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Exhibit 99.1
Press Release For Immediate Release |
|
|
|
Investor Relations Contact: |
Media Relations Contact: |
Will Davis |
Stacey Giglio |
+1 917-519-6994 |
+1 321-525-4607 |
wdavis@gogoair.com |
sgiglio@gogoair.com |
|
|
Gogo Announces Fourth Quarter and Full Year 2024 Results
Total Revenue of $137.8 million, up 41% Year-over-Year; Fourth Quarter Service Revenue of $118.8 million, up 47% Year-over-Year
Q4 Net Loss of $28.2 million; Adjusted EBITDA(1) of $34.0 million
Satcom Direct acquisition closed December 3, 2024
Receives FAA PMA authorization to ship Gogo Galileo HDX antenna starting in Q1 2025
Provides 2025 Financial Guidance
BROOMFIELD, Colo. - March 14, 2025 – Gogo Inc. (NASDAQ: GOGO) (“Gogo” or the “Company”), a leading global provider of broadband connectivity services for the business and military/government mobility aviation markets, today announced its financial results for the quarter ended December 31, 2024 and full year results for 2024. Fourth quarter and FY 2024 results for Gogo include the impact of the acquisition of Satcom Direct, LLC and certain of its affiliates and subsidiaries (collectively, "Satcom Direct"), which closed on December 3, 2024.
Q4 2024 Highlights
1
Full Year 2024 Highlights
2
Recent Company Highlights
“We welcome Chris, Zac, and the Satcom Direct team. They bring great satellite expertise and leadership capabilities to Gogo”, said Oakleigh Thorne, Executive Chairman of Gogo. “Our new integrated management team has already made a huge impact towards realizing the high end of our synergy targets, getting PMA for our Galileo HDX LEO satellite terminal, and driving sales of Gogo products globally.”
“We believe the unique multi-orbit, multi-band platform enabled by the Gogo and Satcom Direct merger enables us to meet the needs of each segment of the BA and Military/Government mobility markets,” said Chris Moore, CEO of Gogo. “We believe the PMA for our HDX antenna opens the gates for us to start realizing our three strategic growth opportunities: (1) leveraging our international sales force to sell Galileo, (2) selling LEO/GEO products to Satcom Direct's high-end global customer base, and (3) meeting the needs of the global Military/Government customer base.”
“In addition to producing synergies ahead of plan, we anticipate an improvement in 2026 Free Cash Flow versus 2025 as significant product and network investments roll off,” said Zac Cotner, CFO of Gogo. “Our current net leverage is approximately 3.6x and we will evaluate opportunities for the return of cash to shareholders once our net leverage falls below 3.5x.”
2025 Financial Guidance
Total revenue in the range of $870 million to $910 million.
Adjusted EBITDA(1) in the range of $200 million to $220 million, reflecting operating expenses of approximately $25 million for strategic and operational initiatives, including Gogo 5G and Gogo Galileo.
Free Cash Flow(1) in the range of $60 million to $90 million, including $70 million of strategic initiatives, net of reimbursements tied to the FCC Reimbursement Program.
3
Capital expenditures of approximately $60 million, including $45 million for strategic initiatives including Gogo 5G, Gogo Galileo and the LTE network build, and excluding $20 million in capex reimbursement from the FCC program.
The Company expects to provide longer-term financial targets later in 2025, noting that preliminary targets for the combined Company provided with the announcement of the acquisition of Satcom Direct were 10% revenue growth and mid-20s adjusted EBITDA.
Conference Call
The Company will host its fourth quarter conference call on March 14, 2025 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.
4Q Earnings Call Webcast Link:
https://edge.media-server.com/mmc/p/jgpjxb8e
Participants can use the below link to retrieve your unique conference ID to use to access the conference call.
https://register.vevent.com/register/BI493ed3f903c54efcafe295fc9df3111d
Non-GAAP Financial Measures
We report certain non-GAAP financial measurements, including Adjusted EBITDA and Free Cash Flow in the discussion above. Management uses Adjusted EBITDA 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 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 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 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 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.
Key Operating Metrics
Our management regularly reviews financial and operating metrics, including the key operating metrics presented below, to evaluate the performance of our business and our success in executing our business plan, make decisions regarding resource allocation and corporate strategies, and evaluate forward-looking projections. The metrics in this press release are only for the Gogo BA segment and do not include metrics for the Satcom Direct segment for the period in which it is reflected in the Company’s consolidated financial statements (namely, from the closing on December 3, 2024 until December 31, 2024), with the exception of
4
GEO AOL, which includes the Satcom Direct business aviation broadband GEO AOL but excludes military/government GEO AOL, because this reporting period provided insufficient time for management to review, test and select meaningful metrics that would be useful on a standalone basis to both management and investors. Additionally, these metrics are slightly broader in scope than those previously presented for the Gogo BA segment, due to an ongoing transition after the acquisition of Satcom Direct in management’s view of which financial and operating metrics of the Gogo BA business are most important to the combined Company. In future periods, after management has integrated the Satcom Direct business and has sufficient information to determine meaningfully which financial and operating metrics are useful to both management and investors, management expects to present such metrics reflecting the major aspects of all of the Company’s businesses, including those in the Gogo BA segment and the Satcom Direct segment.
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 development and fixed-price contracts; our reliance on our key OEMs and dealers for equipment sales; our dependence on single-source, third party satellite network providers; the impact of competition; our ability to maintain high-quality customer support; our reliance on third parties for equipment components and services; our participation in U.S. government contracts; our participation in non-U.S. government contracts; the finite useful life of satellites; the impact of global supply chain and logistics issues, tariffs and inflationary trends; the continued expansion of our business outside of the United States; foreign currency risk; the impact of our expansion geographically and otherwise on our corporate culture; our ability to recruit, train and retain highly skilled employees, and the loss of any key personnel; 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 attention to climate change, conservation measures and other ESG matters; our ability to evaluate or pursue strategic opportunities; our ability to integrate Satcom Direct’s business, and the potential failure to realize or delay in realizing all of the anticipated benefits of the acquisition; the changes in executive management that occurred as part of the Satcom Direct acquisition; 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 4Mhz of ATG spectrum in the United States and obtain rights to additional spectrum if needed; the impact of service interruptions or delays, cyberattacks, 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; risks associated with the use of artificial intelligence in our products and services; 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
5
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 the distribution of income among various jurisdictions in which we operate as well as changes in tax law or regulation on our U.S. and non-U.S. tax liabilities; the impact of changes in laws and regulations on U.S. government contractors; 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 Executive Chair of the Board being a significant stockholder; our ability to fulfill our obligations associated with being a public company; the impact of identified material weaknesses in our internal control over financial reporting; 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 only multi-orbit, multi-band in-flight connectivity provider offering connectivity technology purpose-built for business and military/government mobility aviation. Its industry-leading product portfolio offers best-in-class solutions for all aircraft types, from small to large and heavy jets and beyond.
The Gogo offering uniquely incorporates Air-to-Ground systems with high-speed satellite networks, to deliver consistent, global tip-to-tail connectivity through a sophisticated suite of software, hardware, and advanced infrastructure supported by a 24/7/365 in person customer support team.
Gogo consistently strives to set new standards for reliability, security and innovation and is shaping the future of inflight aviation to make it easier for every customer to stay connected.
6
Gogo Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
|
|
For the Three Months |
|
|
For the Years |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Service revenue |
|
$ |
118,811 |
|
|
$ |
80,908 |
|
|
$ |
364,270 |
|
|
$ |
318,015 |
|
Equipment revenue |
|
|
18,988 |
|
|
|
16,902 |
|
|
|
80,439 |
|
|
|
79,562 |
|
Total revenue |
|
|
137,799 |
|
|
|
97,810 |
|
|
|
444,709 |
|
|
|
397,577 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of service revenue (exclusive of items shown below) |
|
|
43,249 |
|
|
|
17,836 |
|
|
|
99,042 |
|
|
|
69,568 |
|
Cost of equipment revenue (exclusive of items shown below) |
|
|
20,178 |
|
|
|
15,400 |
|
|
|
67,561 |
|
|
|
63,383 |
|
Engineering, design and development |
|
|
15,493 |
|
|
|
10,424 |
|
|
|
44,772 |
|
|
|
36,683 |
|
Sales and marketing |
|
|
12,150 |
|
|
|
8,049 |
|
|
|
38,020 |
|
|
|
29,797 |
|
General and administrative |
|
|
63,655 |
|
|
|
16,546 |
|
|
|
125,071 |
|
|
|
57,280 |
|
Depreciation and amortization |
|
|
7,229 |
|
|
|
4,679 |
|
|
|
18,972 |
|
|
|
16,701 |
|
Total operating expenses |
|
|
161,954 |
|
|
|
72,934 |
|
|
|
393,438 |
|
|
|
273,412 |
|
Operating income (loss) |
|
|
(24,155 |
) |
|
|
24,876 |
|
|
|
51,271 |
|
|
|
124,165 |
|
Other expense (income): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income |
|
|
(1,749 |
) |
|
|
(1,894 |
) |
|
|
(8,336 |
) |
|
|
(7,403 |
) |
Interest expense |
|
|
12,238 |
|
|
|
8,249 |
|
|
|
38,431 |
|
|
|
33,056 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,224 |
|
Other (income) expense, net |
|
|
1,756 |
|
|
|
(582 |
) |
|
|
3,042 |
|
|
|
(1,315 |
) |
Total other expense |
|
|
12,245 |
|
|
|
5,773 |
|
|
|
33,137 |
|
|
|
26,562 |
|
Income (loss) before income taxes |
|
|
(36,400 |
) |
|
|
19,103 |
|
|
|
18,134 |
|
|
|
97,603 |
|
Income tax provision (benefit) |
|
|
(8,187 |
) |
|
|
4,636 |
|
|
|
4,388 |
|
|
|
(48,075 |
) |
Net income (loss) |
|
$ |
(28,213 |
) |
|
$ |
14,467 |
|
|
$ |
13,746 |
|
|
$ |
145,678 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) attributable to common stock per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
(0.22 |
) |
|
$ |
0.11 |
|
|
$ |
0.11 |
|
|
$ |
1.12 |
|
Diluted |
|
$ |
(0.22 |
) |
|
$ |
0.11 |
|
|
$ |
0.10 |
|
|
$ |
1.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average number of shares |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
128,664 |
|
|
|
130,061 |
|
|
|
128,533 |
|
|
|
129,753 |
|
Diluted |
|
|
128,664 |
|
|
|
132,931 |
|
|
|
131,455 |
|
|
|
133,283 |
|
7
Gogo Inc. and Subsidiaries
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
|
|
December 31, |
|
|
December 31, |
|
||
|
|
2024 |
|
|
2023 |
|
||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
41,765 |
|
|
$ |
139,036 |
|
Accounts receivable, net of allowances of $4,467 and $2,091, respectively |
|
|
111,513 |
|
|
|
48,233 |
|
Inventories |
|
|
97,934 |
|
|
|
63,187 |
|
Assets held for sale |
|
|
16,625 |
|
|
|
— |
|
Prepaid expenses and other current assets |
|
|
55,256 |
|
|
|
64,138 |
|
Total current assets |
|
|
323,093 |
|
|
|
314,594 |
|
Non-current assets: |
|
|
|
|
|
|
||
Property and equipment, net |
|
|
119,125 |
|
|
|
98,129 |
|
Intangible assets, net |
|
|
275,331 |
|
|
|
55,027 |
|
Goodwill |
|
|
184,831 |
|
|
|
620 |
|
Operating lease right-of-use assets |
|
|
68,465 |
|
|
|
70,552 |
|
Investment in convertible note |
|
|
4,207 |
|
|
|
— |
|
Other non-current assets, net of allowances of $861 and $591, respectively |
|
|
36,870 |
|
|
|
25,979 |
|
Deferred income taxes |
|
|
217,309 |
|
|
|
216,638 |
|
Total non-current assets |
|
|
906,138 |
|
|
|
466,945 |
|
Total assets |
|
$ |
1,229,231 |
|
|
$ |
781,539 |
|
Liabilities and stockholders’ equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
67,231 |
|
|
$ |
16,094 |
|
Accrued liabilities |
|
|
81,889 |
|
|
|
47,649 |
|
Deferred revenue |
|
|
30,408 |
|
|
|
1,003 |
|
Current portion of long-term debt |
|
|
2,500 |
|
|
|
7,250 |
|
Total current liabilities |
|
|
182,028 |
|
|
|
71,996 |
|
Non-current liabilities: |
|
|
|
|
|
|
||
Long-term debt |
|
|
831,581 |
|
|
|
587,501 |
|
Non-current operating lease liabilities |
|
|
68,178 |
|
|
|
73,047 |
|
Other non-current liabilities |
|
|
78,120 |
|
|
|
8,270 |
|
Total non-current liabilities |
|
|
977,879 |
|
|
|
668,818 |
|
Total liabilities |
|
|
1,159,907 |
|
|
|
740,814 |
|
Stockholders’ equity |
|
|
|
|
|
|
||
Common stock |
|
|
14 |
|
|
|
14 |
|
Additional paid-in capital |
|
|
1,460,270 |
|
|
|
1,402,003 |
|
Accumulated other comprehensive income |
|
|
5,567 |
|
|
|
15,796 |
|
Treasury stock, at cost |
|
|
(196,382 |
) |
|
|
(163,197 |
) |
Accumulated deficit |
|
|
(1,200,145 |
) |
|
|
(1,213,891 |
) |
Total stockholders’ equity |
|
|
69,324 |
|
|
|
40,725 |
|
Total liabilities and stockholders’ equity |
|
$ |
1,229,231 |
|
|
$ |
781,539 |
|
8
Gogo Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
|
|
For the Years |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Operating activities: |
|
|
|
|
|
|
||
Net income |
|
$ |
13,746 |
|
|
$ |
145,678 |
|
Adjustments to reconcile net income to cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
18,972 |
|
|
|
16,701 |
|
Loss on asset disposals, abandonments and write-downs |
|
|
2,932 |
|
|
|
362 |
|
Provision for expected credit losses |
|
|
3,803 |
|
|
|
1,233 |
|
Deferred income taxes |
|
|
3,245 |
|
|
|
(49,172 |
) |
Stock-based compensation expense |
|
|
20,777 |
|
|
|
21,288 |
|
Amortization of deferred financing costs and interest rate caps |
|
|
5,147 |
|
|
|
3,894 |
|
Accretion of debt discount |
|
|
510 |
|
|
|
403 |
|
Change in fair value of convertible note and gain on sale of equity investment |
|
|
793 |
|
|
|
(1,343 |
) |
Loss on extinguishment of debt |
|
|
— |
|
|
|
2,224 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
2,971 |
|
|
|
4,833 |
|
Inventories |
|
|
(16,224 |
) |
|
|
(13,694 |
) |
Prepaid expenses and other current assets |
|
|
(13,417 |
) |
|
|
(49,891 |
) |
Contract assets |
|
|
(7,138 |
) |
|
|
3,217 |
|
Accounts payable |
|
|
(11,295 |
) |
|
|
3,658 |
|
Accrued liabilities |
|
|
11,153 |
|
|
|
4,351 |
|
Deferred revenue |
|
|
3,621 |
|
|
|
(2,411 |
) |
Accrued interest |
|
|
1,715 |
|
|
|
(9,409 |
) |
Other non-current assets and liabilities |
|
|
110 |
|
|
|
(2,952 |
) |
Net cash provided by operating activities |
|
|
41,421 |
|
|
|
78,970 |
|
Investing activities: |
|
|
|
|
|
|
||
Purchases of property and equipment |
|
|
(13,504 |
) |
|
|
(16,267 |
) |
Acquisition of intangible assets—capitalized software |
|
|
(13,551 |
) |
|
|
(7,821 |
) |
Acquisition of Satcom Direct, net of cash acquired |
|
|
(332,724 |
) |
|
|
— |
|
Proceeds from FCC Reimbursement Program for property, equipment and intangibles |
|
|
4,395 |
|
|
|
1,130 |
|
Proceeds from interest rate caps |
|
|
23,181 |
|
|
|
26,675 |
|
Redemptions of short-term investments |
|
|
— |
|
|
|
74,179 |
|
Purchases of short-term investments |
|
|
— |
|
|
|
(49,383 |
) |
Purchases of convertible note and equity investment |
|
|
(5,000 |
) |
|
|
(5,000 |
) |
Proceeds from sale of equity investment |
|
|
— |
|
|
|
6,343 |
|
Net cash provided by (used in) investing activities |
|
|
(337,203 |
) |
|
|
29,856 |
|
Financing activities: |
|
|
|
|
|
|
||
Proceeds from term loan, net of discount |
|
|
245,000 |
|
|
|
— |
|
Payment of debt issuance costs |
|
|
(4,020 |
) |
|
|
— |
|
Repurchases of common stock |
|
|
(33,185 |
) |
|
|
(4,822 |
) |
Payments on term loan |
|
|
(6,063 |
) |
|
|
(107,250 |
) |
Payments on finance leases |
|
|
(31 |
) |
|
|
(132 |
) |
Stock-based compensation activity |
|
|
(3,010 |
) |
|
|
(8,230 |
) |
Net cash provided by (used in) financing activities |
|
|
198,691 |
|
|
|
(120,434 |
) |
Effect of foreign exchange rate changes on cash |
|
|
29 |
|
|
|
94 |
|
(Decrease) increase in cash, cash equivalents and restricted cash |
|
|
(97,062 |
) |
|
|
(11,514 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
|
139,366 |
|
|
|
150,880 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
42,304 |
|
|
$ |
139,366 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
42,304 |
|
|
$ |
139,366 |
|
Less: current restricted cash |
|
|
70 |
|
|
|
— |
|
Less: non-current restricted cash |
|
|
469 |
|
|
|
330 |
|
Cash and cash equivalents at end of period |
|
$ |
41,765 |
|
|
$ |
139,036 |
|
Supplemental cash flow information: |
|
|
|
|
|
|
||
Cash paid for interest |
|
$ |
56,150 |
|
|
$ |
68,145 |
|
Cash paid for taxes, net |
|
$ |
3,098 |
|
|
$ |
1,004 |
|
Non-cash investing activities: |
|
|
|
|
|
|
||
Fair value of shares issued in acquisition of Satcom Direct |
|
$ |
40,500 |
|
|
$ |
— |
|
Purchases of property and equipment in current liabilities |
|
$ |
5,139 |
|
|
$ |
4,801 |
|
9
Gogo Inc. and Subsidiaries
Supplemental Information – Disaggregated Revenue
|
|
For the Three Months Ended December 31, |
|
|||||||||||||||||||||
|
|
2024 |
|
|
2023 |
|
||||||||||||||||||
|
|
Gogo BA |
|
|
Satcom Direct |
|
|
Total |
|
|
Gogo BA |
|
|
Satcom Direct |
|
|
Total |
|
||||||
Service revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Satellite broadband |
|
$ |
963 |
|
|
$ |
23,948 |
|
|
$ |
24,911 |
|
|
$ |
996 |
|
|
$ |
— |
|
|
$ |
996 |
|
ATG broadband |
|
|
77,631 |
|
|
|
— |
|
|
|
77,631 |
|
|
|
76,970 |
|
|
|
— |
|
|
|
76,970 |
|
Narrowband and other |
|
|
3,003 |
|
|
|
13,266 |
|
|
|
16,269 |
|
|
|
2,942 |
|
|
|
— |
|
|
|
2,942 |
|
Total service revenue |
|
$ |
81,597 |
|
|
$ |
37,214 |
|
|
$ |
118,811 |
|
|
$ |
80,908 |
|
|
$ |
— |
|
|
$ |
80,908 |
|
Equipment revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Satellite broadband |
|
$ |
68 |
|
|
$ |
1,768 |
|
|
$ |
1,836 |
|
|
$ |
61 |
|
|
$ |
— |
|
|
$ |
61 |
|
ATG broadband |
|
|
14,063 |
|
|
|
— |
|
|
|
14,063 |
|
|
|
13,920 |
|
|
|
— |
|
|
|
13,920 |
|
Narrowband and other |
|
|
1,868 |
|
|
|
1,221 |
|
|
|
3,089 |
|
|
|
2,921 |
|
|
|
— |
|
|
|
2,921 |
|
Total equipment revenue |
|
$ |
15,999 |
|
|
$ |
2,989 |
|
|
$ |
18,988 |
|
|
$ |
16,902 |
|
|
$ |
— |
|
|
$ |
16,902 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
For the Years Ended December 31, |
|
|||||||||||||||||||||
|
|
2024 |
|
|
2023 |
|
||||||||||||||||||
|
|
Gogo BA |
|
|
Satcom Direct |
|
|
Total |
|
|
Gogo BA |
|
|
Satcom Direct |
|
|
Total |
|
||||||
Service revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Satellite broadband |
|
$ |
4,040 |
|
|
$ |
23,948 |
|
|
$ |
27,988 |
|
|
$ |
3,626 |
|
|
$ |
— |
|
|
$ |
3,626 |
|
ATG broadband |
|
|
310,860 |
|
|
|
— |
|
|
|
310,860 |
|
|
|
302,226 |
|
|
|
— |
|
|
|
302,226 |
|
Narrowband and other |
|
|
12,156 |
|
|
|
13,266 |
|
|
|
25,422 |
|
|
|
12,163 |
|
|
|
— |
|
|
|
12,163 |
|
Total service revenue |
|
$ |
327,056 |
|
|
$ |
37,214 |
|
|
$ |
364,270 |
|
|
$ |
318,015 |
|
|
$ |
— |
|
|
$ |
318,015 |
|
Equipment revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Satellite broadband |
|
$ |
233 |
|
|
$ |
1,768 |
|
|
$ |
2,001 |
|
|
$ |
1,030 |
|
|
$ |
— |
|
|
$ |
1,030 |
|
ATG broadband |
|
|
66,607 |
|
|
|
— |
|
|
|
66,607 |
|
|
|
64,585 |
|
|
|
— |
|
|
|
64,585 |
|
Narrowband and other |
|
|
10,610 |
|
|
|
1,221 |
|
|
|
11,831 |
|
|
|
13,947 |
|
|
|
— |
|
|
|
13,947 |
|
Total equipment revenue |
|
$ |
77,450 |
|
|
$ |
2,989 |
|
|
$ |
80,439 |
|
|
$ |
79,562 |
|
|
$ |
— |
|
|
$ |
79,562 |
|
10
Gogo Inc. and Subsidiaries
Supplemental Information – Key Operating Metrics
|
|
For the Three Months |
|
|
For the Years |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
ATG aircraft online (at period end) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
AVANCE |
|
|
4,608 |
|
|
|
3,976 |
|
|
|
4,608 |
|
|
|
3,976 |
|
Gogo Biz |
|
|
2,451 |
|
|
|
3,229 |
|
|
|
2,451 |
|
|
|
3,229 |
|
Total ATG |
|
|
7,059 |
|
|
|
7,205 |
|
|
|
7,059 |
|
|
|
7,205 |
|
GEO aircraft online |
|
|
1,249 |
|
|
|
10 |
|
|
|
1,249 |
|
|
|
10 |
|
Average monthly connectivity service revenue per ATG aircraft online |
|
$ |
3,500 |
|
|
$ |
3,387 |
|
|
$ |
3,481 |
|
|
$ |
3,380 |
|
ATG units sold |
|
|
208 |
|
|
202 |
|
|
911 |
|
|
894 |
|
|||
For more information, see "Key Operating Metrics" above.
Gogo Inc. and Subsidiaries
Supplemental Information – Revenue and Cost of Revenue
(in thousands, unaudited)
|
|
For the Three Months |
|
|
% Change |
|
|
For the Years |
|
|
% Change |
|
||||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 over 2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 over 2023 |
|
||||||
Service revenue |
|
$ |
118,811 |
|
|
$ |
80,908 |
|
|
|
46.8 |
% |
|
$ |
364,270 |
|
|
$ |
318,015 |
|
|
|
14.5 |
% |
Equipment revenue |
|
|
18,988 |
|
|
|
16,902 |
|
|
|
12.3 |
% |
|
|
80,439 |
|
|
|
79,562 |
|
|
|
1.1 |
% |
Total revenue |
|
$ |
137,799 |
|
|
$ |
97,810 |
|
|
|
40.9 |
% |
|
$ |
444,709 |
|
|
$ |
397,577 |
|
|
|
11.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
For the Three Months |
|
|
% Change |
|
|
For the Years |
|
|
% Change |
|
||||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 over 2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 over 2023 |
|
||||||
Cost of service revenue (1) |
|
$ |
43,249 |
|
|
$ |
17,836 |
|
|
|
142.5 |
% |
|
$ |
99,042 |
|
|
$ |
69,568 |
|
|
|
42.4 |
% |
Cost of equipment revenue (1) |
|
$ |
20,178 |
|
|
$ |
15,400 |
|
|
|
31.0 |
% |
|
$ |
67,561 |
|
|
$ |
63,383 |
|
|
|
6.6 |
% |
11
Gogo Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
(in thousands, unaudited)
|
|
For the Three Months |
|
|
For the Years |
|
|
For the Three Months Ended September 30, |
|
|||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|||||
Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income (loss) attributable to common stock (GAAP) |
|
$ |
(28,213 |
) |
|
$ |
14,467 |
|
|
$ |
13,746 |
|
|
$ |
145,678 |
|
|
$ |
10,630 |
|
Interest expense |
|
|
12,238 |
|
|
|
8,249 |
|
|
|
38,431 |
|
|
|
33,056 |
|
|
|
9,670 |
|
Interest income |
|
|
(1,749 |
) |
|
|
(1,894 |
) |
|
|
(8,336 |
) |
|
|
(7,403 |
) |
|
|
(2,419 |
) |
Income tax provision (benefit) |
|
|
(8,187 |
) |
|
|
4,636 |
|
|
|
4,388 |
|
|
|
(48,075 |
) |
|
|
1,522 |
|
Depreciation and amortization |
|
|
7,229 |
|
|
|
4,679 |
|
|
|
18,972 |
|
|
|
16,701 |
|
|
|
4,015 |
|
EBITDA |
|
|
(18,682 |
) |
|
|
30,137 |
|
|
|
67,201 |
|
|
|
139,957 |
|
|
|
23,418 |
|
Stock-based compensation expense |
|
|
6,022 |
|
|
|
5,559 |
|
|
|
20,777 |
|
|
|
21,288 |
|
|
|
5,030 |
|
Acquisition and integration-related costs (1) |
|
|
46,822 |
|
|
|
— |
|
|
|
53,476 |
|
|
|
— |
|
|
|
6,654 |
|
Amortization of acquisition-related inventory step-up costs |
|
|
249 |
|
|
|
— |
|
|
|
249 |
|
|
|
— |
|
|
|
— |
|
Change in fair value of convertible note and gain on sale of equity investment |
|
|
(446 |
) |
|
|
(570 |
) |
|
|
793 |
|
|
|
(1,343 |
) |
|
|
(323 |
) |
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,224 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
33,965 |
|
|
$ |
35,126 |
|
|
$ |
142,496 |
|
|
$ |
162,126 |
|
|
$ |
34,779 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Free Cash Flow: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net cash provided by (used in) operating activities (GAAP) (2) |
|
$ |
(38,319 |
) |
|
$ |
26,152 |
|
|
$ |
41,421 |
|
|
$ |
78,970 |
|
|
$ |
25,134 |
|
Consolidated capital expenditures (2) |
|
|
(8,161 |
) |
|
|
(5,371 |
) |
|
|
(27,055 |
) |
|
|
(24,088 |
) |
|
|
(8,196 |
) |
Proceeds from FCC Reimbursement Program for property, equipment and intangibles (2) |
|
|
3,180 |
|
|
|
1,127 |
|
|
|
4,395 |
|
|
|
1,130 |
|
|
|
1,120 |
|
Proceeds from interest rate caps (2) |
|
|
3,727 |
|
|
|
6,510 |
|
|
|
23,181 |
|
|
|
26,675 |
|
|
|
6,536 |
|
Free cash flow |
|
$ |
(39,573 |
) |
|
$ |
28,418 |
|
|
$ |
41,942 |
|
|
$ |
82,687 |
|
|
$ |
24,594 |
|
Gogo Inc. and Subsidiaries
Reconciliation of Estimated Full-Year GAAP Net Cash
Provided by Operating Activities to Non-GAAP Measures
(in millions, unaudited)
|
FY 2025 Range |
|
|||||
|
Low |
|
|
High |
|
||
Free Cash Flow: |
|
|
|
|
|
||
Net cash provided by operating activities (GAAP) |
$ |
91 |
|
|
$ |
121 |
|
Consolidated capital expenditures |
|
(60 |
) |
|
|
(60 |
) |
Proceeds from FCC Reimbursement Program for property, equipment and intangibles |
|
20 |
|
|
|
20 |
|
Proceeds from interest rate caps |
|
9 |
|
|
|
9 |
|
Free cash flow |
$ |
60 |
|
|
$ |
90 |
|
12
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) acquisition and integration-related costs, including amortization of acquisition-related inventory step-up costs, (iii) change in fair value of convertible note and gain on sale of equity investment and (iv) 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.
Acquisition and integration-related costs include direct transaction costs, such as due diligence and advisory fees and certain compensation and integration-related expenses as well as the amortization of acquisition-related inventory step-up costs. We believe it is useful for an understanding of our operating performance to exclude acquisition and integration-related costs from Adjusted EBITDA because they are infrequent, are outside of the ordinary course of our operations and do not reflect our operating performance.
We believe it is useful for an understanding of our operating performance to exclude the change in fair value of convertible note and gain on sale of equity investment from Adjusted EBITDA 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.
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.
13
Exhibit 99.1
Satcom Direct Inducement Grants
14
