Iridium Announces Second-Quarter 2021 Results; Updates 2021 Outlook
Iridium Communications Inc. (Nasdaq:IRDM) ("Iridium") today reported financial results for the second quarter of 2021 and updated its full-year 2021 outlook. Net income was $3.8 million, or $0.03 per diluted share, for the second quarter of 2021, as compared to net loss of $12.4 million, or $0.09 per diluted share, for the second quarter of 2020. This change in net income was primarily the result of growth in total revenue driven by strength in recurring service revenue. Operational EBITDA ("OEBITDA")(1) for the second quarter was up 11% to $94.8 million, as compared to $85.3 million for the prior-year period, representing an OEBITDA margin(1) of 63%. The change in OEBITDA primarily resulted from strong service revenue.
Iridium reported second-quarter total revenue of $149.9 million, which consisted of $121.3 million of service revenue and $28.6 million of revenue related to equipment sales and engineering and support projects. Total revenue and service revenue both increased 7% versus the comparable period of 2020. Service revenue, which represents primarily recurring revenue from Iridium's growing subscriber base, was 81% of total revenue for the second quarter of 2021.
The Company ended the quarter with 1,616,000 total billable subscribers, which compares to 1,362,000 for the year-ago period and is up from 1,518,000 for the quarter ended March 31, 2021. Total billable subscribers grew 19% year-over-year, driving growth across all service categories.
"Demand for Iridium's services have never been better, as close to 100,000 new users joined our network in the second quarter. This revenue growth, especially in IoT and broadband, is indicative of the power of Iridium's global partner ecosystem who embed us into innovative applications and products," said Matt Desch, CEO, Iridium. Desch continued, "Iridium delivered strong revenue growth in the second quarter, driven by rebounds in IoT and commercial voice and data, and continued strength in broadband."