Globalstar Inc (GSAT, Financial) announced its operating and financial results for the third quarter and year-to-date period ended September 30, 2023, on November 2, 2023. The company reported a significant improvement in profitability during the third quarter, with a 53% increase in total revenue. This growth was driven by the high margin nature of the company's revenue sources, leading to a 125% increase in Adjusted EBITDA over the third quarter of the previous year.
Financial Performance Highlights
Globalstar Inc (GSAT, Financial) reported total revenue of $57.7 million during the third quarter of 2023, a 53% increase compared to the third quarter of 2022. This increase was primarily due to higher service revenue, which increased by $20.3 million or 61% during the third quarter of 2023. The company's subscriber equipment sales, however, decreased by $0.3 million or 7% in the third quarter of 2023 compared to the third quarter of 2022.
Globalstar Inc (GSAT, Financial) reported an income from operations of $2.0 million during the third quarter of 2023, compared to a loss from operations of $186.6 million during the third quarter of 2022. The company's net loss was $6.2 million for the third quarter of 2023, compared to a net loss of $204.4 million for the third quarter of 2022.
Year-to-Date Financial Review
For the nine months ended September 30, 2023, Globalstar Inc (GSAT, Financial) reported a total revenue increase of $64.2 million, or 60%, compared to the same period in 2022. The company's service revenue increased primarily due to higher wholesale capacity service revenue. Subscriber equipment sales also increased by 40% due to production challenges in the comparable prior year period.
The company reported an income from operations of $11.8 million for the nine months ended September 30, 2023, compared to a loss from operations of $211.7 million during the same period in 2022. The net loss improved to $9.6 million for the nine months ended September 30, 2023, from $251.6 million during 2022.
Financial Outlook
Globalstar Inc (GSAT, Financial) updated its financial guidance for the full year 2023, anticipating total revenue between $215 million and $230 million, representing an increase of approximately 45% to 55% over 2022 total revenue. The company also expects an Adjusted EBITDA margin of approximately 55%, compared to 39% in 2022.
As of September 30, 2023, Globalstar Inc (GSAT, Financial) held cash and cash equivalents of $64.1 million, compared to $32.1 million as of December 31, 2022. The company expects its sources of cash over the next twelve months to include operating cash flows generated from the business and payments under the 2023 Funding Agreement.
Explore the complete 8-K earnings release (here) from Globalstar Inc for further details.
