Elon Musk, CEO of SpaceX, announced on Thursday that Starlink, the company’s satellite internet division, has achieved cash break-even, sparking hopes for a potential initial public offering (IPO).
Musk expressed his excitement on X (formerly known as Twitter), stating, “I’m excited to announce that SpaceX Starlink has reached cash break-even! Excellent work by a great team.” He further mentioned that Starlink now has the majority of all active satellites and will have launched the majority of all satellites collectively from Earth by next year.
However, some X users were confused about whether Musk was referring to SpaceX as a whole or just the Starlink segment of SpaceX’s business. Nevertheless, earlier this year, it was reported that SpaceX had achieved a profit of $55 million in the first quarter of 2023, indicating that Musk was likely talking about Starlink.
In a presentation in 2015, SpaceX forecasted that its satellite division would generate $12 billion in revenue and $7 billion in operating profit by 2022. While the segment has reached cash break-even, it is significantly behind the projected timeline.
SpaceX, valued at $150 billion, does not publicly disclose its financial information like Tesla, making it challenging to obtain information about its performance. Starlink provides broadband internet using satellites in low Earth orbit. In September, SpaceX’s official Starlink account stated that the service is available in over 60 countries with over 2 million active customers. SpaceX has launched approximately 5,000 Starlink satellites into orbit thus far.
Three years ago, Musk stated that SpaceX would likely go public with Starlink once revenue growth becomes “regular and predictable.” The billionaire also mentioned that retail investors would have top priority in the event of an IPO.