Viasat, Inc. (VSAT): history, ownership, mission, how it works & makes money

A Brief History of Viasat, Inc.

Viasat, Inc. is a global communications company that provides satellite and wireless broadband services. It was founded in 1986 and has since evolved to become a leader in satellite communications technology.

Company Milestones

• 1986: Viasat was founded, focusing initially on satellite communications systems.
• 1996: The company launched its first satellite communication system.
• 2013: Viasat launched the ViaSat-1 satellite, which became the highest capacity satellite in orbit.
• 2023: Viasat acquired Inmarsat, expanding its global reach and capabilities.

Financial Performance

As of June 30, 2024, Viasat reported total revenues of $1.126 billion, an increase of 44% from $779.8 million in the same period of the previous year. This growth was driven by a significant increase in service revenues, which rose to $820.7 million, up from $543.4 million in June 2023.

Operating Expenses

Viasat's operating expenses for Q1 2024 were reported as follows:

Debt and Financial Obligations

As of June 30, 2024, Viasat's total long-term debt was approximately $2.761 billion. The breakdown of long-term debt includes:

Market Position

Viasat operates in two primary segments: Communication Services and Defense and Advanced Technologies. As of June 30, 2024, the company's firm backlog stood at approximately $3.639 billion, indicating a robust pipeline for future revenue generation.

A Who Owns Viasat, Inc. (VSAT)

Major Shareholders

As of June 30, 2024, Viasat, Inc. (VSAT) had a total of approximately 127.7 million shares outstanding. The major shareholders include both institutional and individual investors. The following table outlines the significant shareholders and their ownership percentages:

Recent Developments in Ownership

In May 2023, Viasat completed the acquisition of Inmarsat Holdings, which significantly altered its capital structure. The acquisition involved the issuance of approximately 46.36 million shares of common stock, valued at around $2.1 billion, along with $550.7 million in cash. This transaction influenced the distribution of shares among existing and new shareholders.

Stock Performance and Market Capitalization

As of June 30, 2024, Viasat's stock was trading at approximately $30.00 per share, leading to a market capitalization of around $3.83 billion. The stock has shown volatility due to market conditions and recent acquisitions, impacting investor sentiment.

Institutional Ownership Trends

Institutional ownership has seen an upward trend, reflecting increased confidence in Viasat's growth prospects post-Inmarsat acquisition. The percentage of shares held by institutions increased from 60% to 70% over the past year, indicating a shift towards stronger institutional backing.

Insider Transactions

Insider transactions have been minimal, with key executives holding a combined 2.5% of the company's total shares. Recent filings indicate that executives have not sold significant portions of their holdings, suggesting confidence in the company's future performance.

Conclusion on Ownership Structure

The ownership structure of Viasat, Inc. is characterized by a strong institutional presence, a diverse shareholder base, and a significant recent acquisition that has reshaped its equity landscape. The ongoing management of these ownership stakes will be essential as Viasat navigates its strategic initiatives in the satellite communications market.

Viasat, Inc. (VSAT) Mission Statement

Company Overview

Viasat, Inc. is a global communications company that provides high-speed satellite broadband services and secure networking systems. The company focuses on delivering innovative technology solutions to enhance connectivity for consumers, businesses, and government entities worldwide.

Mission Statement

The mission of Viasat, Inc. is to connect the world through innovative satellite technology and communication solutions that enhance lives, improve businesses, and empower governments. Viasat is committed to providing high-quality, reliable, and affordable internet connectivity, ensuring that everyone has access to the digital world.

Financial Performance Overview

As of June 30, 2024, Viasat reported total revenues of $1,126.5 million, reflecting a significant increase of 44% compared to $779.8 million for the same period in 2023. This growth was driven primarily by a 51% increase in service revenues, which reached $820.7 million, and a 29% increase in product revenues, totaling $305.7 million.

Key Business Segments

Viasat operates primarily in two segments: Communication Services and Defense and Advanced Technologies. The Communication Services segment focuses on providing broadband services to residential and commercial customers, while the Defense and Advanced Technologies segment delivers secure communication solutions to government and military clients.

Market Position and Strategy

Viasat is positioned as a leader in satellite broadband technology, utilizing a complementary fleet of 21 operational satellites. The company aims to expand its global footprint through strategic partnerships and acquisitions, such as the recent acquisition of Inmarsat, which significantly enhanced its service capabilities and market reach.

Recent Developments

In the first quarter of fiscal year 2025, Viasat completed the acquisition of Inmarsat, which added significant assets and capabilities to its portfolio. The acquisition was valued at approximately $2.7 billion, including $2.1 billion in stock and $550.7 million in cash. As a result, the company has strengthened its position in the global satellite communications market.

Financial Health

As of June 30, 2024, Viasat reported cash and cash equivalents of $1.8 billion and total assets of $16.1 billion. The company's total liabilities stood at $11.0 billion, resulting in total equity of $5.1 billion. The company continues to maintain a strong liquidity position, with significant borrowing availability under its credit facilities.

Future Outlook

Viasat is actively investing in research and development to enhance its satellite technology and expand its service offerings. The company anticipates continued growth in demand for high-speed internet connectivity, particularly in underserved markets, and aims to leverage its technological advancements to capture a larger market share.

How Viasat, Inc. (VSAT) Works

Business Overview

Viasat, Inc. operates primarily in the satellite communications industry, focusing on providing broadband services and secure communications solutions for both commercial and government customers. The company segments its operations into Communication Services and Defense and Advanced Technologies.

Financial Performance

As of June 30, 2024, Viasat reported the following financial results:

Segment Performance

Viasat's revenue growth can be attributed to the acquisition of Inmarsat, which contributed significantly to both product and service revenues. The Communication Services segment saw an increase of $272.8 million, while the Defense and Advanced Technologies segment increased by $4.5 million.

Cost Structure

The cost of revenues increased by $165.9 million, primarily due to the rise in service revenues, which led to an increase of $168.8 million in service-related costs.

Cash Flow Analysis

For the three months ended June 30, 2024, Viasat’s cash flow from operating activities was approximately $151.1 million, compared to $103.7 million for the same period in 2023.

Debt and Liabilities

As of June 30, 2024, Viasat's total liabilities amounted to $11.0 billion, which includes various debt instruments and obligations.

Backlog and Future Contracts

As of June 30, 2024, Viasat's firm and funded backlog stood at $751.8 million, reflecting growth opportunities primarily in the defense sector and satellite communication services.

Satellite Fleet

Viasat operates a fleet of 21 satellites, which enhances its service offerings across various bands, including Ka-, L-, and S-bands. The company is also developing additional satellites to expand its coverage.

How Viasat, Inc. (VSAT) Makes Money

Revenue Segments

Viasat, Inc. generates revenue primarily from two segments: Communication Services and Defense and Advanced Technologies.

Communication Services

The communication services segment includes various offerings such as:

• Aviation services (including in-flight connectivity)
• Government satellite communication services
• Maritime services
• Fixed broadband services
• Energy services

For the three months ended June 30, 2024, the revenue breakdown was:

Defense and Advanced Technologies

This segment includes:

• Information security and cyber defense
• Space and mission systems
• Tactical networking
• Advanced technologies

For the same period, the revenue was:

Overall Revenue Performance

For the three months ended June 30, 2024, Viasat reported:

Contract Types

Viasat’s revenues are derived from two main contract types:

• Fixed-Price Contracts: Approximately 96% of total revenues for Q1 2024.
• Cost-Reimbursement Contracts: Primarily within the defense segment.

Backlog and Future Revenue

As of June 30, 2024, Viasat had:

Income and Expenses

The income statement for the three months ended June 30, 2024, reveals:

Cash Flow and Financial Position

For the three months ended June 30, 2024:

Debt Obligations

As of June 30, 2024, Viasat's debt included:

Conclusion of Financial Overview

Viasat continues to leverage its diverse revenue streams across communication services and defense technologies, while managing significant debt and operational expenses.