Iridium Communications (Nasdaq: IRDM) reported financial results for the second quarter of 2024, highlighting revenue and subscriber growth plus profit during the period. In the three months ending June 30, 2024, total revenue increased 3.9 percent year-over-year to $201 million, while net income reached $32.3 million compared to the $30.7 million net loss in Q2 2023.
In a Tuesday release, the global mobile satellite communications company also affirmed its full-year guidance, projecting service revenue growth between 4 and 6 percent from the previous year. Matt Desch, CEO of Iridium, said, “Iridium’s strong capital position continues to support our return of capital to shareholders.”
Desch, a 10-time Wash100 awardee, added, “During the quarter, we repurchased three percent of our shares and increased our quarterly dividend to common shareholders. “We plan to continue being aggressive with our shareholder-friendly activities in 2024, based on current market valuations.”
Other business highlights include the 2,413,000 total billable subscribers, representing a 13 percent year-over-year increase and 80,000 more than in Q1 2024. Notably, commercial IoT data subscribers, which now comprise 81 percent of billable commercial subscribers, rose 79 percent from the same period last year.
During the conference call, Iridium Chief Financial Officer Thomas Fitzpatrick, noted the upsized contract with the government. On June 4, the U.S. Space Force’s Space Systems Command awarded Iridium a new five-year, $94 million contract. The total value of the contract for Enhanced Mobile Satellite Services capabilities and security sustainment services could reach $103 million.
Desch sees 2024 as a transition year, and he feels very good about Iridium’s strong market position, the growing opportunities ahead, and ongoing investments. Following the earnings release, the stock price climbed 6.76 percent to $27.80.
