Sat. Dec 2nd, 2023
Starlink Breaks Even on Cash Flow, Says Elon Musk

Elon Musk announced on Thursday that Starlink, the SpaceX division that provides high-speed satellite internet, has finally achieved cash flow parity. This milestone comes five years after the launch of the first two prototype Starlink satellites in 2018.

Starlink currently has the highest number of satellites in orbit around Earth. However, the company has faced challenges in translating its dominance in low-Earth orbit into market dominance. Despite being available in seven continents and 60 countries, the service has attracted only about 2 million users who have purchased subscriptions, which cost $600 for the equipment and approximately $100 per month for the standard version.

Musk’s revelation about Starlink’s positive cash flow offers some insight into the business, though both SpaceX and Starlink generally remain secretive about their financials. Earlier this year, a Wall Street Journal report indicated that Starlink was significantly behind Musk’s initial timeline. A company document from 2015 projected a revenue of $12 billion per year with 20 million users by the end of 2022. Musk’s recent statement confirms that although the business is growing, it has not reached those ambitious targets.

Despite the slower progress, Starlink’s breakthrough in achieving cash flow parity signifies a positive trajectory for the company’s financials. As the demand for reliable internet connectivity continues to expand globally, Starlink’s satellite internet service is well-positioned to cater to remote areas and underserved communities. With ongoing advancements and improvements, the future growth of Starlink remains promising.