Establishes the only multi-orbit, multi-band, global in-flight connectivity provider serving the fast-growing business aviation and military/government mobility marketsImmediately accretive transaction delivers scale benefits and significant cost synergies for enhanced value creationBROOMFIELD, Colo., Sept. 30, 2024 /PRNewswire/ -- Gogo Inc. (NASDAQ: GOGO) ("Gogo" or the "Company") and Satcom Direct today announced entry into a definitive agreement under which Gogo will acquire Satcom Direct to create the o ...

Gogo's Global Dealer Network to Develop STCs Covering Virtually Every Business Aircraft Make and ModelBROOMFIELD, Colo., Sept. 26, 2024 /PRNewswire/ -- Gogo Business Aviation's (NASDAQ: GOGO) dealers see strong demand for Gogo Galileo HDX and have contracted to complete 25 Supplemental Type Certificates (STCs) covering an extensive list of aircraft makes and models.The STCs cover virtually every size business aircraft and unlock a total addressable market of more than 18,000 aircraft globally, many of which ...

Core Insights - Airshare is enhancing its private aviation services by upgrading its fleet's Wi-Fi performance through a partnership with Gogo, focusing on secure and dependable connectivity for business and leisure travelers [1][2] - Gogo's AVANCE system has already been installed on 65% of Airshare's Phenom 300 aircraft, with plans to upgrade the remaining fleet within the next year [2] - Gogo offers advanced connectivity solutions, including the new Gogo Galileo service, which can be integrated into existing AVANCE systems with minimal installation requirements [2][3] Company Overview - Airshare operates a fleet of approximately 150 aircraft, providing services such as fractional ownership, jet cards, and charter services, and has received high safety designations [5] - Gogo is the largest provider of broadband connectivity services for business aviation, with over 7,000 business aircraft utilizing its systems as of June 30, 2024 [4]

Gogo Galileo Marches Toward Commercial Launch with Installation and Flight TestingBROOMFIELD, Colo., Sept. 11, 2024 /PRNewswire/ -- Gogo Business Aviation (NASDAQ: GOGO), in conjunction with Duncan Aviation, has completed the first installation of Gogo Galileo HDX on a Bombardier Challenger 300 and has commenced flight testing as the company marches toward commercial launch of its Low-Earth-Orbit (LEO) global broadband solution later this year.First Gogo Galileo HDX installation complete on a Bombardier Cha ...

Gogo Business Aviation, the aviation operations of Gogo Inc. (GOGO) , recently announced that it has inked a definitive partnership with Skyservice Business Aviation to receive Supplemental Type Certificates (“STCs”) from Transport Canada Civil Aviation (“TCCA”) and the Federal Aviation Administration (“FAA”) for the deployment of cutting-edge Gogo 5G technology across six aircraft models.This collaborative effort is aimed at enhancing air-to-ground (ATG) inflight entertainment and connectivity (IFEC) servi ...

Gulfstream G280 and Embraer Legacy 450/500 TCCA STC Issued; Securing FAA Validations for Three Additional Aircraft ModelsBROOMFIELD, Colo., Aug. 26, 2024 /PRNewswire/ -- Gogo Business Aviation (NASDAQ: GOGO) today announced a partnership with Skyservice Business Aviation ("Skyservice"), a North American leader in business aviation, to develop Supplemental Type Certificates (STC) from Transport Canada Civil Aviation (TCCA) and the Federal Aviation Administration (FAA) for Gogo 5G on six aircraft models.Gogo ...

halbergman I am revisiting my previous analysis of Gogo, Inc. (NASDAQ:NASDAQ:GOGO) in light of Q2 2024 earnings and the recent announcement of SmartSky's closing. I previously rated Gogo a strong buy for the following reasons: DCF analysis suggested a price target of $18.40, up from $8.90 at the time. Gogo's core service business continued to grow quarter-over-quarter despite expected volatility in the equipment business. Demographic trends for private jet ownership were heavily in Gogo's favor. Since ...

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, 2024 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 ...

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]