Viasat (VSAT) 21 May 242024 Q4 Earnings call transcript

My name is Sarah, and I will be your conference facilitator this afternoon. At this time, I would like to welcome everyone to Viasat's Fourth Quarter Fiscal Year 2024 Earnings Results Conference Call. [Operator Instructions] I would now like to turn the call over to Ms. Lisa Curran, Vice President of Investor Relations. Ms. your begin may you conference. Curran,

Thanks, Sarah.

fourth prior Viasat's acquisition, reflect Shareholder performance business Investor the results. website. results supplemental the increases fiscal section following of prior noted, historical IFRS fiscal of with present conversion today's on will financial Relations results is otherwise Inmarsat's fourth year section financial periods the reflect reflect reported price The Inmarsat. Unless purchase website. Letter to to year for measures the Information combined to combined and fiscal GAAP, XXXX information results for measures more are compared to the presentation required for measures results results supplemental provide to based quarter in to financial XXXX meaningful from fourth changes combination the our in historical of periods. These note of non-GAAP of year-over-year, call. operations presented available decreases 'XX was by illustrate our from for the prepared comparison the Investor non-GAAP Shareholder data combined our on results of We financial relative year to or of of operations combined Letter our accounting, with these the financial better on Inmarsat's its of acquisition supplemental conforming adjustments certain reported supplemental are year investors Please our the that our and our continuing relating against SEC on a to quarter results quarter Relations Viasat's year-over-year

significant describe impacted certain During performance. that the factors year-over-year presentation, of the will more we

differ will differ from the laws, risks to within statements that may results number to Form events might make from any filings regarding or is and These CEO. are forward-looking and the to and statements and I'll any We anticipate make turn in subject occur materially factors date we available that that report of it Chairman meaning on statements statements regarding will expect assume the in forward-looking our update statements forward-looking we Dankberg, do any uncertainties as statements we materially These are today. Information made, these not federal XX-K. or actual and they results obligation forward-looking future. forward-looking statements. With cause may securities SEC of or speak developments a only including to the forward-looking also actual over subsequent Mark of these that,

results immediately me, operational have President; our of for Good afternoon afternoon, the our synergies undertook outlook, we'll XXXX the driven us. questions. We the above fiscal satellite high redundancies, XXXX integrating year and growth highlights Guru I'll Letter reading and a for end guidance, With I website fiscal with our our take productivity. today. and give main cover adjusted Inmarsat year anomalies, an then growth our We companies details. and the more Guru Shawn posted our Gowrappan, CFO. We thanks encourage dealt will that eliminate mobility then this Duffy, for and earlier and and achieved us joining Shareholder by year drive we on acquisition, EBITDA points, overview closed revenue big the and to of capture the was and

and difficult services and aligned synergies million, expertise of domain achieved and CapEx, high drive to including $XXX rights efficiently synergies our our we along 'XX, integrating networks. reliable satellite cost We've recurring maritime months ahead key people global largely maturities. delays. extended and $XXX achieved efficiency operational, safety schedules organization coverage productivity but and reductions number approximately with year close, of prioritization deliver demand capital of fiscal in We in to the X to savings objective satellite reduction global distribution technology, billion and We Viasat's in services and of Our added aeronautical government and to systematic operational and company methodology our base, mobility the partners, and functions. times. Within productivity investment by made in optimized capital help engineering, prices another as highest through customers, about million our we necessary approximately with to reorganized $X planned and due we team. In about structure strengthened integrate global support utilization is and Inmarsat's aeronautical the leadership to system distribution satellite to some also and debt spectrum leading a and customer achieve L-band

our We customers. guidance. All for have of mobility the that, support for previously and advanced and government our on growth, including [indiscernible] to investments while new mentioned, connectivity technology options encryption government monetization as programs and 'XX focused and fiscal above and functionality achieving high continuing entertainment airlines end goals stayed and main financial operating for additional next-gen achieved

for cash highest 'XX capital clear we 'XX, free sight of to global resources their the multiyear into infrastructure our of with service revenue inflection line EBITDA by foundation and CapEx in establishing the additional year us entering in with update as total positive is fiscal beyond first substantially our calendar satellites Guru accelerated of a new continue Getting network to in and end service. end budget fiscal must priority our 'XX, normalize also to few savings outlook satellites XXXX for a of will is fiscal flow will fiscal the 'XX. Now growth of bandwidth enable half to quarter a which minutes. first multiply adjusted providing those an

fiscal steadily reporting of our our efficiencies networks. the in from areas. our and fleet drive Starting increasing to satellite During 'XX, that first lower operational [indiscernible] transparency business productivity continue and be also investors quarter satellite to improve resegmenting we give into utilization we'll 'XX, also financial

and will anticipate already our Enterprise network and providing adding services, executed hybrid all multi-band [indiscernible] services. LEO. for multi-orbit extending be our components real to hybrid also We Maritime broadband for multi-orbit mobility We've

the planned includes next one road consistent is It our schedule. satellite for -- assumed are outlook, dates in satellites are continents design customers, bandwidth further approaches cellular while with The will service service also provides quarter. down support to offering benefit anomaly L-band are Mobile the we fleet fiscal map and standards early introducing polar wide satellite Via-X, based XXB working the spectrum. us in-service as mobility on network cost like-minded scalable and the commercial antenna Satellite and satellite and through entering for quality. Also XXXX. fulfillment invested that is with mid-XXXX region. The Letter the that service XGPP existing greatest capital, same anticipate motivating direct-to-device last mobile drive of license on 'XX, mobile devices first capital to financial calendar satellite services government X on Association GX-XXA on partnering for deployment future satellite mobile operators. We're and amount in-service we reduce They ecosystem the Services costs our enterprise promote and services improving return ViaSat-X will dates individual Shareholder consumer Our with schedule a the to

advantages services adding connectivity customers leverage innovations and confidence on service the value achieve competitive preserve to DXD user agreements, bandwidth that deliver terminals. with from partners. pronounced customers aeronautical safety unique needs and increased would addressable via expectations service latency low Viasat growth to technical always of consumption sector highest giving infrastructure. We operational capabilities, customers evolve meet landscape on price and driving happening. and offer large We've focusing next-generation broadband times maritime by our innovative leading volume satellite costs enter level understand base expected will the help steadily cost-effective customers and their have We industry increasing communications that greater through passenger and and our our with business elasticity. the models the volume crew That's markets approach and service evolving. value Satellite We satisfaction. We're building increasing speed LEO even to is and along [indiscernible] to total to and of in down places Services new clearly drive do speed terms their a

synthesize but has is stages commensurate very to competitive ecosystem. champions evolved cohesive a nations next mobility. growth all several While for with successfully Viasat phase satellite history. into very from cooperative opportunities. services, to our global create emphasizing has timely investments engagement governments, new opportunities see solutions enterprising a and space in We regional unique multi-orbit transformational multi-band heritage through companies Inmarsat international with complementary This

major helping [indiscernible] profitably to services that and are others to multi-orbit us a year we We architectures past acquisition. extend operable responsibly challenges enable embraced preserve and our networks. This have faced multi-band and

focus, have the for guidance results difficult our objectives, above our maintained our achieving measures, met our We taken prior year. business

our and customers meet customers capturing we more for rising their are we quality and when, how real and certainty, connectivity. use and As where more world data on expectations

customers our our evaluate our architectures win help focused our future systems network services. and and ecosystem leveraged We continually managing employees, knowledge and to have We that shaping serving on and dynamically We're customers, shareholders. up it our we're results. our compete space challenge. With partners own Guru of for operational more to We're I bring the we do, the and We to our cover to portfolio pace value. change. opportunities by work energized have even to that, hand know to

on The 'XX. to on performance, of our and financial encryption entertainment adjusted the leverage connectivity litigation combined for investments pressure excluding and next-generation financial growth driven revenue we R&D functionality, priorities mobility reflects in X% Thanks, year-over-year generated 'XX, in and service performance entering X update FY and Mobility Government, year-over-year, operating during including ViaSat-X ramp growth QX FY up come combined deliver I the onetime will the satellites outlook. growth, 'XX. FY incremental term of near Viasat new EBITDA in-flight X% catch-up settlement offerings Mark. of topics; earned by and good

X% combined performance begin guidance in adjusted improved QX segments. top Government EBITDA QX synergies year-over-year. cost Commercial quarter were to favorable savings FY to FY The 'XX, due alongside QX last to we EBITDA declined For slightly previously line and while X% accelerated by combined Adjusted cost revenue savings 'XX. slated QX was and from in grew

encryption to ViaSat-XFX XX% into had from we center spacecraft. completed to is and an satellite key to Some year-over-year. 'XX. Government MBPS from Boeing, the later control demonstrated high-speed over over Systems March, FY just of speeds the the handover now network we operating quarter include: commercial this another quarter place increasing products XXX service demand our continue of we aircraft information expect strong assurance, highlights ViaSat-X for In QX

The program ViaSat-X users access satellite ground or Defense had Northrop quarter L-band enable U.S. by a the high-bandwidth driven Grumman SATCOM Force were Research awarded commercial Tracking Blue a also internet vehicles. aircraft contract called initiative will Internet space, existing strong to satellite Experimentation services revenue. in connectivity growth We in Air tactical from network to networks, Laboratory using We Force support from and our

XX% about year-over-year ARPU. growth Services year a in with the from Our aircraft in with benefited fewer by fixed combined ended declined Satellite basis X,XXX on IFC X,XXX U.S. partially up offset expected, subscribers segment backlog. commercial broadband in residential aircraft higher over revenue strong as aviation, were service,

ViaSat-X to and maturity billion continue operational down a class for global billion NexusWave of with rapid fixed we full launch solution to debt hybrid FY support finally, million higher-margin our this enterprise $XX and B Mark loan resilience impact, of the paid QX, of and integrate maritime they coverage, expected extended U.S. is XXXX capacity IFC and as enter speed, year $X.XX lease welfare. the cash. deprioritize service capacity, described growth. We but It's crew called meet to QX term in NexusWave. managed broadband so. And security $X.X developed will out seamlessly multi-orbit to We with a scalable and

of We million. X for also extended amount in $XXX years an Inmarsat revolver

We balance to liquidity ample our act continue retaining to while sheet optimize opportunistically.

the FY XX% and was and up Combined ARPU In continued to X% some up offering, in some L-band-only products. billion, QX expected growth fleet financial XXXX. trend on million in was results. revenue Systems QX to Now express Ka- $XXX declines in our products year-over-year, L-band revenue by slowing driven compared and grow and while continued. $X.X overall the aviation services fleet broadband color with hybrid maritime, pressures Government

million ended with later also a improvement shifts up million That largely which loss quarter, adjusted continuing substantially be FY maritime at foundation lumpy or which with in lower at lay tend nature XXXX, expected positive for of the the customers and gradual. business quarter increase Adjusted $XX to maturities QX end fixed Inmarsat in cash loss by and multi-orbit a and to in time year trajectory with liquidity, the cash offset aviation. year-over-year, the an the be flow expense declined expenditures interest million, revenue, period installations, EBITDA ViaSat-X. Net announced. We $XX EBITDA near-term plan in primarily $XXX Inmarsat due NexusWave path billion of LTM X.X year from QX quarter to new $X.X said, the R&D from approximately which acquisition was Combined net adjusted tends year-ago broadband fully we Given estimated decreased year-over-year. and to up end the quarter combined for revenue $X QX, associated to an on for in X% EBITDA the in short-term as 'XX. revenue to higher including X.Xx and reflecting the equivalents recurring XXX% acquisition. by expect Sequentially, billion investments FY cash net was free approximately operations service product no down the favorable to of of of growth was funded increased XX% leverage decline is

Finally, insurance proceeding recovery well. claims are

insurance and $XXX have FX the I-X the proceeds for XXX% received was or submitted claim first of satellite, million. The we

collecting We $XXX we Overall, and million process good guidance. are of insurance of about Viasat, a we to end XX% the it of high expected. the quarter date, and previous delivered proceeds, collected above ViaSat-XFX EBITDA in adjusted for was have

Now I'll letter. touch discussed our in the we X priorities on

of a in awards, businesses. build maturities. of portion FY achieved 'XX was we extended execution, and debt strength our operational First, through good and financial focused a momentum continued year performance core meaningful our

disciplined Our related operating satellite and costs to and synergies We QX achieve the allocation towards $XX our and positive drive million of the annualized of CapEx I was platform 'XX, capital previous delivery FY savings FY cash below is our in maps, $X.X of the or free CapEx billion revenue second just about integration and road as scale rationalization operating reduced CapEx synergies Capital $X.X to and million million, integration. of forward accelerated operating of $XXX the executing earlier. and savings, flow. In said the as we billion reduce $XXX scope to outlook total XXXX. expand products alongside $XXX Today, to of which a announcing yielding XXXX synergies additional million synergies cash our we of mentioned, of $XXX million QX services. about priority $XXX Inmarsat announced expense we're for FY as into bringing Mark an synergies, network million

You payments. also the $XX of satellite into to from million and noticed shifting FY FY of 'XX 'XX milestone ebbs CapEx due flows

free advancing and point sustain to improve the mobility while business Third, inflection flow. growth positive cash

reputation portfolio to mobility win, the we've our right enjoys profile of margin a businesses proud are We long-term strong and trusted growth and good customer built, attractive in focused markets.

positions putting We that of into operators. other satellites $X.X are progressing billion growth on under construction through for profitable satellites with us performing higher partnerships service, and

making flow line have FY positive XXXX. QX end are and cash free of steady sight of progress by We to

Now to outlook.

catch-up QX impairment outlook We preliminary We litigation its are initiating the guidance. FY and our view satellite the exclude XXXX of announced our XXXX. charges and XXXX in from settlement benefit FY from FY

about is XXXX FY a said, Mark setting foundation [indiscernible]. As

growth. our year-over-year level segment FY in section outlook also low For of the year-over-year mid-single-digit Shareholder We've with flat Letter. EBITDA detail adjusted we XXXX, roughly revenue to expect additional provided

are remaining with leverage, line commercial guide with operating top are prudent positive getting aircraft OEM we deliveries. delayed we uncertainties our given While

revenue which [indiscernible] will $XXX billion expenditures top taken FY updates of on Given growth into to decline interest FY year, more FY our under and where we X/X activities. A billion. opportunities in we years to to measures these satellite with go FY awards and calendar on billion rather X/X growth. The an In EBITDA view pressure of range capitalized communicate FY with XXXX, a that additional is adjusted FY gain we we CapEx decline $X.X than network we've range maintenance anticipated multiyear other provide and be benefit XXXX the place in construction 'XX, majority $X.X expect outlook FY line effort to and FY 'XX our guidance, to growth into continued but a all million associated than capital We our and our we'll of to continue to billion CapEx strong software are of FY building XXXX. of providing to a in points, our CapEx billion. a to $X.X adjusted as to Again, expected resume moved years for projects as per in targeted expenditures in insurance approximately that's $X.X service. indicates comments spend FY years. and relative CapEx service. portion backlog grow satellites mix down FY EBITDA in total is offset our We fiscal in less from will of XXXX. In it foundational capitalized XXXX future synergies XXXX, a over commercial XXXX growth into as Capital and earlier to to based range may to excludes sales XXXX warranted. In growth, have resume network and decline consistently, assets recoveries outlook expect XXXX accelerated include investments our step general success-based XXXX $X.X capital FY preliminary

So clear. let be just me

Our target changed. has not

to with double-digit we positive inflection capital free flow to expenditures expected to continue positive driven cash point by satellites an our expenditure commercial be is path flow operating to declines flow normalized going FY end cash as of free continued capital in expect and service. growth into XXXX, We by QX line in cash

X Before updates wrapping up, important to share. I have

May, reporting our portfolio a value. give As we to structure segment into insights Mark new drivers and in referenced, of initiated additional

recasted you provide reportable have our for will plan X business our and and call data Communication unit major factors. and models. of Services Defense We financials within to time ahead investor have so listened first feedback historical segment. that update we to to will quarter each revenue We we your include forward, Going Advanced Technologies.

and and both to improved study up continuing for highlight that for and perception strategy, growth feedback Investor runway are outreach the generation. returns Day other from as potential, communications market competitive enhance direct or we opportunities cash and planning to our is we and gather wrapping sustainable an playbook our Secondly,

some and and we was future QX our back capturing good, We 'XX, performance 'XX will operational map synergy. I'll Mark. our cash free in that, CapEx. With come expect FY positive we challenges, significant with operational cash on and in road good flow to operating FY In capital updates. Despite and make are increases satellite to with back moderated flow it and progress pass substantial towards

Okay. Thanks, Guru.

Before just questions, we what some for which is clarify a to additional growth gotten wanted I the that is we one reference 'XX base adjusted our using for FY XXXX. point, FY have take as questions, exact EBITDA we're into

that right of adjusted XXXX we settlement. that base was So FY look at catch-up you associated the review gain That's described XX what chart, billion for year XXXX 'XX. middle -- shown referenced we're as number the $X.XXX million then $X.XXX the that had the that's Page onetime in billion. where using. letter, And with the in of we space on EBITDA the combined And was if FY is FY X, there $XX of litigation

XX subtracting $XX. FY would base. is that from mid-single-digit And be 'XX million. then gives to outlook that $XX.XX million of million what for So $XX growth low growth the off

can to to questions. now we I beginning, clarify that additional can the up at and we just then So wanted . open it --

[Operator Morgan from Instructions] Stanley. question the Simon first Your of Flannery line comes with

bit, days in that perhaps the interesting launch a for of you in little If getting what's Any Asia the update about Pac could the XX kind a coming you EMEA schedules. that. of can the your out. the preparation and the for Any thoughts and them past NexusWave more for just kind just some over you Thanks to give in current We dig to of there. And on the disclosures to distribute satellite them into satellites cycles deployment? bit FX perhaps color the like of the things status the new how product FX launched, they're of for updated are on and little schedule moving well? And updates Americas? the happened where appreciate could on just I talked you're on going on the once and for from that the or also as us see on all maybe you've us capacity on commercial last thoughts sort

any that I a think something that when set? more we'll product? might in comments, you on IFC. you that we'll thoughts year, extend to Is that see said similar this see integrated your product Or

you couple I'll it Simon, question. Guru. start points. chime think the thank of is then I for off the will Mark a This and on in

ViaSat-XFX That's XX, point just reference. a the road now. On new to FX, overall the includes everybody's letter we've to document map the added thing actually that or Page the as well, and for

a to a and more from So we year on thermal in expect to FX, little we now. are, in begin quarter spacecraft. where is is XXXX, bring to than this FX into late to vacuum And service which milestone, continue which terms of key FX schedule testing mid- a calendar year the is expected on

we best are reflectors, notice, you as you, And to then service improved most our corrective as which expect FX anticipate milestone And relevant just bringing late for most actions as And ViaSat-XFX, the they calendar we customers delivered in year outlook Boeing critical inform be the giving growth the these to are our XXXX. and continue in-service dates include in into to also in XXXX. well. calendar to of late only we terms will clarify, for

that, pass you think Mark? it repeat will in And terms coverage. you overall to have may I but of NexusWave, question a to And ask Mark I he on

Yes.

the the in did used the can On any locations things of each region. one satellite of [indiscernible] remember, satellite, we be

probably would have have we things -- of looking about one at so X I ultimately there. relocating the them maybe talked EMEA and over Asia are then So that we that of flexibility is and into [indiscernible] And use Flight think The we moved we going be think That's from the go to will Flight Pacifico optimize U.S. X area. launch. directly would Flight is what the to satellites. X

specifically that NexusWave, question Your Maritime. for is agreement

in-flight connectivity. of The markets kind agreements the additional which for for service We each will optimized [indiscernible]. be agreements go into will that expect in are of to have

is OneWeb, And with right? this is that

for of Yes, the we're NexusWave. working the almost actually with NGSOs. working -- all But we are

that so deals. matching And based appropriate on we'll and be as mixing

Great. maybe one And follow-up. just last

Just few deliveries. before remember that in I months weeks. days? don't this I seem about slash remember lower that's something backlog pretty -- out it you last changed talking perhaps could a substantially -- little because you you've the really does point on that Is just OEM got like dramatically few that last still. don't a good bit

Yes.

we main a So issue following is [indiscernible]. the -- much have good pretty backlog. It's Airlines Alaska XXX, excuse The do cut me, event of Boeing reduced. XXX has delivery its XXXs

affects that so number fair our customers. And of a

into that our And outlook for we receiving to so quarter FY 'XX FY is are of we what a last what through to factors one change XX. is That believed for the outlook. flowing they're those until relative our

question Rick Prentiss next of Raymond Your the James. comes with from line

give defense A see sneak that us to couple Can get we'll you -- units a you I the what going those X questions. into with think reporting appreciate of technologies? with and as new services those under comm business as advanced peek the quarter NexusWave, segment. far we're major results, current

can Rick, this Shawn. I is you help out.

that what we the utilize new think to X that that's but to segment, reporting. reflect better be there some satellites. and our is to we're data more is businesses come, the mobility I high-level the Services the all There's really goal is Communications going underneath drivers. going is of about thoughts, portfolio to And overall I our strategies and our going segments have think talked

that's which you going in business. include that's a other for businesses segment the means and that, of example, of so to Government SATCOM all that Technologies, today. Whereas to in And encryption our our is going of as, Advanced our that think Defense and service, government as consist

give going line major top drivers So data the revenue segments. for revenue additional also within of that, we're most to those in

give as can to maritime think encryption. or the as network You relative or we'll aviation And contributions more well. color of like that

now recurring into think Commercial That's to then Services So IFC would to kind going in highlights, frames. Those flow and a going segments. well. An antenna reported alongside the as like our segment And be the couple another are equipment aviation the revenue product. Defense revenues. that I just to Technologies be of of you would systems give other our now Advanced be example

probably that's key some So takeaways.

R&D as see You'll well. along move those

into R&D example, over, Hopefully, that's our related Communication For to in example, and the and our that's networks for service, helpful. to networks bringing commercial blow going Services.

that And of the provided you've help Yes, to we kind earnings season next into before us use it Yes. go update time color quiet the us models. the is. I to appreciate to

So I Technologies, see about competitors so top Services think segments and Defense and appreciate you you in competing versus against then, you're Technologies? these competitively as that Comm do that. When Comm the who Advanced Services Defense Advanced

Well, I think StarLink market, on everybody is we. in are the services satellite so pretty focused

with So we're them. positioning ourselves to compete

to the of the expecting And schedule quicker. we of versus far what originally come kind as get as And able Flight we X to can is service. capacity from service thought? up you'll a little keeping think that's just in were, away I we that in-service, months the What launch the where make some then for of couple into bring FX be you're service delays a in launch,

Yes.

what from to in said which up capacity about get XX% that the past, we that Our the on we think is roughly changed view would of we to up originally satellite. hasn't anticipated the of XX%,

So that's we bandwidth. big that how from a apply perspective. flexibility have that really total good still thing The we is in bandwidth

weight will satellites it so those its in markets. punch relative above And older to

so you us ecosystem one understand something how for that a is, and involves little year, carriers, then. companies. this many Flight strategy handsets, X Can is X bit. year. online us be could go-to-market you complicated opportunity? next that people, understand do there help have there what Last directed the the Flight It's satellite on fiscal [indiscernible] me. device, But this Help -- size from chips, Okay. touched the we XGPP, The in coming got don't we of since or really the particularly we've kind capacity what opportunity fiscal the

attention. So is market, market, And what is a target to lot One is able think least for being smartphone the to satellite. a couple there's directly of literally of different I that. which getting for at much the communicate refers to pretty direct-to-device markets that any DXD a

I never think there's before. that's clearly, -- been done

there's so unknowable. just And

big So how unknowns market about will that be.

emergency the One aiming is the do that to known with then to what's internet things which enable messaging what -- nonterrestrial standard network we're is that does [indiscernible] narrowband as this also things smartphones. the the of called that, of or talked -- standard, we've about communications

And of kicked one communications is what's the thing [indiscernible]. example iPhones their [indiscernible] with example, over so emergency this kind off

and being on year So we partner working through able in during satellites our continents. deliver are different 'XX to X fiscal those satellites capabilities

that of a get to the a able forward will performing on that things market might measure standard. of partner in of the the the get. And that what signed of of up service uses chipsets how are the one some really better service of capable of or of for are is grow. equipped reporting That's with phones with one So they many number popular capable how ways that be things on. There that that or we'll we do fleet types use way are another to and handle that and looking that that's And interesting aim Inmarsat be that we're and to that phones implementing one fleets. to

report mobile service. should those And comes ecosystem network and are customers. of on that with then makers device interesting that we'll makers, working to that create plans And to so we chip as operators the service into be

really mobile is services interesting to really, satellite market The market. the that's upgrade other also existing

has fleet, pretty and a aeronautical throughput improve and base services L-band. just what have services opportunities state maritime don't real of fleet, the is been have lot don't customers in services, in that we art there's of land interesting performed of mobility pretty Inmarsat their What are which reflects which by that. of believe which the existing kind a the basic So has to

just services prize is emergency media and that do is which those And people most what addition those in -- the potential new where phones think of and think really the and that I can in to voice version, so direct-to-device the will higher-speed -- version. reflected -- to getting to Radio same satellites evolve that service. texting new cell big radio be narrowband And what's called from XG that's version New

capable land mobile. to really of with So of prospective services. and a that base the aviation set we customers aeronautical, those, large of mobile satellite and power will fit do customers think, enhanced And in greatly be also satellite well

after. So them, -- markets for we going we'll us put as that any these those around services. to we're those kind premature InCommand numbers out rolling think It'd as of the be we data on are start get but

is I thing one our capital to consistent plan also the all is for forward-looking that, reemphasize want And investments. this with do

the we capital So been do anything will guidance that with be budget giving. consistent we've that here

Bank. question next line Yu Your from of Edison Deutsche the comes with

one partnership. type you on on the this sense arrangements? First Maritime I'm of give the go-to-market of if a can the economics, wondering us

both that we're a Well, would to we but portions crew so used -- what use. do are of latency these provide and add to are we And -- then integrated services of the orbit component some low also, aiming which users portions as also provider. it, to are through interesting for that be things provide that services the this the is we of and both some include can enhancements the of crew operational operational with things for applications those services, maritime both there do, to that single services lower

both be and we'll integrating So plans. direct service that into indirect our

but in really are services, concepts one people of that important details of We there haven't press really that the described announced a of those, are are is those is few looking the one for. and all untapped which release the things

that think I X just those -- side-by-side those And X high-speed, It's will be our not points all services. of management are through latency. those is is main services idea including those will be delivered to -- on things. could services present than the that and uncapped, latency be We're the So the low speed, on each a either way they'll just next to allows other, X actually not going effectively commitments our us more to its fulfill in own. one that integrated volume

we actually some Have any are seeing lot And but been on pressure incremental I growth Understood. sort competitors of on Viasat seeing generally as follow-up, more And there just Inmarsat been the Viasat has solid. a Maritime the context pretty out of, in Starlink. think, from of side. a pressure, the

that? this going resilient? we of And reinforce are kind is partnership to So more

It's to yes, believe So we continued so is resilient. first of grow. that our pretty service broadband all, maritime

for Maritime, still for Fleet number fleet a service opportunities And Fleet years. others I the grow. as think as yes, that's see services, the In -- competitive the as And has fleet are kind our But of -- branded to the a a not continued We Ka-band have Express both Express. we broadband, the version is environment. maybe case been to offer which We've The well. But all broadband Ka-band of broadband, growing. we L-band competitors. just generally we land other the offer refresh services, of do. is which L-band older it's fleet branded competition declining that's broadband.

seeing a it's that to and market think And us -- of it's our which market. segments have more is on helped ones. combination resulting are certainly, the We that and others. sea believe there's certifications. it certain depend services more, our say, segment, most Starlink big do from competition operational a I been segments, have Brazilian. segments safety The I'd at enterprise sometimes and Those

If I clarification. one in sneak could just

think you quarter? was for hear or for I that about X/X. Did And comment a the I made year full is CapEx growth right? that the the over there

CapEx I was think maintenance the X/X versus... around

Yes, I can you with help this.

year, just you essentially year. for So of CapEx our related what our CapEx that's to the is networks X/X spend ground percentage and give a given a success-based to the satellite

Full year.

Yes.

year? full XXXX, Fiscal

Yes.

Correct.

line with of from comes Henry the question next Quilty Your Space. Caleb

passed philosophy Viasat's LEO, with calls about from lot low for question past? years and orbit in just earth but Mark. years curious little from Has seems this around bit was Broad changed logic a program. all? past know talked of the like at shift a you've Nexus I I a your

matters think I what lot my really less customers all, want. of than First philosophy a

we're to desire a low going And want. for first thing to so is the latency. customers what we're do, sure making There responding

have talked about that. We

an to of complete services. what geo latency so see suite do And low is to deliver a opportunity combine we and

deliver have are. to The being able focused is customers a we lot on that other thing service level agreements wherever

we combination lower helpful the It overall a so And if our doing can service. manage single can that be costs, of can as fulfillment that.

But that latency want. we low And latency. something recognize so the is to that we in get customers low that addition

that. we integrating are So

as certainly to all services expect but of big a our way this we in in main year well. Maritime, Global mentioned, same Mobile As do with the

starting Okay. And the they're if Viasat of there, in are do work integration integration the L-band a any so, how that fleet it's challenges? you current then through on OneWeb, satellites with the and assuming Ku-band And does sort Ka- present those? system, whereas

reasons the and with of component. shipboard fine starting Maritime, one with be operators seem to having of that's where so we're Well, GEO the LEO antenna notion completely separate

been platforms So operators up it's have this for end goes may and Ka-band working little doing where LEOs. along shipowners -- with what with bit more on other a with, of and [indiscernible] instance, with our open complicated number we with a Ka-band

high given you know of Next on consumer has bit, kind as plan hasn't number purely question, kind can business? subs see but today? focus to mobility other Viasat share in you of how closing you ARPU little and Or And that I with continue many the do the eventually company the sectors? a that is

things that one subscriber been There's the 'XX haven't decline the we relatively That's that outlook. we the -- It's while. as ship of market our a from we as bandwidth, that the in FY of revenue that exact markets. been a mobile to numbers affecting -- areas So of one business. steady especially rate for disclsed is

relatively in new all is that With 'XX. we in essentially year. though satellite even be additions outlook So major that flat, FY of our overcoming revenue no will

beyond I'd our that feedback that to that opportunistic depending the able that feedback that that we we've we that can residential. We bandwidth of of say, FY amount out do see years. initial one -- gotten -- think some allocate from it plans uses things do to 'XX, the believe or we service going in based on is newer the in we residential we on out improve flatten market may be of

more A questions. couple

schedule looks sats incurred It On a humming X-year have for the delay. like satellites. the SWISStoXX

to year, capacity? up have -- I now give for any of L-band for that? you XXXX, does any any they kind plans think reason it's shoring impact supposed were shed last And on the launch the light in XXXX. on that Can in

No.

there. I think misunderstanding is there a

of resiliency the services and they think is one you of that the I provide services. prior the And schedule consistent them of the is for one mentioned originally procured. aware much that purpose safety them. on of had close that satellites is that. are main schedule to is that with additional Inmarsat coverage in we procured were those pretty the merger, to the And which

lot Development to to providers question. infrastructure, the of I just if network of I last of Space that a with then on ground TWSA? any way satellites, is with And curious the there to the be seems Viasat any maybe Okay. opportunities sees contribute for the some but was know that Viasat Agency program? focused

we But [indiscernible]. -- of in us. Yes. the do in is a yes. satellite on a -- I don't basis to of see is been a what of doing opportunities lot of opportunity number The some the to know want and that's that for technology, satellite participate see is of through if technology. that do really program We've the is a past. definitely answer some go-forward lot they're programs we what in you involved in

something or supplying it that Or look So else? payloads space like is could hardware?

It's No. satellites. involved missions really or hardware are those of could which have be in those kinds in payloads subsystem around specific and past. specific the the we of kinds All ways of

the Needham. time more Ryan It We will have question. for from come with of Koontz one line

On the out maybe of capacity. and Alaska and relative kind available your from IFC push to and and takes side, puts shipments Boeing to there slow some

line a how Is to issue? to quantify of the -- I are exclude it, with characterize goals, but 'XX talking the your about in [indiscernible] a it have my would here issue? capacity impacts, demand kind level? you guess, IFC Is we you 'XX? you it this in growth growth would high What Alaska question. If from is at

Yes.

year a a as we've seeing take whole. year So good I continue into momentum of install can even to this. had next though this the activity good we're I to new And And year, Ryan, with think, respect installs. we're into some that going shifting to some have

just aviation the by is around big and still of bring to that growth, X,XXX outward, we year look of a end just both fiscal as So products. Brian, expecting say one part I thing services our clarify think from that in there, we're to back, I it service just aircraft because would 'XX.

gross Great. the in step quarter that by in these QX, margin saw pricing we books else driven or margins. With here, the Is regards going to side? markets fixed primarily on gross something on down a the and in there that's maritime

Yes.

growth, for So I some is multiple our in in We example, saw components. think margins, cost the overall gross and there business programs. government

some ventures. cost a I lines, at if looking we you're of growth it's R&D bit bit some if program the think had go gross margin predominantly on little the of that line, We a I below saw But saw also we the side.

call concludes Mark turn Dankberg remarks. This for closing I to the session. the will question-and-answer

Okay. Thank you.

do. to have We We of have of we manner. opportunity know in We've our lot So we discussion evolving rapidly growing about approach rewarding in a a we you do. good a to and work mobility we markets got to competing this a initiatives a and give to is those also in lot think try market. grow our know global what work to

and everyone, So look for our next call. forward call, in we to on this updating participating thanks,

This call. for you We thank concludes joining. today's

You now lines. disconnect may your