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| Statement |
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| Importantly, we have a fully funded path to positive free cash flow |
| Our service -- services businesses also benefit from an innovation and an innovative and differentiated portfolio of hardware and application software products |
| So our more recent satellites that have dynamic bandwidth steering or more dynamic bandwidth steering than we've had in the past have an additional benefit of being able to move those beams around among the different places that have those high peak demands |
| Our financial results for the third quarter were good |
| We continue to deliver leading in-flight connectivity service quality metrics, supporting our airline customers' initiatives to increase passenger engagement and offering scalable free WiFi with high-quality performance metrics, even at the busiest airports and now preparing for increased geographic coverage on important routes, such as from the continental U.S |
| One is that the results were good |
| So we feel really good with that |
| Our new order pipeline remains robust |
| We also have a number of these improvements that we described that our networks operating more efficiently |
| We are proud of our reputation for predictable, reliable and measurable service quality |
| Awards were also very good at $1.2 billion for the third quarter, resulting in $3.7 billion in backlog, and Government Systems also has about $6.4 billion of unawarded Indefinite Delivery/Indefinite Quantity, or IDIQ, potential contract value |
| Adjusted EBITDA for the quarter was $383 million, an increase of 214% year-over-year from continuing operations, including Inmarsat in both years, Q3 FY 2024, adjusted EBITDA was up 11% year-over-year as good cost management leveraged our top line growth |
| First, building operational momentum and financial performance of our core business |
| Overall, this was another strong quarter for Viasat |
| We expect about $100 million annual cash savings by start-up FY 2025, better than the $80 million target when the acquisition was announced and sooner by about 2 years |
| We're also integrating our global networks and support to further improve service quality, scale and resilience and to achieve the capital synergies to drive positive free cash flow |
| Aviation continues to be our fastest-growing area with good progress in aircraft served and passenger engagement and in the scope of services we deliver that help our customers use connectivity to benefit their unique business models |
| This was up 73% compared to revenue from continuing operations of $651 million in Q3 FY 2023, including Inmarsat in both years, Q3 2024 revenue was up 8% year-over-year, driven by strong growth in Government Systems products and IFC service |
| Our operational performance in Q3 was very good, and we are on track to achieve substantial synergy value and expect the combined company to grow revenue and adjusted EBITDA in FY '24 and FY '25 |
| Those highly flexible satellites will further improve our ability to optimize capacity and deliver high-quality, reliable services to our mobility customers |
| And then the other ingredient that we've been increasingly successful at is helping the airlines monetize that engagement |
| We are executing on our strategy and delivered strong core financial and operational performance during Q3 |
| Core revenue and adjusted EBITDA, both grew year-over-year by 8% and 11%, respectively, driven by our mobility and government businesses |
| Some of the key highlights from the quarter include: Government Systems had another quarter of strong demand for our information assurance, high-speed network encryption products and tactical SATCOM products, which drove product revenue up 55% year-over-year |
| We are winning in the large and growing mobility and government markets |
| Our government business also had a fantastic quarter of awards, which were up more than 50% sequentially |
| While we can see lumpiness quarter-to-quarter in the business, the backlog is over $3.7 billion, adding confidence to our outlook |
| Recent trends in Satellite Services continued with strong growth in commercial IFC, ending the quarter with 3,500 aircraft in service, up over 17% year-over-year on a combined basis with over 1,400 aircraft in backlog |
| And finally, on the list of highlights, our new business momentum is robust |
| Now our path to positive free cash flow in the first half of calendar year 2025 is driven by sourcing growth from our large and growing markets, including mobility and government |
| Statement |
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| fixed broadband revenue declined as fewer residential subscribers were partially offset by higher ARPU |
| They have a lot of -- so they have a lot of demand, and there's been supply constraints, including some of their major components |
| So the -- I think that it's not really a good idea |
| There were a couple of discrete items called out as a headwind |
| So the big challenge has been how do you scale up the engagement without having bottlenecks at these hub airports |
| We took a big step in Q2, integrating space and ground infrastructure, operations, go-to-market, engineering and supporting teams, reducing people resources is really painful, but necessary to sustain our growth and achieve the financial metrics we expect |
| So that elevated Q3 a little bit as well |
| This is a reminder that factors could cause actual results to differ materially |
| One is we had a little bit of favorability on the mix in our government business |
| The ViaSat-3 F3 remains unaffected, and we expect it to launch late this calendar year |
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