Iridium Communications (IRDM) 17 Oct 242024 Q3 Earnings call transcript

Good day, and welcome to the Iridium's 2024 Third Quarter Earnings Call.

[Operator Instructions]

Please note this event is being recorded. I would now like to turn the conference over to Ken Levy, Vice President, Investor Relations. Please go ahead.

Megan. Thanks, welcome Quarter and Earnings Iridium's to morning, XXXX Third Call. Good

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

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

beliefs considered statements today so we about expectations may to subject obligation which the are our Securities views views fully future, Forward-looking point while Such the Such and not could statements plans risks, results our to more are cause expectations, statements. and discussed current and of with and and forward-looking prospects. include update in be based that represent differ today, statements expectations Any filings do our only any Exchange of remarks and specifically in as our statements elect to future Commission, should risks risks. forward-looking are disclaim from forward-looking are historical are statements even actual such statements fact our in if some at forward-looking our or to light change. upon

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

everyone. morning, Good Ken. Thanks,

in the STARDUST, quarter strategic unique track standards-based are our year saw flow generating communications subscriber product on year we good carved another morning, end remain strong out remain you industry on are We and leadership cash directed efforts having a new device. We're achieve IoT applications guidance. press P&T productive Project of very developing and expanding player full like to and quickly. a delivered while higher and and progress markets like satellite and revenue which and a launches As of new into position in in mobility of the this also release growth significant IoT having our

As and all, third beginning the We unlike additional reduced our repurchase buyback to in another since an $XXX capital progress, and shareholders now of plan through record of $X of the capital in than equity compelling X.X light want which activities of authorization billion are to that our a companies quarter we quarter, highlight, shares, to a for since we outstanding dividends million Iridium shareholders. In returned XXXX. in September. I shareholders that million more about shares $XXX the repurchases share marker our has share of the our shareholder-friendly space opportunity through of program. returned inception with single represents we in our our investment dividends program. industry million the program continue this of believe Board's to to and actively returning That's a most number retired by count expanded repurchased X%. In

about position good feel to and opportunities. business our continue I Iridium's very growing market

partners our connect Iridium partners. include virtuous our investors these this of knowledge We sure on domain is of that expertise their than Iridium who I'm drives business, that foundation that we network our developers new to Today, ecosystem our deep XXX remains success the applications. our go-to-market build the to their from key have network. and subscribers Iridium's of it's been cycle understand and solutions remains not our well which more innovation served companies, L-band choice crosslink manufacturers and unique Constellation by to develop other strategy yet aspect of and a grow value-added because global resellers, all ingredient providers. apart a continuing equipment the global it have that best of feedback attract sets of and satellite

of quarter will that on drive and busy years. add you in as to reflect few reach our growth like a vision take a the announcements had these to the our in and I'd We've of future. update strategy coming for they Iridium's moment terms to and a capabilities

player standard issued Iridium and great NTN and Release Iridium device in Project included from will Direct. Iridium update Iridium as share technology to and industry frequencies an that release paves standards-based of L-band technology and making standard a we service press early for This important be space the Iridium's month, satellite would We've said to the way were XXXX IoT XX. release via slated a in next XGPP to known StarDust, we progress. we on is as Direct to providing that excited chipsets. be introduce in that accessible the is be direct an Last with First, program always NTN which

will as of quarter in devices Release our XX and on and and be is global terrestrial fourth to inbound IoT truly for our applications wearables offerings roaming the and will serve of to satellite backbone for year, reliable also DXD the support highly next narrowband network. smartphones completed scheduled consumer-oriented NB-IoT

relationship announcements Iridium standards-based with week are are our of is important strategically over and us the NTN you'll integration their seen have working for hardware chips. may who as You hear Direct others standards-based from Iridium last They into on who early into well. their Nordic time Semiconductor announcement adopting

Garmin Transport, short These sending new called we complement and introduction and wanted I new consumer support IoT even services up active With of is what texting more device that Messaging this voice expected our XXX find users come the and IMT Certus look example Plus Messenger the mid-September. messages. life weather-resistant have the Iridium This leverages their to for hours, capabilities of expand Second, satellite battery on inReach to of rely for Garmin's for all a an users photos Iridium in consumers recreational highlight to X-way around. ruggedized to activities another product call SOS often and over usage world. purpose-built, device are new service and that plan and

transceivers, We expanded more be IoT of Certus and our also through that soon be available by into integrated other as which been mid-band IoT these Iridium partners. has users capabilities adopted will technology, government our our IMT commercial believe will and

terminals which to complement also security Certus the critical Third, Iridium a vessels market LRIT, safety and combined of which alert Ku these Mariner, GMDSS, of required ship cost, terminal and of in quarter. combination standard ensure broadband Iridium SSA, one broadband This These the by is and we series within preferred with The solutions new GMDSS and continue tracking connections. this coming for sets of these to neither capabilities new will to network maritime also unveiled services. Ka series a Iridium efficiency a technology security systems. for X and security a system. on is performance identification for ships Maritime choice that Safety long-range supported will stands by Certus of new important which for new be and and

for FDA's to award, acknowledge for for Fourth, upside be through multiple year. we're of Mission additional across I our the working contract the to integrate or an new The opportunities operations want war since space with to of With potential Development with $XXX this Space with which the most and multiyear Dynamics Iridium's approximately engineering recent suppliers manage million inception satellite in Agency project revenues in our fighter increase from award SDA scope the architecture. million supports value support infrastructure and $XXX contract record remains XXXX so our General work grows on where our Systems of total ground to recognized this future. outlook of proliferated

the into made them company to to update Iridium our in to offering makes to signals to and market in-building systems wireless and Finally, P&T GPS address the end leader We've Iridium PNT acquiring areas. acquisition maritime, since the by us quarter. I an want centers, P&T. in progress allows market integrate alternate with secure This data other swift Satelles growing on second threats

jamming P&T GPS for technical leadership month, in our Norway commercial industry's Last of testing events. capabilities showcasing spoofing market one for demonstrating the series and and exceptionally at public of attacks users and team from of great especially solution to and are our on STL economic well through readiness real maritime areas performed having our our civil jamming There service of and applications. and feedback large other the availability was Iridium's growing a staged where Asia. since this geopolitical conflict daily expanding getting impacts. around Europe particular interest is We're and operational spoofing opportunity,

that the about precision growth deliver by excited with regions time to efficiently offered are respective in of and by underscore investments next applications business it. made digital set over being end partners need indoor These the services partners conversations business the are they're their drive and by to activities more growing cost a support will mission-critical of decade against GPS their our or our adoption fortify Our which threats signals users. today, and customers industry having Iridium effectively Iridium's opportunity seeing and [indiscernible] broader

market enthusiastic to as new generating growth adding Iridium as and be revenue So we about for guidance ecosystem. the well billion to objectives the new support continue XXXX. in service our by we're in product They sitting our long-term partnerships the $X

I the Tom transition. Vince, continue note upcoming at over be also hand last very that light many over to as to over I'm you the to of have I turning is and We're financial financials, already our of be Before way, helped in that the say today at CFO us He year-end. on success XX of retirement the happy for earnings to to of I in call fortunate, last to a provide drive his this want reins Board Iridium Vince wisdom that is this to the who our on staying will review part know. experience turn years. will have his with Tom by O'Neill, report Tom's

So Tom?

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

by driven EBITDA in Operational expansion $XXX.X growth hit million the third the quarter of in majority a record service with revenue. this

commercial side revenue data as year's million. in the from and Satelles was revenue X-year In demand million growth the commercial with million, to hosted business, driven On service as demand payload and communications this growth the by continue IoT, reflecting we this other reflecting $XX.X of as the push-to-talk voice data quarter up for well quarter last services healthy. momentum subscriber in as partner. quarter X% $XXX.X IoT remained ongoing rose from large, to services traditional with the part acquisition. Commercial a year was fast-growing well we to of Iridium's earlier Revenue rose our as good result in increase X% year The comparable a industrial for services. increase signed XX% as primarily personal and $XX.X see our contract satellite prior to new

discussed to customer compared XXXX revenue the this XXXX. has effect materially from increasing previously, contract this in As of

from the year's that notice made additions last available down decrease plan. change is simplified customer their a they at net subscription This personal quarter. due You'll IoT communications subscriber third to are as in same

subscribers. of ARPU As resulted this increased expected, quarter in this cancellations very low

of expect trend unfolds, quarters continue next as to for this the abate but by few this the to fully XXXX. conversion We end

Further, this me clear, revenues XXXX. contractual in customer customer contractual driven increase no levers. revenues from effect will by not XXXX our and are from Let be this materially XXXX this XXXX revenues for because have and process on IoT will in subscriber

customers We this revenues trends expect XXXX. their this to expect customer as our growth more themselves to from last from a avail XXXX product of of experienced levels over robust to subscriber Accordingly, from the customer further we return portfolio. XXXX increase couple years

billable well Satelles this as expect a impact Commercial to million favorable We a service. also We up Broadband period. on up Iridium We availability ARPUs reported service the in this see timing over revenue The service comparable time transitions to $XX.X position, to quarter, last revenue revenue companion from a and of continue business in in from held annual process generate quarter the and this tremendous have we will quarter. revenue the IoT April. was Hosting it service X% safety new was increase location subscribers subscribers. opportunity year's and and account to added navigation due XX% services acquired subscribers In revenue transaction believe XX,XXX million new during quarter. primarily for $XX.X about all, alternative net P&T, by million commercial with over XXXX. Iridium's this of during broader data we and and $XXX commercial through the other

helped to quarter, entirely increase discussed the useful extended recognition, to In an revenue previously the offset revenue lower related Iridium's something our third life hosting satellites. we've is in P&T which of

price we over the contracts. has fractionally higher step-up quarter fixed in revenues XX. bearing of million, under a our revenue no flow, life U.S. Service in reflecting also associated Government useful the at on $XX.X government was revenue which While time does cash on contract posting from the it EMSS with the September impact recognize the third extension

following which decline As million. $XXX of year-over-year $XXX inventory XXXX drawn in the of X% third million $XX.X began more note second this in the of to normalized this half in the and from would to bill turnaround X reflective a buildup from posted was channel down first in customers, demand by heightened I the date, rose half of years that of be XXXX. under is rate previously. equipment growth the represents the this Subscriber up million to X-year annual quarter stark contract

in such, will were whereas As half the of XXXX the first second be positive. comparisons negative, comparisons half in

revenue space in With partners, the from feedback in full we XX% The experienced of updating Engineering of are now quarter. the activity period. million between we year through activity scope upon of we $XX.X in us, more buying revenue now third year. quarter operational full growing our an increasing third increase constraints agency. and quarter to guidance $XXX compared year-over-year of upon quarter, for in to levels. from prior fourth with Based to approximately to We development reflects for the expect behind chain service volatility $XX.X third supply return the $XXX expect government with our was we support growth year EBITDA and believe the X%. million results Based of growth U.S. million our acceleration will the as our what typical the work the the million

to Moving our capital position.

balance had September to liquidity dividend As has $XXX.X share flow growing an quarterly repurchase program. in of source XX, of continues and a Iridium our a confidence cash and million. active and been equivalents payments Board's of cash cash Iridium's support

million per a approximately repurchase of approximately be was $XX program in common buybacks shareholders authorization latest quarter, early million now and price of of dividends. our retired program Board's to authorization, Iridium outstanding This our has total through shares [indiscernible] third $XX Board XXXX of XXXX. return the In authorized the along history September of $X.XX a represented This Iridium average with since the $XXX our and with the activity, $X.X shares. million new With at the September, expects under of shares in an billion in of cash million an purchased XX about quarter outstanding balance stock of Board-approved reduction started we dividend in on our our a X.X XX, quarter most X% in September common Iridium during paid XXXX. to $XX.XX. as share third

investment to believe compelling equity opportunity. offers Iridium's that We continue a

than returned the in XXXX, Iridium share program, commencement XXXX our dividend Between in more to billion started of our already shareholders. and $X has repurchases which

loan Iridium's $X.X As XX, of balance September was billion. term

for we XXXX. to balance You'll Xx remain leverage for support EBITDA increased approximately on ended in recall guidance share loan and that our the below leverage capacity with repurchases. through quarter net leverage to the expect term July net X.Xx We net EBITDA our of and relaxed additional

makes We at Iridium expenditures with were this comfortable of in guide, Iridium's million. $XX.X leverage us of third the naturally expect below the the near leverage projected XXXX. Xx the term. fall which rate continue notwithstanding EBITDA uptick to in end by to quarter Capital we plan to delever long-term for The net in

capital invest as expect development XXXX We to Direct. in new $XX Iridium million initiatives we approximately product be expenditures NTN in like

in forma appropriate forma pro of about the in flow. current pro a metrics working million of These the approximately approximately cash $XX description website. is adjustment, our cash payload $X metrics taxes debt a for free and of net X.X%. rate and free million $XX capital, yield this million we're for CapEx more to of A Turning of a in presentation XX% pro XXXX. million the for reconciliation we of flow these cash in projecting would If in forma guidance free Events midpoint $XXX use XXXX inclusive our our year, EBITDA structure, Relations and hosted of $X million back conversion under our off in to in supplemental cash with flow GAAP XXXX detailed to available flow Investor represent EBITDA measures, cash interest along

to challenges I plan and today. satisfaction, as few friendships a and to than I'd friend of never home and provided second retire and at role the for Iridium It's like to my great achieve give highlight past like year. and been Iridium conclude to memories immensely to especially XX-year my the me provided thank to visionary of has Matt of remarks, us countless Happily, years that make the Iridium's partner forget. and surmounted the credit committed talented has were end Iridium it that I'll the has wonderful just XX the challenges. model, company acknowledge CFO brought my experiences been Serving Before tremendous been the over more source is a immense professional this I'd allowed team career. success. to camaraderie being

For that, thank you.

through I O'Neill, the the of end of as I'm Board member has to Vince year the who as of the today, CFO, CFO the a take with being asked Board. my he company While us the that service will call with the acknowledge the lead company. reins to me to want flattered and is continue on

From investment structure, and Vince on and had worked to together and capital talent decade, to been Iridium's we've credit return done current the with the a the Vince. and and capital of to to work our a and has for capital spending. transition that allowed success. Vince scores us his have He's the a decisions export to Welcome, funding, funding close forecasting have directing have successful I'm help confidence integral guide I comfortably many to shareholders. masterful to financial budgeting fortunate made our job begin plans

really have comments, those and Thanks, appreciate next opportunity. Tom. to that I'm and me I'm of Board I get going, and the given this and Matt be to future full warm is CFO, Iridium the believe for I really excited opportunity. honored Iridium's that

last less and met the deliver. are over years. years feel for I'll they've I to that success think with familiar of very you to the be Matt record who that able that those of confident now I've have track XX I for but most able financial strong few Tom worked upon been with you, I build my background, and And

the look detailed established for bright knowledge decade. relationships future a the the with financing we responsibilities retirement, part designing company, ensure industry a Tom of of to of crafting an strategy is as active CFO our years. of board our second ongoing have I things, strong other and and our that many business growth history having and partners benefit activities, the last the through on with fortunate deep the assume this many repurchase in supporting With a understanding Matt, in been Tom's Iridium's transition. number see we opportunities Part eye-to-eye with for seamless among the and to satellite of continued and I'm our share along both

from publicly miss introductions Board not close Finally, here do to leadership hearing making Tom's financial Iridium. look out and that from at member, of very as more I he'll during soon. I'll him, more tenure be me knowing getting it would Tom. but direction Thanks, remiss at a and I my be acknowledge investors solace our hand. take forward great to

enough this for that know and interest about our I'll I With to really that, we I the operator shareholders' now team. Q&A. Vince the make company serve well turn new call say to can't Vince and finance will back transition year. as the the

Instructions] [Operator

James. The Rick from comes Raymond with first question Prentiss

quarter of know ones have between And you guidance. Tom, was The about work directed gosh, pretty you're retirement quarter news, the but left. just us on the Centennial you we congrats And how quick the in a Talk you well at and in for looking we Vince quarter. keeping Obviously, on wish how [indiscernible] the what Iridium on the and device XX year trends kind future. you of personally? and almost what other looked each did the with significant couple years of versus the Board, one I as is beat to raised the spending low the in at together first. end

We invest [indiscernible] in continue to service.

I most say to don't you CapEx, it plan. notably according see -- see know, it's our also would... I you Rick if it's would Matt, it in R&D, going but -- You in

is Well, ever exceptional, where mean Iridium. of pivoted a we and our given anything here end-to-end it's pretty some of about time I mean, is a I done service that think moved of within last we've everything. faster X I at this an deliver, years we'll systems this I year, think, thing kind and than rearchitecture

be to our have the well. be and of able introduce services, that be time about the Release kind fast, to looking we was chipsets Release ready well to moving getting discussions was we'll had was for probably would XX big into And deal. some have thinking commercial of go obviously, the a bode that with which now that's really going services, XX, pre-standard in really that I going to so as but to

kind out doing think kind But turned it. equipment expected yes, of thought we this would as we is the what has done. Clearly, be of exactly year I

It think told but to we be I look our forward going mentioned was to down, looked -- Tom business really certainly other the across weird and parts it's quite going different that. strong board. you of it

on is revenues. question Second service

service You've I I growth. and you comments adds down say, the about were guidance. a Matt, there? end narrowed and But of it thought revenue something heard about in now revenue alluding maybe say to, you sub quarter X% in to high opening strong What

I we subscribers, to I this third quarter the to guidance. we able had No, the revenue midpoint separated since said quarter to a as to strong quarter with into allowed the in fourth that be of look us the the and guidance raise

guidance, EBITDA right? to referring He's

the Okay. impact. the appreciate guys All color call top on And competition. customer get, one the I Cool. not biggest trends But and revenue here you obviously, much probably we changing the right. have elaborate subs, on on but is the IoT then a is question

for broadband, don't understand can help But little as with may You businesses, be from just little and or because touched spectrum the you talk other that us. on definitely different Iridium's of but a not familiar data, a we to the on maybe elaborate position, a of satellites here. government or just Starlink direct-to-device legacy competition bit us what voice IoT, people the the solutions type more Iridium or it your brace, people on lot uniqueness the there's that understand the

that little less changing which are a and reliable countries services direct our of mean in X data highly on a but regional XX%, percentage current supplier or some with last doesn't than global service really we've support solutions going the device, the coming and voice coming over points, truly XX the cellular somewhere over to footprint, expand built and really that terrestrial which to that. here the years perhaps of expectations will be by X Yes. change business is isn't probably I being it years really

see Milton services our again turned you looking service kind buy a couple and It's our that I services in anywhere XXX not different could Helen will think for But as in continue. the will capability services. in viewed And world one seamlessly. the on, Hurricane SOS even in are ways. currently texting saw of number some as we last who the a mean, I X,XXX% a have of been it were increase might be services as that, really of to those and global that people works and weeks hit, coming that

Our IoT not to country. have in but are a that looking another kind customers, for not in example, one technology of works country

their we've really many we So do technology our this who base partners partner the of that have of deeply hundreds fact embedded expect that evolved into service.

even ourselves that serves talking and the as the of may the over growth over to going as continue really use the ways, we're we IoT positioning now strong, our in around that we're X devices years, Iridium market, confident whole I IoT And NTN support the to other why think, drive growth will to with kind be continue us. rates if the narrowband some that we're edges there's That's next to our Direct able going can standard-based solutions well or other but feel businesses from glue and be to we X or expand there's services in world. fill -- being our our those service, some really and

So those coming new complement forward. think we'll technologies some I of

where oceans. work work of in capabilities. us countries, markets technologies will the it will along It our You a they more with but a that or watch those in might never technology use smartphone a couple will provide could have in to those want we'll because people in see functionality

next Our question comes from Simon Morgan with Stanley. Flannery

the little and last alluded bit. that comments to the all Tom following future. Vince a Great. just there, on Matt, best and And think congrats, for perhaps up you and I this

around only any I on talking growth for perhaps but rates October, circuit, you've run kind in the I rate XXXX. drivers thoughts know year? to your conference it's of think returning been next about the

obviously couple new questions just contracts over award won some And the would be You've here. on in on get flows time. color new of It more ARPU. how great then FDA a to

what's be on ARPU, on elaborate and with just you going If broadband would could voice great. that ARPU

kind Well, 'XX. other be February, directional it's we time equipment support I be We'll will next certain Certainly, then than things year think favorable year, comparables year we contracts think that. we've and mean, on much guidance precise to this record like as say, sort next they and us feel revenues we I levels for well. believe, for of give the things what for of kind at believe continue. will that normalized good guidance engineering in about are be that do to makes Okay. will given on more additional that we've to and don't And we to continues equipment, still very but because that of

strong where really across beyond year and Push portfolio we voice data hit that, really into our all products to introduced which see demand had think year next our to record And with Talk new from -- business services of we IoT our by partners, still will a going year. next for we've

introduced like new GMDSS. You about heard products we've this year, the Certus

happening aviation Certus product next year. the have We

of different year, will will, new give a lot IoT transceivers, be of kind We that year if have fronts. you us those confidence all our next across normal a growth

preferred in I companion little terms going bit, really a that many kind In places. and for a new L-band everyone we're ARPU, said these comes where as be I voice And at to been as terminals all of Certus on but all companion that's continue year turned and we year-over-year, Kiper, terminal ARPU to and them, solution have markets the think they're coming solutions, Starlink and to including I expected to that of service allowed it's future evolving ports this and be broadband down think, they'll service it an data. and be then else, think and will the when if in OneWeb those support next I to other think in well not it rains and putting and with

I Yes. data would and voice characterize Simon. for

one Great. one. And just last

on a contribution called just us the bit out helping I color hosted the payload. think Can little you give you Satelles what was? more

of we Previously, into specifically, of signal had that of this to that to kind revenues revenues be been and obviously, a way. specifically. We're calling that integrating Well, I we it's mean, going their sort them out revenues a line. a are year. generated only our in wholesale supplier But

markets of and is a Now part we're their retail -- going revenue be in revenues that line come to that -- you'll through now them really the world, a reflected see higher and providing being with provider the level, company, forward. around which our that we'll

What in -- I we is, got that said see what in as Satellus said we've of we would Simon, $X say, XXXX, sort is $XXX million XXXX. of out and million that about we

contractual, you're action other If line is is payload in going significant on look the PNT, And Hosted to ahead. progression to and to for payload right? that relative look moving. there that that you growth should the be X going hosted not XXX, segment, at you that's to line, years so and from growth see in

all So to be P&T. the action is going

Next question Yu from Edison comes Deutsche with Bank.

And congrats going Vince to forward. and Tom

a to as last the question first one. Just follow-up

run that rate good a ARPU, we the the kind On sequentially. XQ? of improved Is bit a for now noticed that actually ARPU broadband

So -- we're That's right? activity Northern that's more Hemisphere. in there's seasonality, -- probably

I into -- fourth it I the quarter. sequentially up So would wouldn't model

-- play I product Any the contribution there's that contribute line service new aviation time up then believe updates soon. Got the on relatively the should might forward? be how on you. And a

are antennas. for going being trials year. will, with start final various or the is Well, to aircraft several good and as typically between this as on see think going product data it And I air it of of safety when next forth it ARPUs quarter. and as controllers back the you're important mostly completed information. get commercial good would to send from kind flight Those because market cockpit other finalized, It's it through certification, be hits right well producers now customers, traffic are the you aircraft if it suppliers

Like anything, its rotorcraft other it's going start than it truly going services But preferred even and will to it's solution going for other be general smaller be it be a poles. will to takes just solution. It's and it's given solutions, be aircraft again, aviation forward be, slower is and reliable to and down the also well. very it's to some going aviation global that as given the some road, safety on serves the fact think size, the I time, but because out

I check the just on IoT last And to one, made customer. about Understood. comments the wanted

of grow will that 'XX? it 'XX magnitude? want sense that. sort said think any the I in on Just And you and confirm to

'XX we've 'XX in the were so the know past product is that respect where we of portfolio. increases So significant Said couple that. is given the The to years. adds to back in expectation their contractual, to an seen net customer they this going

is 'XX our unveil we on up when see based for so again you'll But it It's from and that see guidance 'XX. that, known. next in we reflected year. contractual, 'XX And

Walter question Piecyk comes LightShed. with from Next

Tom. Thanks,

spent You customer. this time about some talking

but be terms So is material we this materially customer is say color IoT the net revenue, going in obviously, in to use XXXX. in adds versus to that words up on helping were also you give a there of

IoT teens you're teens, XXXX. towards So to think, I your noting at if 'XX that's call, actually a tracking earnings was customer, large more on look if your for low you it in for high guide, be least

accelerate is there's to in that's if an subsequent that materially, So opportunity up years? implying IoT growth further that in

No.

quarter. this Our for is means it's that. through was going beat unveiled beat looking it's That's the guide what I we're third we'll in means. and looking materially what it, That think XX% we'll early it's be like materially was 'XX. guide year, and to it mid-teens, year this from up where like that

that For that specific specific. --

trying partners. our growth of And wasn't We cap. continued well it bodes to have the but portfolio for this IoT describe obviously, that whole and really a in sector, customers

model question. 'XX not year-to-date, that's of that if put that -- wide it your would we're I we up

it just just comment on comment a not about maybe health question. to try Or make this of is Is give net to my the business. but the is trying customer color you trying 'XX, IoT. you're at and where a was just it again, sense adds? broader to a IoT to more go get And of are That --

business hasn't health Well, IoT of changed. we're It not so -- is our strong.

a were of customers it thought would customers this down. with and it sort contractual to due they and board little We just we color a designed the to because transitioned net in were quarter, with net plans ARPU adds positive. fact some are them them we that given across had from on a customer given specific Low a economic think they strong. why -- way kind no down our bottom still worked and It as line reason. changing to I overall, specific more their the revenues quite up over that for looks their the are provide of deactivations we very would business be But Activations adds their has to consequence it's it as they're have we said, kind stepping lower. really of time. unusual, the good

And personal like I last a in something we think the over years. think have I communications CAGR X XX%

the health pretty observable. is of that So business

as in And and 'XX. on we're 'XX -- into we move IoT narrowband

that, So the base. that even think expand I of usage will kind

So you're ARPU little we'll that. a narrow I think regard But drive band add in bit. going customers see even as and IoT, their go we lower maybe to on up probably subscriber ARPU

So should given at -- layering again, The go of the the at revenue change looked sequentially revenue you're on it accounting going target just business if that. $XXX getting million the grow now, effectively, $XX now. is to to continue first and your that just then million, implies assume relative recurring when had I you And payload, rates. I look that that, on incremental get back than in to kind going to basically hosted to is and thinking. not at lumpiness Satelles you're if where to business growth to to, you revenue right? quarter an to to reflective want it. $XXX the that's Got I incremental I that there to the Satelles of is just the That's is adding lumpiness revenue of other going you million continue just top hosted build upward But to to of in just layering clear, that be that rate guess, line is what that's line? be be payload on from the verify there. run There I'm

I would speaking, say, right. generally that's

question Khorsand from Next with Hamed BWS. comes

the question Is one? new incremental more it use And one, does you So paying that GMDs services, or that contract was of the for Or being as purely I you've announced. old actually the that the service? had just replacing but it's the this first latest your contract same is more is services? new

are are GDMS you talking about FDA talking different about which GMDSS? So X our acronyms? you contract are with Or

GDMS The sorry.

Okay. Yes. That's General Dynamics Mission Systems.

stations. network new they They of lot their are couple a network to systems technology what Space of FDA to ground of added of network, them operation And prime that new contract which part Development that. previously a build the their we new out that roll to with lot operation they centers ground contract out support and they the satellite going of in we're that a the really Agency yes, are call and The providing had are So as are international their as new planned operate and tranche a well numbered. on. delivering for of we set as had

going continue this we customer. us not evolve into well fun opportunities contract again, of of The there's the where introduce give because network continue, ground this of stay to going kind did that help consolidated of to our kind my they as to over plan into which because the to our which customer I go left management they're strategic consolidated million we to the relationship in with the tranches. now our reiterate, for far, But to important evolution seems it sort even years. really now of invest to forward about support contract future as of of to system, more They've strategic $XXX And other this kind all we as been the to like future. part bodes And they one the though, ground has customer, the -- visibility really do. in our current to of now, work million in have called grown so said, integration I team for coming incredible $XXX reasons that don't experience for things

So don't time at plan. we the least here, this not to expect last this add we our to be area that's

end Or the far is customer the same as question the was any is it Okay. additions -- obvious there other in as relatively. still market is And changes my net on concerned?

expect IoT it Well, Certus been that's like the Garmin you'll technology. products improving, see adopted in we're forward. And new I technology, Messenger in technologies introducing I think given that other and are our the IoT Plus, things going

think personal communication send if snippets of that's addition to use in very think I you and pictures expanding we're mean devices. I positive. kind I cases the voice things, of can other

and going see, addition, devices around. to you're In data think, want other transceivers our new send IoT to that more I

from a of have really cases first to partners new use use the quarter. transceiver number this our IoT out We interesting coming underway seek some our to they as be

more expanding So cases anything it's the I else. use than think

did past that quarter? this see And you

being introduced. really, are now just products Well,

So yet. hasn't That's really hit our all at financials going it forward.

Quilty Our next question Space. comes Quilty from with Chris

of potential you've Tom, in about like Matt, this products look a and -- have Speaking are you not that year? on what for on service next and you does may of or that new in Or happen the it this situation I are the safety market? versa earlier parallel? we aviation vice products those certification certification partners you that got talked of sort year facing number hold of again, releasing a year had get the where sort but side, still products. will track know Does to you're And certification growth

Still followed. That's year on to track approval. to get certification this get FA

terminals listing our of about partners some -- approval and those. TSO of been starting even already there's talk fact, the in their to are So are

advertisements of I in know terms exactly magazines Aviation want because don't in about we're talk real their don't You'll era they new to what out those their players. services. call in, as for some them announcements. I of see are state the Those big

I XXXX everything know to so decks be products, provide being going even higher-speed are been positive technology. pipelines later the upward have that start ones it them not today, will and that will are the out aircraft. in These and I'm this for have what they imagine And point, installed I has expanded waiting do can't we where where safety older And the legacy which around but at and talking it. onto our other that capabilities customers still I flight exactly products and about. will of built all that anyway It's coming, are that XXXX. rate of really rolling far say of different of all those are narrowband from grow. grow using told in us will say, our sort services there Some

visibility, So it's ARPU be. aviation those How fast to good turned frankly, good I will move? going customers. on. a how to lot have many spigot be into good is of finally see the it's will don't The news

there a line And is fit Or that is for entirely aftermarket? potential product those lines?

Both.

will those going fit. be definitely There's start when -- I I don't line think into it's to efforts it but and know line move aftermarket that. underway just initially to fit. do

which Iridium And X it's years talk getting Can been going doing so new certification an you dynamics. try the and you have moving got position towards next and you the GMDSS still communications. X penetrating like as product competitor never have one really had out of since also to have in you've about backup are rates. One higher -- last Aviation, products the the that terms the or upgraded of dynamic in But terms market satellite the what you of and historically that data is for to finally where launched is, StarLink, was that. And vessels you're that LEO in see that yourself pushing there's market?

Yes.

has particularly have service ports, other been be robust Ka near a of Ku for example, have we often -- our in off and here, I in L-band turned and regulatory certain while. Ka-band are places. or for quite band, bad terminals maritime specifically is to speaking you're weather. and ports in more Ku and -- So It a mean markets and kind advantages companion where

to competitive Inmarsat other ViaSat been Ka and and being tradition So there's traditionally X have just now we that long of say it Inmarsat band. a most really an advantage having of players competitor right, and in a you're of L-band part those a backup of been -- us Ku bit is of a I'd ourselves.

-- terminal. really of rather next to most want distribution channels would so a And don't to on the put us

Typer be we move for band. when solution sold the preferred So will out the today new terminals. many ourselves expect Ka are and terminals, hits for being they as we're terminals market seeing hyper definitely market with Ku I in StarLink as the other OneWeb with

functions, companion for more we be need now safety I of terminal well. those terminal that as GMDSS, provide to the a it's and functions a support that ship, expect safety backup that those So upgraded terminals, the you compelling SAS separate also regulatory functions the can be safety given don't you LRIT, to have that going even

the So that's back want your that to I on the our terminal the think long one for systems. broadband solidifies market a have leading time. you to and think position up have ship going continue to as And you we

Starlink just And confused the a the Iridium there expectations? sequentially, final subs your the that you the conditioned Was to yet quarter? and ARPU the question to items subs were any were the because here. onetime and I'm for that quarterly by subs anything Certus, XXX dropping we were maritime the little were in Back moving down from and in in unusual of very a Tom. sort and believe results high up to ARPU lost there only went to relative or

dealing would said, -- characterize not stable. are increase, seasonality. the I mean, subs, The I is of I the leaking The lot think it a the sequential that reality. different mean, X there's I as partners with is new I it's as drivers. of channel

It's which a normalcy to improve that think to net of our going affected to profile add I be question market. takes over so long return it And should for that's kind time. of that

with Louis from comes DiPalma question next William Our Blair.

place Vince, to it we're Good echoes Tom, you going work through My you both. Board to the company And XXXX. congratulations better and years. was next-generation for the it in as staying that over were great. the help to return I wondering guess if to you morning, expectation past taken results the to with quarter. question of work relates the And view. Tom, is on a you are questions an the was than the and some Tom quarter's And constellation, to there earlier I dynamics and this XX as to the earlier results broadband expected year, pleasure has conveyed navigate and the I broadband growth together to as segment this that continue reinforced during think which Matt

'XX sort was a companion intact encouraging said of as felt it's worried certainly about are was it -- It they've better holds. lot worst talk expected. of what better Ku than a sort wasn't you that. that providers been pretty than what that Ka-band you have was of as to that. I than that with a see strong of expected. can it we really and of kind position We assume It see rumored, We hurt disrupted our we'll somehow It's know that. where that others you has more we as Well, kind to said Starlink service. the I not was expected. better the and but it was that

the in business we which were of But there a few ongoing. And small I that. take transition through that's think our we and part was user, around quarters primary to been would a a get

positioned that been And be area hasn't see to important the You our about it's in business long for that the we term good continue pretty we effect an how feel -- to player. dramatic us. that

of So our big way was never kind XXXX. And to growth said that to thought. we the part it's we be going a broadband of unfolding

that didn't In thing. being [ all business. But of we list think of It's one a it's a part even competitive BnGMdes-certified growth important an and L-band it one we and fact, as areas. of we advantage, the our have which sort solid ]

So going it's going forward. results to contribute to our

GPS one. activity acquisition, conflicts Can you up made spoofing and the geopolitical development talk with final for about Has one what's all with very signals. you of And Satelles active the Great. especially just business since the happening picked of Satelles?

problems can serious Yes. It's of that internationally now. now underway really only the recognized right and kind that as been solution are fix

solutions out kind other there of The as at well. terrestrial risk are

We're resources said, number adding North we and signal realize in for footprint. are paying they turning on it about mainly just development additional selling signal the business So and in They can and the right really now. its were been that expanded in been pretty places the roof. opportunities, proven much they of of Europe as because us America before turn customers had I and of been because the activities we've a we kind on Asia, paying had you concerned it's only through it's tested,

Sea, So it that's all Myanmar, over whether advertisements expanded footprint Ukraine, the around number world, just sold. in the been there's it's for there's Red But where of of can places. a it be the

world, the map being at of now spoofed problem are in look about And actively one I big the and think just the and looking out jammed newspapers articles you If getting everyone ready. that our over there's this is the and all for and is we're word challenges there solutions.

we need more So some people.

installations, even and services more it's more this systems cost-effective precision industries in to time cost-effective getting and wireless sort in and many grid like about digital for partners and have cases, buildings. data We now than now ready talking centers much electrical but of

last has it. the potential really the dramatically yes, And bullish for the feel about activity over we X So grown months.

I for back concludes the to This management to session. turn final our any call question-and-answer would remarks. like

these, all Tom, been that that analysts it's the through we've of say will XX been together I call. the on we've about Well, together, been

and think it I forward. February miss you've the on you certainly Vince's But certainly get hear soon so nice my I you're to you'll call get have call. on still more you. to and be to you let boss as Board, look to far our in and we of And to here. Irish away going and forward we heard too brogue here, So to all going this going I'm be going [indiscernible] not talking

being this. of thanks part So all for

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

disconnect. You may now