Viasat Reports Record Revenue in Q1 2022 With COVID Recovery
Viasat reported record revenue of $665 million during the first quarter of its 2022 fiscal year, a 25% increase from the same time last year. This revenue boost came from top-line increases across all segments and closing the acquisitions of RigNet and the remaining 51% interest in Euro Broadband Infrastructure (EBI).
Net income was $17 million, up from a $12.4 million net loss in the same quarter last year.
Government Systems revenue was $272 million, up 4% year-over-year, due to growth across mobile broadband, tactical data links and cybersecurity. Government Systems awards in Q1 2022 were $250 million, a decrease of 25% year-over-year due to the timing of awards.
Viasat said Government mobile broadband connectivity demands continued to grow and the company anticipates sustained demand growth, especially for user terminals and services capable of operating on both government-owned satellites and compatible commercial networks.
Viasat set a new record for Satellite Services revenue in Q1 at $274 million. This was the fourth consecutive quarter of sequential growth and up 36% year-over-year. U.S. fixed broadband revenue in Q1 also increased year-over-year, and a recovery in commercial air passenger volumes drove year-over-year and sequential growth in In-Flight Connectivity (IFC) service revenue.
Mobility and other fixed broadband is growing as a proportion of Satellite Services revenue compared to U.S. fixed broadband revenue, and stands at 29% for the quarter, compared to just 10% this time last year.
Commercial Networks, Viasat’s smallest segment in terms of revenue, saw the largest gains in the quarter. Commercial Networks revenue was $119 million, up 77% compared to the same time last year. The company said higher IFC terminal shipments and antenna systems product deliveries were the primary drivers of growth. RigNet product revenue added about 5% to total segment revenue.
The segment brought in $70 million in awards for the quarter, down from $205 million in the same time last year, because of a large award last year for ground antenna systems.
Also, in early June 2021, the company delivered the ViaSat-3 (Americas) payload to Boeing Satellite Systems for final integration and environmental testing, and continues to make progress on the second and third payload modules.
Viasat executive leadership Rick Baldridge and Mark Dankberg commented in a letter to shareholders that the fiscal year is off to a great start as the company moves closer to the ViaSat-3 network launch.
“We believe ViaSat-3 will be transformational not just for Viasat but for the global broadband services market. In the intervening quarters we are focused on executing on our substantial backlog, and growing revenue and Adjusted EBITDA, while continuing to invest in unique and differentiated technologies, service offerings and new vertical and geographic markets,” the letter said.
Viasat is not providing traditional guidance for the full year because of a number of factors including integrating recent acquisitions. But the company expects average annual revenue growth of approximately 20% through fiscal year 2023, compared to fiscal year 2021.