And over that same window of time, EBITDA for the company popped up from $378.2 million to $424 million. Operating cash flow expanded from $302.9 million to $344.7 million. The company went from generating a net loss of $9.3 million in 2021 to generating a profit of $8.7 million last year. This increase in revenue helped to push profitability up as well. But broadband ARPU expanded from $288 to $302. It is true that IoT (Internet of Things) ARPU declined from $8.58 to $7.89. For voice and data services, this number expanded from $41 per month to $42 per month. Over this time, the company also benefited from an increase in its commercial ARPU. The real growth for the company came from the commercial side, with its customer base expanding from 1.58 million to 1.86 million. ![]() This came about even as the number of government subscribers dropped from 147 thousand to 139 thousand. First and foremost, the number of subscribers paying for access to its satellite network increased from 1.72 million to nearly 2 million. There were a few key factors behind this growth. That was 17.3% higher than the $614.5 million generated one year earlier. This return disparity can be chalked up in part to the strong financial performance that the company achieved during that window. Since the publication of that article, IRDM stock is up another 36.1% compared to the 8.7% seen by the S&P 500 over the same window of time. It would appear, much to my chagrin, that I was premature in downgrading the company. But given how shares were starting to look from a valuation perspective in early August, I ended up down grading my rating to a ‘hold’ to reflect my view that shares would likely generate returns that would be more or less in line with the broader market moving forward. And the upside experienced during that time was quite impressive. From February of last year until early August, I had the company rated a ‘buy’. ![]() For some time, I was actually quite bullish when it came to Iridium Communications. Slow and steadyĪlthough I love the operations involved with Iridium Communications, I do not like the idea of paying a hefty price for shares of a firm. But in the event that shares do drop materially from here, it could present investors with significant upside potential. Given how shares are priced right now, I do think that the company makes for a ‘hold’ candidate rather than a ‘buy’ one. However, the company is not exactly the cheapest player on the market. Revenue growth is steady, as is cash flow growth. But because of the business model that Iridium Communications operates and the fact that its ongoing operational costs are quite low, it is a different type of animal entirely. But many of the firms that are in this space suffer from significant losses as they ramp up production. Over the past few years, it has become clear that the space economy offers tremendous upside for investors. These satellites host payloads and transmit information on behalf of its customers. For those not aware, the company operates a constellation of satellites that encircle the globe. ![]() One of my favorite companies, from a business model perspective, on the market today has got to be Iridium Communications ( NASDAQ: IRDM).
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