The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Ric Prentiss - Raymond James - Analyst
: Great. When we think about one of the other hot topics that we get from investors, whether it's about satellites or wireless or tower companies is
the -- aren't satellites going to replace terrestrial wireless. Are towers going away? Is wireless going away? Is traditional legacy satellite phones
going away. Talk a little bit about what this directed device or non-terrestrial network aspect is of connecting satellites with phones. What's the
reality and what's your opportunity?
Question: Ric Prentiss - Raymond James - Analyst
: And what's the difference between that and what you're trying to do with Qualcomm?
Question: Ric Prentiss - Raymond James - Analyst
: Okay. You've got your guidance for '25 is out. You've got targets to grow that service revenue to be $1 billion by 2030. Remind us of what the '25
range is and kind of where -- what gets you down the path that by 2030, we're sitting in here and the $1 billion is in hand?
Question: Ric Prentiss - Raymond James - Analyst
: The ballpark, up 50% by 2030.
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MARCH 03, 2025 / 4:35PM, IRDM.OQ - Iridium Communications Inc at Raymond James Institutional Investors
Conference
Question: Ric Prentiss - Raymond James - Analyst
: And when you did those every kind of 5-year boost, was it like 10% growth in ARPU?
Question: Ric Prentiss - Raymond James - Analyst
: And then step up and then 5 years and then 10%.
Question: Ric Prentiss - Raymond James - Analyst
: And I think that gets to something -- some people think of casual users versus real users. It feels like your network is more for people that rely on
it as opposed to that are just casually using it?
Question: Ric Prentiss - Raymond James - Analyst
: So a large part of the Iridium story is you've got the constellation up there. You've got the capital holiday that you don't need to build Constellation
Three, Constellation one couple of decades ago, Constellation two went in service about 6 years ago or so, 5 years ago. Talk a little bit about your
comfort that both technically and commercially, you don't need another satellite constellation built until when?
Question: Ric Prentiss - Raymond James - Analyst
: So when you think about that service revenue growing 50% ballpark from '25 guidance to the target of 2030, fairly high margins 60%, 70% kind
of margins, produces a lot of free cash flow. So the plans, as you've illuminated have been -- we're going to do a lot of shareholder returns.
Question: Ric Prentiss - Raymond James - Analyst
: $3 billion from '23 to 2030. Update -- remind us of where did you end last year towards that $3 billion number? And how do you look at that? Like
why not accelerate stock buybacks if the market is concerned about the boogie man and you're not?
Question: Ric Prentiss - Raymond James - Analyst
: Okay. See if there's any questions in the audience. I'll throw one more in our remaining couple of minutes. The short interest continues to go up
on the stock. The stock buyback, obviously helps mitigate some of that, but use this forum this stage and say, what do you think the shorts are
getting wrong? Help -- those in the audience figure out why the shorts are right or why the shorts are wrong and why? Help the investors sitting
in the room and on the webcast understand your view.
Question: Ric Prentiss - Raymond James - Analyst
: It feels to us almost like Starlink and Iridium are more -- Iridium is more complementary to what Starlink is trying to do as opposed to Starlink is
competitive against ride?
Question: Ric Prentiss - Raymond James - Analyst
: Great. We'll wrap it there, get everybody off to their lunch. We've got a breakout that we'll do downstairs. Thanks, everybody.
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MARCH 03, 2025 / 4:35PM, IRDM.OQ - Iridium Communications Inc at Raymond James Institutional Investors
Conference
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