Globalstar Inc (GSAT) Q3 2024 Earnings Call Highlights: Record Revenue Growth and Strategic Advances

GuruFocus.com11-09

Total Revenue: Increased 25% from Q3 2023, reaching $72 million. Service Revenue: Increased 28%, driven by wholesale capacity revenue and an out-of-period item totaling $7.5 million. Adjusted EBITDA: ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGlobalstar Inc (GSAT) Q3 2024 Earnings Call Highlights: Record Revenue Growth and Strategic Advances\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-09 19:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/globalstar-inc-gsat-q3-2024-110054126.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Total Revenue: Increased 25% from Q3 2023, reaching $72 million.\nService Revenue: Increased 28%, driven by wholesale capacity revenue and an out-of-period item totaling $7.5 million.\nAdjusted EBITDA: ...</p>\n\n<a href=\"https://finance.yahoo.com/news/globalstar-inc-gsat-q3-2024-110054126.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"GSAT","symbol_name":"全球星","start_time":0,"source_url":"https://finance.yahoo.com/news/globalstar-inc-gsat-q3-2024-110054126.html","article_id":"2482449164","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/3rU8Zii98BS2pBhMhWBPpw--~B/aD00MDA7dz00MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/f48fed6e614e532fee1cdb934cded99d"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2482449164","pubTimestamp":1731150054,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Total Revenue: Increased 25% from Q3 2023, reaching $72 million.Service Revenue: Increased 28%, driven by wholesale capacity revenue and an out-of-period item totaling $7.5 million.Adjusted EBITDA: Increased 34% with a margin of 59%, up from 55% in the prior year's third quarter.Cash on Hand: Ended the quarter with $52 million.Revenue Guidance for Full Year 2024: Raised to a range of $245 million to $250 million.Adjusted EBITDA Margin Guidance: Raised to 54% for the full year.GuruFocus has detected 4 Warning Sign with GSAT.For the complete transcript of the earnings call, please refer to the full earnings call transcript.Globalstar Inc  reported a 25% increase in total revenue for the third quarter of 2024, reaching a record $72 million.Service revenue increased by 28%, driven primarily by wholesale capacity revenue and performance bonuses.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"GSAT":"全球星"},"translate_title":"Globalstar Inc(GSAT)2024年第三季度收益看涨期权亮点：创纪录的收入增长和战略进步","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"GSAT":1},"content_text":"Total Revenue: Increased 25% from Q3 2023, reaching $72 million.\nService Revenue: Increased 28%, driven by wholesale capacity revenue and an out-of-period item totaling $7.5 million.\nAdjusted EBITDA: Increased 34% with a margin of 59%, up from 55% in the prior year's third quarter.\nCash on Hand: Ended the quarter with $52 million.\nLeverage Ratio: Remained healthy at 2.9 times.\nRevenue Guidance for Full Year 2024: Raised to a range of $245 million to $250 million.\nAdjusted EBITDA Margin Guidance: Raised to 54% for the full year.\n\n\nWarning! GuruFocus has detected 4 Warning Sign with GSAT.\n\nRelease Date: November 07, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nGlobalstar Inc (GSAT) reported a 25% increase in total revenue for the third quarter of 2024, reaching a record $72 million.\nService revenue increased by 28%, driven primarily by wholesale capacity revenue and performance bonuses.\nAdjusted EBITDA increased by 34% with a margin of 59%, up from 55% in the prior year's third quarter.\nThe company successfully extended its services agreement with its largest customer, which includes the provision of a new network.\nGlobalstar Inc (GSAT) received FCC approval to extend its authorization for 15 years to operate up to 26 replacement satellites, enhancing its leadership in mobile satellite services.\n\n Negative Points \n\nThe financial results included an out-of-period item totaling $7.5 million, which contributed to variability in financial performance.\nThere is uncertainty regarding the quantification of network usage during recent hurricanes, with no specific data provided.\nThe timeline for the new satellite constellation and its impact on revenue remains uncertain, with no specific details disclosed.\nThe company faces challenges in meeting customer expectations and internal processes for broader rollout of services.\nThere may still be variability in future financial results due to performance bonuses and other factors.\n\n Q & A Highlights \nQ: Can you quantify the network usage during the recent hurricanes and provide insights on the location of usage with the latest software update? A: Paul Jacobs, CEO, explained that while specific quantification in terms of power usage isn't straightforward, there was a significant increase in satellite utilization. However, details on location usage cannot be disclosed due to customer confidentiality. He also noted skepticism about other companies' claims of usage during the hurricanes, as Globalstar's own employees faced access issues.\nQ: With the new constellation announcement, when do customer interest and revenue discussions begin? A: Paul Jacobs, CEO, stated that while it's early to disclose specifics, discussions have started regarding the services to be provided with the new constellation. The technology team is actively working on capabilities, but no specific details are available yet.\nQ: Is everything on track for the satellite launches next year, and can you provide more specific timing? A: Paul Jacobs, CEO, confirmed that the satellite launches are progressing according to expectations, but no updated timing has been provided.\nQ: Can you explain the cash flow from the new service agreement and satellite constellation funding? A: Rebecca Clary, CFO, detailed that the new deal is funded by a $1.1 billion infrastructure prepayment and a $400 million equity sale in the SPE. This $1.5 billion will be used for CapEx on a quarterly basis during the construction period. Additionally, the debt refinancing has been completed as per the recent 8-K filing.\nQ: Regarding the Liquid Intelligent deal, when might it impact financials, and is this a strategy to be duplicated? A: Paul Jacobs, CEO, mentioned that proof of concepts are underway to train Liquid's team, and similar value-added reseller strategies are expected to be used in the future. This approach allows Globalstar to leverage partners' expertise in deep vertical applications.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"2","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2482449164"}