Iridium Communications Inc at Raymond James Technology Investors Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ric Prentiss - Raymond James & Associates - Analyst : Maybe for the audience that is more tech-oriented, why don't you start just with a little bit of description of what Iridium is and who you're serving?

Question: Ric Prentiss - Raymond James & Associates - Analyst : And so when you think of the different segments you operate in, you've got the government contract. Let's touch on that just briefly, you've got the legacy voice and data services to customers, the IoT, pretty exciting stuff with what's going on with Garmin in personal communication, and then broader band services than your private in the past, maybe kind of hit, let's hit on that government legacy?

Question: Ric Prentiss - Raymond James & Associates - Analyst :

Question: Ric Prentiss - Raymond James & Associates - Analyst : Yes. One of the investors I was talking to you today was like reminiscing about how you guys laid the plan out years ago, you executed the plan and you've been achieving the plan. The capital holidays happening where you don't have any major CapEx for significant number of years, taxes are on the sideline for several more years as well. One natural question then is, it sounds like growth is going very well. When do you hit capacity on the current satellite and when do you need new satellite?

Question: Ric Prentiss - Raymond James & Associates - Analyst : Okay. Giving guidance, we appreciate. Don't need quarterly that gets a bit minute, annual is good. You guys also have your kind of medium-term guidance, revenue guidance, high single digit 2023 to 2025. So it sounds like when you're talking through here with these different segments, still very comfortable on that.

Question: Ric Prentiss - Raymond James & Associates - Analyst : One of the things that's out there in the press. I know you can't talk about it a whole lot, is another driver beyond this, a possibility of providing communications directly to the smartphones.

Question: Ric Prentiss - Raymond James & Associates - Analyst : What can you share with us publicly and then help us understand just philosophically how you view that market?

Question: Ric Prentiss - Raymond James & Associates - Analyst : And there's a lot of confusion out there, because there's a lot of people in the LEO space, there's a lot of people in the neighborhood as you guys have kind of called it, help people understand here, maybe how you view SpaceX Starlink generally, but also what they're doing with T-Mobile, Project Kuiper with Amazon, what they might be doing with Verizon, ASTS, a start-up and what they might be doing with Vodafone and AT&T, just to name a few.

Question: Ric Prentiss - Raymond James & Associates - Analyst : So, Elon Musk. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 05, 2022 / 7:15PM, IRDM.OQ - Iridium Communications Inc at Raymond James Technology Investors Conference

Question: Ric Prentiss - Raymond James & Associates - Analyst : If you want just to tweet about it, that will be fine.

Question: Ric Prentiss - Raymond James & Associates - Analyst : And then Project Kuiper is still not really up in space.

Question: Ric Prentiss - Raymond James & Associates - Analyst : And so you've got Viasat Inmarsat. Maybe goes through, maybe doesn't. They've got some L-band, some S-band as well. How do you view what they might try and --

Question: Ric Prentiss - Raymond James & Associates - Analyst : Okay. The interest rate environment, clearly creating some pressure out there, [lunch] was interesting with Ed Mills and Tavis talking, how are you all feeling about your balance sheet right now? You're producing a lot of cash. What's the interest rate pressure and kind of uses of cash?

Question: Ric Prentiss - Raymond James & Associates - Analyst : Okay. You guys have got a stock buyback program in place as well. Update us as far as how you view buybacks and then vis-a-vis, is there a potential for a dividend ever?

Question: Ric Prentiss - Raymond James & Associates - Analyst : Strategic acquisitions. Philosophically, what would be of interest to you all?

Question: Ric Prentiss - Raymond James & Associates - Analyst : And you guys don't typically do direct sales, you use channels. Is that something I imagine is going to continue as a part of your DNA?

Question: Ric Prentiss - Raymond James & Associates - Analyst : You touched on dividend. What would be the trigger point that would kind of -- because dividends are forever, at least in my view. What would be kind of the way you would frame-up proposing to the board why a dividend all of a sudden starts to look more interesting.

Question: Ric Prentiss - Raymond James & Associates - Analyst : Okay. And why don't you spend a second, it gets a little confusing -- Iridium and Aireon, why don't you address and get people up today of what is going on with Aireon, and what it means to you?

Question: Ric Prentiss - Raymond James & Associates - Analyst : The timing as far as when you think. I know there's been some delays, COVID obviously through some curve-balls.

Question: Ric Prentiss - Raymond James & Associates - Analyst : Okay. The FCC has announced that they're going to have a lot more looking into space at the FCC, create like a Space Agency, definitely a task force. What would you like to see the FCC have on their radar as far as what they need to address as far as -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 05, 2022 / 7:15PM, IRDM.OQ - Iridium Communications Inc at Raymond James Technology Investors Conference

Question: Ric Prentiss - Raymond James & Associates - Analyst : Remind people what Ligado is?

Question: Ric Prentiss - Raymond James & Associates - Analyst : As always, it's little bit of a wild west for the webcasting side, little bit of wild west, lot of people just kind of claim in Homesteads and jump in stuff, and so little more rules, clarity and some kind of -- rules of life as I were to say here's what you do. You touched on spectrum. I think Matt has also talked about maybe being interested in trying to find some more L-band or maybe some other brands out there, doesn't sound like Ks are anytime soon?

Question: Ric Prentiss - Raymond James & Associates - Analyst : But something that would be interesting if you can find some.

Question: Ric Prentiss - Raymond James & Associates - Analyst : Right. Okay. When investors look at the story, what is it that you find you need to explain the most to them? What do you think investors are missing? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 05, 2022 / 7:15PM, IRDM.OQ - Iridium Communications Inc at Raymond James Technology Investors Conference

Question: Ric Prentiss - Raymond James & Associates - Analyst : Great. When you think about the new products, you've got the Certus is the brand name. You go out to Certus 100, 200, 700. Where do you think the sweet spot is for the next couple of years on these new product developments and is it maritime and I know you talked about aviation, but how should we think about where those products are going?

Question: Ric Prentiss - Raymond James & Associates - Analyst : And as far as barriers to getting those sales, Viasat and Inmarsat merger, any changes in the competitive dynamics, your ability to keep gaining share from Inmarsat on the maritime side?

Question: Ric Prentiss - Raymond James & Associates - Analyst : Okay. And as far as where you're at now, primarily the number of vessels, still a pretty good addressable market that you feel?

Question: Ric Prentiss - Raymond James & Associates - Analyst : And the ability to steal from? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 05, 2022 / 7:15PM, IRDM.OQ - Iridium Communications Inc at Raymond James Technology Investors Conference

Question: Ric Prentiss - Raymond James & Associates - Analyst : Okay. So the story is pretty straightforward. You guys have been telling a long time and it's playing out. You guys have talked about having in another Analyst Day in 2023, probably May timeframe. What does it you want to communicate by that point in time? Not specifics obviously because you haven't said. But what do investors need to get from you guys?

Question: Ric Prentiss - Raymond James & Associates - Analyst : Okay. So I guess I got all my questions. Brent, how are we doing on time? Eight minutes more, we're doing rapid fire or lightening (multiple speakers) question one, question two, question three, you got them all going. Yes, I guess speaking about Ron Baron, right, Elon Musk, I think runs conference now. (multiple speakers) Yeah. When people want to say Spaceman, how does Iridium compare to Elon Musk that way then as far as just thinking about what you're trying to sell into the marketplace as opposed to what they're trying to sell in?

Question: Ric Prentiss - Raymond James & Associates - Analyst : Okay. So you've hit the guidance. I guess one other thing you've talked about recently is how fast you got from 2 million to 3 million customers versus how long in trying to get from 1 million to 2 million, or have zero to 1 million. How should we think about that speed, that trajectory. We've talked a little bit about the IoT and the personal comps space and then I assume if there is a direct to handset, direct to smartphone, that will drive this even further.

Question: Ric Prentiss - Raymond James & Associates - Analyst : Yes. So what keeps you up at night? I mean you're pretty excited, the stocks responded nicely --

Question: Ric Prentiss - Raymond James & Associates - Analyst : Naturally, from an investor standpoint, people like okay, that's too good to be true. Is it too good to be true?

Question: Ric Prentiss - Raymond James & Associates - Analyst : Yeah. Brent. Unidentified Participant Yes, so not a lot. How should investors be thinking about valuations endpoint (inaudible - microphone inaccessible).

Question: Ric Prentiss - Raymond James & Associates - Analyst : Dave? Unidentified Participant Yeah. I guess --(inaudible - microphone inaccessible)-- if you look at that, how do you break it into what's addressable for now (inaudible - microphone inaccessible) for the current stall base(inaudible - microphone inaccessible) REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 05, 2022 / 7:15PM, IRDM.OQ - Iridium Communications Inc at Raymond James Technology Investors Conference

Question: Ric Prentiss - Raymond James & Associates - Analyst : How big?

Question: Ric Prentiss - Raymond James & Associates - Analyst : And there are a lot of models -- is it carrier driven, is it handset driven, is it network driven. How do you view the right way to play in that space?

Question: Ric Prentiss - Raymond James & Associates - Analyst : And from a standpoint of what service you can provide to them, it feels more robust than some of the other offerings that have been suggested out there. And instead of just emergency only, one way only, very limited, pre-screen menus -- it feels like you guys could have a more robust offering. Is that fair to say?

Question: Ric Prentiss - Raymond James & Associates - Analyst : The capacity of your satellite, the fact that your satellites are in this space, your ability, whether you provide it or not, certainly seems more significant? Is that a safe way of asking the question?

Question: Ric Prentiss - Raymond James & Associates - Analyst : Okay. One of the other things that cause a little spike in CapEx, there is the CapEx holiday, but the results spike up recently -- continue for a little while longer, you're launching some of your ground spares.

Question: Ric Prentiss - Raymond James & Associates - Analyst : Right. And what benefits do you get out of that?