The following is a summary of the Globalstar, Inc. (GSAT) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Globalstar reported an increase in total revenue for Q3 2024 to a record $72 million, which is a 25% increase from the same period last year.

• Service revenue saw a 28% increase driven by wholesale capacity revenue, which included an out-of-period item of $7.5 million.

• The company raised the lower end of its revenue guidance for the full year 2024 for a second consecutive quarter, now expecting $245 million to $250 million.

• Adjusted EBITDA for the quarter rose by 34% with a margin of 59%, up from 55% the previous year.

• The company announced a liquidity increase and a significant future revenue contribution from a new strategic deal, expecting more than double current annual run rates.

Business Progress:

• Globalstar has extended its service agreement with its largest customer and announced closure of the deal, which includes establishing a new network and managing a new prepayment agreement and equity sale.

• The company has regulatory reauthorization to operate up to 26 replacement satellites under the HIBLEO-4 license.

• Numerous initiatives including the development of a new satellite constellation and expanded ground infrastructure were detailed.

• Progress in business sectors such as government and consumer wholesale, and strategic partnership with Liquid Intelligent Technologies for distribution rights in Africa, the Middle East, and Gulf regions.

Opportunities:

• The extended service agreement and new strategic initiatives are expected to significantly boost future revenues and improve EBITDA margins.

• Approval for satellite replacement and extension of operations reasserts Globalstar's leadership and market opportunities in mobile satellite services.

• Strategic partnerships will broaden Globalstar's global footprint and enhance its capabilities in high growth markets.

Risks:

• Financial variability due to performance-based revenue recognition as seen with the $7.5 million out-of-period item affecting quarterly financials.

• Dependence on timely satellite deployment and integration of new technologies for fulfilling new service capabilities and maintaining competitiveness.

More details: Globalstar IR

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