Globalstar Announces Second Quarter 2023 Results

About this update from Globalstar, Inc.

[{"type":"text","content":" COVINGTON, La.--(BUSINESS WIRE)--\nGlobalstar, Inc. (NYSE American: GSAT) today announced its operating and financial results for the quarter ended June 30, 2023.\n\n\n“Globalstar continued to see robust growth during the second quarter, with a significant improvement in profitability resulting from a 50% increase in revenue over the prior year's quarter. Notably, Adjusted EBITDA was up 86% over the same period and ending liquidity was $65 million, more than double our cash balance at year end. Importantly, service revenue increased beyond the scope of our wholesale agreement, reflecting organic growth powered by our efforts in IoT,” said Rebecca Clary, Chief Financial Officer. Clary continued, “As a result of our sustained growth, we are tightening our previously issued guidance, increasing the low end of the 2023 revenue range from $185 million to $200 million.”\n\n\nDave Kagan, Chief Executive Officer, commented, “This quarter’s results further attest to the initiatives we embarked on to transform the Company along our four pillars – wholesale, legacy, IoT and terrestrial spectrum. We have laid a solid foundation in each to capture the significant opportunities on the horizon, armed with a unique portfolio of assets. We are all very proud and humbled by the lifesaving impact Globalstar is enabling around the world, and we are nowhere near finished.”\n\n\nFINANCIAL REVIEW\n\n\nTotal Revenue\n\n\nTotal revenue increased $18.3 million, or 50%, to $55.1 million during the second quarter of 2023 compared to the second quarter of 2022, due to increases in both service revenue and revenue generated from subscriber equipment sales.\n\n\nService Revenue\n\n\nService revenue increased $15.6 million, or 47%, during the second quarter of 2023, due primarily to higher wholesale capacity service revenue. This category of revenue, which increased $16.7 million from the prior year quarter, includes fees earned under our Service Agreements. This increase was due largely to the launch of Phase 1 service in November 2022 and our continued performance associated with the construction of additional satellites.\n\n\nThe primary highlight of our subscriber driven revenue sources continues to be growth in Commercial IoT, which saw a revenue increase of 6% from the second quarter of 2022, due to an increase in the subscriber base. Notably, gross sub...

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