Iridium Communications (IRDM) 18 Apr 242024 Q1 Earnings call transcript

Good morning, and welcome to the Iridium Communications First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note today's event is being recorded. I'd now like to turn the conference over to Kenneth Levy, Vice President of Investor Relations. Please go ahead, sir.

Thanks, Rocco. to Quarter welcome Earnings and morning, Iridium's XXXX First Call. Good

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

caution to meaning over XXXX. that Matt, Securities things all turn to forward-looking the participants call like within Litigation I of contain may Before 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 Our considered such of light in risks. should today be

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

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

reconciliation accounting most principles. explanation Relations measures to comparable financial non-GAAP to a refer section in further website measures accordance These measures. Please our directly non-GAAP of for are accepted not earnings the financial GAAP generally the of release with and today's these and Investor prepared

Matt. me let turn With things over to that,

morning, Ken, everyone. good Thanks, and

the to remains the activity on beginning ecosystem quarter on our the company subscriber continues well lot year rest first and busy completion and dynamic, date been first-ever quite base quite growing be or defense. revenue strong. remain product year, X. We tone for has development the aviation the it since acquisition partner of whether new April often the and maritime, upbeat our of So expand and as the with our in IoT, Service to sets of of a

this conferences We you have the excited market met our financing complete in about to and bringing many really that active customers been go with P&T of transaction services investor with number Satelles signals term we'll provides provider business partners. debt solution and March opportunities loan the wholesaler our Satelle's and to a globally. With for this just during We're in the Satelles Iridium in-house end-to-end our of of tack-on secure acquisition, a upsize acquisition. the from to an

other those and with satellite-based who in new GPS not acquisition that time makes business complement GNSS the services and are systems. this familiar protect us synchronization yet leader location this and area, For

realize, come for military the functions and general As for the the of prevalence and infrastructure, the aircraft conflicts navigation location critical enterprises GPS rise increasingly world. has [indiscernible] around other on and is world impacting jamming during and shipping governments important and to and operations spoofing is

provide and vulnerabilities alternative we particularly upon. critical that these reduce for an infrastructure effectively cost depend GPS can solutions P&T to expanding Iridium's reliance, all

payload Michael that Going timing into Satelles, The of satellite for leader reported integrated will Iridium STL, to me as will XX-person short, O'Connor, P&T forward, of new CEO line. or to is as being report Iridium and is team our Satelles the and within the who business business. unit, the referred this entire offering be location as hosted be other business and revenue

stronger sold of secure even GPS, users P&T and networks and number that low-cost small, of and a on than services. utilize minimal wide add support We generate an on engineering anticipate on while in other constellation over million very $XXX These STL that used using solutions revenue that hardware. Iridium infrastructure. will that of from critical X,XXXx is with to unlimited per is service capacity revenue our broadcast year XXXX can Iridium's additional STL With ride STL and Best a by equipment LEO top be to network. all, centers, protection can wireless in-building as redundancy indoors area data service signal

market, of aviation, can can These and that are head and least challenges you growing It's viable think ours. and cybersecurity. sense transaction. in customer well ecosystem approach applications do. and our With and network are else important already UAV line with priorities this additional applications to for enjoy my expect Iridium's in doing Iridium's better many a special L-band in address unique, new partners, than other innovative some in STL strategically able to global as their like vision, things worth XX-year maritime, will I excitement and from today, be hope proving as the the like the that solutions that on at X- have protecting we start we grids energy anyone market resiliency of are we LEO broad space-based areas a

step the Iridium customers. markets new expand now and to and to ready gas on STL We're of the availability

shareholders $X You our out by XXXX our this X-year vectors billion period. supporting capacity in $X billion support that from I Day return would recall number to Iridium capital September same will laid over Investor and service of a that of to generating revenue

clear, last me our Let our there financial long-term be no on year's competitive view been Day Investor outlook. changed have since that developments

plan the one this that our of tuck-in and great is support acquisition STL will is market across that a create synergies drivers financial other vectors.

grow for first of conference many these should come will business tune partners, drivers. record be reiterate long-term the more already and of on It pretty working and very growth our it This To strengths. presentations to see to long-term lane, are opportunity of we end Instead, don't as that achieve or have our a the decade product have we our launches stay growth surprise will no of objective, we on. on revenue we already well deliver and opportunities model. largest us our wholesale we had the services who network the of during come heard strategy track those through is objectives, and unique the execute delivering. good from know our quarter, innovation same, you've in our For growth into the our change business

Beyond Iridium's during years. Satelles and are the Investor other potential coming to we growth tuck-in acquisitions, September X Day key in our other highlighted drivers that revenue

First, IoT.

and personal leader for future. will we we the the satellite well have industrial continue double-digit We to commercial produced are and continue as subscriber applications IoT, revenue these foreseeable as that believe in communications in growth

our that results. first see can You really again demonstrated in quarter

full IoT, will continue move is applications new advantage for takes our forward supports in services, factor speed, advantage our devices small full leadership mobility Certus speeds services our second per Highly power-efficient to and of spectrum roll that optimized will with to to new IoT form L-band industries. Iridium which of and about kilobits XXX in partners unique using Leveraging platform Iridium's drive we position. mid-band. up and Iridium mobile, to Second, up mid-band take devices out a size, that open very ARPUs

be surveillance, and are need higher small often have offer solutions envision industries mid-band the lightweight. security connected other or autonomous still to demand Some and and vehicle functionality bandwidth services need that batteries added marketplace, entered Iridium's applications already to and remote and but of mobility and will like these operate devices we on

directed Third, device.

our is of in This that devices Star a to multiyear technology IoT consumer adopting a This devices standards previously will opportunities a and You large expand will and oriented XGPP new of Iridium me our industries. Project chipset smartphones. investment make like broader heard cost-sensitive set market, Desk. speak available into is our manufacturers IoT satellite investment for very work

that even I and we challenging number voice types telephony become others want personal loan XXX,XXX devices reliability of the is are to underscore which direct-to-device and workers, responders, of they've important used. source than capabilities. expect to network, us communication develop Lastly, a with are in continue telephony. for We bright because These operations integrated on strongly first reach our in governments mainstays global devices users all grow of believe and completely the future, so to environments and purpose-built an revenue into and satellite-based devices more their for as we future. their have they that that

to to area. last remains X the organizations see facilitate without it. the execute of and a hindering interruption services that this is revenue rather a push-to-talk base and communications goal ensure Iridium point allow expanding over than devices high-quality years of in accomplishment of and plan The continues purpose-built They subscriber proof and advent of these driver

a has questions from are Historically, status attained position finished. Iridium the team paranoia X.X we we more assure while even are of healthy and you of of appropriate million specialized to far leadership constantly to this given history needs communities level has served an grown than I the about users. we niche the niche in proud And And have globally, humility quo. and subscribers satellite industry. continued our have My the

we our capabilities misunderstand relative services, of now, satellite to the underestimate particular investors needs skeptical seem others Some global are to right the but and sector. utility we the in our think network the future discounting serve of be they the of about customers our

long-term into The our majority confident XXXX, service our what We have lot is fundamentals business. visibility a drivers and refer as recurring, generation of we vast highly revenue are our capital and revenue. of in revenue through the we to of

be sold purchase contracts, do time. with we to require opt solutions While to our long-term years Iridium our service often for at a not customers

a other they fact due to settling elsewhere. choose our cannot provides it validate network they've coverage support of with and level I'm offerings service customer investors proud encourage In that own often tried and and this because of reliability, fact, they their prior Iridium's diligence. L-band this to on get

capital continued return In with were to our show commitment program our continue with the our we We repurchase active and shareholders. quarter, to quarterly to first dividend.

dividend June This our These in a that our flow. in programs is XXXX. noted about to underscore continued in Iridium's in business of cash and dividend X% starting will our increase to we enterprise result with the Iridium's equivalent strength will confidence increase February, generate As our growth Board payment. free

and not Iridium's our price stock I assessment valuation. equity to would be remiss current on of market's the touch

While grow and we flow none or unique business claim deteriorate. do. in to revenue do, operators purposes. or growing group we far satellite X Iridium competition go is to like anyone not profile this free compared generate have look to is their do, we who have network like X service seeing that satellite the subscribers operate I the don't see to we would Other and perhaps don't a exceptions, surely say so be don't provider, we fundamentals in valuation they and that for continued have cash should service satellite like With industry, else can

we to our enterprise companies have and encourage flow unique investors data twice that generating We against look of that levered growth. believe believe that both shares. companies relative business up considering the to and the we Iridium evaluate competitive of infrastructure cash to value at visibility quite to well to continues of We business Iridium's other to to comparable Iridium like multiple. yield are which flow our continue centers also tower some strength free a the believe dynamics cash these strong sector future is at space flow. cash to measures conversion, common growth and assess trade and and our stack free value free OEBITDA our When We and similar more occupy

Perhaps in broadband should believe of overall for decrease some valuation. our As general, of valuation growth in set and the and business that disruption players. the a Iridium the such, the that remind business underlying very opportunities higher is the in of be I would VSAT impacting commodity industry. comes strength from market's competitive players different concerns you our than rewarded with VSAT industry we a and the environment space pace

focusing have we L-band to commodity K-band services the and VSAT are VSAT other fact, like deliberate broadband broadband been services. safety In complement avoiding being and in on

able face later services Our year, L-band mandated well. Certus And unavailable this be broadband VSAT provide in ensures weather and are of will Iridium imports globally that operate as function companion terminal where our GMDSS can or to reliably where mariners the restricted. is the service

offer our value on believe compelling shares fundamentals. a based to our continue We today

an are investors investment adding to industry. opportunities, to We our subscribers, remain shares is and adding for buyer broader continue new an active We converting our of business equity revenue growing believe and looking outperform avenues on attractive the growth. of

previously have expect spend satellite to As we XXXX. constellation next-generation any CapEx a on we through said, don't

post of need spending ramp commence should do we to when that expect We satellites it slowly will XXXX, launch the the until latter we XXXXs. as half

throughout to during As we of cash we contrast our our construction levered with flow expect free period, amount anticipated constellation next-generation the generate spending OEBITDA meaningful the build.

will period. a construction support and continued repurchases throughout This dividend future share growing the

new fundamentals has We strong impacting So see sheet, growth. or balance our well positioned long-term developments for business healthy outlook no a guidance. and is Iridium competitive

Investor have just As XXXX. XXX% equity shareholders to market value we Iridium return year's as to company's expects billion to Day, morning. have said $X during about last the This approximately of through capacity represents of this the

that's admit an this fact must You at time. extraordinary

we Everything in supports growth for long-term vision. our outlook see achieving continued our

may correct to to expect to execute, eventually way. return appreciate not moment, the our we opportunities of we it the market and While our continue at this expand along capital as on unique network our shareholders the

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

lines. seeing guidance, trends metrics and start I'll of the everyone. and XXXX I'd first close a our position we to and like for our this Then some major our on we're providing business with the by affirmed morning, Thanks, liquidity which Matt, the remarks and key structure. good my review quarter capital in financial recap summarizing color morning

Iridium well, revenue. first service continued year's by was X% recurring and quarter, quarter. in of revenue This quarter to a subscriber another execute growth Operational delivering driven from in million last the was strong $XXX increase growth EBITDA expansion.

increase Matt service the strength IoT, was $XXX.X mentioned. continued voice to On as X% and This up quarter data reflected and this revenue our of broad-based side business, in and million. commercial was

strong safety Voice data to services $XX circumstances benefit and compared a contract to for fast-growing changing organizations growth responders, new contract quarter, respond materially revenue from X% large, last million. The has to of by we IoT Talk a coordinate effect increasing year government the this largely as increase and push-to-talk has one-to-many The revenue customer was This our million X-year from and up from first the XXXX. driven comparable by quarter in organizations new widespread services. It impacted and first to Commercial entities. and XXXX application totaled prior dangerous Push continue $XX.X was from subscriber to XX% quarter. revenue in partner. with the rose that year's demand like favorably in

recognized quarters seasonal XXXX. It throughout the as X in ramped subscriber also picked approach agreed which creates for year and third In case was equally we up quarters. prior years, results the each recognized with a a revenue us. in the more of will being revenue in counts usage of approximately to large second the be pricing of the That as to under its certainty have both not new customer, deterministic contract and more

of prior and As growth lowest a compare result this revenue our year-over-year contract will to show most revenue quarter quarter. in this future will change, this lower growth year quarter's quarters favorably somewhat

of aviation XX% of the and broad revenue with and fleet including Given XXXX in other a segments, personal these year IoT communications, full developments expect certainty equipment and XXXX. rate heavy management positive experienced contractual revenues range we across the exceed OEMs, customer to IoT growth

in target confidence for Iridium's achieving $XX.X Accordingly, our Developments central plank to in IoT in the in we target. grew XXXX bolster IoT from Broadband XXXX. mid-teens long-term Commercial service X% the billion-dollar XXXX. growth a ago are million. is IoT year period in in guiding this in Revenue revenue revenue

As of we previously in are broadband effect the have a commodity portion we of seeing our noted, broadband limited business. pricing

to backup We as are from impact this expect in we XXXX K-band players. routinely used growth in all as VSAT a be and improve expect XXXX short-lived to broadband to and

billion over respectable September Day, service for out one the in target in this broadband central This revenue we planks impact X our anticipated I growth not in would do was our XXXX growth area $X period. while was that Investor point of our expect XXXX. for identified

now of the IoT up XX% data now billable plans subscribers subscribers, net During XX,XXX XXX,XXX the from period. of X.X We new we XX% that million ago more account of users. for commercial in commercial year subscribers. quarter, represent Commercial IoT commercial added estimate our consumer-oriented than

services Hosting comparable down quarter, quarter. $XX year's data X% million and other revenue last was from this

record that the extension which increased to over historical revenue based hosting sales time by our levels. quarter affect to call, not this extends additional This of year will our to last was the price partner our million the in life in $XX.X $XX.X period. contract the space for quarter We million, revenue expect by useful years recognize reiterate satellite's during activity first prior outlined in of hardware health sales agency, for we contracts. was we revenue quarter in and U.S. the support to that X service our in these upon The be chain year EMSS stable our supply development which update the government equipment, with flow. increase at the in to levels. fixed useful returning Engineering the sold important the now of from accounting stock won X the reflects is the line normalized XXXX. $XX.X Government in the equipment this is terms contract compared years As and of growing life $XX.X off of It's we government. million pandemic as me up with we more reflecting cash driven does first first an more our a continue million estimated to work satellites Subscriber related assets. coming related

XXXX work and in XXXX to the FDA. revenue with scope opportunities forecast and again, growth an engineering business the continue year-over-year based increase growth new in in We in upon expect of

to remain service In want seeing quarter this April comfortable with few which growth a full to into Satelles equates as satellites. accounting us may items without X% I between in outlook results revenue The acquisition, X% growth first month, our update guidance to revenue accretive of between we're completed our year We and as earlier we to that outlook, the previous XXXX. our affirm revenue X% of service X% to range be well service X% revenue guidance highlight this EBITDA. your on This support and to Our allow is trends to a the models. for X%. our relevant and for related

XXXX. than the to be less expect in we effect basis However, points XXX

reiterating our range previous effect guidance acquisition. stated but So are see in to morning, we the now after giving the this higher ourselves

revenue the enjoy data quarter million $XXX.X million of much in growth with drive XXXX Government year strong Commercial the Equipment contract during XXXX. government EMSS revenue this in IoT to be will as in Full will expected the at Revenue absorbs voice business pandemic. and continue step-up revenue contractual pre-pandemic September. XXXX. Iridium revert in channel $XX.X steady will with half remain levels it the in and the accumulated year momentum from safety stock will and our U.S. sales first rise service per moderate to to

NB-IoT On the expected ledger, support while startup initiative R&D the expense and will on side XXXX, $X remain is about to million director stable in SG&A device. nudge to spending of up our

Depreciation earlier. additional by minimal useful This to and about taxes than amortization this Iridium R&D expects million related will is upon credits $XX the in XXXX. XXXX, through cash expect life, change level realize I in entirely decrease incorporates of which to touched 'XX. million $XX satellite less of we

$XXX We between our trends very our forecast reiterate to across year. together, and allow about feel operational and and seeing this million EBITDA businesses. revenue X% service growth we're Taken $XXX between X% momentum good us the million these for

million cash April. cash Satelles March used result term of equivalents capital as and of increase was the of approximately a early fund in of received the as $XXX which Iridium Moving Iridium XX. had to to acquisition loan, a an $XXX our in cash million. balance position

report cash quarter our when on this impact we You'll transaction see full the balance our second on results. of

], appreciate in funding existing debt was Iridium's of and these facility. Term same XXXX with terms in community completed happy Iridium. Loan an OID show and the confidence the continues tackle at the to very We're that with B [ terms to

to quarter March you'll reflect net our sheet, report XX, approximately billion impact of Iridium's balance When the full EBITDA. leverage results, on X.Xx balance of which term on of the we to effect loan funding. see have to will As increasing out Iridium's our new this transaction second increased $X.XX this

of delevers decade. dividend our outstanding outlook to Xx X.Xx In and XX, by approximately fall the an said us as left effect all exit below of first time share over we buybacks balance of we've the to price million of $XX.XX. previously, at Iridium authorization This net XXXX, stock leverage end our Board-approved authorized expect an Iridium This common million with As under program average the gives December quarter of planned and we naturally Board. our be and below X.X of shares $XXX.X EBITDA think XXXX. EBITDA XXXX through by retired

full increase we also made quarter, March of first per quarter over a XXXX. Board of cash X% paid payment the in strong This dividend the expenditures first in approximately the to for confidence flow second in on quarterly continued business $X.XX per of During reflects Iridium's quarter will XXXX, million. the company's Beginning share, $X.XX and dividend the generation. increase quarterly an XX. share year free prospects representing $XX.X opportunities our Iridium's Capital were

February, we our annually through we As noted million call quarter in capital fourth XXXX. expenditures average to $XX expect on

CapEx decade. over like be of next start-ups of the latter invest as and the development million below project then initiatives million part in years in in $XX $XX trend will we couple product new the

hosted for current year, If XXXX. we're adjustment use capital, for appropriate million in in taxes [indiscernible] debt our we XXXX cash CapEx of flow. net forma $XX pro forma million million in structure, guidance Turning forma EBITDA million $X our the in interest free of of inclusive cash $XXX of at approximately cash midpoint working approximately the pro for million pro free this $XX projecting to back flow and our $X

on XXXX metrics supplemental and XX%. reconciliation detailed of Events measures, free under flow of yield cash a these website. GAAP in flow A These a along represent to available a a of description metrics in more rate would with approximately is EBITDA of Investor to presentation cash conversion our XX% Relations

on a growth make I the Investor the of other also position. the out long-term at and Matt's want Day. performance comments stark solid truly and it happy contrast differentiated that Iridium progress we're to business initiative to general, continues XXXX valuation. occupies the to echo our companies with our laid In stands equity Iridium in on believe satellite

We other of million positive not it we even many who satellite challenges should and don't here. free free generate cash flow approximately grow companies XXXX whom will generate compared flow. be face will competitive cash in $XXX in and from to direct

With that, the back forward I'll turn things to look questions. your to operator and

Today's Instructions] from Prentiss question [Operator first comes James. Rick Raymond with

competitive Appreciate hit your all and you the landscape to the to do on picture part. want I details on the Satelles side.

Matt, So and XX where it sounds in of into? much think Satelles to -- items line high cost XXX think should like but the think than are in, that, the you less points. move should cost mentioned we service revenue of end, what coming how that's but people those I basis kind can coming How with on coming the helps Satelles we side?

mostly SG&A Yes, add Yes, it and SG&A to exactly with overall in in our probably as would see total. disproportionately you

kind I that. on that that A think contract, X-year appreciate falls ARPUs what's off heard you think flattish And should on seasonality. versus of color What X-year contract? I contract, we after of that it time? effect 'XX in you I the guess, large say And Okay. the risk the

what rep? at off falls Risk

X-year was a you contract. So said it

more So revenues a drop and is maybe benefit little then subs a that like us and color on. Or those give off?

view. They customer. growing a but a a that's think in happen to sign long that's in to just our contract, grower your We time for

year-over-year is in lower time this increases quarters with be customer percent be recognition revenue XQ. versus different future there'll what the that said will around you we and this saw And Okay. particular

'XX initial trying thinking should it be of and think for means throughout that X-year Just contract? to what we on about means the how what 'XX

future first we're What model in a mid-teens quarters to next full think it's on going growth that but should the growth down, the not for quarter. I saying going is XX% is So be on year IoT. X the sitting we're you to be quarters,

the the Obviously, What we on with final ramp value in or you such would And Satelles balance see sheet $XX allow to there? program in me. compelling. you keeping so. at heavier The you're buyback very looks million you quarter go was the which agree higher? stock one Okay. why for Obviously, that the compelling price did acquisition, leverage not at but stock stock touched both buyback the

would agree It I higher. you. could we Yes. say go with

quarter? kept Was might the it muted that we think there anything Anything have governed first in about external that it? should

and was would saw, took the constraints There was that were windows There's some in as chance we terms thought sort for maybe leverage some we Satelles. we that. share of investors no off thing. And back buybacks. of up that of There doing you the

leverage buy. we a is So -- the share took the really think Satelles, and price that now we right for we're compelling up

So stay tuned. .

today question Stanley. Flannery next our And Simon comes from with Morgan

that Matt, you talked disciplined deal benefits you. out about first the Satelles I gives and very been you've here. know laid the years you've being your the over

into was start other lot I more environment of the of deal know I And but thing terms with the the Satelles board weeks bit presume perhaps it's here, this active a of right be opens a got couple conversations. just So the And here in to only organization do? think up been you? of broader this a a for little more bringing context what that that should about you might over we hump the deciding

the would et to impact it So hear with early be leverage to to great and cetera, another it your just has been take customers, this and ability what your level?

Simon. question, Good Yes.

well owner. model. to very recognition but done haven't were space that of model, space I'm saw we compelling were the the spoofing we nurturing and along. dramatically. the really was at excited their there out being knew want the see GPS quite was So it of Board are Satelles technology issues in say change of the business. I for of they sort for see expanding our there their not helping those well responsible to other didn't was Obviously, potential selling -- successful recognize that feel a our We having We means turning part space And excited that well. Satelles business because think fit problems were world. business our the recognized the out spin that ones quite and would interested was had we've point of and been create And themselves. I business well. and a consideration many of in really that been really helped XX around sort Boeing growing, years But personally to the going almost kinds back all approved They've they as well, and I being acquisitions, growing jamming actually in out always and

process. In fact, a opened it up

with say, might government thinking another really that them were but why expand wasn't right whoever are the this. immediately And be the partnership, owner of thinking that with a we partner they I should contractor, of So be them. that a another growth not certainly additional ours might because started bought X find place that would they against that

good they the our limited requires synergies of that across part is us placed change to in that because us applications us This our that lay pursue our signal. Well, conversation could pay want they that, big having across signal limitation that in business. One over to the things is and world into money limited last of we've time other model. partners. of terms And in too that not couple of to weeks. the where I were to like had could would been the very world. they they been signal say maritime and a terms the segment. jump didn't We be It It down a -- creating has the this much business into really chance competition It put expand of the has can around what aviation, with we're for in doesn't which a doesn't absolutely they way.

as X, X, applications we as view near-term anywhere look opportunities of opportunities out have to that can away to pursue to. years where we organic more we sort They X signal at want growth those the those broadcast right ability we that because

pursuing. to the a synergy customer before. even been the their we you, customer lot A there's gave that lot were hadn't we more the tell of segments were acquirer, discussions about I will So thrilled supplier I things base as market them considered even a -- in confidence hear already. of they was

been quite really win-win, a that we're potential and about it's excited So business. for really the

next if on leverage appreciate And Good out the a pretty the to would on X.X decade. latter maybe of have X that that big step going color conservative you're up I XXXXs. suggest All part the hear. not in really That into being just spend seem of CapEx the right. to is to part early follow-up. and constellation the pushed the in

changed So Or that not necessarily why you're need X need something X, later? if for there there? going to to be do you years capacity has

based trading crazy you I point. would at when disagree be years keeping guidance if out a the the at model it's decade, in multiple future, give mean X out this think that that be to were just really we still later don't that in that. I I level on

instead. So because doing we be that with there's could many that other things

part think is is So go all think kind the that's more future. to now of that show I right the like important -- we've rate I we as this going in I and years just that, these to future, the that model showing that investors for I growth out experienced continue. we'll said, over the right continue revisit mean, But

it lots given care rest our of projections we've and we reasons we'll of why why that think of the takes itself. should I and continue let are appropriate, believe

LightShed. And our Walter from question comes Piecyk next with

free quarter Tom, million. like said for I the flow is million and the prepared in it the or difference obviously Satelles. $XXX I expense $XXX supplemental the million remarks, think difference is the last for interest $X looks assume guidance you the cash added is

right. That's

I a $X but that's think, seems million. high, relative little the whatever, amount, Which to

So how about do that basically imply Or consent? we that does breakeven it's think EBITDA business? Satelles a just that

I We've it's breakeven. said said that.

X, And for terms contribution, X, targets? in EBITDA ramp you of do to Satelles? expectation to whatever, to the expect that in the the specifically it. what's -- longer-term How to year, by Got your years then upcoming get

was or on than see revenues guide our service better as $XXX margins is in in So EBITDA in Satelles it good going ours. $X as are million that And business to We million XXXX. it be XXXX. in

then status, device you not, phone factors? that that what that the of if in And in it year. spending? All on I right. X-part there go And this. the Is kind question this And Does is. other are that connectivity applications cell million spending are other than stage on subsequent what early the years? $X guess upcoming Well, direct Are you're up on devices, quarters see that major enables? investment years, start-up implement or the terms different they in decision of want direction in factors a manufacturers if to the their go manufacturer decision

community really that, don't device software-defined We standardized But purchasing. our by have flexible perhaps of network and our standards and it's capital most Stardust because required that's and and boxes some we don't things we it in is most end-user having reconfiguring -- into time. network the like is because done additional a that a gateways of But have because it really for those some development discussions that to well we'll itself. be chip we're is today. by the there network have very manufacturers, the over there's So develop being as as

dramatically investment And that flexibly able opportunities a cost realm opportunity. IoT in we terrestrial that's part a onto the would capital the of is an low ROM in from narrowband this for the of ROM bigger us direct year. is to terrestrial have and I our when from to biggest think us device. say being the really just I space. year partners direct devices So to very the where That that standardized opportunity I networks investment mean not enable and about or is increase IoT. R&D, are at I really excited we that going the It's expansion offer more don't to expect the are that do, of networks space. It's word, play where and couple say we're we'll the to

chipsets a DXD discussions right and can sort that be a it technology things phones having to every put an of be into to lot global sort are other service. most be right country complement looks like can about of very and are that in the capability also expect a We going emergency into technologies could now, messaging now global spectrum be basis would at global consumer opportunity that because least a capability issues other of that being do regulatory in where that could that we'll on technologies services complementary by that, are L-band quite and and that regional, and devices limited other

So it. that's we're at pretty investing looking broad-based that a set with why opportunity Stardust and in justifies certainly we're

more terms, on, more potential functionally, Like contract? what a customer, than is bit on it's up more it give Got you second this a is -- comments, this contract, time. I I it. this Tom and the that obviously, in does the IoT your think but bit But length color like and more on of -- have have if in just importantly, And give when sounds I -- just Is up Can think little the -- is there this sounded was guess, year? it the you I timeline guess, Rick a so X I but just is show it color what question, auto contract might like this a I like the renew? from not how is on -- -- revenue. us I missed the showing it asked can little it apologize units, deal, X-year guess, might does

and the in they Tom, they do long-standing that but been long wanted more I'll the this had. sort say big take the it. you a who in expectations can, of to I consistency term more is has customer user a just of in expect too, And future. our services

we we've good good in So which start. to to But we felt guidance with deal they're to that about. a because future. the that going Don't be would X-year given end out continue well them, expect struck place a

for a provided of our that looks and of what effects a us like of deal, X-year in struck we so have this the And both you year. which was win-win business sort

talking you exactly dedicated, mean? what say that Or what dedicated you Is When bandwidth? getting? like that they consistently, does are are

their view our over time kind spending other of how kind they would each revenue because enough what exactly More experience cost they're network. with of to that on know what be of we revenue using have -- service

kind both we for we the to instead device of were expectations that in could over to -- on kind gave like a were in know what going well consistency as and more way, so by able service, our consistent by And future. spread of service and us them looking of device time going more

them basically usage-based like to an sounds master on agreement unit lease a a It basis, tower charging per as overall opposed contract.

a bad somehow. . not Yes. I reference don't that's disagree

comes next Space. Quilty question from And our Chris Quilty today with

commercial one IoT year. been quite hit for is horse mid-single-digit still first increase XXXX had first IoT in out back went on your since dead, of this like final Is not it. up ARPUs the or be kind turned IoT this to year. it assume The fair QX like decline I modeling and subs to Right. be to the we're at look quarter They're not down. I expecting ARPUs for

the the mid-single communications holds dragging of is digit, ARPU. don't to overall trend still sort because confirm personal but You down long-term still have

that have right. you have that -- You

this picture the So way. think about

I follow full on the it They're first be not quarter, looks think I'd There going call that. will -- than not it flattish. a the on better in the to they're full year year. like trend. this year, flattish to they they're going but up

longer-term ARPU. that's personal But So that's sub the the of are It's the is atypical X, outweighing communications kind lower this by that's and growth a shot, right? contract. effects long

that's ARPUs will to right, So new ARPUs the higher communications. trend to cause kind down is Offsetting speeds, functionality with within higher going personal that data of cause that

that line So of ARPUs. continue serve to temper in downward should to will in a what terms be

would new Longer counteract IoT volumes as but then to lower ARPUs applications, could well get and narrowband into be stuff much term, effect kind space, which there expand the that. we another as bigger we Chris, be there's as I of into mean,

So it's go, this to certainly, but hard positive. exactly say going where to is

a than what ARPU At growth into of the even stuff. out?. which more going should you ARPUs the it's out a years communication before because turn be or of has higher the that point was the mid-band, been X like years XX-year here, of positive declining personal IoT couple territories. Is been say, good trend I to so Well, the of -- growth it's when which does

year starts there. more a a then hit this is probably because really before which is devices or at positive year, late major hitting line. comes a new mean of into mid-band some the least getting would voice makes impact I that know. XXXX, don't I the And data which out to it X Yes. the IoT and this line,

year time for get usually start And mid-band of or X That's to ramping. a year started of So it fortunately, these the new takes a cycle. kind ago. and into stuff products technologies couple

this and we don't And argument so start, argument, really with made I seeing to costs is the in as get ARPU the have year year. followed terrestrial mean, going CapEx think more made into I we sort wireless next it, like we're world not we again, as associated the point growth the since think, I subscriber. But where every of

focus So ARPU how almost low by these We concerns. are subscribers being much more had ARPU the network. And on communication using resources on are customer. declines our personal no utilized usage

fantastic our a of use that's So service.

about the of significance relative So just I amplify point would Matt's Chris, ARPU.

X of see look ago, growth. business you mid-teens. guiding bigger accelerating XX%. years note this here, It is a I grew business. the And investors think IoT it's than it at and take X We're what much saying a should years we're by last take was

think the on that's real takeaway IoT. I

Maritime.

a you sort limited vessels. that starts have its second of Is VSAT. the connectivity said I'm performance. talking of different. to you last some they're -- backup quarter, think as a have -- no Or StarLink those or that backup it probably very the as when you haven't users kind those connectivity already is, thought? with the service to GEO of which maritime the StarLink blotchy of last pull who have vessels market vast penetrate out think And new I traditional do StarLink Starlink not was number to to as yourself whatnot And that about is part established but them playing the you number company in that in was say you VSAT, the you've along to historically used terminal, VSAT question became do regardless Certus inclined fairly whether a the as the or strategy definitive VSAT, up just back feel of technically, only of I a the vessels had system So the limited impact to as

both out are first it's time questions. we same played think, play exactly would market great the the product way, over it absolutely by think, I kind as of frame. where Great understand the Iridium To is a out it play Starlink thought to over on extent absolutely Yes. out all despite the way be And strategy will and the which and part, Starlink the are that fleet we right next VSAT of, partners, talked is deploying To backup, growth our still 'XX Starlink all of the and I the couple the there. to quarters, we'll operate. limitations of solutions. can't in committed latter because the the who X expected existing And part, is people to fleet, bit, it's every expanding convinced as it's back they owners get a be But too. we've now the it's both to -- a companion

is the to a used and the on be It a around in fade same long, XXX% terminal a effective LRIT works SSAS same before It's that's to provide service it companion particularly fleet. that sort that planet. a VSAT all restricted the do, and ports. GMDSS have can't And X limitations to a operate. solutions rain function, we'll many and and of has way still And ours actually in thing solution, that high-quality cost the is embedded as best

the long-term that. will as and approach convinced a And of market result well so do that's very of that we're -- that is

comes, nonspecific vehicle X only only seen companies and question, of think any haven't -- activity companies forget have in P-LEO, Got you. that that how like $XXX because Pleo you were I mid-teens X under of the were at does many that like of any seen X contract I one on million Government that operates the awarded was you announcements. number sort which contracts IDIQ of a now I it you're -- actually

business, -- us and line. well time. still an activity think. you P-LEO especially now that been they're for There provide very the positioned hasn't of it. for A are is a us right there services. I early to around hitting sort expect together times seen an Yes, And said, that to awards but see activity supplier of of want I and -- advantage, if sort and of our of with commodity I other lot think, I to talk that, we're partner more of around activity there's big with for lot under it's still would a as but players mean, kind lot of that bottom any some a work over haven't

out strategies. of yet final areas X and only. last few on Force Got resilient the earlier the here as identified XX with And week, this DoD GPS Space And have DoD you. was use the came that GPS. quick was And in weeks this the force mission they military and several come space that of program out their identified now, announced base commercial want they to a question start

commercial? you're large programs out today, opportunities I out this on its most your think does me sort So you impact Satelles? the that for the sort there think is needs or government strategy or growth is here. primarily side? government do to focus incremental How Or Pentagon of maybe

the government additional deploying positioned of we're in lots future. is well different believe out We has technologies well and projects there. science The

area probably to We this ground would And more infrastructure. issues anyway. original need same the the this infrastructure in focused governmental the easiest It of get the that Our the and area. deploy. as opportunities probably ground globally talk we on is well. the not in $XXX critical think That's the different play would doesn't especially into on infrastructure places the as bigger as growth. the longer-term civilian about will technology of is, part that other needs side, million It's world sectors, That's I that to bigger all critical be over both technology. and expectations number we'll we say other on a we to potential terms the cause subject problems and is commercial. commercial continue the of across

So bigger opportunity. I is would say yes, I a commercial mean,

from BWS Hamed next Khorsand our with question today And Financial. comes

So to first this clarity off, -- -- there's about the more costs? just you could sort you cost your due increasing will talk it's be Are they because your benefit what's Are some seeing? seeing that component partner contract? of

is of what quarter-by-quarter a on The growing instead and cost have, which associated everything as of more be of overall an revenue and subscribers basis collected charging for quarter-by-quarter all -- sort or pricing an on includes so incremental service a they would paying of creating that pool around we basis the this sort them on they service clarity on to service basis. usage, would of subscriber sort supply

thing and for So their and they kind us. on same market as structure of pay have amount new clarity that is their get it's have they better idea products implement our that the for and win really Obviously, them the there into the they on share, a expand a market cost it's about side. to

going cetera. what's exactly that of et aren't on able and do visibility we're many network. us been how are quarter it's a subscribers market more worried that have we visibility big a to a happen in or have We exactly to added lot And with to in using as and partner, because in about how service long time, and they've -- big, the been . they're

details where more a inventory concerned? equipment mean by you're as And stands normalization bit the you what as then in channel far little the provide on could just revenue you and in

we same I devices but that the bigger equipment went amount smaller the was we really was our Yes. the supplied up. years, of to was as for roughly pandemic, revenue equipment, devices, it it about -- many overall, same mean, mean spike. equipment. the during Obviously, I move about from more

we some to lot as than better really that maybe notice before. companies Our couldn't X issues, able taking else. some in was through that But a all a X months and -- nervous fact quite had our the able it orders. companies be supply about partners but we to or well, fill us cases, like had chain other were we supply anyone partners, lot for business to was certainly, of fine really on all other And of -- well, doing months some our been X-day were manage a of

so even had get that ordering to of more to So and continuing started front try the which be pandemic. businesses, they all were the enough during their sure to they grow to in line the that

through same you a that saw, constrained. concerns. very Well, as in we very all don't have They to notice not As We've that anymore. did be wouldn't constrained any We're short the they during deliver well worked time on that. able way now. frame they're

they had been so And stockpiling.

number or that must bit or a frame. that I to think I they of was that ordering as of do modules been growing whatever -- a there they suggested -- need chips know revenue really a that us. time that we think It ever equipment that service don't don't but much. little accelerated had to mean doesn't growth, And I during well, revenues growing

above that As and but way at now, that. bit the growing grow to you growing a service continue little exactly we're saw, we equipment consistently the or we're feeding was right levels at grew

the to So to back sort of we're get normalizing going level. same means

or headwind doesn't on -- it it terms the in line, a really potential So we're we're like Does revenue but looks long-term sense? growth. our of overall make that kind of anything mean

And with Blair. from today our DiPalma Louie William question final comes

revenue XXX-plus now utilizing is and they Ken that previously today your whatnot? as $XXX million access be would have its and XXXX is only partners were in team your revenue to below were significantly channel of -- Satelles synergies Tom part network it why Satelles vast revenue not they're to your that Matt, with million? And and they that and were relates Satelles, distribution stand-alone

essentially, million right? So as they in And paid and $X Think what wholesale. quote, of okay. the Louie, you so that to us XXXX -- signal for the That's

so And their customers. they around mark that turn up then and to

the of million, markup that in revenue XXX into that . providing but [ and the was stepping to XXXX us they're kind turnkey quote signal, provider is their payments service, their our of as service. shoes the ] us. wholesale a So which retail their is $X Think on proprietary includes we which

Yes.

has will their that their weren't didn't give to above down It's that $X you lay because after there they've some more well. point was. which a revenue us are what a that they make So their of we on developing, And been we business if didn't inflection do you it's go even that able I that I fully that proceeded $X obviously was. but markup business because think at effective cost the their an synergies expensive business We breakeven signal. million lot mean in they're was very believe that million market what today technology to can I them. was tell

power light their times to do they and As that anything can whole maritime the say, the up if cost, whole weren't awful Red the business, that do have rest we're the and world a not any of and been around there's jamming ready plenty services, of the you and really cover many other without little going more to on to really up the imagine, sort we can or they because world, would constrained it capacity their or and of using can zones lit of that we that. that, or market thing GPS world have business. on where spoofing our lot an Ocean marketing start whole conflict the satellites, which Pacific impacting Sea additional

there lot I a synergy. of think together, So is

traditional commentary the terminal price multimedia mid-band, to for customer next will of you've to year contract that be discussed on a the than price that over X related narrowband and years. higher you're the releasing pricing the the And seemingly the related sense. how the next by new makes going that Is That all applications plans. IoT fixed XXXX

terms network. customer So that Is the have that visibility in they of at for Iridium all? spend just related the did want would the

in I to related, believe certainly, it really transitions is and occur going collectively but effectively to But our into common point as to technology ability was that want the manage this of I the go offers at market, interest. here. that kind new

I somewhat related. would yes, that was say that, So

I similar an benefit year that's this greater guidance? contemplated other positive that not the adopt pricing And should guess, have even be there would customers structures that would currently in

way so, managing services. cost of on I don't partners mean, on kind think always we're but the I our effective it's our prices the possible. of what with and constantly most what's working a of basis, fair

there's discussions, in like don't always I be that. we're but So to think those any others going

That makes sense. And X final one.

Stardust, competitors lot you offering the voice have of offering competitors for the a services? wondering DXD it services. been what Project Iridium for in think to be was I the DXD of voice discussed of You've competitive talking the dynamics voice services? And and offer about realm of -- can viability the possible assess you And some will

even into but market, frankly, America that years. as years at going certainly X cell market cetera. regional-based at or if has the that maritime solution expands to services clear looking operate of are DXD not footprint that there's will in they're least of the when the as mean, see couple not I the operate phone to the for South within doesn't do, that, for they et is really environment, probably We're you been they're a be very even providing. a going realm, markets of that X next use least really And terms DXD it Europe to in projected really I in going be voice limited know, a in don't be to

-- being phone these use couple they is Wyoming who expands So of market because usage We're in current for the And can don't XX%, XX%, firefighters coverage we about don't that not I've that's determined we business. we it the know even are Wyoming, the It fact voice there, -- are operating it flood. we That don't for them surface. including South to cell operate I to sell to publicly I our sell Wyoming. as I We hasn't latest don't know hurricane is, utilized. Haiti what America if other the from, is going down being that as and of a have rescue of services when year to XX% It's expectations end not to phone or where guidance devices when provided is really been for there our being data, again, used don't a place in they think, disaster. meetings, the usage. County cell a said because don't redeployed phone expands some -- Broward they the go -- up if percent happens by or our are cell how

-- effect this in really of DXD currently the are something it market of that that doing frame on services would that the So has really sort is of anywhere is everyone some direct the that a what if medium ourselves. what make us time not even we service focus well we as with we be term, in around and near easily services up that in on of in competitor is has sort edges smartphones to we same coming to our the of an will believe, we're

I robust we So that's we've we'll why that. risk we will years, continue resilient L-band and the to to years projections have people demonstrate at come confident feel XX really that are to are not fear. our believe think as And and XXXX. to in execute and footprint and been the have and just We so in services operation in the and must quarters be our just and apparently, understood global coming very to

discussion, how to your and able Or push ICOM unique this Icon is talk? to handset that you radio, something top satellite related you that offer service own push to to And design are to that the also only does? is

us, Some push that's handset. use a and of our talk, our business to growing for

theirs. the an majority I if use We alternative. ours think or care just and device. the a handset, ICOM encourage mean promote ICOM fantastic they it. I we We It's don't that. use

more Ours safety that better application and if capability. phone if networks an scope device global that's satellite of you're also into because doing a public point-to-point usage, is of their integrates think ICOM maybe I better

portfolio ICOM's being yes, partners a they're by using if excited So I'm it's today, it's lot mean, because and offered I our really, of great.

and like this to question-and-answer remarks. session. our I'd for gentlemen, Thank you, conference management and to turn back concludes the over closing ladies

and here. quarter the regardless. as road out can a you very that. in conferences, much. and on I'm probably And to investors coming you sure you see we're see Well, why you to weeks the lot Thank we'll going . months more we next do be see talking And

thank Thank you presentation. conference today's today's concludes We call. you, attending sir. This all for

You day. may now disconnect your lines, and have a wonderful