Despite recent price changes, the satellite internet service added 1.7 million more paid subscriptions during Q2. according to SpaceX’s earnings report.
Starlink added 1.7 million new subscriptions in Q2. despite recent price increases that angered some customers. For the first time, the company also plans to launch gigabit V3 satellites into operational orbit during the next Starship test flight.
On Tuesday, SpaceX published Q2 earnings for the April to June period, showing Starlink has grown to 12 million paid subscriptions. The growth is high, and double its paid subscribers from a year ago. But questions have been circulating about whether the satellite internet service can maintain that level of user adoption after the company ended several promotions and began raising prices for the Starlink Residential plans in May.
The earnings report suggests the price hikes haven’t deterred interested customers. “Connectivity revenues were up 32% sequentially and 66% year-over-year to $4.3 billion, driven by strong Starlink subscriber growth,” SpaceX says.
Surprisingly, even with price hikes, the company’s average revenue per user remained at $66 per month, unchanged from Q1. The company attributed this to expanding its satellite internet service globally and ensuring it “fits local needs.”
In an earnings call, CEO Elon Musk also said the gigabit V3 Starlink satellites will launch on Starship flight 14. but this time they’ll enter an “operational orbit.” Last month’s Starship flight also sent up a batch of V3 satellites, but they remained in space for only about 20 minutes as part of a test before disintegrating on re-entry. “SpaceX engineers were able to successfully communicate with every satellite using radio frequency and laser links and downloaded key telemetry from the satellites,” the company says.
Musk added that SpaceX will need a “critical mass” of V3 satellites, probably at a 1.000. before the company can start offering speed increases to Starlink. “Approximately, second quarter of next year, would be where we’d get to that point,” he said.
The earnings report adds that Starlink saw even higher revenue growth from its enterprise and government customers, up 63% sequentially and 108% year-over-year to $1.8 billion.
“I would expect enterprise revenue to substantially exceed consumer revenue,” Musk added, pointing to the potential business demand.
Overall, SpaceX’s revenue reached $7.8 billion in Q2. up 92% year-over-year. But the company still posted a net loss of $541 million. “We ended the second quarter with $100 billion of cash, cash equivalents, and marketable securities, and $47.5 billion in backlog,” it adds.