BroadbandEquities

Viasat Reports Q3 FY ’22 Earnings

ViaSat-3 rendering
ViaSat-3 rendering. Via Viasat

Viasat (NASDAQ: VSAT) reported earnings last Thursday. Highlights for the satellite communications player: 

  • $720M in Q4 2021 revenues, which is up 25% year-over-year.
  • Sales in Viasat’s Satellite Services segment were $310M, a YoY increase of 43%, largely driven by new aviation customers. 
  • Viasat posted a net loss of $6.6M, which the company attributed to “higher depreciation and non-recurring acquisition-related expenses.”
  • Adjusted EBITDA grew 10% YoY to $163M. Company margins shrunk by ~3% due to upcoming mission costs, M&A activity, and larger R&D spend. 
  • The company has a sales backlog of $2.1B, down 10% YoY. 

Virgin Atlantic has signed on as a new in-flight connectivity (IFC) customer. “Although COVID-19 continues to create uncertainty, the gradual reopening of the global economy has been a tailwind, especially for our commercial IFC business,” Viasat said. 

Looking ahead, Viasat has two notable events on the horizon this year…

1) Launching the $2.3B ViaSat-3 constellation. The GEO satellites are expected to bring unprecedented speeds, capable of delivering 1-Terabit/second network capacity and more flexible, dynamic, and targeted service for customers where they are located. 

  • A ViaSat-3 Americas satellite will launch likely later this summer, in a delay that the company attributed to supplier issues. EMEA and APAC ViaSat-3 satellites are set to launch six months and one year later, respectively.

On the topic of new competition from LEO players, “it’s a very big market,” Viasat Executive Chairman Mark Dankberg told analysts. “The better the services, the more value you can offer as a function of price, [and] the bigger the market is.”

  • “We’re seeing the market grow, and I think we’re still getting a share of that market that’s sufficient for our growth targets.”
  • “If you look at what we’re doing on the enterprise side, we tend to be a lot more vertically integrated into each specific market, where there’s quite a bit of value-add besides just providing a broadband pipe. “

2) Closing a $7.3B mega-deal. Last November, Viasat announced its intentions to acquire Inmarsat, in a would-be monumental merger that took the satellite world by surprise. Viasat CEO Rick Baldridge was recently in London to meet with UK security agencies. “This is not a step-in-and-steal deal,” The Guardian quoted Baldridge as saying. “It isn’t about ripping out cost to make the numbers. I don’t think people here will see a lot of change.”

Related Stories
BroadbandSatcomVC/PE

CesiumAstro Pockets $65M in Series B+ Funding 

CesiumAstro plans to use the extra funds to meet the market’s rapidly growing need for dependable connectivity.

BusinessEquities

ispace Raises $53.5M for Future Lunar Landers

Japanese lunar lander startup ispace has raised $8.1B yen ($53.5M) in a stock sale to help fund its third spacecraft. 

EOEquities

Planet President Kevin Weil Leaves As Company Touts Record Revenue

Planet ($PL) reported record revenue of $220.7M and a net loss of $140M in their fiscal year ending Jan. 31.

Broadband

Starlink’s FCC Request For More Spectrum Denied

Starlink may soon be in hot water with the International Telecommunication Union (ITU) for overstepping its boundaries when it comes to providing service in Iran.