COVID-19 Impact and Response - The COVID-19 pandemic has had an unprecedented impact on commercial aviation, with passenger traffic down approximately 95%[9] - The airline industry is expected to experience a revenue decline of $314 billion (55%) in 2020 due to the pandemic[9] - Gogo expects its Commercial Aviation (CA) sales to be down 60-70% in April due to the impact of COVID-19[12] - Prior to cost reductions, Gogo CA was losing $1 million per day[12] - Gogo has developed flexible action plans with "16 Levers" to manage costs, tied to revenue projections based on various scenarios[20] Financial Performance and Refinancing - Gogo successfully refinanced $162 million in convertible debt and $690 million in senior secured notes, pushing 80% of maturities to 2024[26] - Gogo improved its free cash flow by $163 million, from -$214 million to -$51 million[28] - Cash flow from operating activities improved by $146 million, from -$82 million to $64 million[28] - Adjusted EBITDA improved 104% to $146 million from $71 million in 2018[30] - Net loss improved to -$146 million from -$162 million in 2018[30] Strategic Initiatives - Gogo launched its Gogo 5G project, which is on target for a 2021 launch[29] - Gogo is focused on continuing its drive to positive free cash flow and taking advantage of consolidation in the IFEC and Satellite industries[35]

Core Insights - Gogo has successfully completed its first end-to-end call using next-generation 5G technology, marking a significant milestone in its journey to deliver 5G air-to-ground connectivity to North American operators [1][2]. Group 1: Technology Development - GCT Semiconductor delivered a new 5G chipset to Airspan in May, enabling the successful integration of the microchip into hardware and software for the end-to-end call [2]. - The Gogo 5G ATG system is designed specifically for business aviation users, providing high-speed broadband for improved video conferencing, streaming, and multi-device activities [3]. Group 2: Infrastructure and Approvals - Gogo has received FAA approval to produce and manufacture the AVANCE LX5 Line Replaceable Unit (LRU), which features a smaller form factor for streamlined installation [4]. - The company has invested in a network of 170 5G towers across the U.S. and parts of Canada, along with the installation of a new '5G core' at its data center and the development of a new 5G aircraft antenna [4]. Group 3: Market Readiness - Gogo's North American tower network is 5G-ready, with antennas prepared for shipping, and the technology is in place to enable connections across North America through the AVANCE LX5 LRUs [5]. - More than 300 aircraft are pre-provisioned for Gogo 5G connectivity, with installation expected to take approximately two weeks for customers operating within the CONUS region [5].

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]