Part I. Financial Information [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company's Q1 2024 financial statements show total assets increased to $809.0 million, total revenue grew 5.8% to $104.3 million, and net income rose to $30.5 million ($0.23 per diluted share) [Unaudited Condensed Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets increased to $809.0 million, driven by higher cash and a new convertible note investment, while total stockholders' equity grew to $62.4 million Condensed Consolidated Balance Sheet Data (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $152,820 | $139,036 | | Total current assets | $335,305 | $314,594 | | Total assets | $808,953 | $781,539 | | **Liabilities & Equity** | | | | Total current liabilities | $79,866 | $71,996 | | Long-term debt | $586,274 | $587,501 | | Total liabilities | $746,514 | $740,814 | | Total stockholders' equity | $62,439 | $40,725 | [Unaudited Condensed Consolidated Statements of Operations](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2024, total revenue increased 5.8% to $104.3 million, operating income rose to $34.7 million, and net income grew to $30.5 million ($0.23 per diluted share), boosted by a $13.1 million gain on a convertible note Q1 2024 vs Q1 2023 Statement of Operations (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Service revenue | $81,673 | $78,499 | | Equipment revenue | $22,649 | $20,098 | | **Total revenue** | **$104,322** | **$98,597** | | Operating income | $34,674 | $31,928 | | Other (income) expense, net | $(13,099) | $31 | | Income before income taxes | $41,411 | $24,837 | | **Net income** | **$30,490** | **$20,449** | | Diluted EPS | $0.23 | $0.15 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2024, net cash from operations significantly increased to $29.7 million, while investing activities used $2.6 million and financing activities used $13.3 million, primarily for stock repurchases Q1 2024 vs Q1 2023 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $29,657 | $18,514 | | Net cash (used in) provided by investing activities | $(2,604) | $1,559 | | Net cash used in financing activities | $(13,296) | $(7,445) | | **Increase in cash, cash equivalents and restricted cash** | **$13,784** | **$12,716** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail Gogo 5G and Galileo development, FCC reimbursement status, a $5 million convertible note investment valued at $18.1 million, and ongoing patent litigation with SmartSky Networks - Gogo is developing its Gogo 5G network, with commercial launch now expected a few months later than Q4 2024, while Gogo Galileo, a global broadband service, is targeted for Q4 2024 launch[17](index=17&type=chunk)[85](index=85&type=chunk) - The company was approved for up to **$334 million** in the FCC Reimbursement Program, with approximately **$132 million** currently allocated due to a funding shortfall, and the deadline extended to January 21, 2025[31](index=31&type=chunk)[33](index=33&type=chunk) - Gogo invested **$5 million** in a convertible note on February 26, 2024, which was valued at **$18.1 million** as of March 31, 2024, resulting in a **$13.1 million** unrealized gain[60](index=60&type=chunk)[63](index=63&type=chunk) - Gogo is involved in a patent infringement lawsuit with SmartSky Networks concerning Gogo 5G, with a trial scheduled for April 14, 2025, and Gogo has filed counterclaims[75](index=75&type=chunk)[76](index=76&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial results, noting a 5.8% revenue increase to $104.3 million, 19% growth in AVANCE aircraft online, and strong Adjusted EBITDA and Free Cash Flow, despite a Gogo 5G launch delay [Key Business Metrics](index=35&type=section&id=Key%20Business%20Metrics) Key business metrics for Q1 2024 show total ATG aircraft online increased to 7,136, driven by a 19% rise in AVANCE systems, with average monthly service revenue per aircraft slightly increasing to $3,458 Key Operating Metrics | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Aircraft online (at period end)** | | | | ATG AVANCE | 4,110 | 3,447 | | Gogo Biz | 3,026 | 3,599 | | **Total ATG** | **7,136** | **7,046** | | Narrowband satellite | 4,285 | 4,458 | | **Avg. monthly service revenue per aircraft** | | | | ATG | $3,458 | $3,389 | | **Units sold** | | | | ATG | 258 | 223 | [Results of Operations](index=38&type=section&id=Results%20of%20Operations) Q1 2024 total revenue increased 5.8% to $104.3 million, driven by growth in both service and equipment revenue, while engineering expenses rose 17% and other income included a $13.1 million gain on a convertible note - The increase in service revenue was due to a higher number of ATG aircraft online[97](index=97&type=chunk) - The increase in equipment revenue was due to selling more ATG units (**258** in Q1 2024 vs. **223** in Q1 2023)[97](index=97&type=chunk) - Engineering, design and development expenses increased by **17%** to **$9.2 million** due to Gogo Galileo development costs[99](index=99&type=chunk) - Total other income was **$6.7 million**, compared to an expense of **$7.1 million** in the prior year, primarily due to a **$13.1 million** unrealized holding gain on the Investment in Convertible Note[101](index=101&type=chunk) [Non-GAAP Measures](index=42&type=section&id=Non-GAAP%20Measures) The company reported increased non-GAAP metrics for Q1 2024, with Adjusted EBITDA rising to $43.3 million and Free Cash Flow growing to $32.1 million, driven by higher revenue and stronger operating cash flow Reconciliation of Non-GAAP Measures (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income (GAAP) | $30,490 | $20,449 | | **Adjusted EBITDA** | **$43,322** | **$39,729** | | Net cash provided by operating activities (GAAP) | $29,657 | $18,514 | | **Free cash flow** | **$32,053** | **$20,005** | [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) The company ended Q1 2024 with $152.8 million in cash, supported by an undrawn $100.0 million credit facility, and repurchased $10.1 million in shares, with management confident in sufficient liquidity for the next twelve months - The company has an undrawn **$100.0 million** revolving credit facility as of March 31, 2024[52](index=52&type=chunk)[112](index=112&type=chunk) - Under a **$50 million** share repurchase program, the company repurchased **1.1 million** shares for **$10.1 million** during Q1 2024[110](index=110&type=chunk) - Capital expenditures for Q1 2024 were **$4.2 million**, with expectations for increases due to Gogo 5G and LTE network build-outs[117](index=117&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations on its variable-rate Term Loan Facility, partially mitigated by $525.0 million in interest rate caps, with a 1% rate increase impacting annual interest expense by $2.0 million with hedges - The company is exposed to interest rate risk on its variable rate debt, with **$525.0 million** in interest rate caps hedging a notional amount as of March 31, 2024[120](index=120&type=chunk) - A hypothetical **1%** change in interest rates would impact annual interest expense by approximately **$2.0 million** (with hedges) or **$6.1 million** (without hedges)[120](index=120&type=chunk) [Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded the company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2024[121](index=121&type=chunk) - No material changes were made to the internal control over financial reporting during the most recent fiscal quarter[121](index=121&type=chunk) Part II. Other Information [Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in a patent infringement lawsuit by SmartSky Networks concerning Gogo 5G, with a trial scheduled for April 14, 2025, and Gogo has filed counterclaims - Gogo is being sued by SmartSky Networks for alleged patent infringement related to the Gogo 5G system, with a trial date set for April 14, 2025[75](index=75&type=chunk)[76](index=76&type=chunk) - Gogo has filed counterclaims against SmartSky, alleging that SmartSky's ATG network infringes on three Gogo patents[76](index=76&type=chunk) [Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) An updated risk factor highlights the delay in the commercial launch of Gogo 5G by a few months from Q4 2024 due to a third-party chip design error, posing risks to customer retention and confidence - The commercial launch of Gogo 5G is delayed from its previously stated Q4 2024 timeline by a few months[124](index=124&type=chunk) - The delay is due to a design error in a non-5G chip component from a third-party subcontractor[124](index=124&type=chunk) - Risks from the delay include customers seeking competitor technologies, potential marketing confusion with the Gogo Galileo launch, and a decrease in customer confidence[124](index=124&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 1,138,681 shares for approximately $10.1 million under its $50 million program during Q1 2024, with $35.1 million remaining for future repurchases Issuer Purchases of Equity Securities (Q1 2024) | Period | Total Shares Purchased | Average Price Paid per Share | Approx. Dollar Value Remaining in Program | | :--- | :--- | :--- | :--- | | Jan 1-31, 2024 | 566,418 | $9.18 | $40,000,000 | | Feb 1-29, 2024 | — | $— | $40,000,000 | | Mar 1-31, 2024 | 572,263 | $8.63 | $35,073,000 | [Defaults Upon Senior Securities](index=51&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported during the period - The company reported no defaults upon senior securities[127](index=127&type=chunk) [Mine Safety Disclosures](index=51&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - This item is not applicable to the company[127](index=127&type=chunk) [Other Information](index=51&type=section&id=Item%205.%20Other%20Information) No director or officer trading plans (Rule 10b5-1 or non-Rule 10b5-1) were adopted, modified, or terminated during the fiscal quarter ended March 31, 2024 - No director or officer trading plans (Rule 10b5-1 or non-Rule 10b5-1) were adopted, modified, or terminated during the quarter[127](index=127&type=chunk) [Exhibits](index=52&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the 10-Q report, including employment agreements, CEO and CFO certifications, and XBRL data files

Gogo Inc. (NASDAQ:GOGO) Q1 2024 Earnings Conference Call May 7, 2024 8:30 AM ET Company Participants William Davis - Vice President-Investor Relations Oakleigh Thorne - Chairman & Chief Executive Officer Jessi Betjemann - Executive Vice President & Chief Financial Officer Conference Call Participants Scott Searle - ROTH MKM Simon Flannery - Morgan Stanley Ric Prentiss - Raymond James Lance Vitanza - TD Cowen Louie DiPalma - William Blair Operator Thank you for standing by, and welcome to Gogo Inc's First Qu ...

Gogo (GOGO) came out with quarterly earnings of $0.16 per share, beating the Zacks Consensus Estimate of $0.06 per share. This compares to earnings of $0.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 166.67%. A quarter ago, it was expected that this in-flight internet provider would post earnings of $0.11 per share when it actually produced earnings of $0.11, delivering no surprise.Over the last four quarters, the company ...

The market expects Gogo (GOGO) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 7. ...

Core Points - Gogo Business Aviation has received regulatory approval from the FCC for its Gogo Galileo HDX and FDX antenna terminals, which are essential for its low Earth orbit (LEO) global broadband service [1][2] - The approval allows Gogo to commercialize and operate these terminals on US-registered aircraft and those registered in other countries within U.S. territory [1] - Gogo plans to begin flight testing the HDX terminal in the summer of 2024, with a commercial launch expected later this year [1] Company Overview - Gogo is the largest provider of broadband connectivity services for the business aviation market, offering a range of smart cabin systems for connectivity, in-flight entertainment, and voice solutions [2] - As of December 31, 2023, Gogo reported 7,205 business aircraft equipped with its broadband ATG systems, including 3,976 with Gogo AVANCE L5 or L3 systems and 4,341 with narrowband satellite connectivity [2]

Company Developments - Gogo Inc has successfully established end-to-end connectivity through its Gogo Galileo global broadband service, utilizing the HDX antenna on the Eutelsat OneWeb Low Earth Orbit satellite network [1] - The commercial launch of Gogo Galileo is scheduled for later this year, aiming to enhance in-flight connectivity for business aviation, particularly for small jets [1] - Flight testing with the HDX terminal is set to begin in the summer, with certification and commercial launch expected later in the year [1] Industry Insights - The global in-flight entertainment and connectivity market was valued at $5.96 billion in 2022 and is projected to grow at a CAGR of 8.4% from 2023 to 2030, driven by increasing demand for onboard wireless connectivity solutions [2] - Gogo is also advancing its 5G software, with virtual flight simulation testing underway, and expects to launch Gogo 5G later this year [2] Performance Metrics - Gogo 5G is expected to outperform rival geosynchronous satellite or air-to-ground options, with peak speeds of 75-80 Mbps and average speeds around 25 Mbps, catering to the demand for data-intensive services [3] - Gogo's shares have decreased by 39.3% over the past year, contrasting with the sub-industry's growth of 7.5% [3]

Atlas Air Service AG to Develop EASA STC Portfolio for Cessna CitationJet Series of Light Jets and Embraer Phenom 300BROOMFIELD, Colo. and BREMEN, Germany, April 1, 2024 /PRNewswire/ -- Gogo Business Aviation (NASDAQ: GOGO) today announced it is partnering with Atlas Air Service AG to develop the first European Supplemental Type Certificate (STC) for the Gogo Galileo HDX antenna for the Cessna CitationJet series of light jet aircraft and another STC for the Embraer Phenom 300. This is the Cessna Citation ...

Gogo 5G Remains on Track for Expected Commercial Launch Later This Year DALLAS, March 21, 2024 /PRNewswire/ -- (AEA, Booth #813) – Gogo Business Aviation (NASDAQ: GOGO) today announced that it is now conducting virtual flight simulation testing of its 5G software and expects to deliver Gogo 5G later this year. Utilizing an advanced virtual flight simulator, constructed by Gogo's radio frequency (RF) engineering team, Gogo is emulating the radio channel in the airborne environment to verify the Gogo 5G soft ...

Gogo (GOGO) shares soared 5.5% in the last trading session to close at $9.33. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 10.1% loss over the past four weeks.With the divestiture of the commercial in-flight connectivity division, Gogo has restructured its business model to focus more on its core operations. The transformative sale agreement has unlocked new business opportunities for Gogo within the business aviation market a ...

Franco Ercolino I am revisiting my previous analysis of Gogo, Inc. (NASDAQ:GOGO), in light of Q4 and full-year 2023 earnings. In my Q3 analysis, I rated Gogo a buy with a price target of $18.70. My buy rating was supported by the following: The subscription business continued to succeed, setting record revenue in the quarter and expanding margins Demographic trends were heavily in Gogo's favor DCF analysis at the mid-point of guidance showed a significant upside based on underlying industry trends Sin ...