Globalstar, Inc. (NYSE:GSAT) Q2 2023 Earnings Conference Call August 3, 2023 9:00 AM ET
Company Participants
James Monroe - Executive Chairman
Timothy Taylor - VP, Finance, Business Operations & Strategy and Director
Rebecca Clary - VP & CFO
David Kagan - CEO
Kyle Pickens - VP, Strategy and Communications
Conference Call Participants
Simon Flannery - Morgan Stanley
George Sutton - Craig-Hallum
Michael Crawford - B. Riley Securities
Operator
Good morning, and welcome to the Globalstar Second Quarter 2023 Earnings Conference Call. I will now turn the call over to Jay Monroe.
James Monroe
Thanks, everybody, for joining today's Globalstar's Second Quarter 2023 Investor Call.
In keeping with recent practice, I will make very brief opening remarks, and then we'll move straight to Q&A.
But first, please note that today's call contains forward-looking statements intended to fall within the safe harbor provided under the securities laws. Factors that could cause the results to differ materially are described in the forward-looking statements and Risk Factors section of Globalstar's SEC filings including its annual report on Form 10-K and for the financial year ending 2022 as well as this morning's earnings release.
As outlined in the release, Globalstar continued to see robust growth and a significant improvement in profitability, resulting in a 50% increase in revenue over the prior year's quarter. Adjusted EBITDA was up 86% over the same period.
And for the first half of 2023, our revenue was up more than 60% to $113 million and EBITDA was almost $60 million, an increase of over 140%. Our liquidity ended the quarter with $65 million, more than double our cash balance at year-end. Service revenue, unrelated to our wholesale business increased, reflecting organic growth in our commercial IoT business.
We expect this to continue, propelled by the launch of new 2-way device platform and services later this year. Average revenue per subscriber is expected to increase meaningfully after that introduction. As a result of these factors, we are increasing the low end of our 2023 revenue guidance from $185 million to $200 million and reiterating a forecasted adjusted EBITDA margin of approximately 55%, not including spectrum revenue.
A brief update on our Band 53 efforts. We are working on many fronts and engaged in engineering efforts with a wide range of companies which are working on Band 53 deployments. Our opportunity set is truly unique given, among other things, the installed base of devices capable of using Band 53 continues to grow. We expect it to be in hundreds of millions of devices by this time next year.