Iridium(IRDM) - 2024 Q1 - Quarterly Report

Subscriber Growth - As of March 31, 2024, the company had approximately 2,333,000 billable subscribers, an increase of 282,000, or 14%, from 2,051,000 billable subscribers as of March 31, 2023[23]. - Commercial IoT revenue increased by $7.4 million, or 23$2.6 million, or 5%, for the three months ended March 31, 2024, primarily due to an increase in billable subscribers and ARPU[34]. Revenue Performance - Total revenue for the three months ended March 31, 2024, was $203.853 million, a decrease of$1.420 million, or 1%, compared to $205.273 million for the same period in 2023[27]. - Revenue from services increased by$9.228 million, or 7%, to $148.577 million for the three months ended March 31, 2024, compared to$139.349 million in the prior year[27]. - Engineering and support services revenue rose by $6.160 million, or 25$30.408 million for the three months ended March 31, 2024[27]. - Government services revenue remained unchanged at $26.5 million for the three months ended March 31, 2024, compared to the same period in 2023[36]. - Subscriber equipment revenue decreased by$16.8 million, or 40%, for the three months ended March 31, 2024, compared to the prior year period[38]. Income and Expenses - The company reported an operating income of $49.771 million for the three months ended March 31, 2024, an increase of$26.623 million, or 115%, from $23.148 million in the same period of 2023[27]. - The company’s net income for the three months ended March 31, 2024, was$19.653 million, an increase of $9.878 million, or 101$9.775 million in the prior year[27]. - Research and development expenses increased by $3.320 million, or 86$7.198 million for the three months ended March 31, 2024[27]. - Cost of services (exclusive of depreciation and amortization) increased by $9.8 million, or 27$1.9 million, or 5%, for the three months ended March 31, 2024, primarily due to reduced stock appreciation rights expense[43]. - Depreciation and amortization expense decreased by $26.1 million, or 34$174.0 million as of March 31, 2024, up from $71.9 million as of December 31, 2023[50]. - The Term Loan balance increased to$1,620.9 million as of March 31, 2024, following additional borrowings to fund the acquisition of Satelles, Inc.[51]. - Total dividends paid during the three months ended March 31, 2024, were $16.1 million, with future dividends subject to the discretion of the Board of Directors[54].