Globalstar Announces Second Quarter 2024 Financial Results
Globalstar (NYSE American: GSAT) announced its Q2 2024 financial results, showcasing record revenue driven by growth in wholesale capacity services and new business initiatives.
Total revenue increased by 10% to $60.4 million, and service revenue rose by 18%, reaching $9.0 million. Commercial IoT service revenue hit $6.7 million, a 25% year-over-year increase. However, subscriber equipment sales fell by $3.7 million.
Adjusted EBITDA increased by 20% to $32.6 million, while the company recorded a net loss of $9.7 million, compared to a net income of less than $0.1 million in Q2 2023. Higher operational costs contributed to this loss.
Globalstar raised its full-year revenue guidance to a range of $235 million to $250 million and adjusted EBITDA margin to 53%.
Globalstar (NYSE American: GSAT) ha annunciato i risultati finanziari del secondo trimestre 2024, evidenziando un fatturato record sostenuto dalla crescita nei servizi di capacità all'ingrosso e da nuove iniziative commerciali.
Il fatturato totale è aumentato del 10%, raggiungendo $60,4 milioni, mentre il fatturato dei servizi è aumentato del 18%, toccando i $9,0 milioni. Il fatturato dei servizi Commercial IoT ha raggiunto $6,7 milioni, con un incremento del 25% rispetto all'anno precedente. Tuttavia, le vendite di attrezzature per abbonati sono diminuite di $3,7 milioni.
Il EBITDA rettificato è aumentato del 20%, toccando i $32,6 milioni, mentre l'azienda ha registrato una perdita netta di $9,7 milioni, rispetto a un utile netto di meno di $0,1 milioni nel secondo trimestre 2023. Costi operativi più elevati hanno contribuito a questa perdita.
Globalstar ha alzato le sue previsioni di fatturato per l'intero anno a un intervallo di $235 milioni a $250 milioni e la margine EBITDA rettificato al 53%.
Globalstar (NYSE American: GSAT) anunció sus resultados financieros del segundo trimestre de 2024, mostrando un ingreso récord impulsado por el crecimiento en los servicios de capacidad mayorista y nuevas iniciativas comerciales.
El ingreso total aumentó un 10%, alcanzando $60,4 millones, y los ingresos por servicios subieron un 18%, llegando a $9,0 millones. Los ingresos por servicios de IoT comercial alcanzaron $6,7 millones, un aumento del 25% en comparación con el año anterior. Sin embargo, las ventas de equipos para suscriptores cayeron en $3,7 millones.
El EBITDA ajustado aumentó un 20%, alcanzando los $32,6 millones, mientras que la compañía registró una pérdida neta de $9,7 millones, en comparación con un ingreso neto de menos de $0,1 millones en el segundo trimestre de 2023. Los costos operativos más altos contribuyeron a esta pérdida.
Globalstar elevó su guía de ingresos para todo el año a un rango de $235 millones a $250 millones y el margen de EBITDA ajustado al 53%.
Globalstar (NYSE American: GSAT)는 2024년 2분기 재무 결과를 발표하며 도매 용량 서비스와 새로운 비즈니스 이니셔티브의 성장에 힘입어 기록적인 수익을 보고했습니다.
총 수익은 10% 증가하여 $60.4 백만 달러에 도달했으며, 서비스 수익은 18% 상승하여 $9.0 백만 달러에 이르렀습니다. 상업 IoT 서비스 수익은 작년 대비 25% 증가한 $6.7 백만 달러를 기록했습니다. 그러나 가입자 장비 판매는 $3.7 백만 달러 감소했습니다.
조정된 EBITDA는 20% 증가하여 $32.6 백만 달러에 이르렀으나, 회사는 2023년 2분기 $0.1 백만 달러 미만의 순이익에 비해 $9.7 백만 달러의 순손실을 기록했습니다. 높은 운영 비용이 이 손실에 기여했습니다.
Globalstar는 연간 수익 전망을 $235 백만 달러에서 $250 백만 달러로 상향 조정하고 조정된 EBITDA 마진을 53%로 설정했습니다.
Globalstar (NYSE American: GSAT) a annoncé ses résultats financiers pour le deuxième trimestre 2024, affichant un chiffre d'affaires record grâce à la croissance des services de capacité en gros et à de nouvelles initiatives commerciales.
Le chiffre d'affaires total a augmenté de 10% pour atteindre 60,4 millions de dollars, et le chiffre d'affaires des services a augmenté de 18%, atteignant 9,0 millions de dollars. Le chiffre d'affaires des services IoT commercial a atteint 6,7 millions de dollars, une augmentation de 25% par rapport à l'année précédente. Cependant, les ventes de matériel pour abonnés ont chuté de 3,7 millions de dollars.
Le BAIIA ajusté a augmenté de 20% pour atteindre 32,6 millions de dollars, tandis que l'entreprise a enregistré une perte nette de 9,7 millions de dollars, par rapport à un bénéfice net de moins de 0,1 million de dollars au deuxième trimestre 2023. Des coûts opérationnels plus élevés ont contribué à cette perte.
Globalstar a relevé ses prévisions de chiffre d'affaires pour l'année entière à une fourchette de 235 millions de dollars à 250 millions de dollars et a ajusté sa marge EBITDA ajusté à 53%.
Globalstar (NYSE American: GSAT) hat die finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht und dabei von einem Rekordumsatz profitiert, der durch das Wachstum in den Großhandelskapazitätsdiensten und neue Geschäftsinitiativen angekurbelt wurde.
Der Gesamtumsatz stieg um 10% auf 60,4 Millionen US-Dollar, während die Dienstleistungserlöse um 18% auf 9,0 Millionen US-Dollar zunahmen. Die Umsätze im kommerziellen IoT-Bereich erreichten 6,7 Millionen US-Dollar, was einem Anstieg von 25% im Jahresvergleich entspricht. Allerdings sanken die Verkäufe von Abonnentenausrüstungen um 3,7 Millionen US-Dollar.
Das bereinigte EBITDA stieg um 20% auf 32,6 Millionen US-Dollar, während das Unternehmen einen Nettverlust von 9,7 Millionen US-Dollar verzeichnete, verglichen mit einem Nettogewinn von weniger als 0,1 Millionen US-Dollar im zweiten Quartal 2023. Höhere Betriebskosten trugen zu diesem Verlust bei.
Globalstar hat die Prognose für den Jahresumsatz auf eine Spanne von 235 Millionen US-Dollar bis 250 Millionen US-Dollar angehoben und die bereinigte EBITDA-Marge auf 53% angepasst.
- Record revenue in Q2 2024 driven by growth in wholesale capacity services.
- Revenue increased by 10% to $60.4 million.
- Service revenue up 18%, reaching $9.0 million.
- Commercial IoT service revenue grew by 25%, reaching $6.7 million.
- Adjusted EBITDA increased by 20% to $32.6 million.
- Raised full-year revenue guidance to $235 million-$250 million.
- Increased adjusted EBITDA margin guidance to 53%.
- Net loss of $9.7 million in Q2 2024, compared to net income of under $0.1 million in Q2 2023.
- Loss from operations hit $1.4 million versus income of $2.6 million in Q2 2023.
- Higher operating expenses and stock-based compensation contributed to the loss.
- Subscriber equipment sales revenue fell by $3.7 million.
Insights
Globalstar's Q2 2024 results show strong financial performance, with
However, the
Globalstar's strategic focus on leveraging its MSS operator capabilities and network flexibility is yielding positive results. The progress in the government services proof of concept, particularly the installation of XCOM RAN in Micro Fulfillment Centers, demonstrates the company's ability to adapt its technology for mission-critical applications.
The ongoing government study of XCOMP technology use cases could open new revenue streams. The
Globalstar's Q2 results reveal a shifting market landscape in the satellite communications sector. The
The decline in Duplex and SPOT subscribers highlights the competitive nature of the consumer satellite communication market. However, the
"Globalstar reported record revenue during the second quarter, driven primarily by growth in wholesale capacity services and other recent business initiatives. The high-margin nature of this revenue contributed to a
Dr. Paul E. Jacobs, Chief Executive Officer, said, “This quarter highlighted Globalstar’s ability to enable new capabilities by leveraging our core competencies as an MSS operator, as well as the flexibility of our network to reliably and rapidly support and deploy new technologies and services. We are pleased that our wholesale services are growing in both the government and consumer segments. We are continuing to make good progress through the proof of concept that commenced this year for a government services company. We have been installing and validating XCOM RAN in our customer's Micro Fulfillment Centers, demonstrating XCOM RAN’s ability to uniquely support their mission critical requirements. Additionally, we are in the midst of a government study of use cases for our XCOMP technology. We remain focused on building on our strong customer relationships to create value leveraging the differentiated assets of our LEO network, Band 53 spectrum, and XCOM RAN technology."
SECOND QUARTER FINANCIAL REVIEW
Total Revenue
Total revenue increased
Service Revenue
Service revenue increased
The highlight for our subscriber driven service revenue was continued growth in Commercial IoT. Commercial IoT service revenue reached a record high this quarter, totaling
Consistent with prior quarters, service revenue associated with legacy services was lower due to fewer Duplex and SPOT subscribers. The number of SPOT subscribers has been unfavorably impacted by competitive pressure, as well as supply chain disruptions that have now been resolved. We are encouraged by an almost
Subscriber Equipment Sales
Revenue generated from subscriber equipment sales was down
(Loss) Income from Operations
Loss from operations was
Cost of services increased resulting from higher network operating costs, including gateway maintenance, security, IT and personnel expenses. These costs are necessary to support our new and upgraded global ground infrastructure. A significant portion of these costs are reimbursed to us, and this consideration is recognized as revenue when earned in the subsequent year. We do not expect the operating costs that support existing Phase 1 services to increase meaningfully beyond current levels. Cost of services also increased due to non-cash costs associated with the Support Services Agreement (the “SSA”) we entered into in August 2023 in connection with the XCOM License Agreement.
Stock-based compensation increased from the prior year's second quarter due primarily to restricted stock units granted in connection with the XCOM License Agreement in September 2023. The total fair value of the RSUs was
Partially offsetting these increases was lower cost of subscriber equipment sales, which was down consistent with the decrease in equipment revenue.
Net Loss (Income)
Net loss was
Adjusted EBITDA
Adjusted EBITDA increased
YEAR TO DATE FINANCIAL REVIEW
Revenue
Total revenue increased to
Service revenue increased
Revenue generated from subscriber equipment sales decreased
(Loss) Income from Operations
Loss from operations was
As discussed above, higher stock-based compensation and cost of services were the primary expense increases during the first six months of 2024. Additionally, a
Net Loss
Net loss was
Liquidity
As of June 30, 2024, we held cash and cash equivalents of
Operating cash flows include cash receipts from our customers, primarily from the performance of wholesale capacity services, as well as from subscribers for the purchase of equipment and satellite voice and data services. We use cash in operating activities primarily for network costs, personnel costs, inventory purchases and other general corporate expenditures. Investing outflows largely relate to network upgrades associated with the Service Agreements, including milestone work under the satellite procurement agreement with MDA and the launch services agreement with SpaceX. Financing activities relate primarily to the 2021 and 2023 Funding Agreements.
Over the next twelve months, our sources of cash are expected to include operating cash flows generated from the business and proceeds under the 2023 Funding Agreement. These sources of cash will be used to pay capital expenditures associated with the new satellites and associated launch costs as well as debt service costs.
FINANCIAL OUTLOOK
We are raising our prior financial outlook for full year 2024 with anticipated results below.
-
Total revenue between
$235 million $250 million $225 million $250 million -
Adjusted EBITDA margin of approximately
53% (an increase from the prior margin of50% )
CONFERENCE CALL INFORMATION
As previously announced, the Company will host a conference call to discuss its results at 9:00 a.m. Eastern Time (ET) on Thursday, August 8, 2024. Details are as follows:
Earnings Call: |
The earnings call will be available via webcast from the following link.
Webcast Link: https://edge.media-server.com/mmc/p/whk4vk5x
To participate in the earnings call via teleconference or to participate in the live Q&A session, participants should register at the following link to receive an email containing the dial-in number and unique passcode.
Participant Teleconference Registration Link: https://register.vevent.com/register/BIdfcd476ba38644cabd29808c5afa55b7
|
Audio Replay: |
For those unable to participate in the live call, a replay of the webcast will be available in the Investor Relations section of the Company's website.
|
About Globalstar, Inc.
Globalstar empowers its customers to connect, transmit, and communicate in smarter ways – easily, quickly, securely, and affordably – offering reliable satellite and terrestrial connectivity services as an international telecom infrastructure provider. The Company’s LEO satellite constellation ensures secure data transmission for connecting and protecting assets, transmitting critical operational data, and saving lives for consumers, businesses, and government agencies across the globe. Globalstar’s terrestrial spectrum, Band 53, and its 5G variant, n53, offers carriers, cable companies, and system integrators a versatile, fully licensed channel for private networks with a growing ecosystem to improve customer wireless connectivity, while Globalstar’s XCOM RAN product offers significant capacity gains in dense wireless deployments. In addition to SPOT GPS messengers, Globalstar offers next-generation IoT hardware and software products for efficiently tracking and monitoring assets, processing smart data at the edge, and managing analytics with cloud-based telematics solutions to drive safety, productivity, and profitability.
Note that all SPOT products described in this press release are the products of SPOT LLC, which is not affiliated in any manner with Spot Image of
For more information, visit www.globalstar.com.
Safe Harbor Language for Globalstar Releases
This press release contains certain statements that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Forward-looking statements, such as the statements regarding our ability to identify and realize opportunities and to generate the expected revenues and other benefits of the XCOM License Agreement, our ability to integrate the licensed technology into our current line of business, the ability of Dr. Jacobs and other new employees to drive innovation and growth, our expectations with respect to the pursuit of terrestrial spectrum authorities globally, the success of current and potential future applications for our terrestrial spectrum, future increases in our revenue and profitability, our ability to meet our obligations under, and profit from, the Service Agreements, and other statements contained in this release regarding matters that are not historical facts, involve predictions. Any forward-looking statements made in this press release are believed to be accurate as of the date made and are not guarantees of future performance. Actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements, and we undertake no obligation to update any such statements. Additional information on factors that could influence our financial results is included in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
GLOBALSTAR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
June 30, |
|
June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue: |
|
|
|
|
|
|
|
||||||||
Service revenue |
$ |
57,635 |
|
|
$ |
48,648 |
|
|
$ |
111,100 |
|
|
$ |
101,602 |
|
Subscriber equipment sales |
|
2,750 |
|
|
|
6,424 |
|
|
|
5,765 |
|
|
|
12,114 |
|
Total revenue |
|
60,385 |
|
|
|
55,072 |
|
|
|
116,865 |
|
|
|
113,716 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below) |
|
18,114 |
|
|
|
12,246 |
|
|
|
34,873 |
|
|
|
24,066 |
|
Cost of subscriber equipment sales |
|
2,066 |
|
|
|
5,662 |
|
|
|
4,224 |
|
|
|
9,971 |
|
Marketing, general and administrative |
|
10,353 |
|
|
|
10,122 |
|
|
|
20,999 |
|
|
|
19,753 |
|
Stock-based compensation |
|
9,164 |
|
|
|
2,532 |
|
|
|
18,391 |
|
|
|
6,292 |
|
Reduction in the value of long-lived assets |
|
— |
|
|
|
— |
|
|
|
305 |
|
|
|
— |
|
Depreciation, amortization, and accretion |
|
22,110 |
|
|
|
21,890 |
|
|
|
44,207 |
|
|
|
43,823 |
|
Total operating expenses |
|
61,807 |
|
|
|
52,452 |
|
|
|
122,999 |
|
|
|
103,905 |
|
(Loss) income from operations |
|
(1,422 |
) |
|
|
2,620 |
|
|
|
(6,134 |
) |
|
|
9,811 |
|
Other (expense) income: |
|
|
|
|
|
|
|
||||||||
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(10,403 |
) |
Interest income and expense, net of amounts capitalized |
|
(3,644 |
) |
|
|
(5,070 |
) |
|
|
(7,429 |
) |
|
|
(7,102 |
) |
Foreign currency (loss) gain |
|
(4,493 |
) |
|
|
2,038 |
|
|
|
(8,335 |
) |
|
|
3,945 |
|
Other |
|
58 |
|
|
|
447 |
|
|
|
(791 |
) |
|
|
348 |
|
Total other expenses |
|
(8,079 |
) |
|
|
(2,585 |
) |
|
|
(16,555 |
) |
|
|
(13,212 |
) |
(Loss) income before income taxes |
|
(9,501 |
) |
|
|
35 |
|
|
|
(22,689 |
) |
|
|
(3,401 |
) |
Income tax expense |
|
182 |
|
|
|
26 |
|
|
|
190 |
|
|
|
70 |
|
Net (loss) income |
$ |
(9,683 |
) |
|
$ |
9 |
|
|
$ |
(22,879 |
) |
|
$ |
(3,471 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss attributable to common shareholders |
|
(12,327 |
) |
|
|
(2,635 |
) |
|
|
(28,167 |
) |
|
|
(8,730 |
) |
Net loss per common share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.01 |
) |
|
$ |
(0.00 |
) |
|
$ |
(0.01 |
) |
|
$ |
0.00 |
|
Diluted |
|
(0.01 |
) |
|
$ |
(0.00 |
) |
|
|
(0.01 |
) |
|
|
0.00 |
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
1,884,208 |
|
|
|
1,813,393 |
|
|
|
1,883,406 |
|
|
|
1,812,617 |
|
Diluted |
|
1,884,208 |
|
|
|
1,813,393 |
|
|
|
1,883,406 |
|
|
|
1,812,617 |
|
GLOBALSTAR, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except par value and share data)
(Unaudited)
|
June 30, 2024 |
|
December 31, 2023 |
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
64,334 |
|
|
$ |
56,744 |
|
Accounts receivable, net of allowance for credit losses of |
|
43,148 |
|
|
|
48,743 |
|
Inventory |
|
13,107 |
|
|
|
14,582 |
|
Prepaid expenses and other current assets |
|
23,421 |
|
|
|
22,584 |
|
Total current assets |
|
144,010 |
|
|
|
142,653 |
|
Property and equipment, net |
|
620,553 |
|
|
|
624,002 |
|
Operating lease right of use assets, net |
|
34,424 |
|
|
|
34,164 |
|
Intangible and other assets, net of accumulated amortization of |
|
127,259 |
|
|
|
123,490 |
|
Total assets |
$ |
926,246 |
|
|
$ |
924,309 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Current portion of long-term debt |
$ |
34,600 |
|
|
$ |
34,600 |
|
Accounts payable and accrued expenses |
|
25,643 |
|
|
|
28,985 |
|
Accrued satellite construction costs |
|
19,866 |
|
|
|
58,187 |
|
Payables to affiliates |
|
522 |
|
|
|
459 |
|
Deferred revenue, net |
|
57,712 |
|
|
|
53,677 |
|
Total current liabilities |
|
138,343 |
|
|
|
175,908 |
|
Long-term debt |
|
358,525 |
|
|
|
325,700 |
|
Operating lease liabilities |
|
28,752 |
|
|
|
29,244 |
|
Other non-current liabilities |
|
17,651 |
|
|
|
14,478 |
|
Total non-current liabilities |
|
404,928 |
|
|
|
369,422 |
|
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Preferred Stock of |
|
— |
|
|
|
— |
|
Series A Preferred Convertible Stock of |
|
— |
|
|
|
— |
|
Voting Common Stock of |
|
189 |
|
|
|
188 |
|
Additional paid-in capital |
|
2,461,320 |
|
|
|
2,438,703 |
|
Accumulated other comprehensive income |
|
9,327 |
|
|
|
5,070 |
|
Retained deficit |
|
(2,087,861 |
) |
|
|
(2,064,982 |
) |
Total stockholders’ equity |
|
382,975 |
|
|
|
378,979 |
|
Total liabilities and stockholders’ equity |
$ |
926,246 |
|
|
$ |
924,309 |
|
GLOBALSTAR, INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP ADJUSTED EBITDA
(In thousands)
(Unaudited)
|
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
June 30, |
|
June 30, |
||||||||||||
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net (loss) income |
|
$ |
(9,683 |
) |
|
$ |
9 |
|
|
$ |
(22,879 |
) |
|
$ |
(3,471 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Interest income and expense, net |
|
|
3,644 |
|
|
|
5,070 |
|
|
|
7,429 |
|
|
|
7,102 |
|
|
Derivative loss (gain) |
|
|
26 |
|
|
|
(299 |
) |
|
|
979 |
|
|
|
(299 |
) |
|
Income tax expense |
|
|
182 |
|
|
|
26 |
|
|
|
190 |
|
|
|
70 |
|
|
Depreciation, amortization, and accretion |
|
|
22,110 |
|
|
|
21,890 |
|
|
|
44,207 |
|
|
|
43,823 |
|
EBITDA |
|
|
16,279 |
|
|
|
26,696 |
|
|
|
29,926 |
|
|
|
47,225 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Non-cash compensation |
|
|
9,164 |
|
|
|
2,532 |
|
|
|
18,391 |
|
|
|
6,292 |
|
|
Foreign exchange loss (gain) and other |
|
|
4,410 |
|
|
|
(2,186 |
) |
|
|
8,148 |
|
|
|
(4,304 |
) |
|
Reduction in value of long-lived assets |
|
|
— |
|
|
|
— |
|
|
|
305 |
|
|
|
— |
|
|
Non-cash expenses associated with License Agreement (2) |
|
|
2,178 |
|
|
|
— |
|
|
|
3,570 |
|
|
|
— |
|
|
Transaction costs |
|
|
530 |
|
|
|
— |
|
|
|
1,855 |
|
|
|
— |
|
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,403 |
|
Adjusted EBITDA (1) |
|
$ |
32,561 |
|
|
$ |
27,042 |
|
|
$ |
62,195 |
|
|
$ |
59,616 |
|
|
(1) |
EBITDA represents earnings before interest, income taxes, depreciation, amortization, accretion and derivative (gains)/losses. Adjusted EBITDA excludes non-cash compensation expense, reduction in the value of assets, foreign exchange (gains)/losses, and certain other non-cash or non-recurring charges as applicable. Management uses Adjusted EBITDA to manage the Company's business and to compare its results more closely to the results of its peers. EBITDA and Adjusted EBITDA do not represent and should not be considered as alternatives to GAAP measurements, such as net income/(loss). These terms, as defined by us, may not be comparable to similarly titled measures used by other companies.
The Company uses Adjusted EBITDA as a supplemental measurement of its operating performance. The Company believes it best reflects changes across time in the Company's performance, including the effects of pricing, cost control and other operational decisions. The Company's management uses Adjusted EBITDA for planning purposes, including the preparation of its annual operating budget. The Company believes that Adjusted EBITDA also is useful to investors because it is frequently used by securities analysts, investors and other interested parties in their evaluation of companies in similar industries. As indicated, Adjusted EBITDA does not include interest expense on borrowed money or depreciation expense on our capital assets or the payment of income taxes, which are necessary elements of the Company's operations. Because Adjusted EBITDA does not account for these expenses, its utility as a measure of the Company's operating performance has material limitations. Because of these limitations, the Company's management does not view Adjusted EBITDA in isolation and also uses other measurements, such as revenues and operating profit, to measure operating performance.
|
|
(2) |
In connection with the License Agreement with XCOM, the Company entered into a Support Services Agreement (the “SSA”) with XCOM. Fees payable by Globalstar pursuant to the SSA were or may be paid in shares of its common stock. Costs also include noncash intangible asset technology amortization associated with the initial purchase of certain intangible assets made in the form of Globalstar common stock.
|
GLOBALSTAR, INC.
SCHEDULE OF SELECTED OPERATING METRICS
(In thousands, except subscriber and ARPU data)
(Unaudited)
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
||||
Service revenue: |
|
|
|
|
|
|
|
||||
Subscriber services |
|
|
|
|
|
|
|
||||
Duplex |
$ |
4,965 |
|
$ |
6,359 |
|
$ |
9,720 |
|
$ |
12,110 |
SPOT |
|
10,379 |
|
|
11,039 |
|
|
20,622 |
|
|
22,353 |
Commercial IoT |
|
6,716 |
|
|
5,356 |
|
|
13,153 |
|
|
10,534 |
Wholesale capacity services |
|
34,700 |
|
|
25,478 |
|
|
66,329 |
|
|
55,889 |
Engineering and other services |
|
875 |
|
|
416 |
|
|
1,276 |
|
|
716 |
Total service revenue |
|
57,635 |
|
|
48,648 |
|
|
111,100 |
|
|
101,602 |
|
|
|
|
|
|
|
|
||||
Subscriber equipment sales |
|
2,750 |
|
|
6,424 |
|
|
5,765 |
|
|
12,114 |
|
|
|
|
|
|
|
|
||||
Total revenue |
$ |
60,385 |
|
$ |
55,072 |
|
$ |
116,865 |
|
$ |
113,716 |
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
||||
Average subscribers |
|
|
|
|
|
|
|
||||
Duplex |
|
27,893 |
|
|
34,974 |
|
|
28,715 |
|
|
36,047 |
SPOT |
|
246,182 |
|
|
261,734 |
|
|
248,329 |
|
|
264,162 |
Commercial IoT |
|
508,518 |
|
|
466,609 |
|
|
506,793 |
|
|
467,059 |
Other |
|
302 |
|
|
385 |
|
|
306 |
|
|
395 |
Total |
|
782,895 |
|
|
763,702 |
|
|
784,143 |
|
|
767,663 |
|
|
|
|
|
|
|
|
||||
ARPU (1) |
|
|
|
|
|
|
|
||||
Duplex |
$ |
59.33 |
|
$ |
60.61 |
|
$ |
56.42 |
|
$ |
55.99 |
SPOT |
|
14.05 |
|
|
14.06 |
|
|
13.84 |
|
|
14.10 |
Commercial IoT |
|
4.40 |
|
|
3.83 |
|
|
4.33 |
|
|
3.76 |
(1) |
Average monthly revenue per user (ARPU) measures service revenues per month divided by the average number of subscribers during that month. Average monthly revenue per user as so defined may not be similar to average monthly revenue per unit as defined by other companies in the Company's industry, is not a measurement under GAAP and should be considered in addition to, but not as a substitute for, the information contained in the Company's statement of operations. The Company believes that average monthly revenue per user provides useful information concerning the appeal of its rate plans and service offerings and its performance in attracting and retaining high value customers. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808775783/en/
Investor Contact Information:
investorrelations@globalstar.com
Source: Globalstar, Inc.
FAQ
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