Iridium Communications (Nasdaq: IRDM) logged total revenue of $205.3 million for the first quarter of 2023, up 22 percent year-over-year from $168.2 million and noted total billable subscribers for the January-March period reached 2.05 million.
The satellite communications company said Thursday that about $139.3 million of Q1 revenue came from services, while $66 million came from equipment sales and projects.
Engineering and support revenue amounted to $42.2 million, higher than the $8.4 million in the prior-year quarter, thanks to a rise in both commercial and government activity.
Net income for the quarter was $9.8 million, up from $2.8 million over the same period in 2022, while operational EBITDA grew 8 percent to $111.9 million.
Iridium’s U.S. government business booked $26.5 million in service revenue, flat from the prior-year period due to the Enhanced Mobile Satellite Services contractual rate and had 139,000 subscribers in the first quarter.
“We’re continuing to experience the momentum that’s been building over the last few years as we take full advantage of our second generation network,” Iridium CEO Matt Desch said during an earnings call.
He expects supply chain challenges that impact the company’s delivery intervals to abate by mid-year.
“Overall, our business environment continues to be robust and demand for all of our primary business lines remain strong,” added Desch, a nine-time Wash100 Award winner.
The company affirmed its full-year 2023 outlook, including an increase in total service revenue growth of between 9 percent to 11 percent from $534.7 million in 2022. OEBITDA is projected to be in the $455 million-to-$465 million range, higher than the $424 million recorded in 2022.
Iridium shares opened higher on Thursday at $59.96, compared to a previous close of $58.64.
