BROOMFIELD, Colo., Jan. 31, 2024 /PRNewswire/ -- Gogo Business Aviation (NASDAQ: GOGO) today announced that the United States Court of Appeals for the Federal Circuit has upheld the decision by the United States District Court for the District of Delaware denying SmartSky Networks' motion for preliminary injunction against Gogo Business Aviation to keep it from selling its Gogo 5G product. The Delaware court found that SmartSky failed to establish that it is likely to succeed on the merits of its claims, an ...

imaginima/E+ via Getty Images Gogo (NASDAQ:GOGO) shares have been hit hard, falling 37% over the past year. The share price decline reflects numerous investor concerns, including: flat revenue in 2023, further delay in plans to deploy 5G connectivity, competition concerns from Starlink, and a patent lawsuit brought against Gogo by SmartSky. While these concerns temper my enthusiasm, I have made a small allocation to Gogo shares as I believe the market is overlooking its many positive characteristics. Th ...

Gogo Inc. (NASDAQ:GOGO) Q3 2023 Earnings Conference Call November 7, 2023 8:30 AM ET Company Participants Will Davis - Vice President, Investor Relations Oakleigh Thorne - Chairman and CEO Jessi Betjemann - Executive Vice President and CFO Conference Call Participants Richard Prentiss - Raymond James Lance Vitanza - TD Cowen Scott Searle - ROTH MKM Operator Good day and thank you for standing by. Welcome to the Q3 2023 Gogo Inc. Earnings Conference Call. At this time, all participants are in a listen-only m ...

Aircraft Connectivity - Gogo's ATG aircraft online increased to 7,150 as of September 30, 2023, compared to 6,777 in the same period of 2022, representing a growth of approximately 5.5%[102] - The number of narrowband satellite aircraft online decreased to 4,395 as of September 30, 2023, from 4,484 in the same period of 2022, indicating a decline of approximately 2%[102] - Gogo's average monthly connectivity service revenue per narrowband satellite aircraft online was $294 for the three months ended September 30, 2023, down from $297 in the same period of 2022[102] - Average monthly connectivity service revenue per ATG aircraft online was $3,373 for the three months ended September 30, 2023, slightly down from $3,376 in the same period of 2022[102] Revenue Performance - Total revenue decreased to $97.9 million for the three-month period ended September 30, 2023, down 7.0% from $105.3 million in the prior-year period, while total revenue increased to $299.8 million for the nine-month period, up 1.3% from $295.9 million[112] - Service revenue increased to $79.5 million for the three-month period, up 5.7% from $75.3 million, and to $237.1 million for the nine-month period, up 8.3% from $219.0 million, primarily due to increases in ATG aircraft online[112] - Equipment revenue decreased to $18.4 million for the three-month period, down 38.8% from $30.1 million, and to $62.7 million for the nine-month period, down 18.5% from $76.9 million, primarily due to a decrease in the number of ATG units sold[112] Expenses and Costs - Cost of service revenue increased to $18.1 million for the three-month period, up 4.7% from $17.3 million, and to $51.7 million for the nine-month period, up 8.5% from $47.7 million, primarily due to increased personnel and ATG network costs[114] - Engineering, design, and development expenses increased to $9.2 million for the three-month period, up from $8.0 million, and to $26.3 million for the nine-month period, up from $21.3 million, primarily due to the Gogo Galileo development program[116] - General and administrative expenses decreased to $13.3 million for the three-month period, down from $15.5 million, and to $40.7 million for the nine-month period, down from $44.3 million, primarily due to decreased personnel costs[116] Cash Flow and Financial Position - Free Cash Flow for Q3 2023 was $21.0 million, significantly up from $8.5 million in Q3 2022, and for the nine-month period, it increased to $54.3 million from $32.8 million[126] - Net cash provided by operating activities for the nine months ended September 30, 2023, was $52.8 million, down from $71.9 million in the same period of 2022[130] - As of September 30, 2023, cash and cash equivalents totaled $86.5 million, down from $152.5 million at the end of September 2022[130] - The company announced a share repurchase program allowing for the repurchase of up to $50 million of common stock, with no time limit on the program[131] Debt and Financing - The Term Loan Facility has an aggregate principal amount of $725.0 million, with a maturity date of April 30, 2028, and bears interest at a floating rate based on an adjusted term SOFR rate[131] - Cash used in financing activities for the nine-month period ended September 30, 2023 was $113.9 million, primarily due to principal payments on the Term Loan Facility[137] - The company prepaid $100 million of the outstanding principal amount of the Term Loan Facility on May 3, 2023[134] - The Revolving Facility was undrawn as of September 30, 2023, and is available for working capital and general corporate purposes[134] Future Outlook - Gogo plans to commercially launch its Gogo 5G network in Q3 2024 and Gogo Galileo in the second half of 2024, expanding its broadband offerings beyond ATG[98] - The company expects service revenue to increase in the future with additional aircraft coming online, including the launch of Gogo 5G and Gogo Galileo[112] - The company anticipates that engineering, design, and development expenses will increase as a percentage of service revenue through 2024 due to Gogo Galileo and Gogo 5G program costs[116] - The company expects capital expenditures to increase in the near term due to Gogo 5G and the LTE network build-out related to the FCC Reimbursement Program[138] Tax and Valuation - The effective income tax rates for Q3 2023 were 24.3%, down from 28.3% in Q3 2022, while the nine-month period showed a tax benefit of $52.7 million due to a partial release of the valuation allowance on deferred income tax assets[121] - The company released approximately $71.2 million of its valuation allowance for deferred tax assets during the nine-month period ended September 30, 2023[105] Challenges - The company continues to face challenges related to supply chain disruptions and labor shortages affecting the aviation industry[99] - A $27.3 million decrease in cash flows related to operating assets and liabilities was noted, primarily due to changes in prepaid expenses and accrued interest[135] - The company has agreements with various vendors under which it has remaining commitments to purchase hardware components and development services[140]

Gogo Inc. (NASDAQ:GOGO) Q2 2023 Earnings Conference Call August 7, 2023 8:30 AM ET Company Participants Will Davis - Vice President, Investor Relations Oakleigh Thorne - Chairman and Chief Executive Officer Jessi Betjemann - Executive Vice President and Chief Financial Officer Conference Call Participants Richard Prentiss - Raymond James Financial Lance Vitanza - TD Cowen Phil Cusick - JPMorgan Simon Flannery - Morgan Stanley Louie DiPalma - William Blair Operator Good morning and thank you for standing by. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One): ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from __________ to __________ Commission File Number: 001-35975 Gogo Inc. (Exact name of registrant as specified in its charter) Delaware 27-1650905 (State or ot ...

Financial Data and Key Metrics Changes - Gogo reported total revenue of $98.6 million for Q1 2023, a 6% increase year-over-year, driven by record service revenue of $78.5 million, which was up 11% year-over-year [27][13] - Adjusted EBITDA for Q1 2023 was $39.7 million, down 7% year-over-year, primarily due to lower equipment revenues and increased operating expenses [34][14] - Net income for Q1 2023 was $20.4 million, translating to $0.16 in basic earnings per share [35] Business Line Data and Key Metrics Changes - Gogo's ATG aircraft online reached a record 7,046 units, representing an 8% growth year-over-year [27] - AVANCE units online grew to 3,447 units, up 28% year-over-year, now comprising 49% of the total fleet [28] - Equipment revenue was $20.1 million, a 9% decrease year-over-year, reflecting standard seasonality and normalization towards pre-pandemic order dynamics [29] Market Data and Key Metrics Changes - The business aviation industry is experiencing demand levels significantly higher than pre-pandemic, with Gogo's installed base showing strong market position [6][11] - Gogo's installed base includes almost 50% of the 15,000 business jets in North America equipped with Gogo IFC systems [11] - Data usage across Gogo's networks increased by 137% from Q1 2019 to Q1 2023, indicating a growing demand for connectivity [15] Company Strategy and Development Direction - Gogo aims to expand its service addressable market by broadening its advanced platform product offerings and adding networks to meet the needs of various segments [17] - The launch of Gogo 5G is on track for Q4 2023, expected to deliver significantly faster speeds than current networks [18] - Gogo is also developing a Global Broadband Product (GBP) to expand its market reach, particularly targeting the 14,000 business aircraft registered outside North America [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong performance in the second half of 2023, driven by pent-up demand for Gogo 5G and expected activations from record shipments in 2022 [14] - The company anticipates that the ongoing strategic investments will support sustained top-line growth and significant free cash flow growth in 2025 and beyond [32][43] - Management highlighted the importance of customer loyalty and service improvements as key drivers for future growth [17] Other Important Information - Gogo was awarded a $334 million grant under the FCC's Secure and Trusted Communications Networks program, which was reduced to $132 million due to more qualified grants than planned [24] - The company made a strategic decision to pay down $100 million of its outstanding term loan debt, which is expected to reduce cash interest by approximately $8.5 million annually [36][38] Q&A Session Summary Question: What drives the underpenetration of in-flight connectivity in the business jet market? - Management noted that many jets are older and that service levels and the capacity increase from 5G and GBP will incentivize installations [46][47] Question: What factors influence the turboprop market's adoption of in-flight connectivity? - Price sensitivity and the expectation of connectivity when chartering are key factors, with ongoing efforts to design smaller form factors for installations [49][50] Question: What is the outlook for the GBP network and OneWeb's progress? - Management indicated that OneWeb has launched the necessary satellites and is working on positioning them for operational service, with the GBP terminal development on track [59][60]

Revenue Performance - Total revenue for the three-month period ended March 31, 2023, was $98.6 million, a 6.3% increase from $92.8 million in the prior-year period[102]. - Service revenue increased to $78.5 million for the three-month period ended March 31, 2023, up 11.1% from $70.7 million in the prior-year period, driven by an increase in ATG aircraft online[104]. - Equipment revenue decreased to $20.1 million for the three-month period ended March 31, 2023, down 9.0% from $22.1 million in the prior-year period, primarily due to a decrease in the number of ATG units sold[104]. - The number of ATG aircraft online increased to 7,046 as of March 31, 2023, compared to 6,526 in the prior-year period[96]. - Average monthly connectivity service revenue per ATG aircraft online rose to $3,389 for the three-month period ended March 31, 2023, compared to $3,321 in the prior-year period[96]. Future Outlook - Gogo expects service revenue to increase in the future with the launch of Gogo 5G and additional ATG aircraft coming online[106]. - Gogo plans to commercially launch its fourth ATG network, Gogo 5G, in the fourth quarter of 2023[91]. - Gogo announced plans to launch Global Broadband, targeting commercial launch in the second half of 2024, to expand its broadband offerings beyond ATG[91]. Income and Expenses - Operating income for the three-month period ended March 31, 2023, was $31.9 million, compared to $34.9 million in the prior-year period[102]. - Net income for the three-month period ended March 31, 2023, was $20.4 million, down from $22.2 million in the prior-year period[102]. - Cost of service revenue increased to $16.8 million for the three-month period ended March 31, 2023, up 14.8% from $14.6 million in the prior-year period[108]. - Cost of equipment revenue rose to $18.1 million for the three-month period ended March 31, 2023, representing a 26.9% increase from $14.3 million in the prior-year period[108]. - Engineering, design and development expenses increased to $7.9 million for the three-month period ended March 31, 2023, compared to $5.4 million in the prior-year period[108]. - Sales and marketing expenses increased to $6.9 million for the three-month period ended March 31, 2023, up from $6.2 million in the prior-year period[110]. - General and administrative expenses increased to $14.2 million for the three-month period ended March 31, 2023, compared to $13.5 million in the prior-year period[110]. - Total other expense decreased to $7.1 million for the three-month period ended March 31, 2023, down from $10.8 million in the prior-year period[111]. - The effective income tax rate for the three-month period ended March 31, 2023 was 17.7%, compared to 8.0% for the prior-year period[112]. - Adjusted EBITDA for the three-month period ended March 31, 2023 was $39.7 million, down from $42.8 million in the prior-year period[116]. Cash Flow and Capital Expenditures - Free cash flow for the three-month period ended March 31, 2023 was $20.0 million, compared to $8.8 million in the prior-year period[116]. - Cash, cash equivalents, and restricted cash at the end of the period increased to $163.6 million, up from $153.2 million in the prior-year period[119]. - For the three-month period ended March 31, 2023, net cash provided by operating activities was $18.5 million, compared to $17.9 million in the prior-year period, reflecting a $0.4 million improvement in net income and non-cash charges[125]. - Capital expenditures for the three-month periods ended March 31, 2023 and 2022 were $4.6 million and $9.1 million, respectively, indicating a decrease primarily due to the completion of the Gogo 5G program[128]. - The company expects capital expenditures to decrease over time as the Gogo 5G program is completed[128]. Debt and Financing - As of March 31, 2023, the company had interest rate cap agreements with a notional amount of $650.0 million to hedge against interest rate movements[132]. - A hypothetical one percentage point change in the applicable interest rate would impact the company's annual interest expense by approximately $1.5 million for the next twelve-month period, considering the impact of interest rate caps[132]. - The Term Loan Facility has an aggregate principal amount of $725.0 million, with a floating interest rate based on an adjusted term SOFR rate plus a margin of 3.75%[120]. - Cash used in financing activities for the three-month period ended March 31, 2023 was $7.4 million, primarily due to stock-based compensation activities and principal payments on the Term Loan Facility[127]. - The Revolving Facility was undrawn as of March 31, 2023, indicating available liquidity for working capital and general corporate purposes[121]. - The financial covenant for the Revolving Facility is set at a maximum senior secured first lien net leverage ratio of 7.50:1.00[121]. - The company has agreements with various vendors under which it has remaining commitments to purchase hardware components and development services[130].

Gogo Inc. (NASDAQ:GOGO) Q4 2022 Results Conference Call February 28, 2023 8:30 AM ET Company Participants Will Davis - Vice President of Investor Relations Oakleigh Thorne - Chairman and CEO Barry Rowan - Executive Vice President and CFO Jessi Betjemann - Senior Vice President, Finance, Chief Accounting Officer and Treasurer Conference Call Participants Ric Prentiss - Raymond James Scott Searle - ROTH Capital Markets Lance Vitanza - Cowen Louie DiPalma - William Blair Operator Thank you for standing by. And ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One): ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from __________ to __________ Commission File Number: 001-35975 Gogo Inc. (Exact name of registrant as specified in its charter) Delaware 27-1650905 (State or other ...