Fri. Sep 29th, 2023
SpaceX’s Starlink Revenue Soared to $1.4 Billion in 2022

SpaceX’s Starlink satellite internet service recorded a significant boost in revenue in 2022, reaching $1.4 billion, according to The Wall Street Journal. This marked a substantial increase from the $222 million earned the previous year. However, the figures fell short of CEO Elon Musk’s 2015 projections, where he anticipated a $7 billion operating profit in 2022, with revenue nearing $12 billion.

After experiencing financial losses for two years, SpaceX finally turned a profit in the first quarter of 2023. The company reported $55 million in profit and $1.5 billion in revenue during this period. These recent figures contrasted sharply with Musk’s earlier forecasts.

Despite the positive financial results, Starlink faced challenges with customer sign-ups. By the end of 2022, it had only acquired approximately one million active subscribers, significantly lower than the 20 million subscribers Musk had envisioned.

In addition to customer acquisition troubles, Starlink’s credibility was questioned by the Federal Communications Commission (FCC) when it secured $885.5 million in grant funds. The FCC later reversed its decision, stating that Starlink did not meet the program requirements for support under the Rural Digital Opportunity Fund program.

Meanwhile, Musk’s recent refusal to provide Starlink satellites to Crimea has drawn criticism. A new biography about Musk revealed that he had deactivated Starlink satellites in Crimea, declining Ukraine’s request as it prepared to launch a drone strike on Russia’s fleet. Musk argued that complying with the request would make SpaceX complicit in an act of war and conflict escalation.

Despite these challenges, SpaceX continues to expand its Starlink service. It currently operates approximately 4,200 satellites in low Earth orbit, making it available in 60 countries. In an interview with the WSJ earlier this year, SpaceX’s Gwynne Shotwell anticipated that Starlink would generate even more revenue by the end of 2023. Additionally, the company has made user kits accessible at Home Depot and Best Buy to reach a wider consumer base.