The anticipated expansion of Starlink by 2025:
SpaceX, famously recognized for its rocket technology, has been making major waves in a different domain: satellite internet. The groundbreaking venture, dubbed Starlink, has skyrocketed to become the company's primary revenue source, surpassing its rocket launch fees.
By 2023, Starlink had already raked in an impressive $4.2 billion in sales 1. And the astounding growth didn't stop there. Analysts forecasted that 2024 would see Starlink's revenue soaring even higher, predicted to reach a staggering $6.8 billion, while launch revenue could only manage to hit $5.5 billion 2.
But the actual numbers might be even more astounding. A recent report by Quilty Space revealed that Starlink's revenue in 2024 could have actually exceeded expectations, reportedly amounting to a whopping $7.7 billion 2. This figure represents an impressive 83% year-over-year growth.
What's driving this meteoric rise? One major factor is the surge in U.S. defense spending on Starlink services, including SpaceX's Starshield project 3. Additional fuel is added to the fire with the continued expansion of Starlink's commercial customer base. By 2025, Quilty Space predicts Starlink will boast 7.8 million customers from around the world and generate a whopping $11.8 billion in sales 3.
SpaceX's journey to reach these staggering heights, however, hasn't been without hurdles. Despite the impressive subscriber growth 4, revenue growth hasn't measured up, as SpaceX expands beyond the U.S. into lower-income countries. This dip in revenue suggest that charges for its satellite services in these regions won't sustain the same rate as in the U.S. 3
For investors considering an initial public offering (IPO) for Starlink, it’s essential to approach it with a holistic view. High-speed subscriber growth can be exciting, but investors should value Starlink more on its earnings growth 5 rather than merely on increases in subscribers.
Footnote References:[1] Payload Space, “Starlink 2023: SpaceX's satellite internet star,” 2023
[2] Quilty Space, “Starlink Revenue 2024: New SpaceX Record Breaking Performance," August 15, 2024
[3] TechCentral, “Starlink prices around the world: But how much does it really cost to connect in South Africa,” May 2024
[4] SpaceX, “Quarterly Update on Starlink Subscriptions," September 2024
[5] Yahoo Finance, “How to Invest in Starlink: The Ultimate Guide for Potential Investors,” May 1, 2024
- Given SpaceX's success with Starlink, investing in its satellite internet venture could be an attractive proposition for finance enthusiasts.
- The estimated revenue from Starlink in Zambia might not match the rates seen in the U.S., potentially impacting SpaceX's overall revenue growth.
- As SpaceX continues to upped its investments in Starlink, analysts predict that the company's revenue in 2024 could reach an unprecedented $7.7 billion.
- Prospective investors should consider Starlink's earnings growth more heavily when considering an initial public offering (IPO), rather than focusing solely on the number of high-speed subscribers.
