SpaceX CEO Elon Musk said on Thursday that the company’s Starlink business has achieved breakeven cash flow, rekindling hopes for its IPO.
What Happened: “Excited to announce that SpaceX Starlink has achieved breakeven cash flow! Excellent work by a great team,” Musk wrote on X, formerly Twitter.
“Starlink is also now a majority of all active satellites and will have launched [a] majority of all satellites cumulatively from Earth by next year,” the CEO added.
The wording of the post, however, left a few X users confused whether Musk was talking about SpaceX as a whole or merely the Starlink segment of SpaceX business. However, it was reported earlier this year that SpaceX made a small profit of $55 million in the first quarter of 2023, leaving s to assume he is talking about Starlink now.
In 2015, SpaceX reportedly told in a presentation that its satellite division would be making $12 billion in revenue and $7 billion in operating profit by 2022. Though the segment has now achieved breakeven cash flow, it is way behind the predicted timeline.
Why It Matters: SpaceX, a private company recently valued at $150 billion, does not publicly reveal its finances like Musk's public company Tesla. Its financials and performance are hard to come by.
SpaceX's Starlink refers to broadband satellite internet provided with the help of satellites in low-Earth orbit. In September, SpaceX wrote on Starlink’s official X handle that the service is now present in over 60 countries with over 2 million active customers. SpaceX has launched about 5000 Starlink satellites to orbit thus far.
Three years ago, Musk had said that SpaceX would probably IPO Starlink when its revenue growth is ‘smooth and predictable.’ The billionaire also said retail investors will get top priority in the eventuality of an IPO.
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