Learn 6 key takeaways from the Q4 FY2023 Shareholder Letter
1. We earned record awards and revenue
In fiscal year 2023 (“FY2023”), we won $2.8 billion in new awards and earned $2.6 billion in revenue (excluding the sale of our Link-16 Tactical Data Links business (the “Link-16 TDL Sale”)).
· FY2023 net income and Adjusted EBITDA[1], which includes financial results from our Link-16 TDL Business for the first three quarters, was $1.1 billion and $583 million, respectively.
· Revenue from continuing operations during FY2023 grew 10% YoY to $666 million
· In FY2023, our net loss from continuing operations increased to $218 million while Adjusted EBITDA from continuing operations grew to $501 million, an increase of over 5% YoY.[1]
2. We launched ViaSat-3 Americas.
On April 30, 2023 at 8:26 PM EDT, ViaSat-3 Americas lifted off from Kennedy Space Center. ViaSat- 3 Americas has completed its first major milestones with the successful deployment of its solar arrays and arrival to its final orbital location.
The ViaSat-3 EMEA satellite is expected to launch later this calendar year, with the ViaSat-3 APAC satellite not much further behind. Once deployed we expect the ViaSat-3 constellation to be capable of 8x the throughput of the ViaSat-1 and ViaSat-2 satellites combined.
3. We welcomed a new President to our leadership team – K. Guru Gowrappan
Guru is a great addition to the Viasat team, he is a highly accomplished leader with expertise in integrating large technology operations, operating scaled internet platforms, and creating powerful global partnerships.
Guru’s previous position was CEO of Verizon Media, the former media division of Verizon that included Yahoo, AOL, Huffington Post, Techcrunch and other media brands.
4. We are in the final stages of acquiring Inmarsat
Once the deal is closed, we believe the transaction will diversify our satellite services revenue sources with a greater emphasis on global mobility, leverage complementary space systems, deliver more service options sooner for customers, and enable operational and capital synergies.
5. We divested our Link-16 Tactical Data Links business.
We generated approximately $1.9 billion in cash proceeds from the Link-16 TDL Sale. A portion of the proceeds was applied to repay outstanding borrowings under our revolving credit facility, with the remainder increasing our liquidity to $2.0 billion at fiscal year-end.
We also implemented actions to reduce stranded costs associated with the Link-16 TDL Sale that are expected to save the company approximately $40 million annually.
6. We’re tracking for an exciting 2024 fiscal year
The successful launch of ViaSat-3 Americas coupled with the upcoming Inmarsat acquisition and strengthened leadership team is a great way to begin fiscal year 2024. Reaching this vital inflection point has been long in the making, but our team is well-prepared and ready to deliver!
[1] A reconciliation of net income (loss) attributable to Viasat, Inc. and Adjusted EBITDA is available on page 13 of the shareholder letter (which is available via the link below).
Download Shareholder Letter
The statements above regarding the timing, features and capabilities of the ViaSat-3 constellation; timing and benefits of the Inmarsat acquisition; and expected cost savings resulting from actions to reduce stranded costs are forward-looking statements. Factors that could cause actual results to differ materially are available on p. 10 of the shareholder letter.
