SpaceX’s satellite internet business unit, Starlink, has reached a significant milestone as CEO Elon Musk announced that it has achieved breakeven cash flow. Musk shared the news on X, the social media platform that he owns, expressing his excitement and acknowledging the excellent work of the Starlink team. He further revealed that Starlink has become the majority provider of active satellites and is projected to have launched the majority of all satellites from Earth by next year.
Key Takeaway
SpaceX’s Starlink, the satellite internet business unit, has achieved breakeven cash flow, marking a significant milestone for the company. With their rapid expansion, Starlink has become the majority provider of active satellites and is projected to launch the majority of all satellites from Earth next year. This achievement raises questions about the possibility of SpaceX going public via an IPO. Starlink’s success is attributed to SpaceX’s vertical integration and its ability to serve various industries and respond to defense-oriented demands.
Although it is unclear whether this achievement refers to a specific quarter or period, it raises speculation about the possibility of SpaceX taking Starlink public through an IPO. Elon Musk had previously stated that the company would consider going public once the cash flow became predictable.
SpaceX President and COO Gwynne Shotwell hinted at the improving economics earlier this year when she mentioned that Starlink had already achieved a cashflow positive quarter in 2022.
The success of Starlink’s mega-constellation is attributed to SpaceX’s vertical integration. With around 5,000 satellites launched by their rockets, the company has been able to rapidly expand the Starlink network, outpacing its competitors. The network currently serves approximately two million subscribers across various industries, including consumer, maritime, and aviation.
Recently, Starlink also made headlines for its involvement in international conflicts such as the war in Ukraine and the conflict between Israel and Hamas. Recognizing the demand for satellite internet capabilities, SpaceX established Starshield, a defense-oriented version of Starlink targeted at the Pentagon’s requirements.
With a valuation of approximately $150 billion, SpaceX reported revenues of $1.4 billion last year, according to the Wall Street Journal.
