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WKN: A1W078 | ISIN: US38046C1099 | Ticker-Symbol: G0G
Tradegate
15.05.24
13:30 Uhr
9,750 Euro
-0,200
-2,01 %
Branche
Telekom
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S&P SmallCap 600
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GOGO INC Chart 1 Jahr
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9,75010,10019:04
9,9009,95017.05.
PR Newswire
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Gogo Inc.: Gogo Announces First Quarter Results

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."

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.

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

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

[email protected]

[email protected]

SOURCE Gogo Inc.

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