Iridium Communications Inc. IRDM recently partnered with Blynk, a top Low-Code IoT SaaS platform, to empower engineering teams and businesses worldwide by streamlining the creation and deployment of satellite-enabled IoT solutions. The collaboration introduces the Iridium Certus 9704 Development Kit, a comprehensive evaluation tool crafted specifically for the state-of-the-art Iridium Certus 9704 IoT Transceiver. 

Designed for seamless satellite connectivity, the kit ensures global communication capabilities, even in the most remote and challenging environments. Integrated with Blynk’s IoT platform, this development kit acts as a catalyst for innovation, unlocking new possibilities in satellite IoT. Blynk facilitates every phase of IoT deployment, from creating Minimum Viable Products to expanding into enterprise-level solutions, removing the need for platform migration.

A key contribution from Blynk is its customizable IoT blueprints, designed specifically for the Iridium Certus 9704 Development Kit. These ready-to-use templates significantly reduce the time and effort required to implement satellite-based IoT tools. Each blueprint includes pre-built firmware and personalized mobile and web dashboards to meet specific project needs.

The Iridium Certus 9704 Development Kit offers businesses a simplified, all-inclusive solution for launching satellite-powered IoT projects, eliminating the usual challenges and high expenses of satellite integration. The synergy between Iridium and Blynk makes satellite IoT more accessible by delivering a ready-to-use platform for device management and seamless scalability. Through Iridium's satellite network and Blynk's pre-designed dashboards and IoT templates, industries like agriculture, logistics and energy can swiftly enhance their IoT capabilities with continuous monitoring and dependable global connectivity.

Strong Growth in Commercial IoT Buoys IRDM’s Revenues

Commercial services continue to drive a major chunk of IRDM’s business, contributing $133.3 million in revenues with 6% year-over-year growth in the last reported quarter. The uptick was powered by increasing demand for IoT data and voice services across industries like maritime, aviation, oil and gas, mining, recreation, forestry, construction, transportation and emergency services. 

Commercial IoT revenues reached $43.7 million in the quarter, reflecting a 14% year-over-year increase, fueled by 14% growth in subscribers, totaling 1,902,000. Consumer personal satellite communication devices and commercial users, which rely on Iridium’s dependable satellite network, played a major role in this growth. Iridium added 2,341,000 billable commercial subscribers in the third quarter, up from 2,094,000 in the second quarter, and expects IoT revenue to grow in the mid-teens in 2024.

In the last reported quarter, service revenues grew 5% year over year to $159.9 million, making up 75% of revenues. Growth was driven by strong recurring revenue from higher subscriber activity, boosted by gains in commercial IoT and hosted data services, despite weakness in commercial broadband.

Due to its strong third-quarter performance, Iridium has tweaked its 2024 outlook for total service revenue growth to around 5% from its previous forecast of 4-6%. Improved financial performance and revised guidance are likely to propel IRDM’s stock.

IRDM’s Zacks Rank & Stock Price Performance

Iridium currently carries a Zacks Rank #3 (Hold). Shares of the company have lost 24.2% in the past year against the industry's growth of 6.8%.

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Stocks to Consider

Some better-ranked stocks from the broader technology space are InterDigital, Inc. IDCC, Celestica Inc. CLS and Plexus Corp., Inc. PLXS. IDCC & PLXS presently sport a Zacks Rank #1 (Strong Buy), whereas CLS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 17.44%.

Plexus is a leading provider of electronic contract manufacturing services to original equipment makers in a wide range of industries, including Healthcare/Life Sciences, Industrial and Aerospace/Defense market sectors. In the last reported quarter, PLXS delivered an earnings surprise of 20.92%.

CLS provides competitive manufacturing technology and service solutions for printed circuit assembly and system assembly, as well as post-manufacturing support to many of the world's leading original equipment manufacturers. In the last reported quarter, it delivered an earnings surprise of 10.64%.

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