Viasat (VSAT) 26 May 222022 Q4 Earnings call transcript

Hello and welcome to Viasat's Fourth Quarter and Fiscal Year 2022 Earnings Conference Call.

Your host for today is Rick Baldridge, President and CEO. Sir you may proceed.

Okay. Thanks for joining us today.

out closed released our and point shortly Shareholder website. to market after is want that our we Letter Just available on We'll the throughout be call. referring

Mark our So, our and Relations. Paul Peter Blair, the today Development; joining Counsel; call Corporate from me our General Executive Shawn CFO, Lopez Chairman; Froelich, Duffy; Robert on Dankberg, Investor

few following up remarks, today's -- call opening we'll So, Q&A. just brief go through a by

started, get have provide let's Harbor. So, before we our Robert Safe

Rick. Thanks

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

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

a targeted and very and continue communicated and Robert. for results to a XXXX year execute financial the investors of Thanks ViaSat. previously had we strategic delivered Fiscal targeted we on operational we that fronts. was great to our -- We Okay. number

the For $XXX record billion $X.X million. EBITDA of record revenue adjusted and of we year, achieved

We and and adjusted was with guidance increase increase growth XX% double-digit year-over-year which EBITDA our had our the adjusted for year. revenue, this revenue a For is was growth. a consistent EBITDA goals for of XX% mid-teens

upcoming well that Satellite Touching quarters, government While call, last sudden, [indiscernible] on mix shipments. with sequentially three Services. outperformed government America quarter, the we as by described secure some in certain in would had increased communicate the briefly costs products satellite, but and were in as our changes delays, which increased the issues we we be product factors impacted exasperated for chain product certification last supply certain which QX knew -- ViaSat-X as first R&D softer network we based investments, on ground

service, we're aircraft customers. returning anticipated, IFC new both to-date good and from our growth very to business additional seeing As existing aircraft

a EBI growth are in of growing little customers as -- and support new RigNet customers. bandwidth counts the Fixed we contributions high existing weaker also tail limited plans acquisition. we with manage U.S. recent was we data had from the the IFC, our adding and broadband In value and We than in increasing demand. IFC supply

We of which Airlines of the was with quarter. are subsequent our agreement very proud Southwest end announced the to

Although continue the decline, constraints hampered subscriber resulted which we're continued in be we making fixed progress steady to by elsewhere. in bandwidth in broadband U.S., has

in retail ability there the government XX For commercial recently, mark a after. covering service Brazil example, letter execute markets does nationwide XX,XXX commercial and about just surpassed we're good to job and only for successfully launches some we The our our going confidence lending service the having international of subscriber after segments. months, new

on at quarter in targeting planning several to we large sufficient ViaSat-X -- completed our were and early for complete cleared is satellite satellite much a last second testing. same [indiscernible] America pleased was schedule. for to we integration of the holding facility experience payload kind to is have network effort. for to We quarter. our so on should ViaSat-X move well ViaSat-X by expected is to the of the with out track and today, on the has Boeing, extreme vacuum more constellation a America of completed and the and our enable with end ViaSat-X reduction module the allowing with faster, Arizona payload were move payload due services, Tempe, is The Alpha within we infrastructure vacuum shipment let's final ground Based the several place where to than the satellite, or be complete were occur chamber now in testing expected a So, undergoing in to milestones -- last spacecraft sometime which very week performance testing we're better third which commercial risk on EMEA in during quarter. this we this is temperature months. fourth Boeing see at rest proceed us fiscal satellite. on predictable testing the

So, transaction. of process remind limit the items our debt for turning remaining and U.K. the follow in current their this just transaction with includes we've statement which have long-term with of with ViaSat, funding to and term had constellation. update, ViaSat-X signed March, and of which can completed advance our purchase a we, might the I volatility shareholder on November this believe. continue for meeting of just financial certain -- with and we achieving quarter our used nature everyone transaction transaction by the And or being on reported down to the U.K. completed that patient their last since market agreements process. of remainder But impact of that another the SEC pay provisions Inmarsat, cash quarterly the loan continuing the in various $XXX the demonstrates financing a end to And their have at to agreement million our U.S. use revolver proxy the calendar to U.K. highlighted special In We're results, page the was we're definitive because processes And close solid all I'll of a are the June commitment our of XX financing the time transaction on the to objectives. fully last We shareholders you ability complete year. targeting the XX was for go financing place. we our we regarding committed set antitrust letter. undertakings, date the approval which of Inmarsat Government of milestones the financial too economic operational website the

XXXX has for mid-teens our last to we to achieve targets revenue we airlines achievement virtual in last EBITDA the and year FY relative the X,XXX annual year, fiscal believe in year. strong, second XXXX. an growth company-wide Turning the standalone weighted for outlook, average This service financial including this trajectory to approximately. remains EBITDA -- over XXXX, our our up we'll the quarterly FY continue be outlook revenue will ramp FY to our adjusted the quarterly half course anticipated sales The of towards the for as been

services adjusted commercial in on continue track believe begin by issues we're described letter. fiscal to upcoming certifications a EBITDA operational by acquisition, double-digit for execution. continue focus we're to we three Well, and our on of to we XXXX our basis. FY normal Mr. our near-term that Said term, and at on strong and in than performance fourth standalone in As more also demonstrates key launch very course, to XXXX, FY Longer on financial ViaSat-X our we our about the our quarter in supply achieve chain inch seasonality day-to-day Vitesse relative three teams solid excited

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

that, questions. your with take So, let's

Instructions] [Operator Morgan question the Our you. Park Landon Thank first line with of from comes Stanley.

Your line is open.

Great. that wondering delve wondering quarter? we're if Thanks some and confirm last ViaSat-X little the I'm your where ESA of ambitions for taking markets can touch you aviation your terms that, the maybe bit if for And late that oil the of what timing gas actual you the at questions had satellite a market you in I'm the now industry? development? everyone. launch beyond in can summer And window demand given then you're the within just business breaking better on the you're some mobility and more seeing seeing with that out into maybe versus

I year Right we're weeks of Okay, now early now. our so that the ViaSat-X into slipped think our we service we fourth in we're end what being expecting and the six schedule, on last the since by the what -- is fiscal call. has -- were anticipating timeframe it quarter, January the

it fiscal I mitigate we're been window could ground slip a that of that our We've doing would little that able where ground the to of ongoing the that's done able bit kind network. left is of or testing and launch, on our some weeks of our and to build think the right, the existing it's with we launch we fall have -- So, what little a window, the to and the some what delivery a bit we testing, but expect. being of been we're so orbit, within for network to so move out the satellites on it's of normally just we do have

mitigate next to a of kind the little trying bit service year impact, So, early and that's to of we get launch. how

the grow the we make market price the here ViaSat-X So, it's I'll being once RigNet, in able is oil we talk substitute that's in the really offerings doing talk do we and and growth large business RigNet part, oil -- of last part were and and how side, gas RigNet. in really for they I'll need satellites bandwidth, isn't gas acquired real that really types the their segments. can --. When about which more to about

So, some growth on us really up. getting of constellation that this depends

And what we've efforts as is helps the and RigNet with doing meantime well. been so integration in with that Inmarsat

well. have a that the they Inmarsat just assets as theirs of of RigNet Some customer as

to integration drives what So, that value future in do businesses. order really with is RigNet the

that size you in way? Can any

what per they lot like or a you something of cheaper. replace really bandwidth would had to in what if what so in not as we with and multiples to XX% more what go these could Yes, --- markets they're a is is XX% they it's that's basis, site I -- of it enable more. they want don't it's currently -- that want Instead doing to think you opposed kind services and have be on the do do

So, yes.

synergy of timing? number And in the terms and

RigNet? On

Correct.

paying ability at initial to are laid the of replace synergies achieved the our operators out that synergies stop with of own in we our capacity. synergies and Most satellite most fees that RigNet the to with in that RigNet we've other had objective, ongoing cost

satellites. And bring will so we as these ViaSat-X those on occur

Okay.

market because for to that coverage biggest work growing service us. the we're working been Inmarsat, on main business good jets, the as getting out combination the working fleet things OEMs that is with way also attractive. more thing us to kind coverage increasing growing that's capacities now grow create ways built looks for way market. ViaSat-X in the fair been [indiscernible] that's coverage their But promising straightforward on and really more focused European OEMs amount again, well, having business. And in opportunities. looked a make the then And aircraft we've of business as a jets get operators, comes the and with which distributors and are ViaSat-X, we pretty really then of with with up Yes, on are of to services in The a with and also

And your ESA development?

Yes.

on working flight of a then already we're into that to an market jet we're business jet that. doing follow-on future proof demonstrated in a jet multi-orbit. ESA commercial we market products of we and now as is did jet regional is both as into we're apply -- there converting technology We -- kinds productizing commercial right be able that's as those demo smaller did for of is going to one. or us well. perspective, the markets for same the well the smaller having the business technologies main or focus product main is that commercial So, the kind what also earlier. bit. first But a now But on also on thing it pieces our from What One

very Thanks Mark. Great. much

land applicable future. It's our mobile the in also markets to directly

So, product. a elements lot common that of to

year? you Shawn. for the the could And ones CapEx on can say terms quick on I'm rates just locked you really anything some provide outlook that into if you're some of in for wondering of maybe more financing? the just just types And fiscal details the Okay.

Yes, sure.

not respect the it, overall, financing the that to rates, about is deal we in to we're way of you was it Rick as kind of mentioned. I But think submitted, going agreement. give place with underlying So, think their put details can because U.K. the the all

protections and little And that a are bit kind the rates a market with so conditioned framework gives you of terms of of a and back kind so the November -- major in to the the the benefit And And of are relative asked respect CapEx that gives in us well. to there. to kind as about limit that sorry, I'm upper built that the you then outlook.

that see year this you little a our targeting. lighter for I than what were So, was bit CapEx we can think

year it the getting can you program about big year, we're next this part year. -- the So, into of and next think

good a think a year, XXX range. next I thinking range, is couple so the around in about quarters, that's or So, but last quarter a little be might good per thicker

Great. Thanks Shawn. Thanks, everyone.

Yes, Landon. thanks

you. Thank

Raymond Our next the question Ric of comes Prentiss from line with James.

line Your open. is

for questions. Ric. A on is Brent Good this few everyone, Hey, afternoon.

ViaSat-X the for APAC I'm in on service EMEA also well the current satellites? timeline. the as appreciate timelines for the wondering expected and First, updates what as are launch

months the calendar while XXXX, slipped other be we've had But say that when is kind in weeks, that. for mark. I'd one, that interest six right they're we've of it hasn't but could second Well, just of last our said inside so a end launch by third year-end one coming around the from the these

So, stays calendar because early in on it's XXXX, count calendar little possible be into could that XXXX, earlier. it slips or XXXX, a but

And what's you XQ related to OpEx side? helpful. spending get that much magnitude really the in that's preparation ground on for ViaSat-X pacing in And Okay, about OpEx did the to OpEx side, as specific from forward? ready ViaSat-X talked of the systems increasing you and on you how the here spend

million. number increasing going say, next year. QX, $X in so And Shawn, quarter-to-quarter million $X sequentially is that's this -- and keep to the to So, was,

next the fleet probably around million. full can you think So, $XX across of year year somewhere --

Great, got projects far the as and also mentioned side about it. we exciting be mid-term about talked a should excited What projects then some long-term and and near-term, most there. government And you mobility spending can and few these opportunities? as R&D projects on

mobility to down we're What of lower jet, addressable of mobility a But that's land -- also be to all ones. aircraft we're into general make and both that’s to I stuff, mid-tier able we going are similarities going the commercial of really part one big -- long-term to think to the kind to driven mobility the outlined in the markets presence they we are trillion. extend a types the broadband customers. mobile we're of or within think that's because the markets basically do by just a -- we've land the see our region opportunity one IoT be ones, The the extend really the being still really now, think of that aviation even right But penetrated. really, These existing add commercial people in interesting to new still to up our lightly looking And government and are XX,XXX, well air there's There's are as really move some lot and going pretty mobile can going into sure them $X.X mobility of markets. air that closest ones land kind is two integrated mobile largest to Probably XX,XXX jets is we we certain one, timelines markets, those that the aircraft, is The are and have things exciting really of onto kind the our is going is market. some types that's investments ones good that market. market. to market are air represent to lot getting total in exciting of are mobility the and of to with our get passengers. air markets the

the I a and things really moving us productivity, think what far. curve of this important broad the the from serving is possible down revenue bandwidth on learning that's we bandwidth of so it's see markets, to the that enables those getting that one consumption, range keep made driving is

that So, all markets. of aggregate I kind think those it's

what that's now? yes, to timeline -- helpful. concerns you the And biggest cause year from Inmarsat would last me and from exceed one your do end? one Okay, the what's or on you And timeline, right of miss last think

process Well, on anti-trust the reviews. is it the really just

And of those tens reviews. the of thousands CMA So, documents here at in producing it's and we're for DOJ. the U.K.,

anything just see good think got what the work -- it's issues and as this made good about indication process, hurdles into have we two progress We really made we've multi-countries a see an we any all it well, as that, understanding the we've that there's responses different going don't of which very a working progress, -- U.K., just so be, in your totally thing, the very questions that. doesn’t state they seen cycle. they're in undertakings questions we differently. And case. so of got of really don't And It's haven't the and And in been that example an the processes, your we've so for anything go through would it's discussions but they good and quite -- any just been. I negative, in and submittals really review way then a really went

if So, slower, one capricious guiding -- that's what goes another into request then that delay. goes we request us. another -- that that's And we if

we've the XX-month we -- gave what about good to still that think out. we I guideline feel nine

Okay, thanks, everyone. Stay well.

you. Thank

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

open. is line Your

Thanks out these for of you of give could the the Most you? magnitude on questions on and the Thank approvals answered, from government have in us NSA but if such a ballpark wondered been slip be side system question. helpful? my the revenue

hey, can in a seeing. mean, QX important Yes, saw think we're quarter we into these feel give you early really we're and that the least it's year to to what pressures we one and what exactly I I mind, for thinking. try at I I think things that's about talked coming keep the of last

to is that other lighter seasonally thing segment, you government in of our quarter QX keep things The got play. is in both so

performance, when I think think that's highlight. that we be going will about the the to sequential be

we then occurring them last these December going out what's So, last of delays in to June until products And -- of our just getting start Q into see talked deliveries the which think so certifications September. happen QX. happen XXXX, FY quarter. -- QX and quarter, We it -- said, it's expected you actually those in of QX. We September going moving we QX QX in move really and time, or means about out won't QX we could or had of in to our don't

haven't that, seen just the certification demand. So, reduction really These in are process be any except this delivered. to we so they getting can

see terms it's to be, the don't reduction just in of going of value we an light. what So, are those overall the

Got it.

We couple versus another that in June also right shipping. part spent we've come quarter products that But we're in March that have to start some like should last until quarter those resolved been had occurred of that starts have now in shortages quarter back. of said, for down resolving the quarters Shawn sequentially the our that overall

Got Thanks it. much. so helpful. Very

Ron. Thanks

you. Thank

comes line the DiPalma next with from Blair. question Louie of Our William

Your line is open.

Rick and good afternoon. Mark,

Louie. Hey

Hey Louie.

Services What Satellite decrease? drove driven the decrease subscribers mobility? that on it the entirely capacity shift due that Or side the the in like like one-time sequential revenue? towards by were there any Was to quarter in drove like items consumer lower broadband

Hey Louie, this is Shawn.

of So, did seasonality from something that broadband there the ISP well, business in in little a to mind. bit as a fixed LatAm. was in QX see QX from other keep growth of in have primarily, offset thing you pressure, bit it the is little we But so is

with into by stabilization more to decline a you entry revenue and revenue? January, you aviation offset launch should of lead Or in to do residential And the broadband XXXX, continue of fiscal the to good. I to in that the service for an that than increases ViaSat-X, expected for think like for said be expect broadband Sounds residential revenue?

of the that to in-flight. the So, from decline about to really we've as three as have around of drive in And we quarter, the the expect we there. the activate, residential subscriber overall expect and in XXXX, count. of well as going in the again. do does residential that fourth airplanes we more turn and internationally to bandwidth in going residential the forward allocate And decline growing But start the we're subscriber we to continue number count U.S. expectations what's that's quarters, first growing talked to expecting in

start point you one stabilize is it bit see So, first should and then grow. a little to

allocate towards with the IFC just seeing you're IFC One side. remember And that bandwidth about I residential the resources comment business the we we as in back, offsetting on got residential COVID, again. contract to lot coming hit of then this, with put when of a that like

So, so resources like about in we that's we having of things businesses one of the areas. market these can allocate those that real-time multiples around

Great.

U.S. like both increase and of fiscal broadband ultimately, ARPU towards you -- subscribers end potentially XXXX? So, beginning think like expect I the consumer to

quarter Yes, subscribers in on expect capacity. start basis, we we as a to get sequential fourth growing the

up where we're is going I will think that market an fact of at very the ARPU to that the didn't we we much is, what ARPU the things from is bandwidth. perspective, but look have -- one driven our

So, higher segments the just and of we multiple have in to able ARPU. we've lot we'll bandwidth through the which be way probably more a been market, growing, grow is not

have So, better more plans. that plans I are valuable we'll think

will are those be Some introduce we what able with. of have what than to we But be also higher inventory a now. work we'll low because priced lot think have plans now, pricing to more I we'll have bandwidth that

I those So, going that with think clarity market on ARPU trajectory, have to more started we once services. probably we'll

be Sounds Ka-Band network, that that compatible they redundancy? so, and aircraft ViaSat the Inmarsat the like, good. either are years aircraft would right compatible would like you to when both that network, increased Related bidding international next equip you're with antenna when like two and over any be such to like on, Inmarsat, there's now the with develop plans there a

Yes.

as that our to the terminals Ka-Band we've of done things compatible a matter of satellites. we've So, one a large fact, is tried of with Ka-Band different now, number make right

can on about satellites. our work work work Asia. satellites own network we Brazil, we on right these on So, Brazilian in yet, for Telebras instance, NBN satellites satellites In for in but in [indiscernible] we instance, compatibilities We on don't on talking just now, other we Europe, and satellite. work that third-party all use we work Australia,

apply -- all Inmarsat Inmarsat which antennas working can of are network So, may our airplanes working of capable The all do within Inmarsat all satellite. gateways. With or satellites, on those the the have respective work we out are systems compatibilities, on modem particular, or also the individual our either to there work that's on the capable in on those. terminals antenna those then connecting we'll satellites, gateways, be we that work airplanes network things to of

to maneuvering So, global pretty quite but able immediately fleets coverage, the we much a be of be that, to room our objective is really to two to between theirs able satellites get have And with own bit get to have as feature that's a and our to to referring and well. -- that think you're that attractive redundancy that's I our going really for customers. additional be

think or Just of an on roam networks. versa. ours Could vice roam to on as it ability

XXXX. Thanks. And just one have aircraft said that final you you question. Do you for at have have future? a online of the rough I -- like how end aviation, to end backlog have XXXX install many expect like or know online you -- the right of like will fiscal more planes estimate end contract? X,XXX at of But now your commercial in backlog -- you to by and fiscal or how X,XXX the under in much the

think can have So, -- just that you the and under clear, be order. to doesn't X,XXX now just we Louie, that Southwest right include

So,

Okay.

backlog. good a So, healthy

for I are aircraft an think And interesting years United quantity, small XXX seems three has or with options options have for think ago, orders of announced, does like it And like it but I -- like ago backlog, that was options. large AXXX a AXXX Neo, two of a the your the Airlines American your like Airlines a or backlog customers contain they I Neo they think of options very just and like order and for Delta aircraft? with MAX have have years does like a and for I MAX, lot lot firm you order in for that like the think they

today, that the our backlog. orders all they've made just firm it's It's in

for include yet orders those of order that have, that includes Southwest to instance, those are a Southwest delivered aircrafts customers Southwest. be Some that aircraft to

to one they've to So, some provider our for are these ones, best what the of other it's make mission all when are with is, example. that's aircrafts, Plan of future in equipment the best we're new that and kind -- service. cases and aircraft for, -- that is A. our order of those they very the value that do new our customers, our goal airline so these But to provide the those connectivity of be each so to And have is their got orders guys, on not owners that's happy, customers available coming the

much work today. pretty that's And

The do their the get because do it well. ours that's other -- of well that the is good we well. want of questions, fleet surface And we What as to that they're are planes part so the thing so kind update equipped on to as other as existing make with this, motivated that possible.

which the grow existing are we So, those ways to in continue orders with customers.

I think now. airlines all pretty can much serve the the the fixers play other with that we

a like, of potential high Can what actually? transition? able estimate like, be like airline are a would lot like to, On I impact the for type And Wi-Fi? -- aircraft this that like revenue you contracts, potential in add ask another level average question, topic your have contemplated the transition you of free per to

both okay. of yes, those. Yes to So,

gone while -- take a let's put an I on here's plane. a that do I can in for plane, the airline think one in is, think the that’s I of last individual there couple on industry years the what's it, connecting individuals the would way was of that that names, me the on kind things of, a fly focus what route, it on show you

reliable passengers use of have become kind I happened from of more, what the hubs there planes. whole, where connectivity, individual they customer realize the planes is where, and as a is connecting notion that making in they and find people the then and more be they're they usage real is airlines grows, that make it less free, satisfaction free that of they think that places has what as see when their most the the it would Wi-Fi, the the for that fleet issue get especially utility value And has making service important.

us that's would okay, So, to go What perspective, does it's we're a that at airlines that like negotiation. for decisions, from cities? that to does gone them that Wi-Fi that one what And mean the about want our working means sure is as airlines more and And make for for issue becomes our that when is purchase that yes, And what for I it of focus what of an the think good service mean, We connectivity as -- level well. make free? usage. part That us hubs agreements? it's things with option. that where good the that it gets for look

have good good on -- the impact be things potentially So, -- the get. the that going of for. two revenue we for the numbers airplane it's get or But those is, outcome and -- the that's it the what to think be That's are in usage, to aiming specific sometimes do the ARPA, competition. the some certainly way that would would as them, average reasons we revenue But which per one us not as we're why as well. more for we're as it'll transparent they

follow that's communicate to that we're of I communicate with describe strategy sometimes And important it our we for is, and might their customers But us some easier is they that and in airline it's them. the of to this we to because be to like us as better their that extent that has, a allowing partnership some found our strategy, for them. said, but them competition it what

Understood. Thanks.

not and nature definitely X,XXX aircraft the that this I anything super is coming year you the gave include backlog our and out under clear does from that of This Southwest. just of [indiscernible]

not -- right. Does

Yes.

with like or so? X,XXX it might so be Okay, Southwest,

No comment.

outlook-- out mean different I of estimates there's there Sure,

what Purchase covered agreement. -- for new plans are which what's under is planes, the

estimates think all do at for so would would capturing shot those. be a have the good to at look deliveries thing And Southwest probably I be estimates, and we to what

Yes, from just like all didn't Southwest. qualifier, you any future said you use aircrafts

pretty long that's you know. a timeline So,

to [indiscernible] We going There XXX, version. have continue are to the their Max don’t earnings.

Thanks. Shawn great. Thanks Thanks That’s for clarification. and Mark. Rick the

Thank you.

next Our from Quilty Quilty with of question Milan comes Chris -- Analytics.

line Your open. is

system? Southwest been you communicate that a shift you it's is that permanent one aspect Thanks. historically as know forward do I notable but that see their just strategy, announcement all this Ku, Southwest your customers to a better of by said they've Ka-Band so

I Ku, issue it's Southwest. issue think it's an don’t I an or think Ka really of of

a it's our now fly of job the Our the their planes make mean, to right of they or they're to that that's another happy that And that plane job service they own of to fleet. want they're network such do I quality on rest And is Southwest with. out good I the do -- the Southwest, extent to what that that have go their to supplier going out. float challenge. figure will

that or think Ka it's about Ku. really I not

that. in don't design automatically systems the should Look just having give to option you I service forward features aiming space things say give deliver in think to right. take best that we us biotech of should have satellites, now. that them we're in the they if the they to of to that because my do And use Ka-Band, satellites from ability [ph]. especially, Ka-Band, with they [ph], better that have the do some is job our come would you and they do what They can the that a that come they That’s advantage service. want It's to can and we the and

And Chris positively is, right? we're within year? this purchasing having with again our next really intent, mission. versus what's the of impact there's going probability our we really want, concept that the we extent So, can award, you buys fly service Somebody to to that's the what by and

Forever, yes.

the you in been the we to continue growth? we see should have the fire been you've segment, antenna level driving commercial network gears Shifting and can as just that or trend the should a that on what fiscal on off maybe Great. that I'm see next And And you detail looking out factors it segment. year ground expect bit? to

sure Chris. Yes,

One our year, when and too. a couple a next -- you that's of big about part growth it's terminal part next year a of our big is pieces, this right? think our growth IoT be year think to of delivery was going I part growth of

So, delivered XXX next this year, we plus to and year. I XXX think do we're going

mind-- in So, we're But excited that. keep about

lower and QX. in little QX a But

really our their to meeting customer tied Yes, and schedule. demands we're

and Aircraft antenna big on deliveries the kind of certification gating also drivers ground Those then completions, and right. are business. also

to next mean, some I too. to that and year, continue going fantastic. Yes, wins they they're had grow I think significant into

lumps, a airline in question have I is just think highlights to whether point, kind wins. contracts, or we of sort And get government we which business contracts, your -- tend of Chris, it's antenna big

to lot of have business. one in in-flight business, those a the the that's actually things. that growth residential to the of we The is using on so dependent that timing of that the businesses U.S. those business really timing feed subject that one is And not really is we're which the

out. the that to that's going QX way lumpiness that year seeing that QX really QX what's in XXXX and you're into play will contributing So, fiscal it and and

is So, on basis, that On those it annual little the quarterly pipeline an lumps that basis, be unpredictable of the in have thing most the bit. now drive of good; the a a pretty that the can growth. rate good we are things

And on was you. equipment side, it driven? Got ground Earth the observation mostly

Yes.

Great.

Communication intended I in thing run the customers. this we the got with the of that antenna the space and government with really both combination that other that commercial is one we on have that think long kind which from help will Services And ground of the to for that that that CSP, side, relay things business NASA, of is leverage Project award

it relates kind I highlighting business. synergistic. pretty that for two to prospects antenna are ground the think it's worth future And things of those our as

that panel electronically-steered hate any market? coming you. the any looking market? flat to Got but or you're more competitive -- are have to your position do where prognostication keep And or to -- progress made where keep on products be asking antenna when dozen relative in And questions, it have to should you specifically what that I antenna, you

those deliver and for what antennas, is main should cost objective main to our -- customers' so think we Okay, most effectively. services our objective, be this

So, that We our think you -- our to that's know order differentiate antennas. going do that, capabilities. what's network -- to what that's in may need I --

networks. Some in are bit that to we're unique little of things a building our the

focused product. specifications as standalone or antennas we're features than these than a service, more for we our just some okay. the antenna are of mechanism of at on market to as look delivery a our antennas products for a in So, some somebody might, an competing lot differently And of who's that the us causes

principle So, guiding us. the that's for kind of

in things connection, scheduling the those flexibility of really different not we connections but services have impact the all your ability some have. to And that a these among make that you

on reliably, of measure, on service you around build our a to efficiently. on level these ability this know and from of comes theme, to capacity some high deliver bandwidth Just comes that some which satellite, really we're agreements very from move it productivity focused

And thing bandwidth putting ability we so the features that's of build to the just orbits some the more efficient other multiple in, we're that that make efficiently, a lot the scheduling use or in. really

some in in Some -- of antennas copies first you'll the using And maybe of business the mobile one flown, some -- that applications that see on specifics that of we land and have for but the that for the more weigh closer aviation. for we've to of products aviation be is to that. applications the main focused customers that talk opportunity market. give we in aim We'll as more that on our the instance, an the get about commercial we it in

mark. That’s the question

mass denominator the would be for to because this antennas market, to lowest Just it try call approach building you're common a to one approach. I clarify way

would antennas right. wanted, had they about if we little But one we don't, buy talk that. is, bit they features a Another so the that

that. said You

Yes.

the attributes that not people buy one the what that sure is of product, of is you're of sort service if particular be. So, things service antennas at that one from go times third-party, of at or a don't I case look of the the combination think under because angles what deliver off to they buy what's look just is to case build is performance satellite performance a satellite will worst on using, and lot important Rick's point, look as worst of when a they're quite the an which

capabilities. For with that intense best us a all we to unique conditions very sense have specification weighted of those operating pretty up that knowing the lot big come some us for fleet under a with customers. performance is makes average What an delivers for

as but us and fraction the of choose better it criteria, if a case what we that time that agreement, So, under even we the reliably expect arose conditions worst most it allow to only an time as that that level service had small meet an -- still a it acceptable the was we performance operating customer. very of for so enabled, example, would way specification, if condition performance did our

might your weighted can average case on you're a different a difference choose So, worst big a antennas, selling choice rationally antenna expected and there's just or one. have technology. of really customers When between impact third-party sort of

these on mass to so be money and markets, the antennas and sell we're we're doing things really antennas enable addressing that. can able not to markets that -- make of we're services So, in we kind of in bunch antennas on a

Does that sense? makes

you. got Yes,

an designing you're that's So, for your antenna service? optimized

including future number involves in ultimately, think haven't that our partner but whole be own well, really yet bunch a not just discussed, of satellites which as Yes, to partners the are valuable we satellites, going a but of

orbit. multi And

Yes, right.

Great. Do you want to multi-orbit elaborate on that strategy?

ability in the the congested bandwidth we've right? bandwidth the of -- So, a No, is low of do to the very really would multi-orbit geosynchronous orbits as that attributes, airline ports strategy get think, for like other to we're got in we one is the what really say trying places, what example. cost we think best to than lot hubs each example, and really, be deliver these another satellites,

can that. you that non-geo want that use places the in then Or if So, to geo non-geo use to what a get, satellites customers because can the fill from want to doesn't And partner propagation hotspots you to hotspots. we you'd you depending get, let extent to able like that can as get areas that that. in want can us be you that also that we coverage so, evolves, on we you'd If we or use traffic we now customers that. otherwise lower that for have lower reach, for expect those have didn't benefits traffic delay in also well extent to latency, serve that those the and wouldn't

those not partners. satellite being one of set reasons non-geo So, multiple for partners, as those are the well with main using as

you. Got

us tell non-geo. appreciate feedback. can you so who's quarter, next till I the wait I'll So,

Yes.

Okay.

Thanks guys. All right.

Thanks Chris.

you. Thank

final line the question follow-up. Park of with Landon from a comes Stanley Morgan Our of

Your line is open.

the I follow-up you letter? And that competition the residential wondering quick the you Great, thanks one then in could elaborate you, taking was on just if for about guys. just for one U.S. talked terrestrial Shawn.

[ph] with the thinking Should in $XXX other taking million $X.X or the other working there think we cash about? EBITDA about billion guidance? $XXX the capital CapEx million guidance burn or are to Just be considerations range

and ahead be think keep see of about go growing working thing one would channel to going to going to growth we're to I us that buy [indiscernible]. first mind for and Yes, the be is we're in kind to say to

spent I better in basis. burn year-over-year on relative capital little there, a working So,

next we've what leverage the X.X we said think to also is kind year's of around expect I be mark.

around. So, it get of places kind it gives you try and to some

Okay.

probably on And Okay. cable to longer of probably are terrestrial of government and factors of networks. biggest market, and kind residential kind subsidies, build going term the be fiber then a out

market. is what has that impact So, what that's we're at -- looking the really on addressable

at these markets. see in going it what's of had would a in out the the And total on operated -- the still and But go from about talked in But U.S. points of of of couple gave have what the residential what subsidy a we And build others XXXX U.S. think it business addressable mobility international will maybe ago, think market chart the think, expectations opportunities showed that showed services our than market markets be That's long-term, that much FY as a years into modest of fraction I we our pie think are in higher down. We market. FY price XXXX. total we've the you whole. I coming now. too. markets that, a taking if different -- growth satellite it look account way sort kind creates at larger we

hundreds planning growing about talking on to we're I thousands, think we subscribers and is of like not the millions room in of have market. this by U.S. by grow

be we'll at a plan this. to that, addressable market and but that dramatically smaller tight our share market on much addressable say You'd of able increase with our

So, anticipating. we're what that's

or--? are new -- start actually you those guys service [indiscernible] enter plans testing When before

higher that's really you'll our really, really, quality and would That'll more the one ViaSat-X. say, we streaming. with of we're we see testing of gone subscribers that's do And Yes, hundreds of but that But gone really be plans what video are. well. well. it's things we're hump, really I is most that that promising right And now, one doing around

now You'll -- out we'll to we now. see us plan higher than topped plans. begin higher testing go also at XXX have higher we megabits on Right speed plans per meaningfully second, speed probably

kind of a which us little that more are are also see premium moving have value you'll than performance, what -- more we bit could what think and involve but now both I based, improvements in premium both points. directions, then plans better the others lower could be that in price

using in way is service And the of government subscribers. got broadband for program, The as a basically other on available point one program is like lower that fixed a is I it's they income, subsidies what which satellite well. call which the with is subsidies to it's voucher ways ACP the is providers would -- make

kind at markets kind be we've economically-stressed just And price-sensitive this are so our And to that's that had or end of something before. quarter. that we're with adopting help will more than sometime going -- that of the

So, you can participate in the EBB [ph] program?

$XX think that. -- it's program, the think, going pretty qualify, Yes, a it's significant be It's meaningful. I get pretty I month. to pretty And a ACP it's is they than like, more pretty, people program, straightforward like

one we -- in the that's I EBB. think think are the I

we it program. on, will is pretty it's a popular does ACP the I be more going continue probably think appear that impactful. to think one that And

Right.

all? about You you fixed saying at cable, and are fiber talked wireless

do we service, arrives going think fixed of it's that of those, I a be to mid-band, more it's going see each T-Mobile We that's version dedicated mobile -- that wireless. kind probably fixed representative of to impactful fixed mean, like more I a wireless it's of probably than be on

service. the subordinate think, is has way mobile look it but you the at if thing, done I T-Mobile their probably they've done to it long-term

which -- probably of the biggest and the impact. going have the is roll that duration out of can most but impact the can it potential it where geographically kind kind an to extent long-term that's the to of So, on roll -- that, out,

going I people people and think a think really in economically -- of see plan we mobile one coming go things all. -- some opportunity that times, that plan and as to stuff is repeatedly of that well. the And when having fixed into around economically at just stressful some that's augmenting actually especially there's not a they're going, we

we think using the I tool markets. -- want always business usual, So, never don't different -- we same it's think in to as

change, us put -- of the from But quarter local play in, think that in in compared there's letter theme fourth quarter, and I did biggest the out it opportunity. the a whenever in fourth main and we the quarter our one -- FY year XXXX, there's I the of satellite in statistics the same international So, our to of was, our services XX% ago. think, revenue came for XX%

So, long-term that -- the trend. that's

some the abandoning the going I in mobility are real markets think we away definitely internationally, that hear and residential -- we're happening not the think -- is hinging not and it's of are factors on U.S. to we but market, in are a growth those happen. unlikely like in where we're its or lot growth the of

Okay. Thanks everyone.

Landon. Thanks

the back over turn now Baldridge call remarks. will to like I to for Mr. Thanks. closing

Okay, thanks.

to to it up that more up. to we that points ViaSat-X there the money, the We borrow and because was we like think sure borrow balanced don't, accelerator constellation, the trying this the constantly out make right guys we're make put so valuable have on bunch try it hitting like, investments kind of year, we this and bit make one little until all guys questions can a the for EBITDA and we're is we call. that, to sure finish So, appreciate targets a to the we were that. are there some did we constrain couple get tough, room in before and make that things extent you we good being the the of to and a all, we QX first now I've you just there were people of and couldn't conflicts, finished I of listening we say for had -- know showing thank was

constantly we're that. so And doing

I think you for around while it's have upcoming guys we're that know launch, ViaSat-X exciting been that. because in our about It's excited a the and of sights balance. that really getting

is This allow us a to And [indiscernible] me just first to the strong waiting team, our that, for guys another operational we is the rest year, positive -- and good service while time, being and on sorely waiting top global ViaSat-X focus excited think need we gives hyper-focused want for what capacity of we're and very and plan. call. you capabilities the and getting momentum that that remain we've opportunities basis, to we've just the thank expanding executing at our for, which and on really our enhance global here our Mark regionally So, teams improve for. on mobile same of that's about really us on launch, the And been the offerings. been that. the

go to that expand us enables business. the that So,

to or questions to today. don't Thank hesitate you. So, contact forward quarter. on Peter you team our or results of rest more have if look our the topics next other you We updating

Thank you and Ladies for conference call. this concludes gentlemen, your today's participation.

disconnect. now may You