BroadbandEquities

Viasat Reports Q1 FY23 Financial Results

ViaSat-3 render. Image: Viasat
ViaSat-3 render. Image: Viasat

Viasat ($VSAT) kicked off another busy week of space earnings after the bell Monday. The satellite operator reported Q1 FY23 revenues of $678M (+2% YoY), with a GAAP net loss of $22M (vs. $17M of net income last year). 

  • Viasat reported total consolidated awards of $783M (+32%YoY) for the quarter, good for a book-to-bill ratio of 1.2x and a backlog of $2.1B. (Book-to-bill = the ratio of orders received to amount shipped/billed over a given period.)
Viasat

Highlights: Viasat’s “satellite services” segment achieved record quarterly revenue of $312M (+14% YoY), driven by strong commercial in-flight connectivity (IFC) sales. 

  • IFC: Viasat ended June with 1,900 aircraft in service. A key customer win was Southwest Airlines, which inked a deal for IFC services on all new jets, starting this fall. 
  • M&A: “We are also well positioned to fund the closing of the Inmarsat acquisition,” Viasat wrote to shareholders Monday. 

Lowlights: OpEx dragged on earnings due in part to ground segment build-out ahead of the ViaSat-3 launch (which has slipped but is on track to launch later this year). Other unfavorable factors included “market entry and support costs,” along with higher sales and marketing spend. 

The ViaSat-3 fleet: Each ~6.4-ton beast is expected to bring unprecedented download speeds (100’s of Mbps), 1-Terabit/second (tbps) of capacity, and service that can be dynamically reapportioned to high-demand areas across the globe. The three-satellite GEO fleet, in Viasat’s telling, is expected to “provide the best bandwidth economics in the industry.” 

Needless to say, the launch of the first ViaSat-3 will be a pivotal moment for the company and a generational update 22,236 miles above Earth. Viasat said last week that it’s begun mechanical integration of ViaSat-3 Americas, attaching solar arrays, reflectors, and other accessories from the spacecraft wardrobe. Once that’s done, the satellite will be fully configured for launch for the first time. 

Related Stories
BroadbandBusinessCislunar

Q3 Earnings Roundup: AST SpaceMobile, Terran Orbital, Intuitive Machines, Momentus

We’re deep into earnings season, and the space SPACs have been reporting all week. Here’s our roundup of the highlights.

BroadbandBusiness

Delta and Hughes Partner on IFC

Delta is tapping into satellite internet. 

BroadbandBusiness

Amazon Argues to Reduce LEO Regulations

Amazon is teaming up with a handful of leading think tanks to launch the Alliance for Satellite Broadband, a coalition aiming to broaden global satellite internet access. The group was just announced yesterday, but it already has its first task: pushing regulators to update decades-old limits on signal interference between different orbits.  EPFD 101: Equivalent […]

Equities

Aerospace and Defense Primes Q3 Earnings Roundup

The aerospace and defense primes had a busy Q3 marked by massive SDA contracts, growing space divisions, and a few hiccups along the way.