Iridium Communications (IRDM) 25 Jul 232023 Q2 Earnings call transcript

Good morning, and welcome to the Iridium Communications Second Quarter 2023 Earnings Conference Call. [Operator Instructions] Please also note that this event is being recorded. I would now like to turn the conference over to Ken Levy, Vice President, Investor Relations.

Thanks, Joe. Good morning, and welcome to Iridium's Second Quarter 2023 Earnings Call.

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

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

are not our to that and fact and and Forward-looking Such results about statements statements are are risks, beliefs historical include statements cause actual our to future prospects. subject are could expectations and current plans differ expectations, which statements. based from forward-looking statements upon forward-looking

more Securities discussed with fully filings our and Commission. are the in Such Exchange risks

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

cash the yield flow we'll During to operational free EBITDA, free be certain and pro call, forma referring conversion. flow, cash measures, financial cash free non-GAAP also including flow

for that, a well These GAAP comparable let explanation with earnings as principles. Please to website the refer section of With prepared release Relations measures non-GAAP to these to things financial as in in measures further Matt. me not over generally most financial our measures. of today's are non-GAAP accordance accepted accounting reconciliation the turn directly Investor

to our and unique from satellites X and through tailwinds network, R&D network's resilience. and services to OneWeb. part the our from development spares expanding NEXT the again Interest These and a call, for strategic quarter. Iridium's of which happy ground rideshare is spare broad-based, as posted network were continue products, we in U.S. It we customers our see our everyone. morning, last more record Thanks Iridium built network May were again. Good work good existing another industrial consumer to original we add in We double-digit EBITDA. government. growth Since and and them operational on to were with running increases launched commercial revenue that was mission

all checked They've each in position our get of the we keep X to moving optimally us orbital sky very to for glad I'm and cost-effective out ground. spares our on planes. come. a network to and opportunity across the our now to operational our team ops redundancy took space, Though give these is them this them young than healthy, into assets constellation of in rather years They storage total the XX on-orbit is enhance

primary only yet. our engineering and haven't The holiday. any to spares operating We better about use statistical of but satellites is needed which not they're why extended CapEx confident well, our we're our performing models also expectations, so original even are XX than

really and safety reliability, partners be remains brands The quality and performance. our made strong and customers. best-in-class a their of and point our coverage strength continues synonymous fact to in and selling differentiated the to resilience network with This Iridium's Iridium a market have and

Iridium be made on quarterly may of Many you also that June payment aware XX. its dividend second

and with program year. repurchase happy very to In general, outstanding the $XX million return We authorization. expect shareholders performance also and full XXXX complete expect about share to in execution to through Iridium's this this I'm

nicely, operations executing well line and capital our are on our and growing to innovation returning shareholders. top We

remain satellite true identity. in lane prosecute I've services the and and All L-band of growing this number we sector our often opportunities is happening a what on to mobile called as of

we're that of the new disruption a of that. by underway our in There's I'm industry glad players, part caused not lot and broadband

a also any to business. Actually recent ViaSat-Inmarsat probably the We in closing industry, us been the activity merger ever XXXX. in first like has impacts our believe benefit don't the was net deal announced that of the since

any commodity is industry we today avoided instead the unlike the niche we've other services on speeds company in because satellite and [indiscernible] of the companies services that's any than largely the focus industry. in Iridium better do to that delivering other

demand our is has focus and Our dividends very commitment capitalize Iridium well on unique service services to invest the positioned in commercial literally. to sector. pay new in architecture for continued L-band to network

the and already to I've Iridium's and the spoken additional that could revenue now are users Many our shape network. add of new opportunities growth drive strong months to taking over past onto XX

A of these of is one good Certus Iridium example XXX.

delivers You Like service, service is smaller than new market, perfect a it, and XXx and first are is very considerations. offering. or early connection power good traction. as data helicopters, But faster a service to uses mid-band low which for The this about small is by including available partners the or adopted will applications legacy our now the market, aircraft in power new call and our still we getting been size, of our vehicle exec, antenna. uncrewed requires weight are of GO! many aerial narrowband connectivity for has applications where that some the recall for Iridium

UAV because mentioned in time. and mid-band from early ARPUs I'm see companies recently calls attracted their plan drone over lot We market new They a about was underway development, excited architecture. service we in past opportunity. momentum to that command much use drone be control partners. so of will we've all the the it expect the creates specifically our on I help or the increase quite opportunities haven't but to Iridium

beyond recently controller it's of on a have that and put white out It for an line innovative you networks satellite for BVLOS, visual paper of even often approach or referred very that may Some sight seen drones we topic. as using introduces to. justification

solution and been received a it's applications. we attracted overcome has for issue proposed has even success drones be few The feedback the growth real using to of past industry in enhance that weeks piloted UAVs. needs been are in would incredible, interest of lot seeking our paper The more in UAVs who safety nation's and for a with generated long-term from over partner white discussion. a BVLOS safely the industrial study This situational airspace. paper of has operators was made use from interest partners and more effectively awareness for of regulators and to consortium all the and drone remotely commercialize and the that

these think we This is fast-growing support Iridium and XXX its long-term of well a services the is industry, Certus operation with positioned aircraft. and growth to Iridium

a and SKYTRAC Iridium's wing verification comes of and about of to who very their lot Iridium have and our the in deployment on real-time low-cost airliners. Honeywell our fixed the positioned example are narrow-body of respective services into of leveraging run mid-band attention and for messaging even smaller for broadband partner, Another by excited network in-flight aircraft already carriers. progress Leaning early utility rotorcraft industry Collins support being I'm are partners also services from like These aviation, gained Certus further on payment terminals.

years. are in our to and of orders existing These of jet to should are aircraft the like will equipment backlog land/mobile They've for services the already time on maritime start customers some incremental which service business and this fit in broadband expected line commercial announced revenues coming some models big just Dassault, XXXX. aviation coming and who from new revenues their allow Bombardier in

land/mobile Iridium grew during helping and our Iridium subs in second a XX,XXX maritime our Certus to services the milestone quarter X ago Overall, only XX% subscribers platform. Certus expanded introduced reach commercial is our broadband at since years using broadband industries and pass the recently us This our great offerings. we about

continue experienced remained take as our industry, competitive broadened, advantage. and We in broadband our in they've market strong ecosystem momentum partner to and has the share our has

a consumer to into emerging with industries, offering opportunity a applications Android our and sure introductions I'm smartphones great think adoption We expand Qualcomm highlight network starting and using way want into you We I to our Snapdragon are. lot service here are as as processors. see Next, variety opportunity new as well awaiting and of of direct-to-device. satellite in a leverage is this more

launch The a and smartphones the near Android you time, XX global very believe many DXD. and for regulatory players Apple midterm achieve to need to with get satellite and full But promise really in number ecosystem. satellites for approvals factor when are We years some XX like connectivity large. analysts is in the new to of to long to the the build evolving XX the big to SOS, the that achieve probably pioneered talking support take opportunities the by we could plan iPhone market being for potentially to about service

solutions you our Qualcomm, news superior for I don't provides on have that required news real-time messaging, will We've too. with with reliability completed there's also I for trademark technology Iridium eventually satellite our for good is and will integration service but global expect today inside that know work technology. Our Apple for new rollout. adopt customers development our our have coverage. OEMs and these any smartphone this The DXD and qualification more work

XXXX. the visibility activations expect Qualcomm their move We do timing the their all know, Specific now But from don't specific and products in due timing first we customers or into have and smartphone on specific very of smartphones. from time. will in will good we volume information what come what

material to will our continues to guidance full service not revenue year Our direct-to-device XXXX. assume in be that

differentiating of provides for our ideal beyond potential appreciate. excited smartphones Qualcomm valuable a that service SOS global a capability will by other about smartphones. users using markets term, is reliable, and that network Iridium's number that believe truly is we're and also We in providing the us messaging Longer

readily our initial Qualcomm done The can on income with capability the be development statement. we've smartphone on work tracked

engineering it see of portion can flow the support through and commercial revenue. our You

that adopted iPhone expect lives, meaningful take and that's to that even something want we generate the said, be of time limited we clear save but reach I will on to is services direct-to-device it and smartphones part of. from do As the current services revenue, SOS be it XX for

government. to want Iridium's work I the with Lastly, U.S. highlight

Iridium's to we've Iridium, partner, our testament cultivated the the with General Dynamics, the relationship ground fixed-price to along focus strong is opportunity. The You're and their strategic Development collaboration. government but network EMSS selection a build and long-term of with is the with experience our government real is our that of Agency DoD contract it operate no Space doubt decades our next-generation to aware expanding relationship with of network and

X-year own from for responsible contract record future year the to end continue this next-generation core of revenue Work also will the are help on a Working engineering contract and and to projects we've largely growth making are through Tom our working the These revenue new in been past should see good fruition. the positioned but technologies the on is drive well expertise focused which continue performance it think quarter, of with for will to on few our are details progress, our we're decade. our but coming over on support expand on that longer-term that FTA I financial network. share and can opportunities. this you the now be

by core driven we're data strong Even largely business, phone traditional is sat voice in and Iridium's which demand. services, experiencing

data business we lines I We and businesses are voice through revenue in our average high single-digit well leader traditional in in on and XXXX. and strong previewed growth our today, core confident growing newer services opportunities are forecast a of service with the

new will our on which after of we Day opportunities well, XXXX We of see Investor some as XX. during September unpack lots

with based upon our XXXX we'll plans we generation today the focusing and the partners For growth those coming in on be years. event, and this underway that through efforts anticipate cash

exciting vision, you. long-term look sharing forward to which with we an have We

our for future and Tom, growth We strong functionality our add take over great to to network ability cash partners our questions, way I Tom? pride turn their look flow. performing financials and is forward our business is review in that, based new and in lane. call of staying past, With and support a thanks. our the your free our the our I'll continued to on execution unique create to drive new and Like

on XX% quarter structure. morning the and second Iridium affirmed capital close which Matt, everyone. $XXX.X I'll Thanks, key million, lines. execute and metrics up with recap to some a year's our color the for financial we XXXX the this our review revenue Then by in well providing in of the business morning, trends the started quarter. we're and seeing good of generating continued total quarter from prior liquidity position the get summarizing I'll and guidance,

from was engineering This The a business improvement X% reflects ongoing growth business support in in Operational and lines revenue. second quarter. all EBITDA up and and commercial and and support driven and across quarter record year's strength million our in subscriber commercial the prior equipment. engineering by was $XXX.X the lines hit continued strength

The million. our quarter in revenue business, voice broad-based quarter side first broadband. XX% since to and we commercial or been increase was changes continued the how to this earlier the $XX in and and voice, up momentum pleased been XX% ARPU XXXX. we voice Commercial have and To pricing was $X.X year, the $XXX.X reflected IoT this implemented that expect date, service revenue has by in of price mid-XXs. On largely driven the was remain data our million new grew this year second the Strength with will million. received

Revenue million. from prior commercial satellite IoT, personal In to quarter benefit continue rose XX% communications. from we demand $XX.X to for the year

personal the communication during lower for strong enter our and ARPU plans we period, quarter. shifting the in seasonally using IoT subscribers ongoing demand ARPU we mix of resulted continue As see consumer This devices. $X.XX trend to of summer satellite strong

discussed generate Fueled This network We strongest represent was I've revenue IoT for subs Commercial service these up subscribers, part the subscribers by new As period. half data grew million commercial in net year's minimal in XX% billable commercial we given IoT they estimate our users. the fourth XX,XXX last from resources the love of year the XX% consume. before, second account XX% of history. quarter. X.X plans IoT additions. subscribers from in about that now consumer-oriented our ago comparative

new continue of OpenPort $XX grew Certus Iridium service legacy subscriber Iridium usage Iridium to benefit use ago These new Broadband to and we XXX trends from Maritime, Commercial XXX. adoption have as subscribers. year In from revenue customers predominantly to and XX% a the than period companion our million. higher VSAT

important At is we our also speeds. as continue aviation to installed growth. detailed, the Iridium time, that respective equipment an the our broadband for terminals, But component we progress commercial and Matt Maritime subscribers those partners remains revenue add Certus these will of see to faster their on same made to good broadband as aircraft. OpenPort expect with have our this upgrading

data the U.S. and and year's revenue was hosting $XX.X contracts. Service quarter, quarter government. service reflecting also $XX.X with terms the last EMSS at with in with other our of consistent in million million, Hosting comparable line revenue Government second this quarter the our was contract steady

million second in quarter. equipment strong remained $XX.X Subscriber at the

in remain work be that in with government We second last ongoing continue to won full this quarter that prior line and year. as for period. Engineering the reflects robust compared the will we believe year increase to U.S. year. hardware revenue the 'XXs related $X.X space will sales $XX.X year support contract in and level for was a million to million agency The development the

fluctuate engineering revenue based expect achievements. this to continue from execution and quarter-to-quarter upon but will up will be milestone We significantly year,

XXXX. reaffirming between XX% $XXX quarter million in million. operational And July, Based revenue and we're and guidance we're and upon into full between through $XXX our results growth second year service for the the X% seeing our trends EBITDA

relevant items Iridium's a guidance growth. your may as coloring I'd like cadence be the they models and of to our highlight to few

together business which continue across service subscriber We increases growth data, strong in commercial price revenue expect all to commercial with activations between voice lines, X% our XXXX. XX% and and in drive will

increase XXXX. through growth continues year high support current the the growth year's not This be midpoint expectation indicates to single average or digits XXXX in XXXX this is and favorably commercial increase XX%, context, the less will is guidance by from that year. our recur to that price This To our because total revenue being This is that voice expected than that service growth in in to expected occurred average at that is XXXX. and in earlier XXXX data given in is XXXX's our outlook XX%. impacted XXXX X-year guidance put

Our $XX.X the for EMSS quarterly contractual of the contract to single over high best our rate steady this estimate includes with year. there of average remain no government in service our million digits business fees year. in our growth regard at is balance guidance revenue will Qualcomm government, this increase the also With period. Therefore, of U.S. revenues

in their be on for continue support sales, also we record development in a the year. pace line and while year continue another revenue this Space Development grow bit will Agency contractual quarter, strong the Equipment off recent for with XXXX. to track as work and Qualcomm recognize Engineering revenue

from also dynamics down the during half compensation resulted to and of in and the higher further On we year. employee of expense related expected the we is to year in quarter SG&A hires second this a side quarter business as ledger, the These forecast systems. was moderate the which stock-based first continue XX% the to upgrade costs and increase second retool in new

to by year We XXXX. in forecast be XX% about up will continue that full SG&A

XXXX products guided, including run R&D technology earlier, Matt which the a aviation As and number with coming highlighted we previously developing higher we're partners. market, support new as mid-band will new in of new terminals, to commercial

expenses we as while business In our year. will systems guidance new and grows new are all, absorbed opportunities. the we the to products achieving we for prepare XXXX These of appropriate as be business incremental number capitalize EBITDA well incur in comfortably believe can on our a investments expenses as our and still in

equivalents paid June initiated program of expect support a quarterly dividend to return $XX its dividend Moving approximately continues our on balance one is liquidity Board XX Iridium holders of program been to and will cash million this capital of and June in a our program. to Iridium's growing share quarterly repurchase that XXXX. Iridium common second flow as position a had and the and of our $XXX.X XX. cash of cash source has cash reasons million.

of stock for approximately a of million million. $XX.X shares quarter, X.X about price total an common average second $XX.XX the of In at also purchased we

have million $XX and return buybacks, investment. program, We continue objective on on on deleveraging to the with to desire balancing we'll repurchase outstanding our of approximately maximize execute our share capacity for

was repurchase the net and dividend Iridium's X.Xx down leverage when second a share from activity X.Xx at our factoring earlier, even second end year of of the during quarter. This EBITDA was the quarter. in

of net all buybacks EBITDA and to XXXX, effect of our Board. X.Xx share end Our target by between of be X.X dividends the inclusive giving authorized to and outstanding leverage at for continues quarterly

X to the in expenditures spending million, of million were Capital related $X of $XX.X second onetime satellites. quarter including launch May's approximately spare

We expenditures forecasted $XX holiday Iridium's XX-year CapEx $XX average continue over to expect period. to million to million capital annual

should XXXX with long-term forecast. Excluding launch-related costs, as capital expenditures line in fall this

successful ground With and the constellation, spare overall the the in health we of also the value the second of operational our Iridium quarter. of of launch in off and satellites would ground spare resulted not launch of our million made X decision by writing that we sixth our the the to determination constructed we satellite the accelerated for This mission. operational depreciation need and assessing full recording remaining expense in performance $XX.X NEXT

pro payload inclusive Turning free million in free in EBITDA and approximately forma rate we're $XX guidance to pro of projecting of of 'XX yield million. capital, a flow metrics forma cash XXXX of almost year a EBITDA flow interest, X%. represent appropriate XX% and midpoint $XXX net approximately cash These conversion of for the hosted $XX million flow. adjustment, the cash of in this to back free in working CapEx our If use our $XX we off million and

to measures, and continues growth. and L-band description services in ongoing supplemental our equipment partnerships and perform available GAAP for well. of Relations very we prospects presentation detailed to strength our more Events the for website. excited with and remains its is on closing, remain cash flow business the many under along strong, Demand our these reconciliation Iridium's Investor about A In metrics,

continue return are a operator and shareholders to the capital fund We about investments. to With excited that, and back things future for our good in to our make projects the strategic turn to as I'll Q&A. we incredibly position new

question James. here with come from will [Operator Prentiss Raymond Instructions] And Ric first our

guys 'XX on color I you question of provided. First a lot guidance. the appreciate

remain style. by of? Sometimes up guidance causing we direct-to-device? Is it in it the something have slower ability particular of you in that's point the some on Anything in of zone? taking this kind the Or given the might the should aware is the maybe your be be activations else year, uptick to guidance for to

guidance in chain isn't say that we macroeconomic situation, time, -- don't. up We Certainly challenges we anything The this wouldn't global never by year. for some supply over really the the sometimes this I direct-to-device. forecast last year. we years, experienced take

feel like felt we and mean reiterating I that it but our right was the reevaluate we're any wasn't than growing, it just to more at appropriate. business quarter right where now is solidly now, felt

early is too strategy isn't to to year -- goal corporate or Our always the we overachieve and that goal take. in that doing necessarily a early forecasting that

in So I anything don't think there's Tom... particular,

agree I with Matt. you,

we've color. been extra Obviously, trying hands the our direct-to-device appreciate to around wrapped I Okay. all opportunities. get

So us take about into when would and traction. 'XX before than like to other exceed think guidance. model sounds be And as out mentioned of put you revenues kind It to and getting in really of fees fees a we royalty usage it models lot you've we there that to and that less try want we this items. and given 'XX 'XX should royalties XX%. trying your understand will How thoughts some time that will are sounds when get it then 'XX like service

information got it's it given We we think much you something that. model right on information I'm great that to have we either. be now a to capability. whole I sorry to out know lot that developed really on. frankly, a we've more But challenging about don't haven't do

a solid have We there. Qualcomm partner in

it test said, lot work technology, and sell-through we don't adopt models. have I their be of the to into in, has that done the integrate with to the out deliver OEMs a it visibility to As their

hard I the develop, could more. upside the going some sure And announcement don't, in is just lot people I time take smartphone I positioned when be for you in the place, we're to us we'll and able wait very all to to and And just right about comes, for -- to we those they're with tell I our think, I -- believe do. in to take this from what wish it's I'm to solace going but partners to for we're have time since Qualcomm that us, smartphone come some very and it's well and a

'XX Okay. chunk that 'XX. stock-based that Tom, up to the good mentioned A XX% of versus We is out. And you comp. cost, SG&A, like adjust

I comp think that's also OEBITDA. expect of happening much we adjusted between How stock your and out change that line? should of SG&A 'XX is 'XX

I'd say, Ric. About half,

Okay. Good. it. everybody. well, Appreciate Stay

can reconciliation. -- you Ric, it's clearly marked out EBITDA in our

can You it right there. pick from

forecast I for Exactly. second was just on the thinking forward going the half.

our Quilty from Quilty question And Chris next will come of space.

up what's of goods there. the you in It inventory. with a like Tom, slug looks have big finished

in we invest believer in we -- And of we're they I out, if think we our how they you versus our phone Right? a our that, don't out, stock. sure business safety business. stocked competitors, were satellite see the Chris. So stock beneficiary performed We're so and making

season? the Anything hurricane big on

out we're not we we're general, to want going makes no to to. and -- -- in stock it just, mean not sense don't I

I levels. immediate We the X wasn't to think do tried we're to traditional getting be to always had last that. deliver able needs. to But years, back obviously, able to

whatsoever, for And so our to that and and have any even real is for our challenging was struggle it a partners inventory growth.

it's just some that safety build now business to back stock us finally right -- Now now. in, smart for able be

CapEx the One of there Are done? Are Got question. the Tom in any in SpaceX back half other the up show you payments year? you. remaining that

done. we're No,

launching product through you you And for mid-band think to products We've what roll products? going for categories. the specifically, of to to while first talk and categories on those Okay. a master about you're waiting different time frame. kind be been Can

aircraft to Iridium example. low-power lot in helicopters airliners built really the going technology. to today on started area GO! think on device small credit good are obviously, seeing there. in land/mobile or is to a aviation sort The of lightweight, have the to it's Yes. tracking in have don't out on said Well, the medevac of kind you're are in actually mid-band of medium-sized is . We're the -- and need market, because well. of in going UAV -- the innovative to roll see -- bad a like you like, I the helicopters them small- validate mentioned that the service cards already of technology particularly one But on a terms time I Exec I they as like and and ones area the real high-speed call, payments, is size

So having even an be really top the low-cost a aircraft device need positive. with the doesn't antenna a of on be that would to

some We of there's be of XXX, the out, first generation are aviation are going rolling transceivers there But well, Gap] well. to purpose-built maritime with here too. next as like as the available year think that of is kind There's applications area seeing other of some kind we and be it for of in well. those that as this I are sort Certus [Audio things general and some and have some additional new applications. applications then And in

customers smaller pretty mean upgrade? see got specific install pretty mean, I Or that aircraft. have market? new a in good market, So this, have aviation of most high you you've to the a penetration do to Does rate you'll that

Yes.

I think going it's is air services, new traffic going to be of thing. a that interaction to better of goes a sort it all new to and provide panels be lot purpose-built control better aircraft install. that with -- into kind technology weather, It's higher-speed of

to of a are lot small new And a so activities going the see aircrafts, midsize. we partners really into those of number from

awful the well, the activity look seeing at I yes, of way that's just some we're of in And lot think it. the then to see You drone -- best said, an as space. I

And it. using are be, to of would now who right an think would off, that component aviation I early it business that has IoT, have starts We to partners lot a industrial in their suppose, I call activities. I here take but when

think you'll I -- for positioned well that, see will too. us You extremely

Are Got you And of market FAA you. use safety do you you expect your it still of that's And and for the the that? for getting think in also distinct final about process I it? talked certification question, the sort communications. cockpit from approval when I'll mass safety on services, Aviation,

is middle Yes. We call aviation program we're the this projects the it's stages into our That's time, or -- underway it. our that really now. sort is The well year some It and Certus it but months think right program of safety many of takes going the that next well of well. It's within so. CASP. one later I of R&D or in XX is

get products -- to of upgraded of which cetera, SKYTRAC those communications. safety we're et and services and as introduced versions allow cast to that the complete as Honeywells program some the that think those those, kind and general well that Collins by be you've products will already allow of expecting I seen certifications will

yes, one again, supply we for important because, So us an that one only a a unique basis. can global on it's it's

Khorsand come Our from will next question Hamed BWS with Financial.

question. any Just inventory is ahead a you're to equipment this revenue declining, Or the your stay this anyway? demand. the your trying of Is related to follow up that destocking partners on more just

year. equipment in quarterly We it's It performance, the and we're line to avoid profitable year-over-year record to a nothing has highly of XXXX, a kind do out. the It's be a with demand. was revenues, want which ahead want that of to we think -- revenues we will stay reiterating stock with

And then there raise on service? the the there consumer prices a is to side, IoT interest on

don't I so. think No,

expanding a and lot their in that dynamic I there. product lines market competitive partners are with of of and they number we a and potential see think see we're space, a

specific target don't for that that's way. that do to really really us a know like I So something

of it I communications. looking normal are but mean personal prices raising I of on our portfolio pricing events, we in that of call adjust to kind wouldn't like always course

question come will with from Mathieu next our Barclays. And Robilliard

If it of color revenue could as give this any on us you could would this first still, if hard to question, very you predict. bit QX? great. to there variation follow declined the was a up in why it be realize I quarter, equipment to as why it's had But color I

struggling were getting of year hand say more that with quarter demand I to a think comparison year. meet I -- we think it's inventory last of I probably to could think strong to mouth. really year-over-year no second were absolutely and you last I we unbelievable mean it's a

of demand think to and that year's the fourth I levels, year, of anything. well I a but this probably expect just downturn I comparison really, -- quarter-over-quarter means we said, it we from -- in don't level, and first that see did quarter sort This record year a that in an quarter it similar think to but slight is really we as last see think just really overall year, last

you on as predict hard I exactly quarter-by-quarter it's what do think quarter just out basis. really to will a started

about days, I -- the drone on speaking be to of kind early mean of was we question may Any what you what mentioned second of could potential And of opportunity of in guess equipment think it's kind I represent? enough. terms but potential the in drones. put sense drones Fair I that market TAM? number

like monitoring of cheaply. There's do mean, industrial sort are to from be everything that where be we've or activities that's as helicopters don't and everything X-pack I back to for, oil going there's medicine know Well, that quickly forth of an front able that things have dropping drones more see started that and there safely, replacing remote that to beer to of get thing. whole perhaps but that's a it's might used and and people might that it's rigs, door anytime work industry and soon, awful said, there's lot right areas samples wells have I difficult to delivery a our to applications monitoring are obviously oil been delivery. that package a and that developing I from And that of gas now. automating do lot

have And I big of mentioning one there's from is the that that issues companies control via ground sight. after space. today, that drones lot right was going for now a just you to of the line of those

and do the And really you're you to technology your So drone. to it, if a sight you you and as further, controller want use able see sell if of doing even between -- might a it to that, be you might line just if the goes well you little have technology. something, direct

you sight is long they'll to basis. -- market need that needs line drones on isn't of go they visual at know It they successful that that whether and lightweight what, they times, they'll a and that distances can going we But were where and to small it really that's connect and in to mission do. radio need all need et know cetera, beyond the can capability no not the are to really so grow that had, matter what

So has energy around. that's the of where lot a been

focused X, of up why problem, year that, are to in there's as to because awful we quickly, want numbers why they And regulations or that think going paper of interest industry the regulators a that's of small still and and were lot there's talking are I about that that an quite particularly too. to think solve but hope these that us I lot will ramp in out. the worked be for some next the on

That's very me. last helpful. for And X then

us that today Because understand correctly of and the that long point, you as revenues, next engineering and how some Can engineering terms royalties the if of the is ones. And at you currently? will of and magnitude color your that the to in understand at life, the what finite the move in In last? a it's I revenues, Qualcomm moment, service and a give contribution I is the support. little phase, development this that bit

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with come question DiPalma Blair. William will next Our from Louie

Ken. Matt, Tom and

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of our That's caught refinancing, that's up intend but do, estimation in out. Louie, years in they a couple a to that

for Are I the devices Matt, are discussed devices. those year year? consumer year? on next And those you personal for for and handheld think previously for Okay. Great. research still plans [Audio elevated preparations multimedia potentially track development expenses for this on Gap] devices next

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on well. And track, future. those going the yes, personal it So the has have they experience communication We're very user for think I people it's that excited about use devices. when the potential

also provide been for connectivity Is a Iridium to the Iridium providing Great. of connectivity in the discussion eVTOL United there drones. about there's that for lot applicability as And market emerges States?

they're and are, already doing to work with, We're moving X for what large have call, doing know eVTOL partner. quite who but Yes. mention space. aircraft today would the I I actually autonomous won't expectations I they

whole new eVTOL is market, uncrewed exciting. air That mobility

taking of going of for and the moves different of I think same reasons, the autonomous both regulatory think, it's and the particularly it's develop I as bit, the capabilities. have sort a to time lots long technology kind to standards to it expectations,

industry the probably the early think that desire I eventually, ones to autonomy. all But is be move to in crude. going are to

real need to connectivity they big you not and rotors have And on aircraft, them. and those they're

someone and transceivers. our of for perfect Iridium's given type like weight fit network power size, So again, our a

them. into of those. with national more it's of today more the early because airspace. platforms the seem discussions I've express on they than of focused but that's So an days be to their them They had some implementation all still certification into interest, user, for connectivity

last one Tom. one for And

your this Regarding to for view? year the SG&A, is increase unusual relative long-term XX%

it we a year. Yes, said, the lot as -- ramp saw you last We SG&A on year, hired hired our last full year we've and is.

in something basically what Louie, sitting and that, and guiding And we're XX%. year-to-date, a have quarter, easier so like or fourth like we like the this third so we're comps to on XX% increase

to moderate going result increase XX% and that here on increase quarter you're the third rate fourth a in see year. the full to of So in

we're up, keep Yes, to that not pace going Louie.

opportunities sort bit capital We've to lots platform I that and exploit and of staff having of been just accomplish new a build network, little innovation think that we NEXT, a catch-up we still after as have in different in to of realize we to result lots and of that. of have the there places on, we and kind this we on -- able we didn't was to of a really needed our a do completed the see saw out program. be focused the Iridium all number of wanted -- areas

Day in and in pretty a talk we're environment a as we marketing to Investor have of about filling think technology So going out that operations and and next we we we're doing in as sales have lot more forward month. going -- that well rosy

now any our over we would the conference today, question-and-answer our and back for remarks. session. conclude I closing turn all like to questions That's will to now management

about forward you Well, more productive New with particularly to quite about sort months to you many I have I that. our and which again, -- thanks X on a to opportunities, York XX that's for us. joining long-term we're session we're focused excited look of going And in think potential of September look here visiting to on well, talking next City. forward

joining. for thanks So

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

now may disconnect You your lines.