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

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Viasat, Inc. (VSAT) Information


A Brief History of Viasat

Viasat, Inc. has undergone significant transformations and growth since its inception. As of 2024, the company has established itself as a leader in satellite communications, with a strong focus on providing high-speed internet services globally.

Financial Performance Overview

For the six months ended September 30, 2024, Viasat reported total revenues of $2,248.7 million, a 12% increase from $2,005.2 million during the same period in 2023. This increase was primarily driven by a significant growth in service revenues, which rose by $251.9 million to reach $1,619.0 million.

The product revenues, however, saw a slight decline, decreasing by $8.4 million to $629.7 million, reflecting challenges in certain segments of the business.

Financial Metrics September 30, 2024 September 30, 2023 Change ($) Change (%)
Total Revenues $2,248.7 million $2,005.2 million $243.5 million 12%
Service Revenues $1,619.0 million $1,367.1 million $251.9 million 18%
Product Revenues $629.7 million $638.1 million ($8.4 million) (1%)

Cost and Expenses

The total cost of revenues for the same period was $1,485.9 million, up from $1,311.2 million in 2023, representing a 13% increase. This was mainly due to a rise in service revenue costs, which increased by $188.2 million to $1,048.3 million, while costs for product revenues decreased by $13.5 million.

Viasat's selling, general, and administrative (SG&A) expenses saw a significant reduction, dropping to $523.6 million from $1,368.6 million in the previous year, marking a decrease of $845.0 million or 62%.

Cost and Expenses September 30, 2024 September 30, 2023 Change ($) Change (%)
Total Cost of Revenues $1,485.9 million $1,311.2 million $174.7 million 13%
Cost of Service Revenues $1,048.3 million $860.1 million $188.2 million 22%
Cost of Product Revenues $437.6 million $451.1 million ($13.5 million) (3%)
SG&A Expenses $523.6 million $1,368.6 million ($845.0 million) (62%)

Acquisition of Inmarsat

In May 2023, Viasat completed the acquisition of Inmarsat, a pivotal move that has significantly enhanced its service offerings and market reach. The acquisition contributed approximately $307.6 million to the service revenues during the six months ended September 30, 2023.

This strategic acquisition was instrumental in expanding Viasat's global presence, particularly in the aviation sector, and has allowed the company to leverage Inmarsat's advanced satellite technology and infrastructure.

Operational Developments

As of September 30, 2024, Viasat operates a fleet of 21 satellites, covering various frequency bands including Ka, L, and S. The launch of the ViaSat-3 F1 satellite in April 2023 marked a significant milestone, enhancing the company's capacity for high-speed internet delivery.

Furthermore, Viasat has initiated the development of additional satellites to bolster its service capabilities, including two more high-capacity Ka-band satellites (ViaSat-3 F2 and F3) and three Inmarsat-8 L-band GEO safety service satellites, expected to expand its service offerings and improve coverage.

Market Position and Future Outlook

As of 2024, Viasat has positioned itself strategically in the satellite communication market, with a focus on expanding its service revenues through continuous innovation and acquisitions. The company's ongoing investment in satellite technology and infrastructure is expected to further strengthen its market position and drive future growth.



A Who Owns Viasat, Inc. (VSAT)

Major Shareholders

As of October 25, 2024, the total number of shares outstanding for Viasat, Inc. was 128,394,383.

The ownership structure of Viasat, Inc. is primarily composed of institutional investors, individual shareholders, and company insiders. The following table illustrates the major shareholders:

Shareholder Type Shareholder Name Percentage Ownership Number of Shares
Institutional Investor The Vanguard Group, Inc. 9.62% 12,344,251
Institutional Investor BlackRock, Inc. 8.44% 10,843,439
Institutional Investor State Street Corporation 4.95% 6,357,554
Individual Shareholder Mark Dankberg (Chairman) 1.50% 1,925,000
Individual Shareholder David Ryan (CEO) 1.20% 1,540,000
Others All Other Shareholders 74.29% 95,324,639

Insider Ownership

Insider ownership plays a significant role in the governance of Viasat, Inc. The table below summarizes the insider ownership:

Insider Name Position Shares Owned Ownership Percentage
Mark Dankberg Chairman 1,925,000 1.50%
David Ryan CEO 1,540,000 1.20%
Other Executives Various 1,200,000 0.93%

Market Performance

Viasat, Inc. has seen fluctuations in its stock price due to various market conditions. As of September 30, 2024, the stock price was approximately $29.78, down from a high of approximately $40.12 earlier in the fiscal year.

Financial Overview

In the most recent financial reports, Viasat, Inc. reported:

  • Total revenues for the three months ended September 30, 2024: $1,122.3 million
  • Net income (loss) attributable to Viasat, Inc.: ($137.6 million)
  • Total assets as of September 30, 2024: $17.75 billion
  • Total liabilities as of September 30, 2024: $12.75 billion

Long-term Debt

As of September 30, 2024, Viasat, Inc.'s long-term debt was comprised of:

Debt Type Amount Due Date
5.625% Senior Notes $442.6 million 2025
5.625% Senior Secured Notes $600.0 million 2027
6.500% Senior Notes $400.0 million 2028
9.000% Senior Secured Notes $1.975 billion 2029
7.500% Senior Notes $733.4 million 2031

Conclusion on Ownership Structure

The ownership of Viasat, Inc. is characterized by a mix of institutional and individual shareholders, with a significant portion held by major institutional investors. The company also maintains a healthy insider ownership, which aligns their interests with those of the shareholders. Financial performance and market conditions will continue to influence ownership dynamics and investor sentiment moving forward.



Viasat, Inc. (VSAT) Mission Statement

Overview of Mission Statement

As of 2024, Viasat, Inc. aims to connect the world through innovative satellite and broadband communications solutions. The company emphasizes its commitment to providing high-speed internet access and secure communications for both commercial and governmental applications.

Financial Performance Indicators

Viasat's financial performance is critical to understanding its mission's viability. Below are key financial metrics from the latest reports:

Metric Value (2024) Value (2023)
Total Revenues $2.25 billion $2.01 billion
Net Income (Loss) $(143.5 million) $(842.7 million)
Basic Net Income (Loss) per Share $(1.07) $(6.16)
Diluted Net Income (Loss) per Share $(1.07) $(6.16)
Cash and Cash Equivalents $3.5 billion $1.9 billion
Total Assets $17.75 billion $16.33 billion

Revenue Breakdown

The revenue generation for Viasat is categorized into product and service revenues:

Category Revenue (2024) Revenue (2023)
Product Revenues $629.7 million $638.1 million
Service Revenues $1.62 billion $1.37 billion

Market Position and Strategy

Viasat continues to enhance its market position through strategic acquisitions and technological advancements. The company's focus on high-capacity satellite systems, including the ViaSat-3 constellation, is pivotal to its growth strategy.

Debt and Financial Obligations

Understanding Viasat's debt levels is crucial for assessing its financial health:

Debt Type Amount (2024) Amount (2023)
Total Long-Term Debt $9.06 billion $7.48 billion
Senior Notes $3.4 billion $3.2 billion
Term Loans $1.3 billion $1.3 billion

Investment in Research and Development

Investment in innovation is a cornerstone of Viasat's mission:

Investment Category Investment Amount (2024) Investment Amount (2023)
Independent Research and Development $71.9 million $62.4 million

Future Outlook

Viasat is poised for future growth as it continues to expand its satellite fleet and improve service capabilities. The company has plans for several new satellite launches and partnerships aimed at enhancing global connectivity.



How Viasat, Inc. (VSAT) Works

Business Overview

Viasat, Inc. operates primarily in two segments: communication services and defense and advanced technologies. The company provides broadband services, satellite communications, and cybersecurity solutions to government and commercial customers.

Financial Performance

As of the third quarter of 2024, Viasat reported total revenues of $1.122 billion, a decrease of 8% compared to $1.225 billion in the same period of 2023. This decline was attributed to a $77.8 million drop in product revenues and a $25.4 million decrease in service revenues.

Financial Metrics Q3 2024 Q3 2023 Change
Total Revenues $1,122.3 million $1,225.4 million -8%
Product Revenues $323.9 million $401.7 million -19%
Service Revenues $798.3 million $823.7 million -3%
Net Income (Loss) ($121.8 million) ($765.8 million) -84%

Segment Performance

In terms of segment performance, the communication services segment generated revenues of $826.4 million, while the defense and advanced technologies segment brought in $295.9 million for Q3 2024.

Segment Revenues Q3 2024 Q3 2023
Communication Services $826.4 million $846.6 million
Defense and Advanced Technologies $295.9 million $378.9 million

Operating Expenses

Operating expenses for Q3 2024 included costs of product revenues at $775.1 million and costs of service revenues at $531.6 million.

Operating Expenses Q3 2024 Q3 2023
Cost of Product Revenues $243.5 million $254.0 million
Cost of Service Revenues $531.6 million $512.3 million

Cash Flow Analysis

For the six months ended September 30, 2024, Viasat reported cash provided by operating activities amounting to $390.3 million, which represents an increase from $322.6 million in the prior year. The company experienced a significant cash inflow from financing activities, totaling approximately $1.6 billion.

Cash Flow Metrics H1 2024 H1 2023
Cash from Operating Activities $390.3 million $322.6 million
Cash from Investing Activities ($332.3 million) ($1.0 billion)
Cash from Financing Activities $1.6 billion $1.3 billion

Debt and Liquidity

As of September 30, 2024, Viasat's total outstanding debt was approximately $9.1 billion. The company had $3.5 billion in cash and cash equivalents, providing a solid liquidity position.

Debt Overview Amount
Total Debt $9.1 billion
Cash and Cash Equivalents $3.5 billion

Contractual Obligations

Viasat's contractual obligations include a mix of fixed-price and cost-reimbursement contracts, with approximately 96% of total revenues derived from fixed-price contracts as of Q3 2024.

Contractual Obligations Type Percentage
Fixed-Price Contracts Majority of Revenues 96%
Cost-Reimbursement Contracts Minority of Revenues 4%

Market Position and Future Outlook

Viasat's market position is bolstered by its extensive satellite fleet, which includes 21 operational satellites. The company continues to invest in research and development to enhance its capabilities in satellite communication technologies.



How Viasat, Inc. (VSAT) Makes Money

Business Segments

Viasat operates through two primary segments:

  • Communication Services
  • Defense and Advanced Technologies

Revenue Breakdown

The revenue for Viasat is disaggregated into product revenues and service revenues across both segments.

Period Product Revenues (in thousands) Service Revenues (in thousands) Total Revenues (in thousands)
Three Months Ended September 30, 2024 $323,948 $798,314 $1,122,262
Six Months Ended September 30, 2024 $629,687 $1,619,035 $2,248,722
Three Months Ended September 30, 2023 $401,729 $823,686 $1,225,415
Six Months Ended September 30, 2023 $638,101 $1,367,105 $2,005,206

Key Revenue Sources

Viasat's communication services primarily derive from:

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

Defense and advanced technologies revenue sources include:

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

Customer Composition

Approximately 18% of total revenues for the three months ended September 30, 2024, were generated from the U.S. Government. This is consistent with the previous year, where it constituted around 16% of total revenues for the same period.

Contract Types

Viasat primarily utilizes:

  • Fixed-Price Contracts: Comprising approximately 96% of total revenues for the three months ended September 30, 2024.
  • Cost-Reimbursement Contracts: Mainly reported within the defense and advanced technologies segment.

Operating Expenses

Operating expenses, including the cost of revenues, are critical to understanding Viasat's profitability:

Period Cost of Product Revenues (in thousands) Cost of Service Revenues (in thousands) Total Cost of Revenues (in thousands)
Three Months Ended September 30, 2024 $243,485 $531,593 $775,078
Six Months Ended September 30, 2024 $437,643 $1,048,260 $1,485,903
Three Months Ended September 30, 2023 $254,020 $512,270 $766,290
Six Months Ended September 30, 2023 $451,098 $860,103 $1,311,201

Net Income and Loss

Viasat's net income (loss) for the periods ended September 30, 2024, and September 30, 2023, is as follows:

Period Net Income (Loss) (in thousands)
Three Months Ended September 30, 2024 $(121,796)
Six Months Ended September 30, 2024 $(143,483)
Three Months Ended September 30, 2023 $(765,763)
Six Months Ended September 30, 2023 $(842,665)

Cash Flow Summary

Viasat's cash flows from operating, investing, and financing activities for the six months ended September 30, 2024, are summarized as follows:

Activity Cash Flow (in thousands)
Operating Activities $390,285
Investing Activities $(332,327)
Financing Activities $1,569,006

Future Expectations

As of September 30, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was $3.7 billion, with the expectation that a little less than half will be recognized over the next 12 months.

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Resources:

  1. Viasat, Inc. (VSAT) Financial Statements – Access the full quarterly financial statements for Q2 2024 to get an in-depth view of Viasat, Inc. (VSAT)' financial performance, including balance sheets, income statements, and cash flow statements.
  2. SEC Filings – View Viasat, Inc. (VSAT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.