Globalstar Grows Commercial IoT Subscribers in Q1 2024
A view of Globalstar offices. Photo credit: Globalstar
Globalstar reported $56.5 million of revenue in the first quarter of 2024, a $500,000 increase from the same time last year. In its May 8 financial report, the company reported continued growth in commercial IoT, and a new satellite proof-of-concept for a government services company.
Globalstar noted that there was a nonrecurring revenue item in 2023, and excluding that revenue, service revenue increased 7% in Q1.
Commercial IoT continues to grow for Globalstar. Commercial IoT service revenue of $6.4 million increased 24% from the first quarter of 2023, due to increases in both ARPU and the subscriber base. The company reported that 2023 was a record year for gross subscriber activations, contributing to increased service revenue in 2024 from those new subscribers.
Revenue from wholesale capacity services, which includes capacity for Apple’s emergency messaging service, was $31.6 million in Q1, up 4% year-over-year.
Net loss was $13 million.
Adjusted EBITDA was $29.6 million in Q1, compared to $32.6 million in the same time last year.
“We are pleased with our financial results for the first quarter, which generally exceeded our expectations with total revenue higher on a sequential basis as well as compared to the prior year quarterly average,” CFO Rebecca Clary commented.
Globalstar reiterated its 2024 guidance of total revenue between $225 million and $250 million and an adjusted EBITDA margin of approximately 50%.
In addition, Executive Chairman Jay Monroe confirmed that Globalstar’s constellation refresh with MDA remains on schedule to launch in 2025.
The company also reported that in February, the company initiated the proof-of-concept phase for a government services company to utilize its satellite network for mission critical applications with over-the-air testing expected this quarter. If this proof of concept proceeds to a contract, Globalstar said it will be a five-year term with annual minimum revenue commitments escalating to $20 million during the fifth year.