Is Starlink Nearing its IPO? Elon Musk's Venture Surprises with $6.6 Billion Revenue Forecast

Starlink Achieves Cash-Flow Breakeven: Is an IPO on the Horizon?

SpaceX Gears Up for Starlink IPO in 2024, Reports Suggest

According to a recent report by Quilty Space, initially covered by SpaceNews, SpaceX's Starlink could be on the brink of an initial public offering. The report suggests that the space internet company's revenue in 2024 could exceed $6.6 billion. The report praised Starlink's accomplishments in the last three years, stating, "Starlink's achievements over the past three years are mind-blowing." It projected a revenue increase from $1.4 billion in 2022 to $6.6 billion in 2024. To put things into perspective, SES and Intelsat, the two largest geostationary satellite operators who recently announced a merger, have a combined revenue of approximately $4.1 billion.

Starlink's Journey from 60 to Nearly 6,000 Satellites

In 2019, SpaceX launched the first batch of 60 Starlink satellites on its Falcon 9 rocket. Fast forward to the present day, and Starlink boasts a constellation of almost 6,000 satellites, over 5,200 of which are operational, and nearly 3 million terminals across 75 countries. In a November post, Elon Musk announced that Starlink had achieved breakeven cash flow, stating, "Excited to announce that @SpaceX @Starlink has achieved breakeven cash flow! Excellent work by a great team."

Starlink Expected to Achieve Positive Free Cash Flow in 2024

Quilty anticipates Starlink to reach positive free cash flow for the first time in 2024. This could be one of the significant milestones Musk needs to reach before launching a Starlink IPO. In 2022, Musk stated, "I'm not sure exactly when that [IPO] is, but maybe it will be like — I don't know, just guessing — three or four years from now." Billionaire investor Ron Baron told CNBC's Andrew Ross Sorkin last year that SpaceX plans to IPO Starlink in 2027. Baron estimated that by the time they go public with SpaceX and Starlink in 2027, the company could be worth between $250 billion and $300 billion. CNBC reported that the latest valuation of SpaceX was around $180 billion in December.

What's your take?

This article certainly provides food for thought. What are your thoughts on Starlink's projected growth and potential IPO? Feel free to share this article with your friends and spark a conversation. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6 pm.