SBA Communications Corporation (NASDAQ:SBAC) Q1 2023 Earnings Call Transcript

Jeff Stoops: Below 50%,

Eric Luebchow: Okay, helpful. And I guess when you think about the dual band radios, is there any real difference in your ability to monetize amendments, whether they are separate C-band and 3.45 radios, or if it’s a dual-band, is it relatively equivalent in terms of your amendment revenue?

Jeff Stoops: Yeah, I would say it’s roughly equivalent, although the form factor is going to be less from a weight perspective in the dual band unified piece of equipment.

Eric Luebchow: Got it, makes sense. And just last for me, I know you’ve made a couple of smaller data-centered investments kind of studying the edge compute market I guess. Have you had any learnings from those or anything to report that maybe could give you some confidence to get bigger in that space over time, either through new development or M&A?

Jeff Stoops: Well, where we’ve continued to grow is in the edge and the fiber regeneration facilities. We are now up to somewhere between 40 and 50 of those. So what we found Eric is that there is high demand for quality locations where you have power and permitting and fiber. What really has not happened yet to our knowledge anywhere in the globe is the direct tie-in at the edge of the cell site to the wireless networks, which when that comes, that will unleash tremendous amount of demand at the cell site. But we’re learning a lot along the way through primarily real estate demand as opposed to demand for this computing to be tied in to the wireless networks.

Eric Luebchow: Okay, great. Thank you.

Operator: And next we’ll hear from Greg Williams with TD Cowen.

Greg Williams: Great, thanks for taking my questions. First one is on services. Your site development came in a bit stronger. Should we expect that also to sort of come down a little bit linearly? And second question is just on the dual-band radio opportunity on network services. So if T-Mobile and AT&T start deploying that, could we see an uptick in our services above and beyond your guidance? Thanks.

Jeff Stoops: Yeah Greg, we would think that services will be declining slightly into the second half of the year, but I think in a lesser pace. I mean, you can see what our outlook looks like and where the first quarter ended up. It’s only slightly ahead of that full year pace. So probably similar in the second quarter and maybe slightly less in the second half of the year, but relatively flat.

Brendan Cavanagh: Yeah. And when the dual-band deployment start Greg, certainly that’s going to benefit our services business.

Greg Williams: Got it. Thank you.

Operator: And we have no further questions at this time.

Jeff Stoops: Great. We want to thank everyone for joining us this evening. We appreciate your participation and we’ll talk to you in a quarter. Thank you.

Operator: That does conclude our conference for today. Thank you for your participation. You may now disconnect.