Viasat, Inc. (NASDAQ:VSAT) Q3 2023 Earnings Call Transcript

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Landon Park: But when you say it’s a meaningful increase I mean what is ViaSat-2 at today? I mean I assume you guys have a sense of what the utilization on that satellite.

Mark Dankberg: It really, varies by place, right? So because you have the — right? So it’s hard.

Landon Park: I guess what I’m asking is there’s 240 gigs of gross capacity, and you guys provision capacity for users and the beams on that satellite are essentially fixed. So, how much of that gross capacity is essentially provisioned you say you don’t have capacity limitations, right? So, — are you bumping into that 70% utilization.

Mark Dankberg: That’s the issue is that you run into provisioning limitations in specific places. Sometimes before the growth of our in-flight space was pretty much due to residential as we added in-flight users, then we have to provision for the peak demand between the two markets. And so we’ve got to be — that’s not an easy thing to do. We’ve got to be pretty good at forecasting and managing to that. And I think our provisioning levels are pretty good. We’re pretty efficient and efficient in that we’re able to meet the service level agreements that we described. It’s a statistical process, but I think that we’re pretty close to the provisioning you can get when you don’t move bandwidth around. With ViaSat-2, there were some opportunities to do some dynamic scheduling, and we do some of that.

ViaSat-3 takes that to another really big level. The thing I would say, though, is if you look — one of the metrics to look at, and I think this is really important. Think of it as just it was the peak demand to the average demand in a given place or for a given airplane. And those numbers peak to averages can be high, especially for some of the mobility markets like more than 10 to one. So, that just gives you a sense of in key places, what the potential is by doing this as well.

Landon Park: Understood. Thanks for all the color Mark.

Mark Dankberg: Okay.

Operator: That does conclude today’s questions. I would now like to turn the call over to Mark Dankberg for closing remarks.

Mark Dankberg: Okay. Thanks. So, just in summary, going back to reemphasize the significance of putting that first as a satellite and with having a launch date now in early April just about two months away. And with the Europe, Middle East, Africa, while it’s not that far behind. The bandwidth coverage and flexibility it provides really addresses our most immediate growth issues and I think the last question kind of helps emphasize that. And then with the sale of our TDL products business, we’ve got a lot of financial mover room, the over $1.5 billion gain on that sale will actually make our fiscal 2023, our most profitable year ever, and we think it’s indicative of the value we’re building in each of our businesses. We continue to believe combining the complementary nature of our businesses, skills and resources with Inmarsat will be good for the companies, our people, our customers, the UK space business, and for our shareholders.

So, thanks a lot for joining us this afternoon. Please don’t hesitate to contact Peter or anyone on our team if you have any further questions on our results or other topics. And with that, I’ll hand it back to the operator.

Operator: This concludes today’s call. You may now disconnect.

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