Sun. Dec 3rd, 2023
Globalstar Reports Strong Q3 Growth and Raises 2023 Guidance

Globalstar has announced a significant increase in its overall 2023 guidance after reporting a 53% year-over-year growth in the third quarter. This marks the second time this year that Globalstar has raised its guidance, with the company now expecting 2023 total revenue to range between $215 and $230 million, up from the original guidance of $185 million to $230 million.

In Q3, the company saw a 53% increase in revenue, reaching $57.7 million compared to the same period in 2022. This growth was primarily driven by higher service revenue, partially attributed to the Apple emergency messaging service. Additionally, Globalstar reported a 36% revenue increase in its Commercial IoT segment compared to Q3 2022. The company noted that subscriber activations have been on the rise this year, with the third quarter setting a record for gross subscriber activations since the introduction of Commercial IoT products.

Despite the positive financial results, Globalstar reported a net loss of $6.2 million for Q3 2023, an improvement compared to the net loss of $204.4 million in Q3 2022.

During an investor call, Globalstar’s new CEO, Paul Jacobs, expressed his excitement about the company’s potential. Jacobs, who previously served as the CEO of Qualcomm and founded XCOM Labs, believes that Globalstar aligns with his vision of the future of connectivity. He highlighted the opportunities that arise from combining space-based assets with terrestrial networks, particularly in areas such as logistics and transportation.

Regarding the satellite-to-cell market, Jacobs emphasized Globalstar’s focus on providing a low data rate that is affordable, widely available, and can serve numerous users. He acknowledged that whether the market evolves to higher data rate use cases through satellite connections will depend on consumer demand and willingness to pay for such services.

Globalstar’s strong Q3 performance and raised 2023 guidance indicate the company’s continued growth and potential in the telecommunications industry.