Revenue Performance - Total revenue for Q2 2024 was $102.1 million, a decrease of 1% year-over-year, and a decrease of 2% compared to Q1 2024[2] - Total revenue for Q2 2024 was $102,059, a slight decrease of 1.1% compared to $103,221 in Q2 2023[14] - Service revenue increased to $81,929 in Q2 2024 from $79,062 in Q2 2023, representing a growth of 3.6%[14] - Equipment revenue decreased by 16.7% to $20.130 million in Q2 2024 from $24.159 million in Q2 2023[19] Profitability Metrics - Net income for Q2 2024 was $0.8 million, a significant decrease of 99% from $89.8 million in Q2 2023, impacted by an $11.0 million unrealized loss related to a convertible note investment[2][3] - Operating income for Q2 2024 was $21,681, down 36.3% from $34,045 in Q2 2023[14] - Net income for Q2 2024 was $839, a significant decrease from $89,849 in Q2 2023[14] - Adjusted EBITDA for Q2 2024 was $30.4 million, a decrease of 31% year-over-year, including $2.2 million in operating expenses related to Gogo Galileo[3] - Adjusted EBITDA for Q2 2024 was $30.430 million, down from $44.073 million in Q2 2023, reflecting a decrease of 30.9%[19] Cash Flow and Financial Position - Free Cash Flow for Q2 2024 was $24.9 million, an increase from $13.3 million in the prior year, but a decrease from $32.1 million in Q1 2024[4] - The company expects full-year free cash flow to be in the range of $35 million to $55 million for FY 2024[21] - Net cash provided by operating activities increased to $54,606,000 for the six months ended June 30, 2024, up from $34,141,000 in the prior year[16] - The company reported a net cash provided by operating activities of $24.949 million for Q2 2024, up from $15.627 million in Q2 2023[19] Asset and Liability Overview - Total current assets increased to $344,937 as of June 30, 2024, compared to $314,594 at the end of 2023, reflecting a growth of 9.6%[15] - Cash and cash equivalents rose to $161,550 in Q2 2024 from $139,036 at the end of 2023, an increase of 16.3%[15] - Total liabilities increased to $750,666 as of June 30, 2024, compared to $740,814 at the end of 2023, marking a rise of 1.1%[15] - Long-term debt remained relatively stable at $585,060 in Q2 2024, compared to $587,501 at the end of 2023[15] - Total stockholders' equity increased to $52,011 as of June 30, 2024, from $40,725 at the end of 2023, reflecting a growth of 27.7%[15] Aircraft and Connectivity Metrics - Average Monthly Revenue per ATG aircraft online (ARPU) was a record $3,468, an increase of 3% year-over-year[2] - Total ATG aircraft online (AOL) reached 7,031, a slight decrease compared to Q2 2023, while AVANCE AOL grew to 4,215, an increase of 17% year-over-year[2] - Average monthly connectivity service revenue per ATG aircraft online increased to $3,468 for the three months ended June 30, 2024, compared to $3,371 in the same period of 2023[17] - Total ATG aircraft online at the end of June 30, 2024, was 7,031, slightly down from 7,064 in the previous year[17] - Units sold for ATG systems were 231 in the three months ended June 30, 2024, compared to 277 in the same period of 2023[17] - Average equipment revenue per ATG unit sold was $74, showing a slight increase from $73 in the previous year[17] Future Guidance and Strategic Initiatives - The company updated its 2024 guidance, projecting total revenue in the range of $400 million to $410 million, down from previous guidance of $410 million to $425 million[5] - The company plans to launch Gogo Galileo HDX in Q4 2024 and Gogo 5G in 2025, which are expected to expand the total addressable market by 60%[4] - Long-term financial targets include a Free Cash Flow target of approximately $150 million in 2025, with a compound annual growth rate of 15%-17% in revenue from 2023 through 2028[6][7]

Financial Data and Key Metrics Changes - Gogo's total revenue for Q2 2024 was $102.1 million, a decrease of about 1% year-over-year and 2% sequentially, primarily due to a decline in equipment revenue [35][36] - Record service revenue reached $81.9 million, up 4% over the prior year, while equipment revenue was $20.1 million, down 17% year-over-year and 11% sequentially [35][36] - Adjusted EBITDA for Q2 was $30.4 million, a 31% decrease year-over-year and 30% decrease sequentially, driven by lower equipment revenue and increased operating expenses [40][42] Business Line Data and Key Metrics Changes - Total AVANCE aircraft online grew to 4,215, an increase of 17% year-over-year, now comprising 60% of the total fleet [36] - ATG aircraft online was 7,031, reflecting a 0.5% decline year-over-year, attributed to higher CLASSIC deactivations and lower new activations [35][36] - Total ATG ARPU grew 3% year-over-year to $3,468, reflecting a price increase initiated in the first quarter [37] Market Data and Key Metrics Changes - Demand for business aviation flights remains strong, with BA flight counts up slightly by 1.1% year-over-year and flight hours per day up 35% from Q2 2019 [11] - Average megabyte consumption per day on Gogo's networks has risen 165% from Q2 2019, indicating a significant increase in passenger demand [11] - The high-end market is experiencing the biggest surge in demand, driven by cloud data storage and video conferencing needs [12] Company Strategy and Development Direction - Gogo is focused on expanding its addressable market globally and enhancing customer loyalty through improved ATG networks and product offerings [16][17] - The company is preparing to launch Gogo Galileo and Gogo 5G products, which are expected to significantly enhance service speed and expand the total addressable market by 60% [8][18] - Gogo aims to maintain a competitive edge by offering aviation-grade equipment and superior customer support compared to competitors like StarLink [21][73] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth potential, citing strong demand trends and a well-positioned product portfolio [33] - The company anticipates that 2024 will be a trough year for growth and profitability, with significant acceleration expected in free cash flow starting in 2025 [34][49] - Management highlighted the importance of customer relationships and service reliability as key differentiators in the competitive landscape [71][73] Other Important Information - Gogo received $5.7 million in FCC grant funding in Q2, with a total of $19.2 million received to date [43] - The company is on track to start shipping HDX terminals in Q4 2024 and FDX terminals in the first half of 2025 [25][26] - Gogo's long-term targets include a compound annual growth rate of approximately 15% to 17% from 2023 through 2028 [52] Q&A Session Summary Question: Expected ARPUs or price points related to Galileo and 5G pricing strategy - Management indicated that 5G ARPU would be about $2,000 higher than current ARPU, with HDX and FDX priced at premiums [56][58] Question: Drivers behind the increase in AVANCE units online - Management noted that lower new activations and higher deactivations impacted units online, but expects new activations to accelerate with the launch of new products [59][60] Question: Expected aircraft degradation and vendor financing costs - Management anticipates some degradation in total units online until new products are launched, and highlighted high legal expenses related to vendor financing issues [66][68] Question: Customer valuation of price versus coverage versus customer service - Management emphasized that customers value reliable relationships and consistent pricing, with Gogo's aviation-grade equipment being a significant differentiator [71][73] Question: Timing of the 5G launch - Management expects the 5G launch in mid-Q2 2025, with ongoing testing and validation efforts to mitigate risks [74][75]

For the quarter ended June 2024, Gogo (GOGO) reported revenue of $102.06 million, down 1.1% over the same period last year. EPS came in at $0.10, compared to $0.20 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $100.37 million, representing a surprise of +1.68%. The company delivered an EPS surprise of +42.86%, with the consensus EPS estimate being $0.07.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they ...

Gogo (GOGO) came out with quarterly earnings of $0.10 per share, beating the Zacks Consensus Estimate of $0.07 per share. This compares to earnings of $0.20 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 42.86%. A quarter ago, it was expected that this in-flight internet provider would post earnings of $0.06 per share when it actually produced earnings of $0.16, delivering a surprise of 166.67%.Over the last four quarters, th ...

Total Revenue of $102.1 million, down 1% Year-over-Year; Record Second Quarter Service Revenue of $81.9 million, up 4% Year-over-YearQ2 Net Income of $0.8 million; Adjusted EBITDA(1) of $30.4 millionUpdates 2024 Guidance and Long-Term TargetsBROOMFIELD, Colo., Aug. 7, 2024 /PRNewswire/ -- Gogo Inc. (NASDAQ: GOGO) ("Gogo" or the "Company"), the world's largest provider of broadband connectivity services for the business aviation market, today announced its financial results for the quarter ended June 30, 202 ...

Core Insights - Gogo Business Aviation is collaborating with Duncan Aviation to obtain a Supplemental Type Certificate (STC) from the FAA for Gogo 5G on Bombardier Learjet 40/45/70/75 aircraft, enhancing inflight connectivity for these midsize aircraft [1][2][3] Group 1: Company Collaboration and Offerings - The STC will provide an upgrade path for over 700 Learjet operators to faster and higher-performing inflight connectivity with the installation of AVANCE L5 and Gogo 5G provisions [2] - Gogo's AVANCE L5 system and two MB13 phased-array antennas will be part of the installation process, allowing for easy upgrades in the future [3] - Gogo is offering significant savings of up to $50,000 for operators interested in upgrading to AVANCE and provisioning for Gogo 5G [3] Group 2: Market Position and Reach - Gogo is the largest provider of broadband connectivity services for the business aviation market, with 7,136 business aircraft utilizing its broadband ATG systems as of March 31, 2024 [4] - The company has a diverse range of clients, including fractional ownership operators, charter operators, and corporate flight departments [4] - Duncan Aviation is recognized as the largest family-owned maintenance, repair, and overhaul service provider globally, with extensive experience in Gogo installations [2][5]

Core Viewpoint - Gogo Inc. has appointed Monte Koch to its Board of Directors, expanding the board from 9 to 10 members, which is expected to enhance the company's strategic direction in the business aviation market [1][2]. Company Overview - Gogo is the largest provider of broadband connectivity services for the business aviation market, offering a suite of smart cabin systems for connectivity, in-flight entertainment, and voice solutions [6]. - As of March 31, 2024, Gogo reported 7,136 business aircraft equipped with its broadband ATG systems, with 4,110 using Gogo AVANCE L5 or L3 systems, and 4,285 aircraft utilizing narrowband satellite connectivity [6]. Appointment of Monte Koch - Monte Koch brings nearly 20 years of experience from the National Business Aviation Association and over 5,000 hours as a pilot, which adds significant expertise to Gogo's Board [2][4]. - Koch's 25-year career in finance and experience as a public company director are expected to benefit Gogo as it launches new products aimed at improving inflight connectivity and capturing opportunities in the business aviation market [2][3]. Monte Koch's Background - Koch is a retired Partner of BDT & Company, managing over $20 billion in assets, and has served as Chair Emeritus of the National Business Aviation Association [4][5]. - He has a strong background in investment banking, having held senior roles at Deutsche Bank Securities, including Global Head of Real Estate Investment Banking [5].

BROOMFIELD, Colo., July 19, 2024 /PRNewswire/ -- Gogo Inc. (NASDAQ: GOGO), the world's largest provider of broadband connectivity services for the business aviation market, today announced that it will release its financial results for the second quarter of 2024 before the market opens on August 7, 2024. The Company will host a conference call with financial analysts the same day at 8:30 a.m. (ET).Conference Call & Web CastA live web cast of the conference call, as well as a replay, will be available online ...

The Zacks Wireless National industry is likely to benefit from healthy demand trends with an accelerated 5G rollout and increased fiber densification, helping bridge the digital divide with seamless connectivity. However, high capital expenditures for infrastructure upgrades, margin erosion, inflationary pressures, supply-chain disruptions albeit at a diminishing pace and high customer inventory levels have dented the industry’s profitability.Nevertheless, T-Mobile US Inc. (TMUS) , AT&T Inc. (T) and Gogo In ...

Core Insights - Gogo Business Aviation has successfully completed over 1,000 software updates for its AVANCE system using the over-the-air (OTA) feature, significantly improving operational efficiency for fleet operators [1][2] - The OTA feature replaces the traditional USB kit method, allowing simultaneous updates across all aircraft, thus addressing logistical challenges faced by global fleet customers [2] - The AVANCE platform is designed for easy upgrades to new technologies, including Gogo Galileo and Gogo 5G, enhancing connectivity options for users [1][2] Company Overview - Gogo is the largest provider of broadband connectivity services in the business aviation market, offering a range of smart cabin systems for connectivity, in-flight entertainment, and voice solutions [4] - As of March 31, 2024, Gogo reported 7,136 business aircraft equipped with its broadband ATG systems, with 4,110 using the AVANCE L5 or L3 systems [4]