Iridium Communications Inc (OTCPK:IRDDA.PFD)
$ 132.55 (0%) Market Cap: - Enterprise Value: - PE Ratio: 30.17 PB Ratio: 6.77 GF Score: 82/100
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Q4 2024 Iridium Communications Inc Earnings Call Transcript

Feb 13, 2025 / 01:30PM GMT

Key Points

Positve
  • Iridium Communications Inc (IRDM) reported strong free cash flow of over $300 million for 2024, which supports ongoing business investments and shareholder returns.
  • The company returned approximately $140 million to shareholders in the fourth quarter through dividends and an expanded share repurchase program.
  • Iridium Communications Inc (IRDM) has a robust market position with a global network and L-Band spectrum, providing reliability for safety and mission-critical applications.
  • The company is making progress with its Iridium NTN Direct project, aiming for commercial launches in 2026, which could significantly contribute to IoT business growth.
  • Iridium Communications Inc (IRDM) continues to expand its partner ecosystem, onboarding over 30 new partners and certifying more than 60 new partner applications in 2024.
Negative
  • The company experienced a decline in net subscribers in its IoT business due to a large commercial IoT customer changing its retail plans, which may lead to increased seasonality in subscriber numbers.
  • Broadband revenue decreased by 9% in the fourth quarter compared to the previous year, reflecting a shift towards Iridium's use as a companion service.
  • Iridium Communications Inc (IRDM) faces competitive pressures from Starlink's aggressive pricing and adoption, particularly in the VSAT market.
  • The company anticipates continued ARPU pressure in 2025 as more subscribers migrate towards companion services.
  • Iridium Communications Inc (IRDM) reported a modest EBITDA and 5% service revenue growth for 2024, which was below its normal trend due to various headwinds.
Operator

Good day and welcome to the Iridium's 2024 fourth quarter earnings call. (Operator Instructions) Please note this event is being recorded.

I would now like to turn the conference over to Ken Levy, Vice President, Investor Relations. Please go ahead.

Ken Levy
Iridium Communications Inc - Vice President, Investor Relations

Thanks, Debbie. Good morning and welcome to Iridium's fourth quarter, 2024 earnings call. Joining me on this morning's call are CEO, Matt Desch; and our CFO, Vincent O'Neill. Today's call will begin with a discussion of our fourth quarter results followed by Q&A. I trust you've had an opportunity to review this morning's earnings release, which is available in the invest relations section of Iridium website.

Before I turn things over to Matt, I'd like to caution all participants that our call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1,995. Forward-looking statements are statements that are not historical fact and include statements about our future

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