Gilat Satellite Networks (GILT) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 13% year-over-year to $76.6 million, driven by strong defense business momentum, satellite networking, and the DataPath acquisition.

• Announced the acquisition of Stellar Blu Solutions, expected to close at the beginning of Q4 2024, positioning the company as a leader in aviation ESA and transforming growth profile.

• Continued leadership in VHTS and NGSO markets with multimillion-dollar orders from strategic satellite operator partners.

• Expanded presence in Peru with rapid progress on the Amazonas region project and follow-on orders from Internet para Todos.

• DataPath acquisition contributed significantly to defense segment growth and overall results.

Financial highlights

• Q2 2024 revenue was $76.6 million, up 13% year-over-year from $67.6 million.

• Adjusted EBITDA reached $10.1 million, a 10% increase over Q2 2023.

• Non-GAAP gross margin was 37%; GAAP gross margin was 34.7%, down from 37.8% last year due to DataPath's lower margins.

• Non-GAAP net income was $5.6 million ($0.10 per diluted share), up from $4.9 million ($0.09) last year.

• GAAP net income was $1.3 million ($0.02 per diluted share), down from $4.3 million ($0.08) last year.

Outlook and guidance

• 2024 revenue guidance reiterated at $305–$325 million, implying 18% year-over-year growth at midpoint.

• 2024 GAAP operating income expected at $15–$19 million; adjusted EBITDA at $40–$44 million, up 15% at midpoint.

• Stellar Blu expected to contribute $25–$35 million in Q4 2024 and $120–$150 million in 2025, with EBITDA margin above 10% once at full capacity.

• Updated guidance to be provided post-Stellar Blu acquisition closing.