Iridium Announces 2020 Results; Company Issues 2021 Outlook
Iridium Communications Inc. (Nasdaq: IRDM) ("Iridium") today reported financial results for the fourth quarter of 2020 and issued its full-year 2021 guidance.
Net loss was $7.9 million, or $0.06 per diluted share, for the fourth quarter of 2020, as compared to net loss of $107.9 million, or $0.82 per diluted share, for the fourth quarter of 2019. This improvement was primarily the result of debt extinguishment costs associated with Iridium's refinancing in the fourth quarter of 2019, which did not recur in 2020. Operational EBITDA ("OEBITDA")(1) for the fourth quarter was $84.8 million, as compared to $80.1 million for the prior-year period, representing a year-over-year increase of 6% and an OEBITDA margin(1) of 58%. OEBITDA primarily benefitted from increased commercial service revenue and engineering and support work with the U.S. government.
Iridium reported fourth-quarter total revenue of $146.5 million, which consisted of $116.9 million of service revenue and $29.6 million of revenue related to equipment sales and engineering and support projects. Total revenue increased 5% versus the comparable period of 2019, while service revenue grew 3% from the year-ago period. Service revenue, which represents primarily recurring revenue from Iridium's growing subscriber base, was 80% of total revenue for the fourth quarter of 2020.
The Company ended the quarter with 1,476,000 total billable subscribers, which compares to 1,300,000 for the year-ago period and is up from 1,429,000 for the quarter ended September 30, 2020. Total billable subscribers grew 14% year-over-year, driven by growth in commercial IoT and government business.
Commercial service remained the largest part of Iridium's business, representing 62% of the Company's total revenue during the fourth quarter. The Company's commercial customer base is diverse and includes markets such as maritime, aviation, oil and gas, mining, recreation, forestry, construction, transportation and emergency services. These customers rely on Iridium's products and services as critical to their daily operations and integral to their communications and business infrastructure.