Business
Globalstar Announces Second Quarter 2024 Financial Results
COVINGTON, La.--(BUSINESS WIRE)-- Globalstar, Inc. (NYSE American: GSAT) today announced its financial results for the second quarter ended June 30, 2024.
About this update from Globalstar, Inc.
[{"type":"text","content":" COVINGTON, La.--(BUSINESS WIRE)--\nGlobalstar, Inc. (NYSE American: GSAT) today announced its financial results for the second quarter ended June 30, 2024.\n\n\n\"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 20% increase in Adjusted EBITDA and an increase in cash on hand to $64 million as of June 30, 2024,\" commented Rebecca Clary, Chief Financial Officer. Clary continued, “Based on the continued momentum across our key growth categories, we are raising the low end of our revenue guidance to $235 million from $225 million and projected Adjusted EBITDA margin to 53% from 50%.”\n\n\nDr. 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.\"\n\n\nSECOND QUARTER FINANCIAL REVIEW\n\n\nTotal Revenue\n\n\nTotal revenue increased 10% to $60.4 million during the second quarter of 2024 compared to the second quarter of 2023, due to an increase in service revenue offset partially by a decrease in revenue generated from subscriber equipment sales.\n\n\nService Revenue\n\n\nService revenue increased $9.0 million, or 18%, during the second quarter of 2024 from the second quarter of 2023. This increase was due predominantly to revenue generated from wholesale capacity services.\n\n\nThe highlight for our subscriber driven service revenue was continued growth in ...