Viasat Q3 2020 Earnings Report
Key Takeaways
Viasat Inc. reported strong Q3 fiscal year 2020 results, with revenues totaling $588.2 million and net income increasing to $6.5 million. Non-GAAP net income rose to $24.7 million, and Adjusted EBITDA reached a record $122.3 million, marking a 13% year-over-year increase. New contract awards grew by 29% to $577.4 million, driven by momentum in government, U.S. fixed broadband, and commercial aviation businesses.
Revenues totaled $588.2 million, a 6% year-over-year increase.
Net income increased to $6.5 million, compared to a loss of $10.4 million in the same quarter last year.
Non-GAAP net income increased to $24.7 million, a 256% increase year-over-year.
Adjusted EBITDA reached a record $122.3 million, a 13% year-over-year increase.
Viasat
Viasat
Forward Guidance
Viasat anticipates continued momentum from contract awards and backlog, building confidence in a strong finish to fiscal year 2020 and into fiscal year 2021. The company is focused on executing opportunities and delivering the ViaSat-3 constellation into service.
Positive Outlook
- Confidence in a strong finish to fiscal year 2020 and into fiscal year 2021.
- Unique vertical technology and service delivery integration creates compelling long-term opportunities for global expansion.
- Growth drivers for government business are in the early innings and are substantially enhanced by global coverage.
- Diverse portfolio of fixed and mobile broadband satellite services gives flexibility and resilience to thrive in distinct market environments.
- Enormous demand for bandwidth is expected.
Challenges Ahead
- Actual results could differ materially and adversely from those expressed in any forward-looking statements.
- Unexpected expenses related to satellite projects could adversely affect results.
- Inability to successfully implement the business plan for broadband satellite services on the anticipated timeline or at all.
- Risks associated with the construction, launch, and operation of satellites, including anomalies, operational failures, or degradation in satellite performance.
- Reliance on U.S. government contracts and a small number of contracts which account for a significant percentage of revenues.