Viasat recently held its FY ’24 Q2 earnings call, where several key takeaways were discussed. Despite facing satellite anomalies, the company remains in a strong financial position, with over $3 billion in liquidity and a fully funded path to positive free cash flow. Viasat is confident in its growth, revenue, and adjusted EBITDA projections for FY ’24 and ’25.
One of the company’s future strategies involves modernizing its L-band satellites and increasing their capacity. They also plan to lead specific market segments in commercial and government global mobility, leveraging their partnership with Inmarsat. Viasat intends to continue collaborating with companies like Skylo, Samsung’s Chip Arm, and MediaTek for their direct-to-device initiative.
Unfortunately, no specific details were provided about the ongoing benefits from a confidential agreement discussed during the call.
The status of the ViaSat-3 satellites was another important topic. The delivery of the final reflector component is crucial for the launch timeline, but the executives expressed confidence in the launch schedule. There was even mention of launching two satellites close together.
According to InvestingPro data, Viasat has been experiencing accelerated revenue growth, and analysts predict this trend to continue. The company reported double-digit increases in revenue and adjusted EBITDA for Q2, driven by their government, aviation, and maritime businesses. Viasat’s net income is also expected to grow this year.
Furthermore, InvestingPro Tips highlight Viasat’s strong financial position, with a low Price/Book multiple and liquid assets that exceed short-term obligations.
During the call, Viasat Chairman and CEO, Mark Dankberg, discussed the company’s overall strategy and its positioning for growth in the commercial and government global mobility market, which is valued at $108 billion. The sale of their tactical data links business earlier this year further demonstrates Viasat’s ability to build long-term value.
Overall, Viasat’s Q2 financial performance showcased strength in global mobility, with good operating results across the business. The aviation business continues to grow steadily, with a growing fleet of planes, increasing passenger engagement, and a robust pipeline of new orders. The information assurance products and antenna systems segments are also performing well. Viasat expects continued growth in revenue and adjusted EBITDA for FY ’24 and FY ’25, with a goal of achieving positive free cash flow in the first half of calendar ’25.
Despite the setbacks caused by the satellite anomalies, Viasat has plans in place to address each issue and continue moving forward.