Viasat, Inc. recently disclosed its financial performance for the second quarter of fiscal year 2025 in a shareholder letter. The company’s results exceeded expectations, highlighting solid revenue and Adjusted EBITDA performance, driven by persistent demand for its leading technology solutions, particularly in the Defense and Advanced Technologies (DAT) sector.
Noteworthy Financial Highlights:
– Revenue of $1.1 billion in the second quarter of FY25 decreased by 8% year-over-year, reflecting a 1% decline when excluding the impact of a non-recurring litigation settlement contribution.
– Net loss for Q2 FY25 improved to $137.6 million compared to a net loss of $767.2 million in the same period in FY24, primarily due to prior year satellite program impairments.
– Adjusted EBITDA for Q2 FY25 was $375 million, a 23% decrease year-over-year, with a 2% decline when excluding the impact of the non-recurring litigation settlement and other adjustments.
– Viasat announced new contract awards totaling $1.3 billion in Q2, setting a new record and marking a 25% increase year-over-year.
– Communication Services segment saw a 2% decrease in revenues to $826.4 million and a 9% decline in Adjusted EBITDA to $318.2 million.
– Defense and Advanced Technologies segment reported a 22% decline in revenue to $295.9 million, with Adjusted EBITDA down by 58% to $56.8 million.
Operational Updates:
– The company welcomed Gary Chase as the new CFO, leveraging his expertise in financial planning to enhance cash conversion and return on capital.
– Viasat continued work on strengthening its capital structure and exploring financial perspectives to capitalize on growth opportunities.
– Progress was reported on various initiatives, including the expansion of L-band services and advancements in satellite construction and deployment.
Outlook and Future Projections:
– Anticipating flat to slightly up year-over-year revenue growth for FY25, excluding one-time gains from the previous fiscal year.
– Expecting mid-single-digit Adjusted EBITDA growth for FY25, supported by strong contributions from DAT licensing agreements and Communication Services.
– Maintaining a focus on operational efficiency, capital productivity improvement, and sustained competitive positioning in key markets.
Overall, Viasat is navigating the dynamic market landscape by capitalizing on opportunities, enhancing operational efficiency, and fortifying its financial standing to drive sustained growth and value creation for stakeholders.
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This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Viasat’s 8K filing here.
About Viasat
Viasat, Inc provides broadband and communications products and services worldwide. The company's Satellite Services segment offers satellite-based fixed broadband services, including broadband internet access and voice over internet protocol services to consumers and businesses; in-flight entertainment and aviation software services to commercial airlines and private business jets; satellite-based connectivity services; mobile broadband services, including satellite-based internet services to energy offshore vessels, cruise ships, consumer ferries, and yachts; and energy services, which include ultra-secure solutions IP connectivity, bandwidth-optimized over-the-top applications, industrial internet-of-things big data enablement, and industry-leading machine learning analytics.
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