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 ...

Gogo Inc. (NASDAQ:GOGO) Q3 2022 Earnings Conference Call November 3, 2022 8:30 AM ET Company Participants Will Davis – Vice President-Investor Relations Oakleigh Thorne – Chairman and Chief Executive Officer Barry Rowan – Executive Vice President and Chief Financial Officer Conference Call Participants Phil Cusick – JPMorgan Landon Park – Morgan Stanley Scott Searle – ROTH Capital Partners Louie DiPalma – William Blair Ric Prentiss – Raymond James Operator Good day, and thank you for standing by. Welcome to ...