Total Revenue of $104.3 million, up 6% Year-over-Year; Record
First Quarter Service Revenue of $81.7
million, up 4% Year-over-Year
Q1 Net Income of $30.5 million; Adjusted
EBITDA(1) of $43.3
million
Updates 2024 Adjusted EBITDA Guidance and
Reiterates Long-Term Targets
BROOMFIELD, Colo., May 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 March 31, 2024.
Q1 2024 Highlights
- Total revenue of $104.3 million
increased 6% compared to Q1 2023 and 7% compared to Q4 2023.
- Record service revenue of $81.7
million increased 4% compared to Q1 2023 and 1% compared to
Q4 2023.
- Equipment revenue of $22.6
million increased 13% compared to Q1 2023 and increased 34%
compared to Q4 2023.
- AVANCE equipment units shipped totaled 258, an increase of 16%
compared to Q1 2023 and an increase of 28% compared to Q4
2023.
- Total ATG aircraft online ("AOL") reached 7,136, an increase of
1% compared to Q1 2023 and a decrease of 1% compared to Q4
2023.
- Total AVANCE AOL grew to 4,110,
an increase of 19% compared to Q1 2023 and 3% compared to Q4 2023.
AVANCE units comprised approximately 58% of total AOL as of
March 31, 2024, up from 49% as of
March 31, 2023 and up from 55% as of
December 31, 2023.
- Average Monthly Revenue per ATG aircraft online ("ARPU")
of $3,458, an increase of 2% compared
to both Q1 2023 and Q4 2023.
- Net income of $30.5 million
increased 49% from $20.4 million in
Q1 2023, and 111% from $14.5 million
in Q4 2023. Net income in the first quarter of 2024 included
$9.9 million of an after-tax
unrealized gain from a $5 million
investment in a convertible note.
- Diluted earnings per share was $0.23 compared to $0.15 in Q1 2023, of which approximately
$0.07 is attributable to an
unrealized gain from an investment in a convertible note.
- Adjusted EBITDA(1) of $43.3
million, which includes approximately $2.6 million of operating expenses related to
Gogo Galileo, increased 9% compared to Q1 2023 and 23% compared to
Q4 2023.
- Cash provided by operating activities of $29.7 million in Q1 2024 increased from
$18.5 million in the prior year
period and $26.2 million in Q4 2023.
- Record Free Cash Flow(1) of $32.1 million in Q1 2024, an increase from
$20.0 million in the prior-year
period and $28.4 million in Q4
2023.
- Cash and cash equivalents totaled $152.8
million as of March 31, 2024,
compared to $139.0 million as of
December 31, 2023.
- In Q1 2024, the Company repurchased approximately 1.1 million
shares for a total cost of approximately $10.1 million. The Company repurchased over 1.6
million shares for nearly $15 million
in the last two quarters. In April
2024, the Company repurchased approximately 1.1 million
shares for $9.3 million.
- The Company announced two milestones in April 2024 in preparation for the planned
commercial launch of Gogo Galileo later this year:
- The FCC granted regulatory approval for the Gogo Galileo
HDX and FDX antenna terminals for business aircraft.
- Atlas Air Service AG is developing the first European
Supplemental Type Certification (STC) for the Galileo HDX antenna
for the Cessna CJ Series of light jet aircraft and another STC for
the Embraer Phenom 300.
"We're excited about the upcoming launches of Gogo Galileo and
Gogo 5G, which will substantially increase our global addressable
market and provide our customers with a step-change improvement in
speed and performance," said Oakleigh
Thorne, Chairman and CEO. "Additionally, our
accelerating conversion of customers from our old Classic products
to the AVANCE platform will allow customers to benefit from better
LTE performance and provides a simple and cost-effective upgrade
path to Galileo and 5G."
"Strong first quarter results drove an increase in Gogo's 2024
Adjusted EBITDA guidance to the high end of the range and supported
strong share repurchases," said Jessi
Betjemann, Executive Vice President and CFO. "As our
strategic investments roll-off and we benefit from the launch of
Gogo Galileo and 5G, we expect to generate substantial Free Cash
Flow in 2025 and beyond."
2024 Financial Guidance and Long-Term Financial
Targets
The Company updates the following guidance for 2024 and
reiterates long-term financial targets. 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. The guidance and targets do not reflect a potential
delay in Gogo 5G beyond 2024.
The Company updates the following 2024 guidance:
- Total revenue in the range of $410
million to $425 million.
- Adjusted EBITDA(1) at the high end of the previously
guided range of $110 million to
$125 million reflecting operating
expenses of approximately $33 million
for strategic and operational initiatives including Gogo 5G and
Gogo Galileo and $5 million in legal
expenses tied to the SmartSky litigation.
- Free Cash Flow(1)in the range of $20 million to $40
million, which includes $45
million in reimbursements tied to the FCC Reimbursement
Program.
- Capital expenditures of approximately $45 million including $30
million for strategic initiatives including Gogo 5G, Gogo
Galileo and the LTE network build.
The Company reiterates the following long-term financial
targets:
- 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.
- Annual Adjusted EBITDA Margin(1) reaching 40% in
2028.
- Free Cash Flow(1)in the range of $150 million to $200
million in 2025, without the effect of the FCC Reimbursement
Program.
|
(1) See "Non-GAAP
Financial Measures" below
|
Conference Call
The Company will host its first quarter conference call on
May 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/BI94b9fc1e540f40e3a15f37414b934a81
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 March 31, 2024, Gogo reported 7,136 business aircraft
flying with its broadband ATG systems onboard, 4,110 of which are
flying with a Gogo AVANCE L5 or L3 system; and 4,285 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 March 31,
|
|
|
|
2024
|
|
|
2023
|
|
Revenue:
|
|
|
|
|
|
|
Service
revenue
|
|
$
|
81,673
|
|
|
$
|
78,499
|
|
Equipment
revenue
|
|
|
22,649
|
|
|
|
20,098
|
|
Total
revenue
|
|
|
104,322
|
|
|
|
98,597
|
|
Operating
expenses:
|
|
|
|
|
|
|
Cost of service
revenue (exclusive of amounts shown below)
|
|
|
17,871
|
|
|
|
16,797
|
|
Cost of equipment
revenue (exclusive of amounts shown below)
|
|
|
15,786
|
|
|
|
18,126
|
|
Engineering, design
and development
|
|
|
9,216
|
|
|
|
7,879
|
|
Sales and
marketing
|
|
|
8,283
|
|
|
|
6,877
|
|
General and
administrative
|
|
|
14,651
|
|
|
|
14,199
|
|
Depreciation and
amortization
|
|
|
3,841
|
|
|
|
2,791
|
|
Total operating
expenses
|
|
|
69,648
|
|
|
|
66,669
|
|
Operating
income
|
|
|
34,674
|
|
|
|
31,928
|
|
Other expense
(income):
|
|
|
|
|
|
|
Interest
income
|
|
|
(2,048)
|
|
|
|
(1,916)
|
|
Interest
expense
|
|
|
8,410
|
|
|
|
8,976
|
|
Other (income)
expense, net
|
|
|
(13,099)
|
|
|
|
31
|
|
Total other
(income) expense
|
|
|
(6,737)
|
|
|
|
7,091
|
|
Income before income
taxes
|
|
|
41,411
|
|
|
|
24,837
|
|
Income tax
provision
|
|
|
10,921
|
|
|
|
4,388
|
|
Net
income
|
|
$
|
30,490
|
|
|
$
|
20,449
|
|
|
|
|
|
|
|
|
Net income
attributable to common stock per share:
|
|
|
|
|
|
|
Basic
|
|
$
|
0.24
|
|
|
$
|
0.16
|
|
Diluted
|
|
$
|
0.23
|
|
|
$
|
0.15
|
|
Weighted average
number of shares:
|
|
|
|
|
|
|
Basic
|
|
|
129,272
|
|
|
|
129,136
|
|
Diluted
|
|
|
132,441
|
|
|
|
133,602
|
|
Gogo Inc. and
Subsidiaries
|
Unaudited Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2024
|
|
|
2023
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
152,820
|
|
|
$
|
139,036
|
|
Accounts receivable,
net of allowances of $1,855 and $2,091, respectively
|
|
|
49,405
|
|
|
|
48,233
|
|
Inventories
|
|
|
69,298
|
|
|
|
63,187
|
|
Prepaid expenses and
other current assets
|
|
|
63,782
|
|
|
|
64,138
|
|
Total current
assets
|
|
|
335,305
|
|
|
|
314,594
|
|
Non-current
assets:
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
96,042
|
|
|
|
98,129
|
|
Intangible assets,
net
|
|
|
57,870
|
|
|
|
55,647
|
|
Operating lease
right-of-use assets
|
|
|
69,804
|
|
|
|
70,552
|
|
Investment in
convertible note
|
|
|
18,132
|
|
|
|
—
|
|
Other non-current
assets, net of allowances of $614 and $591, respectively
|
|
|
25,577
|
|
|
|
25,979
|
|
Deferred income
taxes
|
|
|
206,223
|
|
|
|
216,638
|
|
Total non-current
assets
|
|
|
473,648
|
|
|
|
466,945
|
|
Total
assets
|
|
$
|
808,953
|
|
|
$
|
781,539
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
22,823
|
|
|
$
|
16,094
|
|
Accrued
liabilities
|
|
|
47,643
|
|
|
|
47,649
|
|
Deferred
revenue
|
|
|
2,150
|
|
|
|
1,003
|
|
Current portion of
long-term debt
|
|
|
7,250
|
|
|
|
7,250
|
|
Total current
liabilities
|
|
|
79,866
|
|
|
|
71,996
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
Long-term
debt
|
|
|
586,274
|
|
|
|
587,501
|
|
Non-current operating
lease liabilities
|
|
|
71,784
|
|
|
|
73,047
|
|
Other non-current
liabilities
|
|
|
8,590
|
|
|
|
8,270
|
|
Total non-current
liabilities
|
|
|
666,648
|
|
|
|
668,818
|
|
Total
liabilities
|
|
|
746,514
|
|
|
|
740,814
|
|
Stockholders'
equity
|
|
|
|
|
|
|
Common
stock
|
|
|
14
|
|
|
|
14
|
|
Additional paid-in
capital
|
|
|
1,404,217
|
|
|
|
1,402,003
|
|
Accumulated other
comprehensive income
|
|
|
14,966
|
|
|
|
15,796
|
|
Treasury stock, at
cost
|
|
|
(173,357)
|
|
|
|
(163,197)
|
|
Accumulated
deficit
|
|
|
(1,183,401)
|
|
|
|
(1,213,891)
|
|
Total stockholders'
equity
|
|
|
62,439
|
|
|
|
40,725
|
|
Total liabilities
and stockholders' equity
|
|
$
|
808,953
|
|
|
$
|
781,539
|
|
Gogo Inc. and
Subsidiaries
|
Unaudited Condensed
Consolidated Statements of Cash Flows
|
(in
thousands)
|
|
|
|
For the Three
Months
Ended March 31,
|
|
|
|
2024
|
|
|
2023
|
|
Operating
activities:
|
|
|
|
|
|
|
Net
income
|
|
$
|
30,490
|
|
|
$
|
20,449
|
|
Adjustments to
reconcile net income to cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
3,841
|
|
|
|
2,791
|
|
Loss on asset
disposals, abandonments and write-downs
|
|
|
15
|
|
|
|
107
|
|
Provision for expected
credit losses
|
|
|
(132)
|
|
|
|
93
|
|
Deferred income
taxes
|
|
|
10,641
|
|
|
|
4,273
|
|
Stock-based
compensation expense
|
|
|
4,840
|
|
|
|
5,041
|
|
Amortization of
deferred financing costs and interest rate caps
|
|
|
1,375
|
|
|
|
764
|
|
Accretion of debt
discount
|
|
|
100
|
|
|
|
108
|
|
Change in fair value
of convertible note investment
|
|
|
(13,132)
|
|
|
|
—
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(1,017)
|
|
|
|
7,405
|
|
Inventories
|
|
|
(6,111)
|
|
|
|
(5,003)
|
|
Prepaid expenses and
other current assets
|
|
|
(5,904)
|
|
|
|
(8,632)
|
|
Contract
assets
|
|
|
6
|
|
|
|
557
|
|
Accounts
payable
|
|
|
4,809
|
|
|
|
1,191
|
|
Accrued
liabilities
|
|
|
(1,442)
|
|
|
|
(9,620)
|
|
Deferred
revenue
|
|
|
1,146
|
|
|
|
(1,054)
|
|
Accrued
interest
|
|
|
(2)
|
|
|
|
130
|
|
Other non-current
assets and liabilities
|
|
|
134
|
|
|
|
(86)
|
|
Net cash provided
by operating activities
|
|
|
29,657
|
|
|
|
18,514
|
|
Investing
activities:
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(1,451)
|
|
|
|
(3,112)
|
|
Acquisition of
intangible assets—capitalized software
|
|
|
(2,720)
|
|
|
|
(1,484)
|
|
Proceeds from FCC
Reimbursement Program for property, equipment and
intangibles
|
|
|
28
|
|
|
|
—
|
|
Proceeds from interest
rate caps
|
|
|
6,539
|
|
|
|
6,087
|
|
Redemptions of
short-term investments
|
|
|
—
|
|
|
|
24,796
|
|
Purchases of
short-term investments
|
|
|
—
|
|
|
|
(24,728)
|
|
Purchase of
convertible note investment
|
|
|
(5,000)
|
|
|
|
—
|
|
Net cash (used in)
provided by investing activities
|
|
|
(2,604)
|
|
|
|
1,559
|
|
Financing
activities:
|
|
|
|
|
|
|
Payments on term
loan
|
|
|
(1,813)
|
|
|
|
(1,813)
|
|
Repurchases of common
stock
|
|
|
(10,137)
|
|
|
|
—
|
|
Payments on financing
leases
|
|
|
(3)
|
|
|
|
(57)
|
|
Stock-based
compensation activity
|
|
|
(1,343)
|
|
|
|
(5,575)
|
|
Net cash used in
financing activities
|
|
|
(13,296)
|
|
|
|
(7,445)
|
|
Effect of exchange
rate changes on cash
|
|
|
27
|
|
|
|
88
|
|
Increase in cash,
cash equivalents and restricted cash
|
|
|
13,784
|
|
|
|
12,716
|
|
Cash, cash equivalents
and restricted cash at beginning of period
|
|
|
139,366
|
|
|
|
150,880
|
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
|
153,150
|
|
|
$
|
163,596
|
|
Cash, cash equivalents
and restricted cash at end of period
|
|
$
|
153,150
|
|
|
$
|
163,596
|
|
Less: non-current
restricted cash
|
|
|
330
|
|
|
|
330
|
|
Cash and cash
equivalents at end of period
|
|
$
|
152,820
|
|
|
$
|
163,266
|
|
Supplemental cash
flow information:
|
|
|
|
|
|
|
Cash paid for
interest
|
|
$
|
14,207
|
|
|
$
|
15,014
|
|
Cash paid for
taxes
|
|
|
11
|
|
|
|
12
|
|
Non-cash investing
activities:
|
|
|
|
|
|
|
Purchases of property
and equipment in current liabilities
|
|
$
|
6,520
|
|
|
$
|
9,973
|
|
Gogo Inc. and
Subsidiaries
|
Supplemental
Information – Key Operating Metrics
|
|
|
|
For the Three
Months
Ended March 31,
|
|
|
|
2024
|
|
|
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
|
|
Average monthly
connectivity service revenue per aircraft online
|
|
|
|
|
|
|
ATG
|
|
$
|
3,458
|
|
|
$
|
3,389
|
|
Narrowband
satellite
|
|
|
292
|
|
|
|
304
|
|
Units sold
|
|
|
|
|
|
|
ATG
|
|
|
258
|
|
|
|
223
|
|
Narrowband
satellite
|
|
|
41
|
|
|
|
49
|
|
Average equipment
revenue per unit sold (in thousands)
|
|
|
|
|
|
|
ATG
|
|
$
|
75
|
|
|
$
|
70
|
|
Narrowband
satellite
|
|
|
41
|
|
|
|
54
|
|
- 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. We define average monthly connectivity service
revenue per ATG aircraft online 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 March 31,
|
|
|
%
Change
|
|
|
|
2024
|
|
|
2023
|
|
|
2024 over
2023
|
|
Service
revenue
|
|
$
|
81,673
|
|
|
$
|
78,499
|
|
|
|
4.0
|
%
|
Equipment
revenue
|
|
|
22,649
|
|
|
|
20,098
|
|
|
|
12.7
|
%
|
Total
revenue
|
|
$
|
104,322
|
|
|
$
|
98,597
|
|
|
|
5.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months
Ended March 31,
|
|
|
%
Change
|
|
|
|
2024
|
|
|
2023
|
|
|
2024 over
2023
|
|
Cost of service revenue
(1)
|
|
$
|
17,871
|
|
|
$
|
16,797
|
|
|
|
6.4
|
%
|
Cost of equipment
revenue (1)
|
|
$
|
15,786
|
|
|
$
|
18,126
|
|
|
|
(12.9)
|
%
|
|
(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 March 31,
|
|
|
For the Three
Months Ended
December 31,
|
|
|
|
2024
|
|
|
2023
|
|
|
2023
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
Net income
attributable to common stock (GAAP)
|
|
$
|
30,490
|
|
|
$
|
20,449
|
|
|
$
|
14,467
|
|
Interest
expense
|
|
|
8,410
|
|
|
|
8,976
|
|
|
|
8,249
|
|
Interest
income
|
|
|
(2,048)
|
|
|
|
(1,916)
|
|
|
|
(1,894)
|
|
Income tax
provision
|
|
|
10,921
|
|
|
|
4,388
|
|
|
|
4,636
|
|
Depreciation and
amortization
|
|
|
3,841
|
|
|
|
2,791
|
|
|
|
4,679
|
|
EBITDA
|
|
|
51,614
|
|
|
|
34,688
|
|
|
|
30,137
|
|
Stock-based
compensation expense
|
|
|
4,840
|
|
|
|
5,041
|
|
|
|
5,559
|
|
Change in fair value
of convertible note investment
|
|
|
(13,132)
|
|
|
|
—
|
|
|
|
—
|
|
Gain on sale of equity
investment
|
|
|
—
|
|
|
|
—
|
|
|
|
(570)
|
|
Adjusted
EBITDA
|
|
$
|
43,322
|
|
|
$
|
39,729
|
|
|
$
|
35,126
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow:
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities (GAAP) (1)
|
|
$
|
29,657
|
|
|
$
|
18,514
|
|
|
$
|
26,152
|
|
Consolidated capital
expenditures (1)
|
|
|
(4,171)
|
|
|
|
(4,596)
|
|
|
|
(5,371)
|
|
Proceeds from FCC
Reimbursement Program for property, equipment and intangibles
(1)
|
|
|
28
|
|
|
|
—
|
|
|
|
1,127
|
|
Proceeds from interest
rate caps (1)
|
|
|
6,539
|
|
|
|
6,087
|
|
|
|
6,510
|
|
Free cash
flow
|
|
$
|
32,053
|
|
|
$
|
20,005
|
|
|
$
|
28,418
|
|
|
(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)
|
$
|
37
|
|
|
$
|
57
|
|
Consolidated capital
expenditures
|
|
(45)
|
|
|
|
(45)
|
|
Proceeds from FCC
Reimbursement Program for property, equipment and
intangibles
|
|
8
|
|
|
|
8
|
|
Proceeds from interest
rate caps
|
|
20
|
|
|
|
20
|
|
Free cash
flow
|
$
|
20
|
|
|
$
|
40
|
|
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) gain on sale of equity
investment. 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 gain on sale of
equity investment and changes in fair value of our $5 million convertible note investment because
these activities are not related to our operating performance.
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-first-quarter-results-302137478.html
SOURCE Gogo Inc.