what space, we're a And lot I a efficient be to to even faster low those more XXX capability speeds or more bit think $XXX,XXX broadband typically opportunities. of more even

connected, want to today. And connected aren't so there may be a lot that be of aircraft that

understand you we growth see a you're the an of some this I Day, to exactly there in do And maybe we're So way, will But and the TAM think be. [indiscernible] called right, out haven't we'll that's but sometime, Investor exact works -- new at by next of, I help out which that necessarily year sort on May for where work think we'll market. be market. kind

you're is envisioning Okay, thanks. what of Like, that market versus terms And what in now communication what device the functionality like then … the personal cell with you're there in phone [indiscernible]? is doing the connectivity, the

me … let Yes,

won't there … why be Like I'm functionality? phone to you won't understand connectivity why of like communication trying business? levels think Like do personal that just core there? different cannibalization cannibalize there cell is the

are unexpected the plan the a of of least of couple the or didn't larger be whether be at much Well, going I think be to occasionally. -- sort of and will be sort bit approach not we base on in that you're devices, a next around people, years, take world. to Emergency casual that you it users that going it will it's use going Apple more to use be sort through activities but of remote see

and hikers, been to But I and a we very think successful. users too is say, for focused things really kind recreational it's plans personal of little on they on who users, that going solution, service those providers of what communication and sharing they're dedicated and users, with a focus today that They're forward. our to not that Apple hear maritime really all work of delivering need they in others. of for from more Garmin obviously comfortable telling been what environment other for or obviously, depend worried we're solutions, they're pretty our and partners, and specific and probably kind competing applications from as about them, have very coming kind bit us emergency the seeing and of our for workers, kind

grow both are gives markets that to what think going nicely. a those us that's lot of So confidence quite I

you. great. Okay, Thank

from is go ahead. Please question of Khorsand next BWS Hamed Financial. The

and acceleration garnering area to more, customers any morning. you you and I Good as marketing what to more far there? about ask Hi. growth the expectations in you are capturing expecting maritime area. how on Are that want going as in just your are subscriber as

we've added Well, I couple introduced manufacturers. years terminal a XXX mean, we service Certus since ago,

applications, XX% or much companion in hit now pretty kind the we a Certus I is particularly So those I of the XXX the can cost of adding standalone segment, growth good market. moving have performance, And think applications down all move, great which Intellian have growth. a mean, was is you sort see lower device, year-over-year into market

activity there, a a So companies and service looking And as just sold put out for really, we're or believe, lot L-band services which L-band And all to sell alone Inmarsat looking Iridium. non to using are really I've, taking companion market I it. share. component with of almost VSAT are an

going the market I think to of the really that with are majority Iridium.

Iridium as we're adding with well. another on GMDSS So and to to Certus has buy working too added reason GMDSS sort of now to that put

So, for believe market and share. We're happy with and a it's very it that market. a things our taking It's business we competitive us can in large everybody is you future market, very well-positioned and in in put we're have see it although good service, taking results. to market our

very think we're good in right market in maritime I -- a now. good place the So

that is Push-to-Talk up question what maybe other and my you're And line. that come push related on as that line expense in to would and on was one-time even the down? R&D the as far smartphone? price ever Is working the Or a

[indiscernible]? want to you Tom,

it? on What mean, When what's you specific sequentially? your you -- say, question

up Well, year-over-year. and sequentially went R&D

understand what's mind the just expense trying reason And all what's increasing? I'm what a -- line that's for sudden to the this? of So normal

year-over-year. something like But So, so that's in just up product our it's of be just our million And be investment probably base our bucks products expect we or installed it's not $X that will of do to modernization, up. so modernization R&D line. materially,

just Yes, work it's mean, we rich I mean things we're to as environment on. and I a gotten target larger, -- for

been we we've of want -- our coming the through there's And so months of you're next that over do. there XX on. it's the fact, a R&D we In the to going fact, things I think results to many in activities spending lot have -- to see

and data retooling based. our really and ways really even areas working the broadband, in number network broad So really efficiency. voice whole We're of for and greater in and it's many IoT, across

a just the opportunities of it's So have. recognition we

Okay, great. you. Thank

next Please go Instructions] is [Operator Mathieu Robilliard question ahead. The Barclays. of from

the and please. taking morning, had everyone Hey, for questions. good two, you thank I

is Starlink. The to one first regard

small, vast realize I you them So verticals some moving But and time real areas buy obviously, see IoT of to different where we they compete. majority the constellation. did ago, lots a are not

there back I the project would and approvals represent how whether could regulatory be more know point? and fall service think included handset holding also some think being Is the was are connectivity. at And that could L-band to something suspect considered clarify L-band? And the when threat [ph] to I chipset? that you was just use the for for one with and you that working that that necessary you. that I competitive of a So [indiscernible] second using service to we in want don't if some should some how that something about on on? your Is Thank you're partners? L-band,

believe in competitor. Yes, really to they're so we the major are or going a don't first question market And still Starlink, competitor? and be a the was see them they about that

of networks acquisition that announced. said their I which to potentially or my survive, and I going to one could and very there that And there's was IoT end that in very referring really you're not think think remarks, prepared probably narrowband of many market. were be going so XX Swarm, in I area into interested that some to of are be get in we're will the that those but the

market, players like sort we're big XG or I I we're time now IoT using Swarm, either mean, of such so I many would in So the to right and in would guess. partnerships technology the low what them solutions world. call, But with IoT, around of coming, we sort extremely non-real sort the end, see standardized extent going both after low proprietary power of technology

there natural our IoT do we portfolio, -- a think add But of such long-term. the kind have is to very into that well. We will market think advantage I huge will

still around far I I also second the I to would used I of the services. to threshold lot may the happens. Doing spectrum were terrestrial work question, L-band approved may T-Mobile other AWS of into competitor T-Mobile's, it goes go go probably spectrum, -- in but right of And imply, world, because where your importantly, now. you market, really other with a our them with requires around it too, activities where the was think think so on technical been spectrum will so, more the using lot it we spectrum it to fringe of activities using us right announced think as spectrum now, approvals are a not using spectrum the interfere for And a in you their But it that that see This kind and just don't be us. major their around them a call is on. world U.S around if regulatory lot of hasn't using have basically and development

use to the global rights license activity or regulatory more operate of a agreements by-country from and no would a better satellites apple. including lot way connect is way, make happen. to required to market-by-market, no Said to business L more any from to Globalstar approach way, ground, that or regulatory lot So there our on there's we L-band today, There to that We and coordination is have is else approvals with requirements. the more landing device use have smartphone. be space country- a smartphones kind of The don't of maybe that of band sort immediate today. or the approvals exists. S is S-band already small

more about of can think adding probably go it in rough any idea we're won't we future. I I what will So will most that announcement capability. market, or get I we've to works. people how Who think matter to but I just that's how that a say adding because the left with how a really it's that added --

So does that help Mathieu?

question Yes, I I at nothing moment smartphone. than you to It of, guess, at And how moment be traditional [indiscernible]. very partner the rather not sort -- something with could guess, your I directly? the that clear. your the is maybe deal that's that think embedded in something L-band on for

they But Globalstar's deployed, a that anything, giving deploy the told initial to want that service I in you or our be or require away. where been announced device. that do, where more will direct operated kind connection the be XX, to into your as you can technology the can see, I they plans can iPhone I space have you from on into and doesn't If It be purposes probably has that see, Yes. delivering mean, and Apple their satellite. think made obviously certainly way would be Global obviously, reasons I of they've really America it's we go for whatever for alone. regulatory would North technical L-band It's not to service. focused a We embedded has service Services,

clear. Thank Matthew. That's you, very

Okay. Thank you.

with Blair. William question Please ahead. final from comes DiPalma Our Louie go

Matt good and morning. Ken,

Hey, Louie.

Louie. Hey,

wouldn't on you hardcore smartphone GPS including XX that on emergency to could to do send some a XXX expect messages, what casual very, how pings use the obviously satellite connectivity a unless XX following [indiscernible] hikers? instance, someone year you perhaps you satellite person Matt, campers So a as year beyond a XXX For question, your expectations? use? recent text in emergencies for expect to were send Garmin in cannibalization up network terms are usage, prone. or your entail and for accident answer year, smartphone devices of very your do Whereas have messages

clever tell question, work. Louie, of and service what me that's way will how Well, to exactly gets into a almost will and do specifically it to trying get great our you

the a of off push is connection and more if we into go tracked can lot you do, a I to as button. sort forth. than smartphone, which efficient announcement, our can very moving at but just more well. an how exactly won't you do back of Obviously, think Apple sending you're network kind you emergency of what make information a I and

other could vehicles, is with future smartphones, the mean, be be technologies Maybe And into of long-term as connected watches, tablets, vehicles. So to lots for other to not long-term our really way, lots of -- that but complement cars, I are a not in everyday use, those going maybe done. devices. just types by as consumer

I've don't cannibalization. think can I things around be you I to -- believe we go I But can really that forth, a coming -- -- to that sure partners more considerable do. platform going the have can I strongly do you if mean, and of and kinds -- see back to discussions there's not even all really be exist. messaging multiple of with really I mean, our upon based additive is base I that it's product that that back going Maybe So going I to much to seen billions direct that edges going classes to and to Is to business to some there going market the think of be that of around -- does be be, anybody's would smartphone it the our business out but dollars. it's are this. be very forecasting tens could think people

the next of lot I out in As of of think you you're last roll on I'm in works a of going going services is different require not probably And really space. could and It really Wall I because to completely implying require work what ever, if do that's the week, your be the will years couple to a work the little on see is systems planet the that's of speed, that anywhere Street require in And would about the article think wouldn't many, that many kind in regulatory pocket skeptical require to would a that, see. standardization. seamless investment years what high it just lot in a ground terms that, away, the of activity. a and Journal because network way

see could So I'd in to far a that a Who X, so, particularly, And think quite that? or going beyond and I but complementary There's occur, out. X that. knows. near-term really investment you're of next very what's think years lot say X, they're ways meaning I services innovation

highest Great. that quarterly adds appears inReach recently be added. or you've the And the consumer I level, think there device. messenger you've announced Are number more net IoT, And [indiscernible] highest new ever which to Garmin tapering those allow adds to like, over like high of should very adds? or that, that IoT expected expect accept the continue? Or we we cadence months net a should devices net -- of several next added could

and saw it's But a see equipment we're just really don't what level this -- for think terms is at supply too. you already, new a year much on watermark going quarter mean, unusual. seeing we're high in of higher I into demand just next strong I what right based us. you can really now, it's

going see sector. that in think those I I looks high new good especially continue kind of to come to numbers like demand really just market. really would if So to as be other that products surprised you're products and great messenger

that As I my two. million to said get subscribers to in than remarks we in to time X get us expect less it to took

Tom, flow believe equity able free I Aireon next funding over more whether And you they year one into cash quarter, you investment or you. to Great. Aireon. need additional breakeven, say And for or Are is like, the cash Last flow would positive? two? added free

expect don't pay Certainly They're that more unless an not there's cash flow investment kind presents just positive, and we opportunity to of itself. their bills.

announced services of Caribbean? Aireon What's or a know, Great. high into greater the a Aireon trial And just provide or that that their the successful level FAA services a target? the for FAA? announced timeline on of in had Aireon, expansion can the integration you've you has the I

not we've -- from expectations activities the Azerbaijan deploying them that. right They few FAA, still the with have interactions a yet. think, contracts [Indiscernible] leadership is quite this that's years underway services other away. the are very lack week and of know that lacking it's of And don't they don't is administrator, FAA a our with signing lots with now, had I slow. why at I perhaps

apparently if not decide do because things make decisions other out a to the think in I of near-term, that's, if So in when to the happen. have lot work that's going future, and just to to that's they and and still

there's the in markets out they of still serve future. they have, other they're But lot still don't So yet. a

think I the with they're business with services busy other world So development around deploying. they're other

they're exploiting products about sort quite enthusiastic these now and course, the Of their busy of in data market datasets. for

So a big be have years few of terms out, update and -- Certainly FAA but way. yes, they'll I when still. deploying an I in -- if think a the don't few in a quite on

Tom, Matt, Thanks, and Great. Ken.

in to taking Looking the trip Tysons Corner May. perhaps to forward

I and well, kind a well here, future put I figure a we on together place have can here. when that. think it that have We'll as have of guess Yes, we'll the we'll out to up a out just but where could even we good you give of have figure kind heads on to wanted reset business.

Awesome, thanks.

over This concludes would to closing like management I session. our turn to remarks. the question-and-answer conference back for

year. quarter you fourth but Well, forward will and continuing to just you optimistic next of enthusiastic of of quarter. look the you we're not thanks. longer going when putting see year, are all term can about after so we this that get together it second we quite business even the in I about to really all Thank you you. can guess But forward sort see to and tell our a view talk together

The now for presentation. you conference has Thank today's attending concluded.

You disconnect. may now