Iridium Grows Revenue 17% in Q2, Increases Full-Year Guidance
Iridium Communications grew income in the second quarter of 2022 by 17% compared to the same time period last year, boosting commercial and government service revenue, along with subscriber equipment sales. The company increased 2022 guidance, and CEO Matt Desch said 2022 is set to be a “blockbuster year” for the company.
Revenue in the second quarter was $174.9 million, including $132.9 million of service revenue and $42 million in equipment sales and engineering and support projects. Net income was $4.6 million for the second quarter of 2022, as compared to net income of $3.8 million, for the second quarter of 2021.
Overall, the company ended the quarter with 1,875,000 total billable subscribers, up 259,000 from the year ago period, and up 94,000 from the prior quarter (Q1).
Iridium grew commercial revenue across the board compared to the year ago period. Commercial voice and data revenue was $48.5 million, up 12%; commercial IoT data revenue was $30.6 million, up 13%; and commercial broadband revenue was $12.1 million, up 14%.
Government revenue grew, as Iridium reported $26.5 million in the second quarter compared to $25.8 million in the prior-year period, reflecting increased revenue from a contractual step up in the company’s Enhanced Mobile Satellite Services (EMSS) contract.
Equipment revenue was $33.8 million during the second quarter, compared to $21.8 million in the prior-year’s quarter.
Iridium increased guidance, increasing total service revenue growth between 7% and 9% for full-year 2022, when the previous outlook projected growth between 5% and 7%.
“Demand for equipment and new subscriber activations drove record revenue growth in the second quarter,” said Matt Desch, CEO of Iridium. “We’re seeing momentum across all commercial product areas. In addition to ongoing strength in IoT and broadband, we are also seeing outstanding growth in service offerings like Iridium Push-to-Talk and Iridium GO.”
The strong first half of 2022 comes after Iridum posted record revenue in 2021.