ViaSat Inc. (NASDAQ:VSAT) Q2 2020 Earnings Conference Call Transcript

Nov 07, 2019 • 04:30 pm ET

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ViaSat Inc. (NASDAQ:VSAT) Q2 2020 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Welcome to Viasat's FY '20 second quarter earnings conference call, Your host for today's call is Mark Dankberg Chairman and CEO,

You may proceed Mr. Dankberg.

Executive
Mark Dankberg

Okay thanks a lot, Good afternoon everybody and welcome to Viasat's earnings conference call for our second fiscal quarter of 2020, So I'm Mark Dankberg Chairman and CEO and also on the call with me are Rick Baldridge our President and Chief Operating Officer; Shawn Duffy our Chief Financial Officer; Robert Blair General Counsel; Bruce Dirks our Treasurer; and Paul Froelich in Corporate Development.

So before we start Robert will provide our safe harbor disclosure.

Executive
Robert Blair

Thanks Mark. As you know this discussion will contain forward-looking statements. This is a reminder that factors could cause actual results to differ materially. Additional information concerning these factors is contained in our SEC filings including our most recent reports on Form 10-K and Form 10-Q. Copies are available from the SEC or from our website. With that said back to you Mark.

Executive
Mark Dankberg

Okay thanks, Robert. So we'll be referring to slides that are available over the web. I'll start with an overview and Shawn will discuss the consolidated and segment-level financial results after that and then I'll provide some additional color and we'll review our outlook and take questions.So overall we're executing well and generating the financial results we've intended from fixed U.S. broadband in-flight connectivity and our, government business while making steady progress on initiatives that can accelerate our growth with the approaching ViaSat-3 global network.

So, Q2 and year-to-date revenues grew 14% year-over-year and 18% respectively. Both are new records. The operating leverage from our high-performance satellites the vertically integrated services businesses our scaling government products and prudent cost control is driving adjusted EBITDA margin expansion with adjusted EBITDA growth outpacing revenue growth substantially at 53% and 76% year-over-year for the second quarter and year-to-date respectively.The main factors behind our business momentum that we've previously described remain in place and support ongoing growth prospects. In Satellite Services residential average revenue per user was 17% higher than last year reflecting sustained demand for high-value service plans as well as industry macro trends, And we also had a slightly higher subscriber base.

Our, in-service in-flight connectivity tail count was about 51% higher than it was this time a year ago even with approximately 85 737 MAX aircraft currently out of service. And we also had higher revenues per plane as we've got more aircraft with a direct prime relationship with our airline customers and we've got a broader base of services being offered.In Government Systems our product sales have been exceptionally strong as we continue to expand our addressable markets for Tactical Data Links network and cyber security and satellite communication systems, And we've had steady growth in government services as well, New contract awards remain strong with a growing and record backlog of firm government orders along with over $1 billion of Indefinite Delivery/Indefinite Quantity or IDIQ delivery orders remaining open.

So, we believe the root source of