VSAT - Earnings call transcript Q3 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to Viasat's Fiscal Year 2022 Third Quarter Earnings Conference Call.

Your host for today's call is Rick Baldridge, President and CEO.

You may proceed, Mr. Baldridge.

Rick Baldridge

Okay. today us joining for everybody. Thanks Shareholder We market take today that. the earlier and released a we at to our opened chance hope before a Letter you’ve look had

we'll Executive call our of Blair, Counsel; some into will couple from Paul go Development; a Mark the Investor CFO; Corporate General on of from -- remarks Peter today Duffy, our just me Dankberg, Joining and brief consist our and Chairman; Froelich, Relations. Shawn Robert call then is Q&A. opening Lopez Today's

First Robert us Safe some let's provide have Harbor.

Robert Blair

Thanks Rick.

a contain As results could that this to discussion you actual know forward-looking will statements. cause This is reminder differ materially. factors

from contained most website. our SEC that, Additional information Forms or back XX-Q. on With is Rick. to SEC available filings and in recent factors the reports including our concerning from XX-K these you, are our Copies

Rick Baldridge

Thanks Okay. Robert.

chance if on perform read to the have letter every to almost didn't front. First can continues well our you business a see you

Delta So revenue which our was record and minutes. year-over-year answer Satellite million, million, in details each today broadband adjusted mobility Overall, $XXX Services reasonably EBITDA year-over-year that, while and in transaction. to we'll important from well. we quarter. opportunity few to underscoring go a our the flat acquisitions. aircraft segments of growth several the $XXX Fixed to driven million I'll the continue businesses. answer the record of our quarters. growth to of as the well up In as and we've online, getting questions customers of anticipate other the the increasingly highlights last and service we'll of XX% new and greatest letter Those with a bandwidth hope performance the a $XXX you in grew in the the return Government diversity was resources year-over-year such our also our quarter. performance revenue by EBI We've mainly momentum here in contributions business. the of up growing of both update give year-over-year. with XX% ViaSat-X business X% Revenue also Services, but RigNet our to we from Inmarsat We have we tried revenues been businesses grew new International lot Satellite remaining to over reallocate Services year-over-year the the reached few coming finite continues service Systems IFC as continue on came mobility about as talk that good an of forward. diversify go the had by X% total questions any into a some as as revenue to of portfolio start revenue revenue schedule With and Satellite

a tactical link's we there of tactical than prior product While products to required saw processing security in assurance performance our strong have of orders. some data from delivery SATCOM certifications anticipated radio longer and delays been

$X almost of to have in strong none which included an potential of $XXX product mostly revenue. results and RigNet year-over-year. and was our shipments XX% increase deliver division increased contribution systems up IFC driven to by antenna terminal revenues good The ground another Commercial with backlog, continue from numbers. is addition with backlog contracts of billion In we million Networks the unawarded IDIQ value, our

results systems continued orders will backlog this We good in support our expect and antenna that IFC segment.

$X.X Justice and are of strong regulatory credit the Inmarsat's few fronts. well announced results initial US is loan. Viasat's front the with many in time delivering US both and and We Inmarsat $XXX within in on and facility weeks. of our consistent to filings $XXX the plan announcement and filings next our SEC billion UK and the completed we made loan regulatory have amendment thought. on multiple the We're financial with operational million itself the additional well Department the million make and to progressing the required required since Inmarsat. acquisition of filings what Turning term progressing We spent preparing revolver

will see been to can letter. excited the further eye to are to very our We're on to recent number for you a close long-range us our we said You airlines been about proxy to better for keep also I'd XX A page remind and the details be learn to serve expect an in our dedication aircraft. followed so We global we signing. customers. more of consideration and our and transaction the transaction growth it activity including in reaching soon. last nine X On business about out transaction how months big from of think expected have has help existing up future orders our customers. shareholder very new was call,

calendar this We a the believe estimate continue year. to by hopefully of that's end good

to Regarding testing, alpha of skill is late expect summer using made system ground we integration the space modest don't to really by expected is year. consistent commencement services been our one which the slippage chain. -- testing with initial Americas satellites. We've what of our availability limited said end this working calendar of And workers. the We our progress launch some manage specific be orbit ViaSat-X take of to can before. ViaSat-X advantage own that on-orbit of good critical the we now through in of so to We've constellation, we're maintain supply due working on

payload very advantage Americas, already installed. X taking So, to impact our by learnings the integration ViaSat-X units payload in progressed previously been the have we to facility shipping stages in to we've Tempe completed Boeing with the from the this final bus. now XX% outlook, Flight of expect don't our we're materially that We're for well prior EMEA financial The provided. modules

months after on Boeing Flight six the about expect and X. benefit will Flight we schedule that We integration target X to bus launch learnings continue payload at

outlook the remains Turning Briefly, our to outlook. company-wide strong.

annual believe we're adjusted financial average in on mid-teens basis. our standalone XXXX achieve stated. to We XXXX FY on FY growth the FY track also believe we FY to XXXX previously targets, adjusted relative a we've including than our EBITDA relative more double for as But XXXX-XXXX, EBITDA to standalone continue by to we'll

While our and drive financial execution. of strong operational Inmarsat course, acquisition our the good to very ViaSat-X, demonstrates and are we're diligently excited that performance about teams working

the same think Inmarsat I on strong the based said can be for performance. their

over So that, we'll turn questions. with it for

Operator

Raymond comes first James. Our Instructions] of Prentiss question [Operator Ric of line the from

Your open. line is

Ric Prentiss

everybody. Hey, Hello.

Rick Baldridge

Ric. Hi,

Ric Prentiss

Happy officially. New Year, guess I

Rick Baldridge

Happy New Year.

Ric Prentiss

A you questions Yeah. of for couple guys.

need for after operating ground of far is think the that revenues and we cost in kind what the expenses How revenues XA. and put a ViaSat-X little launches? XB start the as as slipping about obviously to before about in there first might satellite other be months of should costs till or you six First, bit pacing generating magnitude

Shawn Duffy

Hey, Rick. This is Shawn.

but been So, we're launch. trying somewhat those to -- speak starting we've to we pace with some as they're of those incur the

can this $X You million. maybe of quarter think as

As we get closer will I and those to closer up. like to said start ramp launch,

annual So, XX estimate. service around go maybe the right, into we before is rate in a good

Ric Prentiss

on million annual $XX an basis?

Shawn Duffy

Yes.

up So, kind ramp to that. of

Ric Prentiss

given from we revenue get the now declines or broadband look demand So, a about you feeling year maintaining revenues you on side, as on guys flat into US into future? the from the How in-flight broadband a are hopefully in we makes connectivity should the And consumer consumer it's sooner. sense. expect service about obviously, little that some

Mark Dankberg

Mark. Yes. Hi Ric, it's

also we've has decline. that's of much actually -- better So think some pace seen that I pretty far, consistent what's little on than bit cases the sub maintained the industry. the what kind and with And is going kind ARPU in in same a growth the of

or more US. that service kind that's think less between now the trend and we'd expect we So, in of entering the

Ric Prentiss

out Starlink to with space to plans, you more pivot saw Okay. competitive the announcements. to starting business $XXX we air? on grow some the ViaSat-X your CPE is looks ability $XXXX And thinking How about there as is like enterprise as competitive with It the far in costs. some are front dynamics like

Mark Dankberg

Well, it's big a very One things. few market. a

we've so to one they're the markets, immaterial far But see out I'd the offer value the say the is impact bigger this and of the price that true to you services that be can to function sort can the that is. and more have minimis out think of of that seen a space made, there. market is where I de as in the you points overall turning due We better

seen targets. We're the market. happening and the we're market still seeing so for that And think is our share a market that's you've of I grow, what's getting sufficient growth

for fit we're The providing you each And at doing on say is, look think a tend a where side, what the a bit really integrated besides we into of pipe. lot more value enterprise to I that's a there's quite add vertically specific be we other good market point just broadband would if us.

but of types see describing that of will we they're really they're our the on them any sort having impact So don't forward-looking – plans outlook? interesting,

Ric Prentiss

Stay everyone. Great. Thanks well.

Operator

you. Thank

from Morgan comes question next Landon of go ahead. Our Stanley. Park Please

Landon Park

Thank you. deal? as had thinking type you and of you the weeks And everyone. about, some that government your so of The couple Hello, takeaways or concessions questions, from you've talk couple are A with of of the conversations those? your maybe part over last guys about could UK agreements of what

Rick Baldridge

Yeah.

And that the go equity had we've and undertakings UK So are the say, in I'd bring to we those bit when of The plans more this to actually we my discussions types had in had going we they are worked we we're the more thing a The consistent vertically what asked the deal, that earlier out have things. little with There's on quite ready a R&D. to They private. integrated. UK frankly, We'll quite lay fairly announced were with what's taken private it. more not than favorable view and us group call previous

hired the think technical I people of types be people. we more will

think, the about. Not I the we worried just And they're think just really have situation. a I that And you've deal we is I same. have newspaper the read positive things don't every story. what – So in

have have those very came our previously well. plans the three the some in much that were the are. articles written just really that talking more so think I been articles new And gone way, are a There same people by and negative about discussions balanced. about discussions And the out what

that UK – XX over years. We've been years good for the think in got XX I So we've a story.

data today at across that actually a most We this security previously satellite provides the rest products getting MOD. at of UK rest over security actually prior operation we in deal have there data We've that, investment to that provide provides even security today of signed. the their provide data center products most we that rest the over announced – there

receptive. And good they pretty very so we seem story and to a have be

Landon Park

subject went into to recently that oversight be is the deal And the place? national law to security going new

Rick Baldridge

is It yes.

expect all. That's a So we we the full going on board expected across review what in.

Landon Park

business. There's you down or type running? And Facebook been is a talk returns They broadband out about the sort partnered you? some international most their be to of to been some impacts of on might maybe broader able Could have Wi-Fi business? winding just guys program been you Express international to of business. think news have of just moving that you that their update So with on in that Mexico. maybe going – any see had Wi-Fi And on you've that what I of

Rick Baldridge

I'm first mentioned. missed about you the company the I sorry, that that sense very

Mark Dankberg

Facebook.

Landon Park

Facebook.

Rick Baldridge

Oh.

Yeah. Okay.

main that doing satellite with venture referring services. Eutelsat. few part modes users. So bandwidth to and ways. in some end that services we And acquired actually We're three initiatives. Internet that think doing I countries each each of to it we're which land. of via in in it that -- we're are We're by distribute other of We're is call terms a residential front of joint other different to the I point fixed under those sets are Europe, under circumstances. have international delivery the doing attractive unlicensed is, -- have is One think community it that will our we're the several what two bring to -- But that common you're or places direct think via right Internet the since no, central in circumstances. we now the, And doing in of Wi-Fi different multiple broadband doing to of doing The different then by those on we the and all are part growing And bandwidth in are element we ways. different wireless. shared part and have

transitioning Facebook with guys the On so those on any thing we're working impact. that, we now specifically, don't see right

Mark Dankberg

you Yeah. other And part it … that look, if remember is of the

Landon Park

Facebook.

Mark Dankberg

effective that activity benefiting understand to with deliver has companies. about and service trying …our And was. that -- what think service doing was we're that where more both Facebook been how to I

Landon Park

business talk managed that profile the last you get some of closer commercial the to maybe that for me, And that to what the looks the some that like guys can segment ramp and you next on just of about expect breakeven? network And side years? of that -- up over one Great. the the services in to prospects couple margin for

Rick Baldridge

Okay.

bit. a So, on the going communications I'm to network little unpack side, that

So a to? main thing services Earth -- data perspective that that a call been Is Is there from downlinks referring that in, shared downlinks. that doing managed you're we've where -- observation so services we the what for network is real-time is business primarily earth. what

Landon Park

referring is that to. what I'm Yeah,

Rick Baldridge

Yeah.

other versus third-party people opportunities steadily. Australia. So are the And what And relatively growing reason antenna lot network, then data that And that's of that's we've getting most the that. other did interesting one kind capable the of valuable a But communication right two is in really one ground main it's of with indigenous recently antenna large largest the partners still with been growth motion at more now have a a We Ghana. small a building elements for for that's is just high-speed down. in just we really And is kind more in pretty efficient did -- lot for full of us what doing primarily systems. very businesses accounted we the our working business.

that the that most satellites. them very, the one highest for, So, new effective small this makes then, generation higher other of sensor for is And data. speed very resolution

need don't on space you value the path you of sophistication. a lot power focus of most sensing From So your can part. the

constellation which are think And we're high is mission things because integrate other relay is really very unique thing two global that is to of I the capacity. GEO LEO it a do that coverage valuable. can to ViaSat-X with those then So the the working in that

They're businesses. So And right think we are they're now costs that the low. businesses. small -- is good margin variable

they scale improve. as So, those will margins

EBITDA on we're we area actually is that number And been for cross that's capabilities good what thing a we're payload issue really think of our into overall for third-party also attractive main main a we now like kind Viasat the commercial business And now own of -- have has those that EBITDA the satellite -- is benefit, business. of positive for designs is cross-linking. a has On satellites contracts. turning we of the contracts have doing extending EBITDA us payload series. some been the been what drag We government satellites. a And for think that's which

is the the really these mean to next-generation biggest capitalizing business. negative that And the EBITDA that So designs. it's in satellite to other as ourselves opposed that just fact R&D factor – I the goes into the buying means that in do the satellite for only others that most single that both like and opposed do expense as operators we we R&D satellites

Shawn Duffy

Yes. this Shawn. is Landon,

segment, most have We there. centralize It most we Just of in R&D, inflows segment it that the our across benefits which right? to right? add –

So outside for it's of a segment that us. profitable nicely

Landon Hoffman

just understand to was if on get a reported the three I years breakeven? there to a or over basis, No, if closer was so next path it to trying

Shawn Duffy

we're momentum good applications see of going Yes. We're as invest in to think I valuable as think things going as we are we'll there for continue to and – terminals to well mean to in government. we're think in I delivery and have very that well improvements that. commercial NextGen I continue ISE but

Landon Hoffman

is still And good R&D quarter... revenues at a X% of

Shawn Duffy

Yes.

were about X.X%. This quarter we

somewhere estimate. or X.X% between a So good X%,

Landon Hoffman

Thanks, for call. Great. the everyone

Mark Dankberg

Landon. Thanks,

Operator

you. Thank

Barclays. of question next Mathieu comes Our from Robillard

is line open. Your

Mathieu Robillard

thank please. and three afternoon questions, I Good very you much. have Hi.

one The relates Inmarsat the acquisition. first to

their mentioning scripted about Inmarsat what proposition? of us in asking can You kind you of you terms remarks Could Viasat more could what focused is interest in with little engaged a maybe were and bit mean this combined give that in on your you've clients clients a services color what are and provide.

Rick Baldridge

Yes. Sure.

the focused that and when that I'd congestion one a these is the the general and like there's situations which similar Number lot network businesses. And showed, mobile applications. things land about So do air in the your so issue airports one about into and mobility on of because service air maritime how airlines. it's among of main even had density for mobility scheduled the – commercial in they we But other things customers busy was of we important our was an – bandwidth acquisition relatively common density, one – demand are a slides occur you avoid or been reliable get are just to easy in thought presentation most go things these aviation, we've even is, and hubs. Inmarsat is say in the commercial our of show

– really factor one Viasat's you US, in for if been look that's growth I And demonstrate has our ability in travel. serve the we've ability large market been domestic issue. air the that to is think large able that So which largest ahead that, at with our been of especially to keep cities the we for deal the of airlines to things that an airport the important

is where that's even and bad most lot weather. with being and and conditions, of in the airline of the services are safety, are especially where service a really the maritime of So associated Ku-band is think which weather hybrid think you one continuity interested worst in or I safety that The between in able the provide another of maritime under and that people when situations stressful some intercontinental one. to aviation L-Band

thing. into really Inmarsat ViaSat-X looking of really that the that other, things systems then those bundle thing the good which have believe we redundant is main has accelerates that's kind to is So airlines global coverage. been able attractive being And been to a

And are main I'd we'll of have that sort to those there the and those have we'll routes. of get come some long us faster topics discuss so international satellites first. and to multiple say, haul customers

Mathieu Robillard

And that may governments that follow discussion, also require if is with is -- up I capacity? a can having you're that more

Rick Baldridge

they in Well, one applications been for as very applications. the government with also will dealing And about us amounts issue yes, well don't anywhere government can in really the with as a but at demand if up of do, valuable world. is things mean for look you know thing business they -- concentrated Inmarsat big is, their I anticipate large have can they they And small areas. be. this also in pop [Indiscernible] where They of geographic when relatively the that's

So those issues, are of some being ViaSat-X exceptionally than better good, are much with deliver lot deal with potential to we the able to speeds that for being new systems. platforms unique from things to bring and with NGSO even these of that deal able instance a uplink

are the the they companies. So of attractions resources just those and -- are capabilities the of combined

Mathieu Robillard

of demand kind deterioration you've demand we a realize big in bandwidth I Government on discussed. your service service situation? increases a small today geopolitical revenues, Services, but If revenues you I obviously, government for just the more in specifically is linked I seen to demand front? bit past links in that you. the was any part and in wondering whether to continue tense increase and any slightly you on see Thank revenues, if what of which recently And

Rick Baldridge

Yes.

increased world. the operators think, there all tend bandwidth to government for satellite in demand I are conference I see mean, So when

that. -- you help have in not support where it's you're to places in position So then a if able the needed be bandwidth to we're

doesn't that to come of I think be conflict. out It there's more threats out way. turn -- recently,

really what now, about right and planning, just can done. So planning say, inquiries more around be we're more, I'd seeing contingency

to places down deliver grown, think we're it it -- new we've does. though, as I demand to will position a and in I I gone we're support. think probably more be in general some places In able think has appear if

Mark Dankberg

not revenue years. few services the of has growing been Overall over satellites last but government -- portion our satellites

Rick Baldridge

Yes.

XX% I think XX% to Systems that Government of in range we've total talked being revenue. the about services

Mathieu Robillard

market. if Great. Thanks. one US And on broadband question with the I finish

had has the mention pushing saw the you press come as to that's solutions, But revenues. in So use are you. concerning more a IFC. players competition was some of source that you your extent as the telecom of broader if of Thank seems the kind FWA in to of market in a a release US? subscribers their there, the want potentially, you question competition and to I of a reduction your down but a some addressable I bit And lot do wondering, because it a potential as number more that voluntary new way capacity increase market

Mark Dankberg

that turns fiber in factor other No, it fixed wireless changing in those the they shaping the the factors. the broadband are factors. see have for And builds that we flows not those is more we There own home. when demand ebbs other US. have of mean market. factors market how edge-outs, service. main somewhere don't couple are been But people -- economy office work a really broadband And broadband satellite material more a that's becomes cable out and kind factor. as their has just depending the of other plan to they're -- I fiber when other a going new so the And I then than on probably of they -- what or for and think, service and people tenable using resources probably one, mobile a little their the are

of basis subscriber we've basis. the expected over a XXXX. the we that and five analysis the think what say eat pretty about between next years, it times in it's a market, on eliminate it's done -- talked a years now growth this on going next of There's to the Over few kind modest US we've a the not we detailed into market. micro will And but few region-by-region

Mathieu Robillard

very Great. much. Thank you

Mark Dankberg

you. Thank

Operator

Thank you.

Chris Our next Analytics. Quilty of comes from Quilty question

open. is line Your

Chris Quilty

with Thanks. the acquisition maybe RigNet. I about had forgotten a question

operations you've a integration that moment I of seeing like give quarters you it have We business couple cost update changes had haven't both in belt but could you're business services? Inmarsat under aside terms that it talked and you of there's putting it reductions your migrating do for the it what with what business a and of that about ViaSat-X in of terms plans in guess in us for status of because lot can of a that a now maybe But now a detail growing come. lot

Rick Baldridge

Yes.

So, the have been has group. the reductions global integration was integration integrated well on operations gone very There our under areas cost between took that early initial We've some the two one place on. become business working groups. the have all been

So, that's gone well.

We business strong platform. we previously overtime. first That's team satellites. that's some opportunity a the surprise Intelie profile been started capacity, there were has very there's win big of as deployment that very have to where really continue launch the rigs helping in help. started where initial we're other That's Ka-band some a benefits began positive trials. That good cost that part our just Viasat will ViaSat-X the and real improve obviously business has across both can where performance is. these just new They drive growth but the one the group to and the of leasing applications And to beginning. here of they with at It's

So, so I'd as are about far. things -- we're say expected

Chris Quilty

what in backup the there was use some And will you. hesitant was be as probably those path Inmarsat rigs. past Ka-band systems? RigNet to the the a reason There you the Got determined why the question for on backup but on have rollout

Rick Baldridge

our strategy the So, to the not doing competition. things disclosing execution is of we're yes, one

these So, of we're what's one demonstrating in things trials the is doing capable.

they people do and would a to is our is much you so you a work. bandwidth that give had And a that lot have less whole create whole charge things bunch more view able them they of done been and

so a able now have we're which where is areas we And do in that limited. to footprint right

limited those out with satellites and won't roll be we then to that. Inmarsat, As

so to the And that across do board. able be we'll

the So, of services is the platforms. these real all growing type opportunity we to deliver here

Chris Quilty

not Different Mark and referring I Understand. cross-links? assume optical you to cross-links. RF mentioned question. were you

Mark Dankberg

Correct. Yes.

Chris Quilty

the because programs any of unclassified? name of hand business targeting where aware any you not at Can Okay. you're least off I'm

Mark Dankberg

one Iridium. Well, that the commercial is largest had we

did our onboard we So, is of -- remember the Iridium system. cross-linked all

cross-links did the all of onboard we So, for Iridium.

been have will government name been including government them, some mostly mostly -- funded. multi-satellite don't be higher we satellites programs a new I really we'll want capacity. those brand to in far much And the more -- otherwise are frequencies but have production so generally we've crosslinks be Ka-band think doing we've that name or have as lot been well. programs the We that And version of I

I LEO to most we traction the which of both the well where is think is one are commercial programs government as in crosslinks getting interesting pretty in and ones GEO a global capability. unique have ViaSat-X, But the capability very crosslinks advantage of the big there insert coverage system like high global a LEO capacity into just the if ViaSat-X. you can you

that So and commercial government interesting that's sides. a on on traction good really, really opportunity and we're both getting

Chris Quilty

of new generic dumb high-profile name on a is that effort focus with primary government sort high volume very where a and is Got And perhaps sounding the name optical? you. the

Mark Dankberg

range say, of of and optical big a -- bandwidth, No. or great in stability, propylene. optical the it you interesting worthwhile make RF a network platform gigabit more is XX doesn't is advantage around let's the big There's for of advantage gigabit, gigabit lot can links if the packet can less or optical to to certainly the But so in networks. you RF you range. build much easier connections, require see hop The much power the place a crosslinks crosslinks may the is and up kind gigabit in

interesting are have where there's the think a lot I really I really and a sorry we good is -- laser and a of we on optical think that I is -- there's I crosslinks, position. -- focus mean So RF one the but know one competitive really it's interesting one market

Chris Quilty

questions, you Because going ground or the when follow ask I'm up Rick that costs expanding? capitalized one Shawn you were is, I didn't financial mentioning question those are are costs earlier equipment to which costs any with with those now, are

Shawn Duffy

the I OpEx the how CapEx. that's is ahead ramp to of Chris, capture not will for you service trying guys the was what launch

Chris Quilty

equipment operational? you're not, to any is until and of build And ground capitalize the Okay. not satellite out again the able R&D

Shawn Duffy

the That No. essentially It's expense. is all we've initial project you profile ground. given of line stuff the the up includes full that part satellite, it capitalized. you the launch, that the the which gets when operating just insurance, guys It's

Mark Dankberg

and power and of all types rent Equivalent expenses. those optics of fiber and

Chris Quilty

Great. know you the gateway number. for the What haven't But And do use out use a given then name I your... no? specific you or you term

Mark Dankberg

Gateways.

Chris Quilty

Yes.

or of you you kind them installed Okay. them? of percent them them light and test lit them do keep to light turn those What up and are up do up is And just ViaSat-X launched, now? off until

Mark Dankberg

set have we initial probably the to US in half So of sats of close the

Shawn Duffy

over Coming few months. next the

Mark Dankberg

Yes.

Somewhere happen. is what will that in range

One ground Rick going a lot existing space of We're integration our are that's of new mentioned the using things ground on one of the able think lot in of network functionality. to that the testing. test things a satellites. well is We

So the the are of the is, will to But that close along way what post launch them to bulk activated scope up the or we very them lighting some testing. be launch. of doing we're increase of

Chris Quilty

And final question for Shawn.

or program number I Does gave just $X.X capitalized a you include interest for clarification. think billion was last not? the the that ViaSat-X

Shawn Duffy

about That range. is that capitalized without the interest

Chris Quilty

Okay. Perfect. you. Thank

Mark Dankberg

Chris. Thanks

Operator

you. Thank

from Blair. comes William question next Louie Our of DiPalma

open. is line Your

Louie DiPalma

Mark Rick, Shawn. afternoon, Good and

Rick Baldridge

Good afternoon.

Louie DiPalma

the that million wondering, government Viasat in have into does investing interest invested in the combination in way same OneWeb? $XXX was I any Inmarsat U.K. the they

Rick Baldridge

haven't had that We discussion.

investors. they I'd is in difference investing company. looking the I big in having was were discussions. the that's say probably don't I think government a public interested U.K. think, for those OneWeb is,

Louie DiPalma

or for wondering sense. will what your And to switching broadband either That ViaSat-X this have Okay. degree I is that of makes confidence was services aviation year? you commencing ViaSat-X, consumer

Mark Dankberg

there's does good. that certain. the could can't wish that, we but pretty but we be along certain, have say we uncertainties way. be plan I would a mean, I I

away a you that we have to I of think, plan. able at looked months specific was of launch that to forecast thing back sort was COVID if schedule, the three have But who lack of coming stuff normal. things look like main life ago availability the going and people been was it the caused

the tell assumptions pretty you behind we certain executing are at them I a wish we've true. when been hold could I plan. we good have Generally, plans So that

Louie DiPalma

asking And for a how how has associated Okay. the about that use is premise Thanks. And that want the equipment that or on how Mark. SpaceX does versus type customers Thanks, upgrade? with the I'm economics are for currently takes economics like different existing a reason the made and be terminals? that the ViaSat-X like Starlink on your new to ViaSat-X with system, compared loss geostationary ViaSat-X system the to wondering, been lot terminals I'm to hefty terminals. And the for will customers are looking ViaSat-X loss their pretty customer

Mark Dankberg

Okay.

that. value. right that's experienced customer can it is one and value overall a think compared to in range And line good somewhere many customer think And that will many, acquisition Xx to reduce as lifetime, we lifetime did actually we I think support. cost about based acquisition the which customer statistics, with have ViaSat-X, what since in initiatives it improve cost, customer I lifetime ongoing be we've on So be of that is, understanding of economics ViaSat-X, cost, years of some churn tends

we similar kind we'll with expect. what things of ViaSat-X. So see It's

there's is I it costs. and airtime of amortized is, probably investors profitably businesses say -- as the doesn't think the maybe would from that get service it the in an much kind into biggest to issue running the deliver to thing about attention really attractive these So as should, do

think it's past now and is of right you enough use can more customers of of we doesn't bandwidth drop what it you're -- and so about rule that's bandwidth, And is you you're of kind space that what this and there's if seeing a inventory seeing. -- of if is exactly said in and seeing thumb kind think add it what or right? don't or and customers have you more matter speeds LEO, bandwidth if GEO you're Whether the

instance, you bandwidth, the you dropping speeds already are the have ones. world use more add if don't customers For more and bandwidth the you in don't LEO add new and any even

our big systems bandwidth. these that we the we is, market that cost about you all the to in think bring have tend well think what the value improvements or lower right? of way So we systems the kind airtime out on bandwidth about of when to That's at of tend economics

of payoff that costs. be acquisition that. get that kind able the value They're time kind satellite same your necessarily this services. that's of don't satellites. CPE answer that to switch we'll able That's And -- Does to services doing the of question? a to to be on to lot older it. offer offer preserve new can the ViaSat-X what to on do -- or capable we helps of we get -- us of So have customer don't you the new ratio life of They

Louie DiPalma

Rick. Great. Yes. Thanks, Mark. Thanks,

Mark Dankberg

Sure.

Louie DiPalma

That’s it.

Mark Dankberg

Louie. Thanks,

Operator

Thank you.

of comes question Koontz Company. next Our from Needham Ryan &

open. line Your is

Ryan Koontz

Thanks for question.

sounds fleet the like IFC side On do expect the humming on on kind the you peak really that's line? outlook Any here. there? to you business When that Delta time penetrate as of it commercial

Rick Baldridge

halfway through backlog build-out So of current the we're the over with little Delta. a

And say air there still of lot in so are the there. ramping commercial activity And there's I'd a -- marketplace. we're other

Mark Dankberg

we if -- planes half that. the fraction is at less new order that letter number Delta of on a you described we So of our that have look in the than

Rick Baldridge

under Yes. Well, half.

not it's expect we There's new and stop. of has to just -- So been lot a it don't interest. it

Ryan Koontz

Got it. Inmarsat? deal close just you pretty expense the housekeeping expect quarter there. into acquisition kind question post that the here up of steady Do a stay And of integration of the on the ramp and in to popping

Mark Dankberg

No. was side. heavy expense pretty Right the upfront on

the not definitely running for still at filings we're can money the it's December it are in was We working money. quarter. still on spending they But sure. -- regulatory There's lawyers and still spend rate

Ryan Koontz

it. That’s Okay.

Rick Baldridge

Ryan. Thanks,

Rick Baldridge

Okay.

that's think question. the I last

thank back you we on to the with thank your to helpful Hopefully say some for the you make want answer found and and I guys of trying and -- continued team that for everybody informative of operator us. rest makes just So thanks feedback the time spending to it your together here it continue is time. to want with peak to kind you Mark better to letter next questions

excited have Inmarsat bring. team strong We is But same focused what got momentum the and they capabilities doing. execution. period. focused at We're their we're will opportunities time, same operational we're the a We're still really about and that on Our over the think positive. our on performance has excellent been

focused are our plan. Our leadership and executing really on our team employees

questions hesitate or We reach input you look out other with don't Thanks. you've got. up again to to forward with Peter So following to guys.

Operator

Thank call. And this you concludes conference participating. for today's

You may now disconnect.

Viasat (VSAT) 3 Feb 222022 Q3 Earnings call transcript