Globalstar Increases Guidance With First Half Growth
A Globalstar ground station that enables emergency messaging via satellite on the iPhone 14. Photo via Apple.
Globalstar’s financial position has been greatly improved with the company’s deal to provide the satellite service for Apple’s iPhone 14 emergency messaging service. In the first half of this year, the company’s revenue is up more than 60% to $113 million.
EBITDA was almost $60 million, an increase of over 140%. Globalstar also ended the quarter with $65 million in cash, more than double its cash balance at year-end.
Globalstar increased the low end of its 2023 revenue guidance from $185 million to $200 million. Revenue is expected between $200 million to $230 million, which would represent an increase of approximately 35% to 55% over 2022 total revenue.
CEO David Kagan told investors Thursday the company expects growth to continue with the launch of a new two-way device platform and services later this year. He said average revenue per subscriber is expected to increase meaningfully after that introduction.
However, net income was less than $0.1 million for the second quarter of 2023, compared to net loss of $26.8 million for the second quarter of 2022. Globalstar is spending on capital expenditures with work related to its new satellites.
Kagan said he does not believe the current market price of the company’s stock reflects the company value and he is confident Globalstar will increase revenue, EBITDA, and shareholder value. The company’s stock is trading around $1.
“When participating in multiple investment conferences this past quarter, we heard questions about whether our transformation and growth is sustainable. My simple answer is yes. Globalstar has invested over $1 billion during the past decade, rebuilding our satellite and ground network, innovating to bring Band 53 to market, delivering revolutionary satellite services which went operational in November and putting other resources in place to prepare for this moment,” Kagan told investors.