Total Revenue of $102.1 million, down 1% Year-over-Year; Record
Second Quarter Service Revenue of $81.9
million, up 4% Year-over-Year
Q2 Net Income of $0.8 million; Adjusted
EBITDA(1) of $30.4
million
Updates 2024 Guidance and Long-Term
Targets
BROOMFIELD, Colo., Aug. 7, 2024 /PRNewswire/ -- Gogo Inc. (NASDAQ:
GOGO) ("Gogo" or the "Company"), the world's largest provider of
broadband connectivity services for the business aviation market,
today announced its financial results for the quarter ended
June 30, 2024.
Q2 2024 Highlights
- Total revenue of $102.1 million
decreased slightly compared to Q2 2023 and decreased 2% compared to
Q1 2024.
- Record service revenue of $81.9
million increased 4% compared to Q2 2023 and increased
slightly compared to Q1 2024.
- Equipment revenue of $20.1
million decreased 17% compared to Q2 2023 and decreased 11%
compared to Q1 2024.
- Total ATG aircraft online ("AOL") reached 7,031, a slight
decrease compared to Q2 2023 and a decrease of 1% compared to Q1
2024.
- Total AVANCE AOL grew to 4,215,
an increase of 17% compared to Q2 2023 and 3% compared to Q1 2024.
AVANCE units comprised approximately 60% of total AOL as of
June 30, 2024, up from 51% as of
June 30, 2023 and up from 58% as of
March 31, 2024.
- AVANCE equipment units shipped totaled 231, a decrease of 17%
compared to Q2 2023 and a decrease of 10% compared to Q1 2024.
- Average Monthly Revenue per ATG aircraft online ("ARPU") for
the second quarter was a record $3,468, an increase of 3% compared to Q2 2023 and
a slight increase compared to Q1 2024.
- Net income of $0.8 million
decreased 99% from $89.8 million in
Q2 2023, and 97% from $30.5 million
in Q1 2024. Net income in the second quarter of 2024 included
$11.0 million of an after-tax
unrealized loss related to a fair market value adjustment to a
convertible note investment compared with a $9.9 million after-tax unrealized gain related to
that investment in Q1 2024. Net income in Q2 2023 included a tax
benefit of $63.8 million.
- Diluted earnings per share was $0.01 compared to $0.67 in Q2 2023, of which approximately
$0.08 is attributable to an
unrealized loss related to a convertible note investment.
- Adjusted EBITDA(1) of $30.4
million, which includes approximately $2.2 million of operating expenses related to
Gogo Galileo, decreased 31% compared to Q2 2023 and 30% compared to
Q1 2024.
- Cash provided by operating activities of $24.9 million in Q2 2024 increased from
$15.6 million in the prior year
period and decreased from $29.7
million in Q1 2024.
- Free Cash Flow(1) of $24.9
million in Q2 2024, an increase from $13.3 million in the prior-year period and
decrease from $32.1 million in Q1
2024.
- Cash and cash equivalents totaled $161.6
million as of June 30, 2024
compared to $152.8 million as of
March 31, 2024.
- In Q2 2024, the Company repurchased approximately 1.5 million
shares for a total cost of approximately $13.0 million. The Company repurchased over 3.1
million shares for approximately $28
million in the last three quarters.
"Channel excitement and momentum continues to build ahead of our
expected launches of Gogo Galileo HDX in the fourth quarter of
2024, and Galileo FDX and Gogo 5G in 2025," said Oakleigh Thorne, Chairman and CEO. "These
products will expand our global total addressable market by 60%,
provide a step-change improvement in performance for our customers,
and reignite Gogo's growth trajectory."
"Our second quarter results highlighted record service revenue
and strong Free Cash Flow of nearly $25
million," said Jessi
Betjemann, Executive Vice President and CFO. "Per our
current guidance, we continue to expect substantial Free Cash Flow
growth in 2025 as our current strategic investments decline and we
benefit from the projected launches of Gogo Galileo and 5G."
2024 Financial Guidance and Long-Term Financial
Targets
The Company updates its 2024 guidance and long-term financial
targets below. The guidance and targets include the impact of the
Federal Communications Commission's Secure and Trusted
Communications Networks Reimbursement Program ("FCC Reimbursement
Program"), except for 2025 Free Cash Flow.
2024 Guidance
- Total revenue in the range of $400
million to $410 million versus
prior guidance of $410 million to
$425 million.
- Adjusted EBITDA(1) at the high end of the range
of $110 million to $125 million, as previously guided, reflecting
increased legal expenses and approximately $26 million of operating expenses for strategic
and operational initiatives including Gogo 5G and Gogo
Galileo.
- Free Cash Flow(1) in the range of $35 million to $55
million versus prior guidance of $20
million to $40 million, which
includes $40 million in
reimbursements tied to the FCC Reimbursement Program.
- Capital expenditures of approximately $35 million including $20
million for strategic initiatives including Gogo 5G, Gogo
Galileo and the LTE network build, versus prior guidance of
$45 million which included
$30 million for strategic
initiatives.
Long-term Financial Targets
- Free Cash Flow(1) targeting approximately
$150 million in 2025, versus prior
target of $150 million to
$200 million, without the effect of
the FCC Reimbursement Program.
- Reiterate revenue growth at a compound annual growth rate of
approximately 15%-17% from 2023 through 2028. The Company continues
to expect that Gogo Galileo will contribute revenue beginning in
2025.
- Reiterate Annual Adjusted EBITDA Margin(1) reaching
40% in 2028.
(1) See "Non-GAAP Financial Measures" below
Conference Call
The Company will host its second quarter conference call on
August 7, 2024 at 8:30 a.m. ET. A live webcast of the conference
call, as well as a replay, will be available online on the Investor
Relations section of the Company's investor website at
https://ir.gogoair.com.
Participants can also join the call by dialing +1 844-543-0451
(within the United States and
Canada). Please use the
below link to retrieve your unique conference ID to use to access
the earnings call.
https://register.vevent.com/register/BI817a70bf204a4269a8871d9cac8e8cd8
Non-GAAP Financial Measures
We report certain non-GAAP financial measurements, including
Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow in the
discussion above. Management uses Adjusted EBITDA, Adjusted EBITDA
Margin and Free Cash Flow for business planning purposes, including
managing our business against internally projected results of
operations and measuring our performance and liquidity. These
supplemental performance measures also provide another basis for
comparing period-to-period results by excluding potential
differences caused by non-operational and unusual or non-recurring
items. These supplemental performance measurements may vary from
and may not be comparable to similarly titled measures used by
other companies. Adjusted EBITDA, Adjusted EBITDA Margin and Free
Cash Flow are not recognized measurements under accounting
principles generally accepted in the
United States, or GAAP. When analyzing our performance with
Adjusted EBITDA or Adjusted EBITDA Margin or liquidity with Free
Cash Flow, as applicable, investors should (i) evaluate each
adjustment in our reconciliation to the corresponding GAAP measure,
and the explanatory footnotes regarding those adjustments, (ii) use
Adjusted EBITDA and Adjusted EBITDA Margin in addition to, and not
as an alternative to, net income (loss) attributable to common
stock as a measure of operating results, and (iii) use Free Cash
Flow in addition to, and not as an alternative to, consolidated net
cash provided by (used in) operating activities when evaluating our
liquidity. No reconciliation of the forecasted amounts of Adjusted
EBITDA for fiscal 2024, Adjusted EBITDA Margin for fiscal 2028 or
Free Cash Flow for fiscal 2025 is included in this release because
we are unable to quantify certain amounts that would be required to
be included in the corresponding GAAP measure without unreasonable
efforts, due to high variability and complexity with respect to
estimating certain forward-looking amounts, and we believe such
reconciliation would imply a degree of precision that would be
confusing or misleading to investors.
Cautionary Note Regarding Forward-Looking
Statements
Certain disclosures in this press
release and related comments by our management include
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements include, without limitation, statements regarding our
business outlook, industry, business strategy, plans, goals and
expectations concerning our market position, international
expansion, future technologies, future operations, margins,
profitability, future efficiencies, capital expenditures, liquidity
and capital resources and other financial and operating
information. When used in this discussion, the words "anticipate,"
"assume," "believe," "budget," "continue," "could," "estimate,"
"expect," "forecast," "intend," "may," "plan," "potential,"
"predict," "project," "should," "will," "future" and the negative
of these or similar terms and phrases are intended to identify
forward-looking statements in this press release. Forward-looking
statements are based on our current expectations regarding future
events, results or outcomes. These expectations may or may not be
realized. Although we believe the expectations reflected in the
forward-looking statements are reasonable, we can give you no
assurance these expectations will prove to have been correct. Some
of these expectations may be based upon assumptions, data or
judgments that prove to be incorrect. Actual events, results and
outcomes may differ materially from our expectations due to a
variety of known and unknown risks, uncertainties and other
factors. Although it is not possible to identify all of these risks
and factors, they include, among others, the following: our ability
to continue to generate revenue from the provision of our
connectivity services; our reliance on our key OEMs and dealers for
equipment sales; the impact of competition; our reliance on third
parties for equipment components and services; the impact of global
supply chain and logistics issues and inflationary trends; our
ability to expand our business outside of the United States; our ability to recruit,
train and retain highly skilled employees; the impact of pandemics
or other outbreaks of contagious diseases, and the measures
implemented to combat them; the impact of adverse economic
conditions; our ability to fully utilize portions of our deferred
tax assets; the impact of increased attention to climate change,
ESG matters and conservation measures; our ability to evaluate or
pursue strategic opportunities; our ongoing delay and the risk of
future delays in deploying 5G, and our ability to develop and
deploy Gogo 5G, Gogo Galileo or other next generation technologies;
our ability to maintain our rights to use our licensed 3Mhz of ATG
spectrum in the United States and
obtain rights to additional spectrum if needed; the impact of
service interruptions or delays, technology failures, equipment
damage or system disruptions or failures; the impact of assertions
by third parties of infringement, misappropriation or other
violations; our ability to innovate and provide products and
services; our ability to protect our intellectual property rights;
the impact of our use of open-source software; the impact of
equipment failure or material defects or errors in our software;
our ability to comply with applicable foreign ownership
limitations; the impact of government regulation of communication
networks, and the internet; our possession and use of personal
information; risks associated with participation in the FCC
Reimbursement Program; our ability to comply with anti-bribery,
anti-corruption and anti-money laundering laws; the extent of
expenses, liabilities or business disruptions resulting from
litigation; the impact of global climate change and legal,
regulatory or market responses to it; the impact of our substantial
indebtedness; our ability to obtain additional financing to
refinance or repay our existing indebtedness; the impact of
restrictions and limitations in the agreements and instruments
governing our debt; the impact of increases in interest rates; the
impact of a substantial portion of our indebtedness being secured
by substantially all of our assets; the impact of a downgrade,
suspension or withdrawal of the rating assigned by a rating agency;
the volatility of our stock price; our ability to fully utilize our
tax losses; the dilutive impact of future stock issuances; the
impact of our stockholder concentration and of our CEO and Chair of
the Board being a significant stockholder; our ability to fulfill
our obligations associated with being a public company; and the
impact of anti-takeover provisions, ownership provisions and
certain other provisions in our charter, our bylaws, Delaware law, and our existing and any future
credit facilities.
Additional information concerning these and other factors can
be found under the caption "Risk Factors" in our annual report on
Form 10-K for the year ended December 31,
2023 as filed with the Securities and Exchange Commission
("SEC") on February 28, 2024 and in
our subsequent quarterly reports on Form 10-Q as filed with the
SEC.
Any one of these factors or a combination of these factors
could materially affect our financial condition or future results
of operations and could influence whether any forward-looking
statements contained in this report ultimately prove to be
accurate. Our forward-looking statements are not guarantees of
future performance, and you should not place undue reliance on
them. All forward-looking statements speak only as of the date made
and we undertake no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
About Gogo
Gogo is the world's largest provider of broadband connectivity
services for the business aviation market. We offer a
customizable suite of smart cabin systems for highly integrated
connectivity, inflight entertainment and voice solutions. Gogo's
products and services are installed on thousands of business
aircraft of all sizes and mission types from turboprops to the
largest global jets, and are utilized by the largest fractional
ownership operators, charter operators, corporate flight
departments and individuals.
As of June 30, 2024, Gogo reported 7,031 business aircraft
flying with its broadband ATG systems onboard, 4,215 of which are
flying with a Gogo AVANCE L5 or L3 system; and 4,247 aircraft with
narrowband satellite connectivity installed. Connect with us at
www.gogoair.com.
Gogo Inc. and
Subsidiaries
|
|
Unaudited Condensed
Consolidated Statements of Operations
|
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
For the Three
Months
Ended June 30,
|
|
|
For the Six
Months
Ended June 30,
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
revenue
|
|
$
|
81,929
|
|
|
$
|
79,062
|
|
|
$
|
163,602
|
|
|
$
|
157,561
|
|
Equipment
revenue
|
|
|
20,130
|
|
|
|
24,159
|
|
|
|
42,779
|
|
|
|
44,257
|
|
Total
revenue
|
|
|
102,059
|
|
|
|
103,221
|
|
|
|
206,381
|
|
|
|
201,818
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of service
revenue (exclusive of amounts shown below)
|
|
|
18,871
|
|
|
|
16,819
|
|
|
|
36,742
|
|
|
|
33,616
|
|
Cost of equipment
revenue (exclusive of amounts shown below)
|
|
|
16,432
|
|
|
|
17,537
|
|
|
|
32,218
|
|
|
|
35,663
|
|
Engineering, design
and development
|
|
|
10,304
|
|
|
|
9,226
|
|
|
|
19,520
|
|
|
|
17,105
|
|
Sales and
marketing
|
|
|
9,036
|
|
|
|
7,856
|
|
|
|
17,319
|
|
|
|
14,733
|
|
General and
administrative
|
|
|
21,848
|
|
|
|
13,199
|
|
|
|
36,499
|
|
|
|
27,398
|
|
Depreciation and
amortization
|
|
|
3,887
|
|
|
|
4,539
|
|
|
|
7,728
|
|
|
|
7,330
|
|
Total operating
expenses
|
|
|
80,378
|
|
|
|
69,176
|
|
|
|
150,026
|
|
|
|
135,845
|
|
Operating
income
|
|
|
21,681
|
|
|
|
34,045
|
|
|
|
56,355
|
|
|
|
65,973
|
|
Other expense
(income):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
(2,120)
|
|
|
|
(1,971)
|
|
|
|
(4,168)
|
|
|
|
(3,887)
|
|
Interest
expense
|
|
|
8,113
|
|
|
|
7,806
|
|
|
|
16,523
|
|
|
|
16,782
|
|
Loss on extinguishment
of debt
|
|
|
—
|
|
|
|
2,224
|
|
|
|
—
|
|
|
|
2,224
|
|
Other expense
(income), net
|
|
|
14,717
|
|
|
|
(36)
|
|
|
|
1,618
|
|
|
|
(5)
|
|
Total other
expense
|
|
|
20,710
|
|
|
|
8,023
|
|
|
|
13,973
|
|
|
|
15,114
|
|
Income before income
taxes
|
|
|
971
|
|
|
|
26,022
|
|
|
|
42,382
|
|
|
|
50,859
|
|
Income tax provision
(benefit)
|
|
|
132
|
|
|
|
(63,827)
|
|
|
|
11,053
|
|
|
|
(59,439)
|
|
Net
income
|
|
$
|
839
|
|
|
$
|
89,849
|
|
|
$
|
31,329
|
|
|
$
|
110,298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to common stock per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.01
|
|
|
$
|
0.69
|
|
|
$
|
0.24
|
|
|
$
|
0.85
|
|
Diluted
|
|
$
|
0.01
|
|
|
$
|
0.67
|
|
|
$
|
0.24
|
|
|
$
|
0.83
|
|
Weighted average
number of shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
128,295
|
|
|
|
129,814
|
|
|
|
128,792
|
|
|
|
129,467
|
|
Diluted
|
|
|
131,731
|
|
|
|
133,228
|
|
|
|
132,094
|
|
|
|
133,407
|
|
Gogo Inc. and
Subsidiaries
|
Unaudited Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
|
|
|
June 30,
|
|
|
December 31,
|
|
|
|
2024
|
|
|
2023
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
161,550
|
|
|
$
|
139,036
|
|
Accounts receivable,
net of allowances of $2,418 and $2,091, respectively
|
|
|
53,653
|
|
|
|
48,233
|
|
Inventories
|
|
|
69,058
|
|
|
|
63,187
|
|
Prepaid expenses and
other current assets
|
|
|
60,676
|
|
|
|
64,138
|
|
Total current
assets
|
|
|
344,937
|
|
|
|
314,594
|
|
Non-current
assets:
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
94,686
|
|
|
|
98,129
|
|
Intangible assets,
net
|
|
|
61,052
|
|
|
|
55,647
|
|
Operating lease
right-of-use assets
|
|
|
67,829
|
|
|
|
70,552
|
|
Investment in
convertible note
|
|
|
3,438
|
|
|
|
—
|
|
Other non-current
assets, net of allowances of $664 and $591, respectively
|
|
|
23,547
|
|
|
|
25,979
|
|
Deferred income
taxes
|
|
|
207,188
|
|
|
|
216,638
|
|
Total non-current
assets
|
|
|
457,740
|
|
|
|
466,945
|
|
Total
assets
|
|
$
|
802,677
|
|
|
$
|
781,539
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
25,271
|
|
|
$
|
16,094
|
|
Accrued
liabilities
|
|
|
52,982
|
|
|
|
47,649
|
|
Deferred
revenue
|
|
|
1,862
|
|
|
|
1,003
|
|
Current portion of
long-term debt
|
|
|
7,250
|
|
|
|
7,250
|
|
Total current
liabilities
|
|
|
87,365
|
|
|
|
71,996
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
Long-term
debt
|
|
|
585,060
|
|
|
|
587,501
|
|
Non-current operating
lease liabilities
|
|
|
69,471
|
|
|
|
73,047
|
|
Other non-current
liabilities
|
|
|
8,770
|
|
|
|
8,270
|
|
Total non-current
liabilities
|
|
|
663,301
|
|
|
|
668,818
|
|
Total
liabilities
|
|
|
750,666
|
|
|
|
740,814
|
|
Stockholders'
equity
|
|
|
|
|
|
|
Common
stock
|
|
|
14
|
|
|
|
14
|
|
Additional paid-in
capital
|
|
|
1,409,060
|
|
|
|
1,402,003
|
|
Accumulated other
comprehensive income
|
|
|
11,991
|
|
|
|
15,796
|
|
Treasury stock, at
cost
|
|
|
(186,492)
|
|
|
|
(163,197)
|
|
Accumulated
deficit
|
|
|
(1,182,562)
|
|
|
|
(1,213,891)
|
|
Total stockholders'
equity
|
|
|
52,011
|
|
|
|
40,725
|
|
Total liabilities
and stockholders' equity
|
|
$
|
802,677
|
|
|
$
|
781,539
|
|
Gogo Inc. and
Subsidiaries
|
Unaudited Condensed
Consolidated Statements of Cash Flows
|
(in
thousands)
|
|
|
|
For the Six
Months
Ended June 30,
|
|
|
|
2024
|
|
|
2023
|
|
Operating
activities:
|
|
|
|
|
|
|
Net
income
|
|
$
|
31,329
|
|
|
$
|
110,298
|
|
Adjustments to
reconcile net income to cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
7,728
|
|
|
|
7,330
|
|
Loss on asset
disposals, abandonments and write-downs
|
|
|
84
|
|
|
|
235
|
|
Provision for expected
credit losses
|
|
|
732
|
|
|
|
565
|
|
Deferred income
taxes
|
|
|
10,604
|
|
|
|
(59,686)
|
|
Stock-based
compensation expense
|
|
|
9,725
|
|
|
|
10,494
|
|
Amortization of
deferred financing costs and interest rate caps
|
|
|
2,589
|
|
|
|
1,533
|
|
Accretion of debt
discount
|
|
|
203
|
|
|
|
219
|
|
Loss on extinguishment
of debt
|
|
|
—
|
|
|
|
2,224
|
|
Change in fair value
of convertible note investment
|
|
|
1,562
|
|
|
|
—
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(6,078)
|
|
|
|
3,070
|
|
Inventories
|
|
|
(5,871)
|
|
|
|
(10,757)
|
|
Prepaid expenses and
other current assets
|
|
|
(11,146)
|
|
|
|
(15,148)
|
|
Contract
assets
|
|
|
783
|
|
|
|
(473)
|
|
Accounts
payable
|
|
|
7,840
|
|
|
|
4,000
|
|
Accrued
liabilities
|
|
|
3,929
|
|
|
|
(7,185)
|
|
Deferred
revenue
|
|
|
864
|
|
|
|
(1,534)
|
|
Accrued
interest
|
|
|
(3)
|
|
|
|
(9,728)
|
|
Other non-current
assets and liabilities
|
|
|
(268)
|
|
|
|
(1,316)
|
|
Net cash provided
by operating activities
|
|
|
54,606
|
|
|
|
34,141
|
|
Investing
activities:
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(4,837)
|
|
|
|
(10,406)
|
|
Acquisition of
intangible assets—capitalized software
|
|
|
(5,861)
|
|
|
|
(2,956)
|
|
Proceeds from FCC
Reimbursement Program for property, equipment and
intangibles
|
|
|
95
|
|
|
|
—
|
|
Proceeds from interest
rate caps
|
|
|
12,918
|
|
|
|
12,489
|
|
Redemptions of
short-term investments
|
|
|
—
|
|
|
|
49,524
|
|
Purchases of
short-term investments
|
|
|
—
|
|
|
|
(24,728)
|
|
Purchase of
convertible note investment
|
|
|
(5,000)
|
|
|
|
—
|
|
Net cash (used in)
provided by investing activities
|
|
|
(2,685)
|
|
|
|
23,923
|
|
Financing
activities:
|
|
|
|
|
|
|
Payments on term
loan
|
|
|
(3,625)
|
|
|
|
(103,625)
|
|
Repurchases of common
stock
|
|
|
(23,157)
|
|
|
|
—
|
|
Payments on financing
leases
|
|
|
(3)
|
|
|
|
(97)
|
|
Stock-based
compensation activity
|
|
|
(2,668)
|
|
|
|
(7,747)
|
|
Net cash used in
financing activities
|
|
|
(29,453)
|
|
|
|
(111,469)
|
|
Effect of exchange
rate changes on cash
|
|
|
46
|
|
|
|
55
|
|
Increase (decrease)
in cash, cash equivalents and restricted cash
|
|
|
22,514
|
|
|
|
(53,350)
|
|
Cash, cash equivalents
and restricted cash at beginning of period
|
|
|
139,366
|
|
|
|
150,880
|
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
|
161,880
|
|
|
$
|
97,530
|
|
Cash, cash equivalents
and restricted cash at end of period
|
|
$
|
161,880
|
|
|
$
|
97,530
|
|
Less: non-current
restricted cash
|
|
|
330
|
|
|
|
330
|
|
Cash and cash
equivalents at end of period
|
|
$
|
161,550
|
|
|
$
|
97,200
|
|
Supplemental cash
flow information:
|
|
|
|
|
|
|
Cash paid for
interest
|
|
$
|
28,348
|
|
|
$
|
39,759
|
|
Cash paid for
taxes
|
|
|
1,148
|
|
|
|
370
|
|
Non-cash investing
activities:
|
|
|
|
|
|
|
Purchases of property
and equipment in current liabilities
|
|
$
|
7,164
|
|
|
$
|
6,253
|
|
Gogo Inc. and
Subsidiaries
|
Supplemental
Information – Key Operating Metrics
|
|
|
|
For the Three
Months
Ended June 30,
|
|
|
For the Six
Months
Ended June 30,
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
Aircraft online (at
period end)
|
|
|
|
|
|
|
|
|
|
|
|
|
ATG AVANCE
|
|
|
4,215
|
|
|
|
3,598
|
|
|
|
4,215
|
|
|
|
3,598
|
|
Gogo Biz
|
|
|
2,816
|
|
|
|
3,466
|
|
|
|
2,816
|
|
|
|
3,466
|
|
Total ATG
|
|
|
7,031
|
|
|
|
7,064
|
|
|
|
7,031
|
|
|
|
7,064
|
|
Narrowband
satellite
|
|
|
4,247
|
|
|
|
4,433
|
|
|
|
4,247
|
|
|
|
4,433
|
|
Average monthly
connectivity service revenue per aircraft online
|
|
|
|
|
|
|
|
|
|
|
|
|
ATG
|
|
$
|
3,468
|
|
|
$
|
3,371
|
|
|
$
|
3,463
|
|
|
$
|
3,380
|
|
Narrowband
satellite
|
|
|
335
|
|
|
|
292
|
|
|
|
313
|
|
|
|
298
|
|
Units sold
|
|
|
|
|
|
|
|
|
|
|
|
|
ATG
|
|
|
231
|
|
|
|
277
|
|
|
|
489
|
|
|
|
500
|
|
Narrowband
satellite
|
|
|
52
|
|
|
|
43
|
|
|
|
93
|
|
|
|
92
|
|
Average equipment
revenue per unit sold (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
ATG
|
|
$
|
74
|
|
|
$
|
73
|
|
|
$
|
75
|
|
|
$
|
72
|
|
Narrowband
satellite
|
|
|
43
|
|
|
|
50
|
|
|
|
42
|
|
|
|
52
|
|
- ATG AVANCE aircraft online. We define ATG AVANCE
aircraft online as the total number of business aircraft equipped
with our AVANCE L5 or L3 system for which we provide ATG services
as of the last day of each period presented.
- Gogo Biz aircraft online. We define Gogo Biz
aircraft online as the total number of business aircraft not
equipped with our AVANCE L5 or L3 system for which we provide ATG
services as of the last day of each period presented. This number
excludes commercial aircraft operated by Intelsat's airline
customers receiving ATG service.
- Narrowband satellite aircraft online. We define
narrowband satellite aircraft online as the total number of
business aircraft for which we provide narrowband satellite
services as of the last day of each period presented.
- Average monthly connectivity service revenue per ATG
aircraft online ("ARPU"). We define ARPU as the aggregate
ATG connectivity service revenue for the period divided by the
number of months in the period, divided by the number of ATG
aircraft online during the period (expressed as an average of the
month end figures for each month in such period). Revenue share
earned from the ATG Network Sharing Agreement with Intelsat is
excluded from this calculation.
- Average monthly connectivity service revenue per narrowband
satellite aircraft online. We define average monthly
connectivity service revenue per narrowband satellite aircraft
online as the aggregate narrowband satellite connectivity service
revenue for the period divided by the number of months in the
period, divided by the number of narrowband satellite aircraft
online during the period (expressed as an average of the month end
figures for each month in such period).
- Units sold. We define units sold as the number of ATG or
narrowband satellite units for which we recognized revenue during
the period.
- Average equipment revenue per ATG unit sold. We
define average equipment revenue per ATG unit sold as the aggregate
equipment revenue from all ATG units sold during the period,
divided by the number of ATG units sold.
- Average equipment revenue per narrowband satellite unit
sold. We define average equipment revenue per narrowband
satellite unit sold as the aggregate equipment revenue earned from
all narrowband satellite units sold during the period, divided by
the number of narrowband satellite units sold.
Gogo Inc. and
Subsidiaries
|
Supplemental
Information – Revenue and Cost of Revenue
|
(in thousands,
unaudited)
|
|
|
|
For the Three
Months
Ended June 30,
|
|
|
%
Change
|
|
|
For the Six
Months
Ended June 30,
|
|
|
%
Change
|
|
|
|
2024
|
|
|
2023
|
|
|
2024 over 2023
|
|
|
2024
|
|
|
2023
|
|
|
2024 over 2023
|
|
Service
revenue
|
|
$
|
81,929
|
|
|
$
|
79,062
|
|
|
|
3.6
|
%
|
|
$
|
163,602
|
|
|
$
|
157,561
|
|
|
|
3.8
|
%
|
Equipment
revenue
|
|
|
20,130
|
|
|
|
24,159
|
|
|
|
(16.7)
|
%
|
|
|
42,779
|
|
|
|
44,257
|
|
|
|
(3.3)
|
%
|
Total
revenue
|
|
$
|
102,059
|
|
|
$
|
103,221
|
|
|
|
(1.1)
|
%
|
|
$
|
206,381
|
|
|
$
|
201,818
|
|
|
|
2.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months
Ended June 30,
|
|
|
%
Change
|
|
|
For the Six
Months
Ended June 30,
|
|
|
%
Change
|
|
|
|
2024
|
|
|
2023
|
|
|
2024 over 2023
|
|
|
2024
|
|
|
2023
|
|
|
2024 over 2023
|
|
Cost of service revenue
(1)
|
|
$
|
18,871
|
|
|
$
|
16,819
|
|
|
|
12.2
|
%
|
|
$
|
36,742
|
|
|
$
|
33,616
|
|
|
|
9.3
|
%
|
Cost of equipment
revenue (1)
|
|
$
|
16,432
|
|
|
$
|
17,537
|
|
|
|
(6.3)
|
%
|
|
$
|
32,218
|
|
|
$
|
35,663
|
|
|
|
(9.7)
|
%
|
(1)
|
Excludes depreciation
and amortization expense.
|
Gogo Inc. and
Subsidiaries
|
Reconciliation of
GAAP to Non-GAAP Measures
|
(in thousands,
unaudited)
|
|
|
|
For the Three
Months
Ended June 30,
|
|
|
For the Six
Months
Ended June 30,
|
|
|
For the Three Months Ended March 31,
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to common stock (GAAP)
|
|
$
|
839
|
|
|
$
|
89,849
|
|
|
$
|
31,329
|
|
|
$
|
110,298
|
|
|
$
|
30,490
|
|
Interest
expense
|
|
|
8,113
|
|
|
|
7,806
|
|
|
|
16,523
|
|
|
|
16,782
|
|
|
|
8,410
|
|
Interest
income
|
|
|
(2,120)
|
|
|
|
(1,971)
|
|
|
|
(4,168)
|
|
|
|
(3,887)
|
|
|
|
(2,048)
|
|
Income tax provision
(benefit)
|
|
|
132
|
|
|
|
(63,827)
|
|
|
|
11,053
|
|
|
|
(59,439)
|
|
|
|
10,921
|
|
Depreciation and
amortization
|
|
|
3,887
|
|
|
|
4,539
|
|
|
|
7,728
|
|
|
|
7,330
|
|
|
|
3,841
|
|
EBITDA
|
|
|
10,851
|
|
|
|
36,396
|
|
|
|
62,465
|
|
|
|
71,084
|
|
|
|
51,614
|
|
Stock-based
compensation expense
|
|
|
4,885
|
|
|
|
5,453
|
|
|
|
9,725
|
|
|
|
10,494
|
|
|
|
4,840
|
|
Loss on extinguishment
of debt
|
|
|
—
|
|
|
|
2,224
|
|
|
|
—
|
|
|
|
2,224
|
|
|
|
—
|
|
Change in fair value
of convertible note investment
|
|
|
14,694
|
|
|
|
—
|
|
|
|
1,562
|
|
|
|
—
|
|
|
|
(13,132)
|
|
Adjusted
EBITDA
|
|
$
|
30,430
|
|
|
$
|
44,073
|
|
|
$
|
73,752
|
|
|
$
|
83,802
|
|
|
$
|
43,322
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities (GAAP) (1)
|
|
$
|
24,949
|
|
|
$
|
15,627
|
|
|
$
|
54,606
|
|
|
$
|
34,141
|
|
|
$
|
29,657
|
|
Consolidated capital
expenditures (1)
|
|
|
(6,527)
|
|
|
|
(8,766)
|
|
|
|
(10,698)
|
|
|
|
(13,362)
|
|
|
|
(4,171)
|
|
Proceeds from FCC
Reimbursement Program for property,
equipment and
intangibles (1)
|
|
|
67
|
|
|
|
—
|
|
|
|
95
|
|
|
|
—
|
|
|
|
28
|
|
Proceeds from interest
rate caps (1)
|
|
|
6,379
|
|
|
|
6,402
|
|
|
|
12,918
|
|
|
|
12,489
|
|
|
|
6,539
|
|
Free cash
flow
|
|
$
|
24,868
|
|
|
$
|
13,263
|
|
|
$
|
56,921
|
|
|
$
|
33,268
|
|
|
$
|
32,053
|
|
|
(1)
|
See Unaudited Condensed
Consolidated Statements of Cash Flows
|
Gogo Inc. and
Subsidiaries
|
Reconciliation of
Estimated Full-Year GAAP Net Cash
|
Provided by
Operating Activities to Non-GAAP Measures
|
(in millions,
unaudited)
|
|
|
FY 2024
Range
|
|
|
Low
|
|
|
High
|
|
Free Cash
Flow:
|
|
|
|
|
|
Net cash provided by
operating activities (GAAP)
|
$
|
42
|
|
|
$
|
62
|
|
Consolidated capital
expenditures
|
|
(35)
|
|
|
|
(35)
|
|
Proceeds from FCC
Reimbursement Program for
property,
equipment and intangibles
|
|
5
|
|
|
|
5
|
|
Proceeds from interest
rate caps
|
|
23
|
|
|
|
23
|
|
Free cash
flow
|
$
|
35
|
|
|
$
|
55
|
|
Definition of Non-GAAP Measures
EBITDA represents net income attributable to common stock
before interest expense, interest income, income taxes and
depreciation and amortization expense.
Adjusted EBITDA represents EBITDA adjusted for (i)
stock-based compensation expense, (ii) change in fair value of
convertible note investment and (iii) loss on extinguishment of
debt. Our management believes that the use of Adjusted EBITDA
eliminates items that management believes have less bearing on our
operating performance, thereby highlighting trends in our core
business which may not otherwise be apparent. It also provides an
assessment of controllable expenses, which are indicators
management uses to determine whether current spending decisions
need to be adjusted in order to meet financial goals and achieve
optimal financial performance.
We believe that the exclusion of stock-based compensation
expense from Adjusted EBITDA provides a clearer view of the
operating performance of our business and is appropriate given that
grants made at a certain price and point in time do not necessarily
reflect how our business is performing at any particular time.
While we believe that investors should have information about any
dilutive effect of outstanding options and the cost of that
compensation, we also believe that stockholders should have the
ability to consider our performance using a non-GAAP financial
measure that excludes these costs and that management uses to
evaluate our business.
We believe it is useful for an understanding of our operating
performance to exclude from Adjusted EBITDA the changes in fair
value of convertible note investment because this activity is not
related to our operating performance.
We believe it is useful for an understanding of our operating
performance to exclude the loss on extinguishment of debt from
Adjusted EBITDA because of the infrequently occurring nature of
this activity.
We also present Adjusted EBITDA as a supplemental performance
measure because we believe that this measure provides investors,
securities analysts and other users of our consolidated financial
statements with important supplemental information with which to
evaluate our performance and to enable them to assess our
performance on the same basis as management.
Adjusted EBITDA Margin represents Adjusted EBITDA divided by
total revenue. We present Adjusted EBITDA Margin as a supplemental
performance measure because we believe that it provides meaningful
information regarding our operating efficiency.
Free Cash Flow represents net cash provided by operating
activities, plus the proceeds received from the FCC Reimbursement
Program and the interest rate caps, less purchases of property and
equipment and the acquisition of intangible assets. We believe that
Free Cash Flow provides meaningful information regarding our
liquidity. Management believes that Free Cash Flow is useful for
investors because it provides them with an important perspective on
the cash available for strategic measures, after making necessary
capital investments in property and equipment to support the
Company's ongoing business operations and provides them with the
same measures that management uses as the basis of making capital
allocation decisions.
Investor Relations
Contact:
|
Media Relations
Contact:
|
Will Davis
|
Dave Mellin
|
+1
917-519-6994
|
+1
303-301-3606
|
wdavis@gogoair.com
|
dmellin@gogoair.com
|
|
|
View original
content:https://www.prnewswire.com/news-releases/gogo-announces-second-quarter-results-302216158.html
SOURCE Gogo Business Aviation