Iridium Announces Third-Quarter 2021 Results; Raises 2021 Outlook
Iridium Communications Inc. (Nasdaq:IRDM) ("Iridium") today reported financial results for the third quarter of 2021 and updated its full-year 2021 outlook. Net loss was $2.1 million, or $0.02 per diluted share, for the third quarter of 2021, as compared to net loss of $4.0 million, or $0.03 per diluted share, for the third quarter of 2020. This decrease in net loss was primarily the result of operating profit improvements and lower net interest expenses. Operational EBITDA ("OEBITDA")(1) for the third quarter was a record breaking $100.2 million, as compared to $93.4 million for the prior-year period, representing a year-over-year increase of 7% and an OEBITDA margin(1) of 62%. OEBITDA benefitted from increases in revenue across the board.
Iridium reported third-quarter total revenue of $162.2 million, which consisted of $127.8 million of service revenue and $34.4 million of revenue related to equipment sales and engineering and support projects. Total revenue increased 7% versus the comparable period of 2020, while service revenue grew by 9%. Service revenue, which represents primarily recurring revenue from Iridium's growing subscriber base, was 79% of total revenue for the third quarter of 2021.
The Company ended the quarter with 1,690,000 total billable subscribers, which compares to 1,429,000 for the year-ago period and is up from 1,616,000 for the quarter ended June 30, 2021. Total billable subscribers grew 18% year-over-year, driven by growth in commercial IoT customers.
"We feel really good about the momentum we're seeing in our business. It's broad-based and a function of strong top line growth, good execution and strong partner activity. Together, these factors provide Iridium a clear runway for long-term growth," said Matt Desch, CEO, Iridium. Desch continued, "With the flood of new capital making its way into the space industry, Iridium continues to distinguish itself as a leader in satellite communications by leveraging its unique network and spectrum position to connect people, vehicles and assets on the move. We continue to generate stronger free cash flow as we attract new subscribers to our network, which sets us up well as we plan for 2022." Commenting on its full-year outlook, Desch added, "In light of strong underlying demand and continued subscriber momentum, Iridium is raising its full-year guidance for 2021. We now expect total service revenue growth of between 5% and 6% and operational EBITDA of approximately $375 million this year."