How much money Starlink makes has long been a mystery. But a new report suggests the satellite internet service is struggling to reach SpaceX’s financial targets.
According to The Wall Street Journal, Starlink pulled in $1.4 billion in revenue last year and $222 million in 2021. The year-over-year growth has certainly been strong, but revenue still falls far below the company’s original projections. The Journal cites a 2015 presentation SpaceX made to investors, which shows the company envisioned Starlink generating almost $12 billion in revenue and $7 billion in operating profit by 2022.
In addition, the company originally projected Starlink would have 20 million subscribers by 2022. But in December, SpaceX reported just over 1 million active subscribers
Clearly, the company is nowhere close to reaching its original goals. But SpaceX may have revised its targets since the 2015 presentation to investors as regulatory oversight and delays with the company’s Starship vehicle slowed the satellite internet system’s development.
Still, making enough revenue is critical for keeping the service online. Starlink has emerged as the leader for satellite internet connectivity, as evidenced by the system’s use in the Ukraine war. However, Starlink satellites are designed only to orbit the planet for about five years, before they descend and burn up in the Earth's atmosphere.
As a result, SpaceX needs to continually refresh the satellite network with new hardware, which will require potentially billions more in capital expenditures. Whether Starlink is even making a profit also remains unclear.
We reached out to SpaceX for comment, and will update the story if we hear back.