Viasat (VSAT) 5 Nov 202021 Q2 Earnings call transcript

[00:00:06] Welcome to Viasat FY 21 second quarter earnings conference call for today's call is Mark Langberg, executive chairman and mortgage president and CEO of EPS.

[00:00:20] Ok, thanks for joining us today. Mark Paper, executive chairman. And we also have with this president and CEO, John Duffy, our chief investment officer at Texaco, and all of them.

So we hope you've had time to review our shareholder letter that we posted on our website that provides information on our second quarter here today, financial performance, as well as a current overview today called primarily going to be questions and answers.

let's counsel provided that for provide safe start, Robert books I we a general Black, our disclosure. before have our Robert and can So department so Mark. Thanks,

looking factors can actual this will know, you differ cause is As that contain results [XX:XX:XX] forward reminder a statements. materially. discussion to This

FTC that in on are Copies XXK SEC concerning or our including filings, the website. from information Additional contained our these information. available factors our most reports from recent

want and to we announced before Okay, chairman. do today from questions, [XX:XX:XX] out take we point I that the so that president Hypercom request a and CEO executive

I that's for ViaSat the almost executive for in been years doing really a few step CEO and the CEO I'm been has of accepted close the happy years of XX on a of succession. position. decades. working team more part years, as most been the approach for last know So he's Building couple than term that two for really really We've the management our title process the next long in we've management to

And the and a evolution. got our more company. taking I'm global confidence so in to regulatory our space real on fully time. going our really, is focus going on board and which on a of our technology figured position. strategies is to scale our out Personally, great national it's anywhere. He's CEO outcome people, not also customers, overall the be essentially environment, business for investors, and the I'm going a be and in being I and think to this seamless truly the We've

And of so of you. doing for the been the congratulations. last I've years couple over time what to most anyway, now Now,

really [XX:XX:XX] Thanks, it's still us. ahead but say of to a our I been Mark. years ride, best think are great Like

transition shareholders. and we've I the the think captured

confidence especially the just Let's and board I looking the challenge Mark. forward that the appreciate of I'm say and to

part, and business. to awards big we've a of quarter tailwinds rest and our some across we and details a to We're fun included must and This no managed billion had to in for seven far, the for over for bring haven't really that billion dollars Overall, dollars the from a of of had first that even supposed exceeding the government great were do orders the been so One continue haven't now be half either in So tailwinds billion we've all driver. do without shape. half still given challenges three services And been year. outstanding well another but expectations two IFC a us, with Yaku one not point dollars. backlog, nearly the year, awarded the book.

in we strength the IFC, continue us first is The Momentum source has been the market broadband fixed rolled share. hour half of completely a we out Brazil. with exciting. US across for and it now great business Even in our

suppliers. in what to and year looking We're a growth. really minor We're due Both New Windscale, pandemic, its slogans, hand our we satellites. think before our be of us on are to good on first the zero announced. just we three impact the the ready central to launch KLM continues to evolve Boeing some with payload first mainly zem and forward one will three to over that the year for

our to service. for to apply to enter up begins twenty exciting constellation it's So an twenty

on go questions. let's that, For

telephone one on the [XX:XX:XX] to their press this Thank keypad? for we from you. Stotsky our time, Presenters of first do question have We star question, Rick at need Prentiss. purposes

open Your and markets work. great line is new

with Congressman. anywhere. doing Also work you, going [XX:XX:XX] We're glad you're not good

Thanks. [XX:XX:XX]

global out sale high season, on a Inmarsat to in-flight early lot collaboration of connectivity with more some We'll landscape buy a [XX:XX:XX] Hughes. homes the Take the a movement second. Intelsat and talk on for level afternoon with proposing there,

It for do Just see through has it. How business landscape do time the coming had How you off? code. you recovery? obviously see walk the frame us the competitive

standpoint. a know, Obviously, airlines the you moving recovery way. are Well, [XX:XX:XX] the leading we're from

know, our in. customers to of you talking having expect and cooperative They're they each plan celebrates rates they aircraft kind feedback. So Max's we're of getting sharing you when our one retirements what we're very their know, and back on,

we are you three So the years kind summer of saying of following four demand uptick recover. in a we more over little a the take, or little And had going to little quarter bit we're little. it's fully of and know, of you seeing the their quarter, know, guys lead. were And, up bit a a some to

So are year. to starting the guys

is So, get know, us we've thing that's traffic. for bunch to we've cycle, through encouraging the continued got you an a of this But RFP outlook.

so, airlines not know, that And you yet. on we're with

adding So to ago, the so the we had or KLM We had, know, actually are but more cycle. was more and announces a you quarter a or more win. couldn't we've

we're encouraged. So

quality want people think service. I high

a give of the they're a on all you I of think the frankly, in industry? want talk what's to the outlook. industry you views of kind over Quite I map. have Mark, with from But, we of lot different about And, know, other players own the terms going in analysts just lot recovery. our

[XX:XX:XX] No.

vertically approach, lot right and I of which based our know, a model. integrated it's You the usages, think is that on is

in still I positioned we're very that. we're well think really, think I really

there's going be think I business a to evolution. model

with of focus us on. advantage is The that that. a make things center. not that the the we're some to do to is we offer work letters up connectivity of the source that airlines partners did out more a we being able doing passengers and think really that And I for near the in we a is free instead a come work balance have to of of point in to way competitive with more to That's a able in cost that available by our term. be revenue own airlines services, our for with One

that think going with more on I competitors. making focused we're on and what's

in expect you changes the or do the term? term And short industry in consolidation further medium or [XX:XX:XX]

[XX:XX:XX] Yeah, be I wouldn't surprised.

beta questions and how Elon Musk's second about view high obviously How SpaceX, the it you what you of is to running you about the tons Ok, out getting a probably question, kind test. bit us? shed Starlink of beta talk it, [XX:XX:XX] Can test. your you're little we're level means the on test? that there your a to help competitive view So of game beta light your are little

sir. [XX:XX:XX] Yes,

a expect know, is, It's would is good. that's statement a expecting one roll that service I pretty do. you do they're much thought So number going hoot, a them lot they're And, but they saying of you they have that we've mean, so it. still we manage on that. to to going small what a to we out users things the been know, of

it So what. matter be good now really right should no

what And we so already And what can our now, that growing. serve. the market didn't every we made more and we're is seen addressable that's areas sell into sell in time But that services in demand market can And speed there's expecting. than improvement offer, before. a we've we the is a also lot we've bandwidth more of meaningful we

to in both be ViaSat is improvements able and major make speed bandwidth. So is to three going

there. also, can know, in for streaming to. it I already is you clear that tens XX, And more plans going get to that. megabits want fair going extent growing in share do, be competitive to subscribers thousands so reason the We that's really that that be market out grow of buying of now we've So we're the pretty the choose growth. going decisions. have per and would even how to pretty XXX We've got a the been ViaSat we of before of a to second room video going they're we our have that point that's we happy. for we the rapidly market. to to a of expect think from is stability they're And market's three significantly. and Internet to lot will think to really that's is be do offer we'll lots we what think And intending that important we what factor Obviously, really bandwidth well grow

And important obviously that the make have marketplace? is point they than My the latency? a geos. the Because is [XX:XX:XX] lower latency in how how that important how lawyers that important

As say, do it's think don't We what decisive. you latency is? think is know important. We [XX:XX:XX] you

we've the sure. analysts, I of that's a really thing that especially streaming. most seen think the that that that for if Well, decisive lot for do And to that's get that. the video that's can able is being you that's

economics So the the and the so focused on bandwidth volume. we've that's why been on

we're And going do to think so there. well I

it we've think as said is we that is but it's It's Now, that latency important. it not also just precise, is important.

about while latency and through been working doing to on combine deliver able we talked multiple we've where as ways for so to satellite. well. system a We our low And services terrestrial be a

It's goes beta know, definitely So we've of service, things terrestrial pretty the satellite And to test that people's it's But that own we've in got had gone. there. our up. when is well. market. we technical we gone the complications one of you we were found low There's latency our got actually, that satisfaction

good. that's So

So that we've we do doing been what we can it do with water.

generally DSL. that's been So

will with We I be think to to wireless. scale do are And allow it able up. that that expanding to us

breaker or it way think a scale, for but sure, point see be and as. think that we part. being but speed I that a at we so the I can achieve it really of that volume important tie at only most look the And sweetener the not to think we is Kind

again. thanks, OK, Great, thanks. guys, and [XX:XX:XX] congrats

question [XX:XX:XX] Rich We have our next Valera. from

Your open. line is

you. Thank [XX:XX:XX]

on in Rick suit. your luck me my best Let the positions Mark add to and and of congratulations new

off that still IFC big you absolute us when. stands, quarter. you to are mode looks terms, at pipeline I right the like just on looking kind or of at big, Is cool. on I It then some active of of well if activity congrats what continuing point. And give levels. IFC then business But your of terms, business quarter sort the in you a scale us I'm IFC But rest that sense Just us Pretty percentage give where relative wonder give in but pretty airlines just they guess a sense Are the of and of improvement where pretty just next Preto market. opportunity in-flight sounds like. a now? the sense were. with over survival in of saw this

than down. we're running about than still running for we're a were what while. we're It Or this coming less half of down less are half [XX:XX:XX] we was

have customers. types with of different different we So contracts

to was it down was the percent, the in we points in recovered so quarter. about were previous quarter percentage on, or early under we but So from we're where still it nine And five half.

range what increasing. of EBITDA airplanes we're of is So seeing

of some And business. so Americans online, going online. bringing some into said to you airplanes flying the year the a what's little of plan hopefully back drive clearing what the we're this of Maxus know, growth bit start end by really certainly, that, looking for, back to that they back they of And start that's

know, you and office the of that thermal aircraft caused much the installation so obviously a of right was now. one year with doing people on aren't last things so deliveries lot So, many

to we again start early So the expect that back year. in calendar up

are backlog. the the those are biggest of are those terms things So in changes

our backlog still have know, we You is there.

or new One from aircraft aircraft. and of aircraft older occurring the over are retirements of things and some that is mostly the on newer

make airlines they everything share broad. share it going get to are us to don't a are. very to I could and get where the are know, to to pretty is going So static which not from discussions point you pick you're standpoint. or, going and just was very, not think make you're Those talk We RPF it about up, active.

Thanks, [XX:XX:XX] Rick.

already Latin that driver Mexico, you've material had that ongoing for might the of had maybe a guys of materiality revenue respect business. nice the a service in announcement of Latin roll in about know, in America the a out about of and the in American American aggregate the a service in You the Can with in kind general. Brazil. an materiality be rural when general? I maybe talk kind a rural I you of know, kind of of you you Central talk while. But to service just service know of scale

growing while while in the is [XX:XX:XX] we We We've a got pause fast, a There by when very launched don't faster dominated I the than presidential little thought. Well, Brazil. so. that, it's to have small have you there. we stuff got Guatemala. certainly but we some I'm US to in for of be With going sure this with business, there's it's for down a this tools been in a not, actually place Mexico some Africa. going launch for growing would know, little so material probably say, we're and continued We've in fast, be

pretty to know, ready thinking Data, international I quickly, ready not about new numbers program, but is what do some going a soon. just finished to of You government that, We've announced ago quarters start. got few of that to adds just we're know, be we've those we're the process, which and we'll pretty the the residential a but we're that members we overall. how launch. the Showing to program said include Countrywide think our you of quite we

So Yeah. thing mind, to ready And numbers to keep those we're out quite right. again. throw in throwing what I think there

three. additional and far by as grow As really starts America But that about to Latin fail and capacity reach.

Got that's [XX:XX:XX] helpful. it,

confident row. in the seeing business. half. Talk ramp you pretty in sounds government could, I really second a half the one there Just fiscal growth about see second you're strong if what think on could year the in a government quarter for bookings Fantastic into of like on for and the second the the It next programs more, side.

is in government is been for we're the The Times part. cut and all area and say insurance Tampa security one opportunities information, is off of mix the satellite the area I those of have good areas. three other of a One cyber Bay in quite while. And of [XX:XX:XX] seeing area, kind business would area, a the

integration the is the areas some are that that So the connectivity words with Those that looking strong for want, those cyber And will insurance business else what people we're I well. space. be is and for, more These services very what the happening also and it cyber one something say more seeing cover of and helpful. services doing monitoring of in satellite the things is satellites That and exercises, information hoping for that you're is that's really security general. main functions very, business the for guys.

the gentlemen. [XX:XX:XX] questions, Thanks. Thanks taking for

Canada. our have We from next [XX:XX:XX] question

open. is line Your

[XX:XX:XX] Hi, time. And and a Mike. questions translation Congrats and did. just that's three again on I at have the what I quota. new one

is that listed eligible and on Be on FCC to the you auction December all. first an of is we voters. still would it? with that bid application chose having was coming C-SPAN? talked OK, The they completed end why ago Are couple biocide forward an update the Aadhar. And rural that? that status population the the Xth as curious up the they one next latency, I not but for perspective, complete to being give you do going Can operate that motivation, quarters of how talk about optionality? the possibility back what system bias here's question latency application, or their the the critical can't open pursuing are a not about? in you got do broadband be so And about that go all. is currently. you of thought What Is satellite to their the saying we've talking interested in pursuing odds our beneficial, Ok,

no that. regarding [XX:XX:XX] So comments

area regarding and would interested well, prices in probably be price three he'd them. point. one with it's is we're the one, Yeah, you bandwidth to say all four. find to like what able hard people in and of and But I speed And big and are RVO. are a two to Now, and definitely deal agencies, know, two

the are do best think them. And And is is we're that? one Leo of at ways I looking so, what what you we're know to

do overall than we our speed for are bandwidth. on that know, say you it's are Now, would things things priority There there estriol. lower the and than I list, can

you latency. appreciate It's there's Right. our the know, higher customers what definitely some a just speed definitely focus more no economical. and having and That's you and benefit to downloading check they're take They on. volume. are those benefit there's box So of of kind they we that's

different so much from we proposed others. Percelay higher satellites of a to Leo, So, system lot get needed fewer quite is that It's capacity. the capacity. a

people because and with vehicles because itself and space the important spectrum we proliferating of that of is aware are more So issues in becoming sharing. think things, what safety are

you the what provide other appropriate done. working when it's I that So that and when we show on it be say more can is, that is we And still. updates know, think we'll to want we're we're

on table. [XX:XX:XX] on going is exactly that back means. said announced, what And what and back the answer term? to one an surprised. He So the more road have do biceps, catalyst to an for terminal so, my terminals satellite only satellites, it? on OK. that's power if there the give the update color go a to optionality and as work for applications those. and on would Ok, get I'll for the near any was to antenna in was and actually No, Do cameras hope a where you the conference the try to viasat

yes, definitely been know, Yes. and so we out wanted pretty And efforts we in factories. significantly And we something it do different are it's that a there. [XX:XX:XX] on working while. that if from well. other were We've interested OK, to do. you quite was for had worked it the we we only out And,

I is good. High think performance attractive points. and that very price

So we working are with.

know, application mobility we're applications. the buyers that prospective geosynchronous know, be systems, you're know, customers energy, for working those when would would our of you own. also for of be working satellites, phase you And, Some, but energy a the with main array you with companies is

we're focused with you build main multiple well array kind One that's the a more is enough. it on. that that one phased at is So benefits. satellites benefits you that has of multiple it the And that's if of area once had use can

DOD a the with available commercial being on bunch that done has is whether one build the we've government. satellites, management system to work all or network So thing that around a of able

are a really in do good other being things of access. a There similar Phase hybrid those Yes, application. So interviews with three able between. example to people's that's

of that's applications So one that another working on. the we're

really with and issue, of can market a lot cost. undersized got you've that put space are race open are And if applications. back you going really that and there there's think We in then mobile low also that mobile to attractive bandwidth, a attractive really, small, antennas if it

some So the. to that of the looking things at we're those are do

out Ok, I to prices. that got oil as [XX:XX:XX] roll

you a get have antenna own know, work do main yes, absolutely. is our out mean, for with market the selling market other our a on we main we've working that's do I there, correct. are hawking on out. doing. the it. expand Yes, and buyers to working not I roll to services, you we're on with main some [XX:XX:XX] Yeah, working we're it and as purpose we're said a the addressable working the we're we're in it. us interested for the is But antennas. on, price is are guys to know, plan and with for We're we it. what our prospective But not That's services are schedule this been Yes, we reason will

Thank you. Thank you. Kim. [XX:XX:XX]

one Elaine, insecurities. [XX:XX:XX] And thank B. from you. take Crawford call Riley he will more Mike

more thousands or able to a users them, seen specific area, get to bandwidth to what at out these service and of with refined cancelations, of you've a not been tens congested of residential such little to as a per more gets be be users? As with of XXX tripod, say [XX:XX:XX] once second your any to speeds type like might might two to one they megabits certainly deliver what over startling just of as capacity required broadband but opinions of

want really, need calculations what's And strategy the so a of I small more thing there's amount really systems, difficulty the to about mean, with more becoming And which go having it's lot How outside. and the numbers to people. you it, orbital there's the a debris. having through know, is give from risk A sharper you collision don't already, person? the collides first to mean, being per collisions it debris and have I problem. more scaling evident personally enormous more we issue amount the that with with the think of surprising anything's same. all on a is, think a collisions because Well, do, those same the you have lot that [XX:XX:XX] of know, they them. people much of a small is by becoming The I I I put a all orbit itself of I in that is point with look is thing it's legal do happened as of more just if and creates the satellites. has of know, don't result debris happened you you earth the low concern of at the

orbital a and supported of on And are orbital it in at think fell lot a satellites the so proposed But the to risks they has has that trajectories come focus orbit put a are very European something eskies how addressed. really you to one and a that The now, be of Space the have a many I we of in that the I a was is of debris rule contention report. levels deferred on Agency in trajectories time, out the it. been filed really entities the April. the that's And were long available. about few really know, of September, well, of making And we've of seen this one orbital There FCC that for take say, with an risk. deal already lot to position. needs and issue And time contributes thorough and March that had sort There's that end more maybe comments at think issue. the detail back in the the only

main that's is is challenging number be I at them making scaling think in I all the And issues just issues really clear issue. going of If becoming to in going it's thing. one the a scalable. obvious. the of that's a That's with be work that that how biggest more to not think

with used lower the XX they satellite this broader devices to thank extends your XX this which then be has and open much today where the envision a satellites these business the as edge. tactical Liow builder more what the of well? to your Ok, that many ViaSat could lot you you to that XX a already are so online applications, comment get a to extend link up up to building then satellite, XX Is or and fashion further opportunity becoming ViaSat to might in [XX:XX:XX] of week regarding site this can satellites three your you space? Or

course, is thousands in The our satellite thousands you many [XX:XX:XX] AXX Ok, thousands buildings, of programs being and extending range interesting. so is of see with are, program can of really are the devices notion there that the XX to you thing. want of the And it. to going same for are of pretty potentially through you, and tens government the build space going know, there's We there and of prototype hundreds that government advantage capable. a do

That's valuable the range a the consensus. So extend if business. pretty and are the a sea in think communication, can both devices air of and for I the space ground and on that for thing you there's good also as the

we're a valuable. addressable enabler we think much lease have our more makes that for in what as business, that an interested So it that really business XX bigger market

in to that. XX do Are think, that complex I ring technical in exist. and problems. it The just know, certainly like So helped transceiver putting a delivering we space. we've doing payloads would the been than work satellite a And to more has you

working enabler that So that applications communications that. customers on interested. fleet we're in really interested satellites have sensing know, in that space. involve as or as we either could been show, we course, if working that Yes, those again, we're we're of do you a an And government that make involve other really well, we've with of satellites

to think and And the of aspects of mission focus us so it those a real parts networking more you're especially with the payloads. on I that, and do but payload of see going

in to XX? something [XX:XX:XX] that you real ViaSat launch then Ok, Is thank three, And expect finally, of the Omiya. summer quick, you.

you [XX:XX:XX] are for surface Americas have pretty Yes, that many been the There satellite been good. six months the it. has one, so American a solidly it's as trailblazer behind result, But on the basically so one. issues. know, behind

looks that good. So

you. Excellent. [XX:XX:XX] Thank Mike. Thanks,

the that Ok, we like that's [XX:XX:XX] looks questions all have.

you, guys. We'll quarter. So next you [XX:XX:XX] thank see

gentlemen, and for today's participating. this Ladies [XX:XX:XX] concludes call. conference you Thank

You disconnect. may now