Core Insights - Gogo has received FAA approval for its Plane Simple® Ka-band tail mount terminal for Gulfstream GV and G550 aircraft, marking a significant milestone in the rollout of the Plane Simple antenna series [1] - The terminal enhances connectivity by optimizing the SD Modem Unit integrated with the SD Gateway Router, providing high-speed broadband to devices [1] - Gogo's offering is designed to be compatible with Viasat's next-generation GX satellites, which will improve data transmission capabilities and support advanced connectivity features [2][3] Company Developments - The STC for Gulfstream GV and G550 adds to existing approvals for Gulfstream G650 and G650ER, with ongoing work for Gulfstream G500 and G600 models expected to be completed later this year [1] - Gogo's CEO highlighted that the new STC provides operators with increased speed, data, and service plan flexibility, aligning with a multi-orbit, multi-band strategy for global connectivity [3] - Gogo's connectivity service plans cater to both in-production and legacy aircraft under the Gulfstream Connectivity Service program [3] Industry Position - Gogo is positioned as a unique multi-orbit, multi-band in-flight connectivity provider, offering tailored solutions for business and military/government aviation [4] - The company integrates Air-to-Ground technology with high-speed satellite networks to ensure consistent global connectivity, supported by a dedicated customer support team [5] - Gogo aims to set new standards in reliability, security, and innovation within the aviation connectivity sector [5]

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, 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 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Gogo Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of Inco ...

Press Release For Immediate Release Investor Relations Contact: Media Relations Contact: Will Davis Stacey Giglio +1 917-519-6994 +1 321-525-4607 wdavis@gogoair.com sgiglio@gogoair.com Gogo Announces Fourth Quarter and Full Year 2024 Results Total Revenue of $137.8 million, up 41% Year-over-Year; Fourth Quarter Service Revenue of $118.8 million, up 47% Year-over-Year Q4 Net Loss of $28.2 million; Adjusted EBITDA(1) of $34.0 million Satcom Direct acquisition closed December 3, 2024 Receives FAA PMA authoriza ...

Core Insights - Gogo reported a revenue of $137.8 million for the quarter ended December 2024, marking a 40.9% increase year-over-year, and an EPS of $0.07, down from $0.11 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $98 million by 40.62%, and the EPS surpassed the consensus estimate of $0.04 by 75% [1] Financial Performance Metrics - Gogo's total aircraft online reached 7,059, exceeding the average estimate of 6,972 by two analysts [4] - The company sold 208 units in Business Aviation - ATG, compared to the average estimate of 183 [4] - Average monthly connectivity service revenue per aircraft online was $3,500, slightly below the average estimate of $3,509.78 [4] - Service revenue was reported at $118.81 million, significantly higher than the average estimate of $81.02 million, reflecting a year-over-year increase of 46.9% [4] - Equipment revenue stood at $18.99 million, surpassing the average estimate of $16.58 million, with a year-over-year change of 12.3% [4] Stock Performance - Gogo's shares have declined by 19.4% over the past month, while the Zacks S&P 500 composite decreased by 9.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - Gogo reported quarterly earnings of $0.07 per share, exceeding the Zacks Consensus Estimate of $0.04 per share, but down from $0.11 per share a year ago, representing a 75% earnings surprise [1] - The company achieved revenues of $137.8 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 40.62% and up from $97.81 million year-over-year [2] - Gogo has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Financial Performance - The earnings surprise of 75% and a previous quarter surprise of 140% highlight Gogo's ability to outperform expectations [1][2] - The current consensus EPS estimate for the upcoming quarter is $0.09, with expected revenues of $101.68 million, while the fiscal year estimate is $0.54 on $450.62 million in revenues [7] Market Position - Gogo shares have underperformed the market, losing about 15.1% since the beginning of the year compared to the S&P 500's decline of 6.1% [3] - The Zacks Industry Rank places the Wireless National sector in the top 9% of over 250 Zacks industries, suggesting a favorable industry outlook [8] Future Outlook - The sustainability of Gogo's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The estimate revisions trend for Gogo is currently mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6]

Financial Data and Key Metrics Changes - Gogo's total revenue for Q4 2024 was $137.8 million, representing a 41% year-over-year increase and a 37% sequential increase [40] - Total service revenue reached $119 million, up 47% year-over-year and 45% sequentially, primarily due to the addition of Satcom Direct [41] - Gogo reported a net loss of $28.2 million compared to a net income of $14.2 million in Q4 2023, largely due to $46.8 million in acquisition-related expenses [49] Business Line Data and Key Metrics Changes - The number of advanced aircraft online grew to 4,608, a 16% year-over-year increase, comprising 65% of the total ATG fleet [41] - Gogo achieved record ARPU of $3,500, reflecting a 3% year-over-year increase [42] - Equipment revenue for Q4 was $19 million, up 12% year-over-year, largely due to December results from Satcom Direct [43] Market Data and Key Metrics Changes - Global flight departures increased by 33% in February 2025 compared to February 2019, indicating a post-COVID surge in flight demand [9] - Demand for connectivity in business aviation is surging, with only 36% of the world's business jets having broadband in-flight connectivity [9] Company Strategy and Development Direction - Gogo aims to enhance its connectivity services through a multi-year investment program, focusing on new satellite technologies and a 5G ATG network [11] - The company plans to grow its addressable market by 60% and extend recurring revenue customer lifetimes through its Avance platform [11] - Gogo's strategy includes solidifying its position as a trusted provider in aviation connectivity by offering multi-band and multi-orbit capabilities [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the competitive landscape, highlighting Gogo's unique position as the only competitor to Starlink with a LEO solution designed for the business aviation market [15] - The company expects 2026 to be a significant inflection point for free cash flow, driven by higher-margin service revenue from new products [14] - Management acknowledged that while the delay in HDX PMA will impact financials in 2025, strong revenue growth is anticipated in subsequent years [35] Other Important Information - Gogo received $334 million in grants from the FCC to support the upgrade of its network, which is expected to enhance free cash flow projections for 2026 [31] - The company achieved $18 million in run-rate synergies at the close of the Satcom Direct acquisition and expects to exceed the targeted range of $25 million to $30 million in synergies within two years [50] Q&A Session Summary Question: How does Gogo view the competitive landscape? - Management believes Gogo is in a strong position due to its multi-orbit capability, which is essential for business aviation customers flying globally [63][65] Question: What are the implications of the brewing pushback against Starlink? - Management sees an opportunity for Gogo as sovereign nations seek regulatory compliant communication networks, which Gogo can provide [66] Question: When can investors expect long-term financial targets? - Management is considering whether to provide updates during the Q1 call or at an Investor Day, with a timeline of four to six weeks for more information [72] Question: What is Gogo's perspective on direct-to-device satellite connectivity? - Management emphasizes that Gogo focuses on true broadband capabilities for aircraft, which is more advanced than simple voice connectivity [74][78]

Core Insights - Gogo has received PMA from the FAA for its Gogo Galileo HDX antenna, enabling full-scale production and sales [1] - The HDX antenna is designed for business aviation, providing high-speed broadband connectivity of up to 60Mbps [2] - The HDX antenna leverages Eutelsat OneWeb LEO satellite constellation for low-latency connectivity, suitable for various aircraft types [3] - The PMA approval signifies a transformative change in connectivity options for both existing and new customers, addressing the demand for high-speed connectivity in smaller cabins [4] Group 1 - Gogo has received PMA from the FAA for its Gogo Galileo HDX antenna, allowing for full-scale production and sales [1] - The HDX antenna is designed for ease of installation on aircraft fuselage and connects to the Gogo AVANCE system [2] - The HDX antenna supports high-speed broadband distribution of up to 60Mbps throughout the cabin [2] Group 2 - The HDX antenna utilizes the Eutelsat OneWeb LEO satellite constellation for low-latency connectivity, enhancing the digital experience at altitude [3] - The HDX can be installed on new aircraft or retrofitted for existing ones, benefiting a wide range of aircraft types [3] - The PMA approval opens new connectivity opportunities for operators and owners of various aircraft sizes, filling a market gap for smaller cabins [4]

Financial Performance - Total revenue increased to $100.5 million for the three-month period ended September 30, 2024, representing a 2.6% increase from $97.9 million in the prior-year period[83]. - Service revenue rose to $81.9 million for the three-month period ended September 30, 2024, a 2.9% increase from $79.5 million in the prior-year period, driven by increases in ARPU[83]. - Equipment revenue for the three-month period ended September 30, 2024, was $18.7 million, a 1.5% increase from $18.4 million in the prior-year period, attributed to an increase in ATG units sold[83]. - Net income for the three-month period ended September 30, 2024, was $10.6 million, down from $20.9 million in the prior-year period[83]. - The company reported a net income attributable to common stock of $10.6 million for the three months ended September 30, 2024, compared to $20.9 million for the same period in 2023, a decrease of 49.3%[90]. - Adjusted EBITDA for the three months ended September 30, 2024, was $34.8 million, compared to $43.2 million for the same period in 2023, reflecting a decrease of 19.3%[90]. Revenue Growth and Service Metrics - Gogo's ATG aircraft online increased to 4,379 in Q3 2024, up from 3,784 in Q3 2023, representing a growth of approximately 15.7%[77]. - Average monthly connectivity service revenue per ATG aircraft online rose to $3,497 in Q3 2024, compared to $3,373 in Q3 2023, reflecting an increase of about 3.7%[77]. - Narrowband satellite aircraft online decreased to 4,180 in Q3 2024 from 4,395 in Q3 2023, indicating a decline of approximately 4.9%[77]. - Average monthly connectivity service revenue per narrowband satellite aircraft online increased to $332 in Q3 2024, up from $294 in Q3 2023, marking a growth of about 12.9%[77]. - Gogo sold 214 ATG units in Q3 2024, compared to 192 units in Q3 2023, representing an increase of approximately 11.5%[77]. - The average equipment revenue per ATG unit sold was $75, consistent with the previous year, while narrowband satellite units sold generated an average revenue of $46, up from $39[77]. Operating Expenses and Challenges - Total operating expenses increased to $81.5 million for the three-month period ended September 30, 2024, compared to $64.6 million in the prior-year period, reflecting a 26% increase[83]. - General and administrative expenses surged 87% to $24.9 million for the three-month period ended September 30, 2024, compared to $13.3 million in the prior-year period, due to increased legal and acquisition-related expenses[85]. - The company continues to face challenges related to supply chain disruptions and labor shortages impacting equipment installations[75]. Cash Flow and Liquidity - Free Cash Flow for the nine months ended September 30, 2024, was $81.5 million, up from $54.3 million in the same period of 2023, representing an increase of 50.2%[91]. - Net cash provided by operating activities for the nine months ended September 30, 2024, was $79.7 million, compared to $52.8 million for the same period in 2023, indicating a growth of 50.9%[93]. - Cash, cash equivalents, and restricted cash at the end of the period on September 30, 2024, totaled $177.0 million, compared to $86.5 million at the end of the same period in 2023, showing a significant increase of 104.5%[93]. - The company expects its cash and cash equivalents, along with cash flows from operating activities, to be sufficient for its business needs for at least the next twelve months[94]. - The company’s liquidity strategy includes evaluating opportunities to raise additional capital in public and private markets to support growth and cash needs[93]. Debt and Financing - The Term Loan Facility has an aggregate principal amount of $725.0 million, with a maturity date of April 30, 2028[94]. - The company prepaid $100 million of the outstanding principal amount of the Term Loan Facility on May 3, 2023[95]. - The Revolving Facility was undrawn as of September 30, 2024, indicating no immediate reliance on this credit line[95]. - The financial covenant for the Revolving Facility is set at a maximum senior secured first lien net leverage ratio of 7.50:1.00[95]. - As of September 30, 2024, the notional amount of outstanding debt associated with interest rate cap agreements was $350.0 million, with a hypothetical one percentage point change in interest rates impacting annual interest expense by approximately $2.7 million[102]. - Interest expense increased by 20.5% to $9.7 million for the three-month period ended September 30, 2024, compared to $8.0 million in the prior-year period[86]. Future Outlook and Strategic Initiatives - Gogo plans to commercially launch its Gogo 5G network in late Q2 2025, enhancing its service offerings in the business aviation market[73]. - The Gogo Galileo service, targeting a commercial launch in Q4 2024, aims to expand broadband offerings beyond ATG and penetrate international markets[73]. - Gogo anticipates improved performance for a subset of customers transitioning to the new LTE network in early 2026, supported by FCC reimbursement[73]. - The company expects capital expenditures to increase in the near term due to Gogo 5G and the build-out of the LTE network related to the FCC Reimbursement Program[100].

Financial Performance - Total revenue for Q3 2024 was $100.5 million, a 3% increase year-over-year, but a 1% decrease compared to Q2 2024[2] - Service revenue reached $81.9 million, up 3% year-over-year, with a slight decrease from Q2 2024[2] - Net income for Q3 2024 was $10.6 million, a 49% decrease from $20.9 million in Q3 2023, but an increase from $0.8 million in Q2 2024[3] - Adjusted EBITDA was $34.8 million, a 19% decrease compared to Q3 2023, but a 14% increase from Q2 2024[3] - Total revenue for the three months ended September 30, 2024, was $100,529,000, an increase of 2% from $97,949,000 for the same period in 2023[16] - Operating income for the three months ended September 30, 2024, was $19,071,000, a decrease of 43% from $33,316,000 in the prior year[16] - Net income for the three months ended September 30, 2024, was $10,630,000, down 49% from $20,913,000 in the same quarter of 2023[16] - Adjusted EBITDA for Q3 2024 was $34.779 million, down from $43.198 million in Q3 2023, reflecting a decrease of 19.4%[20] - Free cash flow for Q3 2024 was $24.594 million, compared to $21.001 million in Q3 2023, representing an increase of 12.3%[20] Revenue and Growth Metrics - Average Monthly Revenue per ATG aircraft online (ARPU) was a record $3,497, a 4% increase year-over-year[2] - Total AVANCE aircraft online grew to 4,379, a 16% increase compared to Q3 2023[2] - Service revenue for the nine months ended September 30, 2024, reached $245,459,000, compared to $237,107,000 in 2023, reflecting a growth of 3%[16] - Average monthly connectivity service revenue per ATG aircraft online increased from $3,378 in September 2023 to $3,474 in September 2024, representing a growth of 2.8%[19] - Units sold for ATG systems increased from 192 in September 2023 to 214 in September 2024, showing an increase of 11.5%[19] Cash Flow and Liquidity - Free Cash Flow for Q3 2024 was $24.6 million, an increase from $21.0 million in the prior year period[3] - Cash and cash equivalents increased to $176,678,000 as of September 30, 2024, up from $139,036,000 at the end of 2023[17] - Net cash provided by operating activities for the nine months ended September 30, 2023, was $52,818,000, while it increased to $79,740,000 in 2024, reflecting a growth of approximately 50.9%[18] - Cash and cash equivalents at the end of the period increased to $176,678,000 from $86,157,000, marking a substantial rise of 105.5%[18] - Cash paid for interest decreased from $53,911,000 in the previous period to $42,893,000, indicating a reduction of approximately 20.5%[18] Assets and Liabilities - Total assets as of September 30, 2024, were $810,737,000, compared to $781,539,000 at the end of 2023, indicating a growth of 4%[17] - Total liabilities increased to $758,013,000 as of September 30, 2024, from $740,814,000 at the end of 2023[17] - The company’s accumulated deficit decreased to $(1,171,932,000) as of September 30, 2024, from $(1,213,891,000) at the end of 2023[17] Expenses - General and administrative expenses for the three months ended September 30, 2024, were $24,917,000, significantly higher than $13,336,000 in the same period last year[16] - Cost of service revenue increased by 5.2% to $19.051 million in Q3 2024 from $18.116 million in Q3 2023[20] - Cost of equipment revenue rose by 23.1% to $15.165 million in Q3 2024, compared to $12.320 million in Q3 2023[20] Future Outlook - Revised 2024 guidance includes total revenue expected in the range of $400 million to $410 million[7] - Net cash provided by operating activities for FY 2024 is estimated to be between $59 million and $67 million[21] - Consolidated capital expenditures for FY 2024 are projected at $(30) million[21] - The company expects free cash flow for FY 2024 to be between $55 million and $65 million[21] Acquisitions and Partnerships - The company announced a definitive agreement to acquire Satcom Direct, enhancing its in-flight connectivity capabilities[4] - Gogo's Galileo HDX solution will be installed as a factory option by Textron Aviation for several jet models[4] Other Financial Metrics - Total ATG aircraft online at the end of September 2024 was 7,016, a slight decrease from 7,150 in September 2023[19] - Average equipment revenue per ATG unit sold remained stable at $75, consistent with the previous year[19] - The company reported a loss on extinguishment of debt of $2,224,000 in the previous period, which was not present in the current reporting period[18] - The company acquired intangible assets, specifically capitalized software, totaling $9,640,000 in the current period, compared to $4,711,000 in the previous period[18]

Financial Data and Key Metrics Changes - Gogo's total revenue for Q3 2024 was $100.5 million, reflecting a 3% year-over-year increase and a slight sequential decrease [46] - Service revenue reached $81.9 million, also up 3% year-over-year but slightly down from the previous quarter [46] - Adjusted EBITDA for Q3 was $34.8 million, a 19% decrease year-over-year but a 14% increase sequentially [58] - Free cash flow generated in Q3 was $24.6 million, up $3.6 million from the prior year [65] Business Line Data and Key Metrics Changes - Total AVANCE units online grew to 4,379, a 16% increase year-over-year, representing 62% of the ATG installed base [47][16] - Equipment revenue for Q3 was $18.7 million, with 214 AVANCE shipments, an 11% year-over-year increase but down 7% sequentially [51] - ATG ARPU reached a record $3,497, reflecting a 4% year-over-year increase [50] Market Data and Key Metrics Changes - Demand for business aviation flights increased by 2% year-over-year and 30% compared to pre-COVID Q3 2019 [11] - Data usage per hour on flights rose by 17% year-over-year and 106% from pre-COVID Q3 2019 [11] - According to Honeywell, aircraft owners are expected to invest $280 billion in approximately 8,500 new business jets by 2033, with the fastest growth in heavy jets [13] Company Strategy and Development Direction - Gogo is focusing on expanding its addressable market globally, particularly outside the U.S., and driving AVANCE penetration [18] - The planned acquisition of Satcom Direct is expected to enhance Gogo's capabilities in the MilGov market and expand its product offerings [23][25] - Gogo aims to launch Gogo Galileo and Gogo 5G products to meet increasing demand for high-bandwidth connectivity [36][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about reaccelerating growth due to new product launches and the acquisition of Satcom Direct [6][7] - The company anticipates that the acquisition will be accretive to earnings and will significantly enhance its market position [25][79] - Management acknowledged the competitive landscape but emphasized the strategic advantages of their product offerings [88] Other Important Information - Gogo's cash and short-term investments totaled $176.7 million, with a net leverage ratio of 3.0x [67] - The company expects to close the Satcom Direct acquisition by early December 2024 [92] - Gogo has withdrawn its long-term financial targets due to the pending acquisition [46][76] Q&A Session Summary Question: Is there any reason to think that the pro forma free cash flow number might shift? - Management indicated that increased debt from the acquisition will raise interest expenses, impacting free cash flow [84] Question: What is the rationale behind the Satcom Direct acquisition? - Management emphasized that the acquisition is primarily about enhancing LEO connectivity and expanding into new market segments [86] Question: What is the expected timeline for closing the Satcom Direct deal? - Management hopes to close the deal by early December, pending regulatory approvals [92] Question: How should investors think about the change in revenue growth guidance? - Management clarified that standalone Gogo's growth remains at 15% to 17%, but the combined company's guidance is more cautious due to market conditions [94]