Benzinga | Jul 20, 2021 08:00AM EDT

Iridium Communications Beats On Q2 Earnings, Raises FY21 Service Revenue Outlook

* Iridium Communications Inc (NASDAQ:IRDM) reported second-quarter FY21 revenue growth of 7% year-on-year to $149.9 million, beating the analyst consensus of $148.53 million.

* Service revenue rose 7% Y/Y to $121.3 million. Revenue from equipment sales and engineering and support projects was $28.6 million.

* Commercial service revenue was $95.6 million, up 8% Y/Y.

* Commercial broadband revenue was up 25% Y/Y to $10.6 million.

* Hosted payload and other data service revenue were $14.4 million.

* Government service revenue was $25.8 million.

* Strong service revenue primarily contributed to an OEBITDA margin expansion of around 240 basis points to 63.2%.

* Total billable subscribers rose 19% Y/Y to 1.6 million, driving growth across every service category.

* The EPS of $0.03 beat the analyst consensus for loss per share of $(0.06).

* It held $219.4 million in cash and equivalents.

* The company repurchased shares worth $63.2 million during the quarter.

* Iridium delivered strong revenue growth in Q2, driven by rebounds in IoT and commercial voice and data, and continued strength in broadband, CEO Matt Desch stated.

* Outlook: It sees an OEBITDA of $365 million to $375 million.

* It also raised its FY21 outlook for service revenue growth to 4% to 5%, versus prior outlook of 3% growth.

* Price action: IRDM shares traded higher by 3.17% at $38.75 in the premarket session on the last check Tuesday.