Viasat earns record revenue in first quarter of FY2022

Company rebounding after pandemic downturn


In its quarterly letter to shareholders Aug. 5, Viasat reported record revenues — including a recovery in its in-flight connectivity business and strong earnings from its fixed broadband sector.

See the full letter with financial details.

Fellow Shareholders,

We are off to an eventful start to fiscal year 2022 (FY2022). During the first quarter ended June 30, 2021, we closed two key acquisitions and shipped the completed payload for our ViaSat-3 (Americas) satellite, starting the countdown to the anticipated initial launch of our global constellation. We also delivered excellent quarterly financial results. The gradual, fitful re-opening of the global economy is accelerating the momentum we achieved in the later stages of FY2021. We anticipate that momentum to extend throughout FY2022.

We earned record revenue, substantial gains in net income*, and record Adjusted EBITDA for the quarter. Revenue of $665 million was up 25% year over year (YoY), while net income increased to $17 million from a $12 million loss in the prior year. Adjusted EBITDA grew sharply to $159 million, a 52% YoY increase from $105 million in Q1 FY2021. Adjusted EBITDA also increased 7% sequentially from the record level achieved in Q4 FY2021. Total consolidated awards were $595 million, resulting in backlog of $2.2 billion, a $109 million increase compared to the prior year period.

At the segment level, Government Systems revenue increased 4% YoY as growth broadened in several areas of our diverse portfolio – even in what is typically a softer quarter. Satellite Services revenue increased to $274 million, a 36% increase YoY. Gains were driven by improving in-flight connectivity (IFC) service revenues as passengers return to air travel and continued top-line growth in our fixed broadband business. In Commercial Networks we saw the top line expand sharply by 77% YoY, totaling $119 million for the quarter. The main growth drivers were accelerating mobile terminal deliveries primarily in support of Delta Air Lines and their updated Wi-Fi service launch this year, as well as continued growth in our ground antenna systems business.

During the quarter we also achieved several very important milestones. On April 30, 2021, we closed the acquisitions of both RigNet, Inc. (RigNet) and the remaining 51% interest in Euro Broadband Infrastructure Sàrl (EBI), the former wholesale broadband services business arrangement with Eutelsat. RigNet is expected to accelerate expansion into adjacent global enterprise markets – such as energy, transportation, maritime and mining – and also provides operational and customer service capabilities in over 50 countries. In addition to managed connectivity services, RigNet is helping to drive digital transformation in its markets with unique machine learning and artificial intelligence products and services for process improvements and operational cost reductions – a fast-growing part of their business. Acquiring the remainder of EBI allows us to expand our European broadband footprint and enhance existing services ahead of the anticipated ViaSat-3 (EMEA) satellite launch. We are already beginning to optimize the existing operations for the combined fixed broadband and mobility services that EBI supports, especially given our expanding IFC business in the European region.

In early June 2021, we delivered the ViaSat-3 (Americas) payload to Boeing Satellite Systems (Boeing) for final integration and environmental testing. We continue to make steady progress on the second and third ViaSat-3 payload modules in our own facilities.

With the fiscal year off to a great start, our anticipation is growing for what’s to come as business momentum increases and we move closer to launching the ViaSat-3 network. We believe ViaSat-3 will be transformational not just for Viasat but for the global broadband services market. In the intervening quarters we are focused on executing on our substantial backlog, and growing revenue and Adjusted EBITDA, while continuing to invest in unique and differentiated technologies, service offerings and new vertical and geographic markets. A vast opportunity for space-based connectivity is unfolding and we’re excited about what we can bring to a unique and diverse portfolio of applications, partners and customers.