Iridium Communications (Nasdaq: IRDM) posted $193.8 million in revenue for the fourth quarter of 2022, up 24 percent from the prior-year period and reported a 17 percent growth in full-year sales to $721 million.
The global satellite communications company said Thursday total billable subscribers grew 16 percent year-on-year to 1,999,000, driven by its commercial Internet of things business.
Growth in equipment sales and service revenue helped offset operational costs and improve annual net income, which reached $8.7 million in 2022, while overall capital expenditures amounted to $71.3 million.
Iridium’s government service business had 139,000 subscribers as of Dec. 31. The segment recorded $26.5 million in revenue for the period, sustained in part by the seven-year, $738.5 million Enhanced Mobile Satellite Services contract signed with the U.S. Space Force in 2019.
The McLean, Virginia-based contractor expects total service revenue growth to settle between 9 percent and 11 percent.
“2022 was another strong year for Iridium, driven by continued strong subscriber growth and revenue gains across all business lines,” said Matt Desch, CEO of Iridium and a 2023 Wash100 Award winner.
“Our strong liquidity position and growth in free cash flow supported ongoing return of capital to shareholders, including the initiation of dividends in 2023.”
