Updates 2023 Financial Guidance and Reiterates
Long-Term Targets
Total Revenue of $97.9 million, down 7% Year-over-Year; Record
Third Quarter Service Revenue of $79.5
million, up 6% Year-over-Year
Net Income of $20.9
million; Adjusted EBITDA(1) of
$43.2 million
BROOMFIELD, Colo., Nov. 7, 2023
/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 September 30, 2023.
Q3 2023 Highlights
- Total revenue of $97.9 million
decreased 7% compared to Q3 2022.
- Record service revenue of $79.5
million increased 6% compared to Q3 2022 and 1% compared to
Q2 2023.
- Equipment revenue of $18.4
million decreased 39% compared to Q3 2022 and decreased 24%
compared to Q2 2023.
- AVANCE equipment units shipped totaled 192, a decrease of 51%
compared to Q3 2022 and a decrease of 31% compared to Q2 2023.
- Total ATG aircraft online ("AOL") reached 7,150, an increase of
6% compared to Q3 2022 and an increase of 1% compared to Q2
2023.
- Total AVANCE AOL grew to 3,784,
an increase of 23% compared to Q3 2022 and 5% compared to Q2 2023.
AVANCE units comprised approximately 53% of total AOL as of
September 30, 2023, up from 45% as of
September 30, 2022.
- Average Monthly Revenue per ATG aircraft online ("ARPU")
of $3,373, compared to $3,376 in Q3 2022 and $3,371 in Q2 2023.
- Net income of $20.9 million
increased 4% from $20.2 million in Q3
2022.
- Diluted earnings per share was $0.16 compared to $0.15 in Q3 2022.
- Adjusted EBITDA(1) of $43.2
million, which includes approximately $2.6 million of operating expenses related to
Gogo Galileo, decreased 1% compared to Q3 2022 and 2% compared to
Q2 2023.
- Cash provided by operating activities of $18.7 million in Q3 2023 decreased from
$27.7 million in the prior year
period.
- Free Cash Flow(1) was $21.0
million in Q3 2023, an increase from $8.5 million in the prior-year period due
primarily to a reduction in capital expenditures.
- Cash, cash equivalents and short-term investments totaled
$110.8 million as of September 30, 2023 compared to $97.2 million as of June
30, 2023.
"We are in a two-year investment cycle launching Gogo 5G and
Galileo (our global LEO satellite product) to deliver
order-of-magnitude improvements in network speed and coverage, grow
our addressable market, and strengthen our competitive position,"
said Oakleigh Thorne, Chairman and
CEO. "We expect these investments to drive significant growth
starting in 2025 and to drive substantial returns for
shareholders."
"Despite near-term revenue headwinds, Gogo maintains our
long-term targets of approximately 15-17% revenue growth from
2022-2027 and $150 million to
$200 million of Free Cash Flow in
2025. Our guidance is underpinned by our strong outlook for our
planned Gogo 5G and Gogo Galileo product launches, in an
underpenetrated global market," said Jessi
Betjemann, Executive Vice President and CFO. "We expect to
continue to strengthen our balance sheet while investing in our key
growth initiatives."
2023 Financial Guidance and Long-Term Financial
Targets
The Company provides the following guidance for 2023, which
includes the impact of the Federal Communications Commission's
Secure and Trusted Communications Networks Reimbursement Program
("FCC Reimbursement Program").
- Total revenue in the range of $390
million to $400 million,
versus prior guidance in the range of $410
million to $420 million,
driven predominantly by lower equipment revenue.
- Adjusted EBITDA(1) at the high end of the previously
guided range of $150 million to
$160 million reflecting operating
expenses of approximately $15 million
for strategic and operational initiatives including Gogo 5G, Gogo
Galileo and the FCC Reimbursement Program.
- Free Cash Flow(1) at the high end of the previously
guided range of $60 million to
$70 million which includes
approximately $20 million of negative
Free Cash Flow due to the expected lag of reimbursements tied to
the FCC Reimbursement Program.
- Capital expenditures of $25
million to $30 million
including $12 million for the Gogo 5G
program and $2 million related to the
FCC Reimbursement Program, versus prior guidance at the low end of
$30 million to $40 million.
The Company reiterates the following long-term financial
targets:
- Revenue growth at a compound annual growth rate of
approximately 15%-17% from 2022 through 2027. The Company continues
to expect that Gogo Galileo will contribute revenue beginning in
2025.
- Annual Adjusted EBITDA Margin(1) in the mid-40%
range by 2027.
- Free Cash Flow(1) in the range of $150 million to $200
million in 2025, without the effect of the FCC Reimbursement
program, and growing thereafter. The FCC Reimbursement Program is
expected to positively impact Free Cash Flow in 2025.
(1) See
"Non-GAAP Financial Measures" below
|
Conference Call
The Company will host its third quarter conference call on
November 7, 2023 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/BIc916c46af134493e80fe6a372b98e364
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 2023, Adjusted EBITDA Margin for fiscal 2027 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 increasing inflation; 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; our ability to evaluate or pursue strategic
opportunities; our ability to develop and deploy Gogo 5G, Global
Broadband or other next generation technologies and the timing
thereof; 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 ; 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; limitations and restrictions in the
agreements governing our current and future indebtedness and our
ability to service our indebtedness; fluctuations in our operating
results; and other events beyond our control that may result in
unexpected adverse operating results.
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,
2022 as filed with the Securities and Exchange Commission
("SEC") on February 28, 2023 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 September 30, 2023, Gogo
reported 7,150 business aircraft flying with its broadband ATG
systems onboard, 3,784 of which are flying with a Gogo AVANCE L5 or
L3 system; and 4,395 aircraft with narrowband satellite
connectivity installed. Connect with us at www.gogoair.com.
Investor Relations Contact:
|
Media Relations Contact:
|
Will Davis
|
Dave Mellin
|
+1
917-519-6994
|
+1
303-301-3606
|
wdavis@gogoair.com
|
dmellin@gogoair.com
|
Gogo Inc. and
Subsidiaries
|
Unaudited Condensed
Consolidated Statements of Operations
|
(in thousands,
except per share amounts)
|
|
|
|
For the Three Months
Ended September 30,
|
|
|
For the Nine Months
Ended September 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
revenue
|
|
$
|
79,546
|
|
|
$
|
75,252
|
|
|
$
|
237,107
|
|
|
$
|
218,983
|
|
Equipment
revenue
|
|
|
18,403
|
|
|
|
30,066
|
|
|
|
62,660
|
|
|
|
76,921
|
|
Total revenue
|
|
|
97,949
|
|
|
|
105,318
|
|
|
|
299,767
|
|
|
|
295,904
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of service
revenue (exclusive of amounts shown below)
|
|
|
18,116
|
|
|
|
17,297
|
|
|
|
51,732
|
|
|
|
47,683
|
|
Cost of equipment
revenue (exclusive of amounts shown below)
|
|
|
12,320
|
|
|
|
19,261
|
|
|
|
47,983
|
|
|
|
50,410
|
|
Engineering, design
and development
|
|
|
9,154
|
|
|
|
7,988
|
|
|
|
26,259
|
|
|
|
21,346
|
|
Sales and
marketing
|
|
|
7,015
|
|
|
|
6,240
|
|
|
|
21,748
|
|
|
|
18,539
|
|
General and
administrative
|
|
|
13,336
|
|
|
|
15,474
|
|
|
|
40,734
|
|
|
|
44,289
|
|
Depreciation and
amortization
|
|
|
4,692
|
|
|
|
2,716
|
|
|
|
12,022
|
|
|
|
10,006
|
|
Total operating expenses
|
|
|
64,633
|
|
|
|
68,976
|
|
|
|
200,478
|
|
|
|
192,273
|
|
Operating income
|
|
|
33,316
|
|
|
|
36,342
|
|
|
|
99,289
|
|
|
|
103,631
|
|
Other expense (income):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
(1,622)
|
|
|
|
(690)
|
|
|
|
(5,509)
|
|
|
|
(931)
|
|
Interest
expense
|
|
|
8,025
|
|
|
|
8,781
|
|
|
|
24,807
|
|
|
|
29,442
|
|
Loss on extinguishment
of debt
|
|
|
—
|
|
|
|
—
|
|
|
|
2,224
|
|
|
|
—
|
|
Other (income)
expense, net
|
|
|
(728)
|
|
|
|
95
|
|
|
|
(733)
|
|
|
|
112
|
|
Total other expense
|
|
|
5,675
|
|
|
|
8,186
|
|
|
|
20,789
|
|
|
|
28,623
|
|
Income before income taxes
|
|
|
27,641
|
|
|
|
28,156
|
|
|
|
78,500
|
|
|
|
75,008
|
|
Income tax (benefit)
provision
|
|
|
6,728
|
|
|
|
7,980
|
|
|
|
(52,711)
|
|
|
|
10,619
|
|
Net income
|
|
$
|
20,913
|
|
|
$
|
20,176
|
|
|
$
|
131,211
|
|
|
$
|
64,389
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to common stock per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.16
|
|
|
$
|
0.16
|
|
|
$
|
1.01
|
|
|
$
|
0.53
|
|
Diluted
|
|
$
|
0.16
|
|
|
$
|
0.15
|
|
|
$
|
0.98
|
|
|
$
|
0.50
|
|
Weighted average number of
shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
129,951
|
|
|
|
129,914
|
|
|
|
129,632
|
|
|
|
121,762
|
|
Diluted
|
|
|
133,320
|
|
|
|
134,221
|
|
|
|
133,382
|
|
|
|
134,454
|
|
Gogo Inc. and
Subsidiaries
|
Unaudited Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
2023
|
|
|
2022
|
|
Assets
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
86,157
|
|
|
$
|
150,550
|
|
Short-term
investments
|
|
|
24,655
|
|
|
|
24,796
|
|
Total cash, cash
equivalents and short-term investments
|
|
|
110,812
|
|
|
|
175,346
|
|
Accounts receivable,
net of allowances of $1,884 and $1,778, respectively
|
|
|
49,356
|
|
|
|
54,210
|
|
Inventories
|
|
|
62,792
|
|
|
|
49,493
|
|
Prepaid expenses and
other current assets
|
|
|
63,873
|
|
|
|
45,100
|
|
Total current assets
|
|
|
286,833
|
|
|
|
324,149
|
|
Non-current assets:
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
100,982
|
|
|
|
104,595
|
|
Intangible assets,
net
|
|
|
52,719
|
|
|
|
49,509
|
|
Operating lease
right-of-use assets
|
|
|
71,539
|
|
|
|
75,261
|
|
Other non-current
assets, net of allowances of $545 and $501, respectively
|
|
|
37,239
|
|
|
|
43,355
|
|
Deferred income
taxes
|
|
|
217,976
|
|
|
|
162,657
|
|
Total non-current assets
|
|
|
480,455
|
|
|
|
435,377
|
|
Total assets
|
|
$
|
767,288
|
|
|
$
|
759,526
|
|
Liabilities and stockholders' equity
(deficit)
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
15,328
|
|
|
$
|
13,646
|
|
Accrued
liabilities
|
|
|
38,219
|
|
|
|
60,056
|
|
Deferred
revenue
|
|
|
1,704
|
|
|
|
3,418
|
|
Current portion of
long-term debt
|
|
|
7,250
|
|
|
|
7,250
|
|
Total current liabilities
|
|
|
62,501
|
|
|
|
84,370
|
|
Non-current liabilities:
|
|
|
|
|
|
|
Long-term
debt
|
|
|
588,733
|
|
|
|
690,173
|
|
Non-current operating
lease liabilities
|
|
|
74,481
|
|
|
|
79,241
|
|
Other non-current
liabilities
|
|
|
8,031
|
|
|
|
7,611
|
|
Total non-current liabilities
|
|
|
671,245
|
|
|
|
777,025
|
|
Total liabilities
|
|
|
733,746
|
|
|
|
861,395
|
|
Stockholders' equity (deficit)
|
|
|
|
|
|
|
Common
stock
|
|
|
14
|
|
|
|
14
|
|
Additional paid-in
capital
|
|
|
1,396,348
|
|
|
|
1,385,933
|
|
Accumulated other
comprehensive income
|
|
|
23,913
|
|
|
|
30,128
|
|
Treasury stock, at
cost
|
|
|
(158,375)
|
|
|
|
(158,375)
|
|
Accumulated
deficit
|
|
|
(1,228,358)
|
|
|
|
(1,359,569)
|
|
Total stockholders' equity
(deficit)
|
|
|
33,542
|
|
|
|
(101,869)
|
|
Total liabilities and stockholders' equity
(deficit)
|
|
$
|
767,288
|
|
|
$
|
759,526
|
|
Gogo Inc. and
Subsidiaries
|
Unaudited Condensed
Consolidated Statements of Cash Flows
|
(in
thousands)
|
|
|
|
For the Nine Months
Ended September 30,
|
|
|
|
2023
|
|
|
2022
|
|
Operating activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
131,211
|
|
|
$
|
64,389
|
|
Adjustments to
reconcile net income to cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
12,022
|
|
|
|
10,006
|
|
Loss on asset
disposals, abandonments and write-downs
|
|
|
285
|
|
|
|
166
|
|
Provision for expected
credit losses
|
|
|
541
|
|
|
|
855
|
|
Deferred income
taxes
|
|
|
(53,255)
|
|
|
|
10,470
|
|
Stock-based
compensation expense
|
|
|
15,729
|
|
|
|
14,101
|
|
Amortization of
deferred financing costs and interest rate caps
|
|
|
2,671
|
|
|
|
2,486
|
|
Accretion of debt
discount
|
|
|
304
|
|
|
|
345
|
|
Changes in fair value
of equity investment
|
|
|
(773)
|
|
|
|
—
|
|
Loss on extinguishment
of debt
|
|
|
2,224
|
|
|
|
—
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
4,356
|
|
|
|
(12,289)
|
|
Inventories
|
|
|
(13,299)
|
|
|
|
(12,622)
|
|
Prepaid expenses and
other current assets
|
|
|
(37,454)
|
|
|
|
12,862
|
|
Contract
assets
|
|
|
2,822
|
|
|
|
(2,836)
|
|
Accounts
payable
|
|
|
2,526
|
|
|
|
1,116
|
|
Accrued
liabilities
|
|
|
(5,091)
|
|
|
|
(16,245)
|
|
Deferred
revenue
|
|
|
(1,708)
|
|
|
|
(222)
|
|
Accrued
interest
|
|
|
(9,565)
|
|
|
|
1,720
|
|
Other non-current
assets and liabilities
|
|
|
(728)
|
|
|
|
(2,363)
|
|
Net cash provided by operating
activities
|
|
|
52,818
|
|
|
|
71,939
|
|
Investing activities:
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(14,006)
|
|
|
|
(35,187)
|
|
Acquisition of
intangible assets—capitalized software
|
|
|
(4,711)
|
|
|
|
(4,745)
|
|
Proceeds from FCC
Reimbursement Program
|
|
|
3
|
|
|
|
—
|
|
Proceeds from interest
rate caps
|
|
|
20,165
|
|
|
|
803
|
|
Redemptions of
short-term investments
|
|
|
49,524
|
|
|
|
—
|
|
Purchases of
short-term investments
|
|
|
(49,383)
|
|
|
|
—
|
|
Purchase of equity
investment
|
|
|
(5,000)
|
|
|
|
—
|
|
Net cash used in investing
activities
|
|
|
(3,408)
|
|
|
|
(39,129)
|
|
Financing activities:
|
|
|
|
|
|
|
Payments on term
loan
|
|
|
(105,438)
|
|
|
|
(5,438)
|
|
Repurchases of common
stock
|
|
|
—
|
|
|
|
(18,375)
|
|
Payments on financing
leases
|
|
|
(117)
|
|
|
|
(136)
|
|
Stock-based
compensation activity
|
|
|
(8,326)
|
|
|
|
(2,703)
|
|
Net cash used in financing
activities
|
|
|
(113,881)
|
|
|
|
(26,652)
|
|
Effect of exchange
rate changes on cash
|
|
|
78
|
|
|
|
65
|
|
(Decrease) increase in cash, cash equivalents and
restricted cash
|
|
|
(64,393)
|
|
|
|
6,223
|
|
Cash, cash equivalents
and restricted cash at beginning of period
|
|
|
150,880
|
|
|
|
146,268
|
|
Cash, cash equivalents and restricted cash at end of
period
|
|
$
|
86,487
|
|
|
$
|
152,491
|
|
Cash, cash equivalents
and restricted cash at end of period
|
|
$
|
86,487
|
|
|
$
|
152,491
|
|
Less: non-current
restricted cash
|
|
|
330
|
|
|
|
330
|
|
Cash and cash equivalents at end of
period
|
|
$
|
86,157
|
|
|
$
|
152,161
|
|
Supplemental cash flow
information:
|
|
|
|
|
|
|
Cash paid for
interest
|
|
$
|
53,911
|
|
|
$
|
28,841
|
|
Cash paid for
taxes
|
|
|
429
|
|
|
|
289
|
|
Non-cash investing activities:
|
|
|
|
|
|
|
Purchases of property
and equipment in current liabilities
|
|
$
|
5,425
|
|
|
$
|
11,549
|
|
Gogo Inc. and
Subsidiaries
|
Supplemental
Information – Key Operating Metrics
|
|
|
|
For the Three Months
Ended September 30,
|
|
|
For the Nine Months
Ended September 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Aircraft online (at
period end)
|
|
|
|
|
|
|
|
|
|
|
|
|
ATG
|
|
|
7,150
|
|
|
|
6,777
|
|
|
|
7,150
|
|
|
|
6,777
|
|
Narrowband
satellite
|
|
|
4,395
|
|
|
|
4,484
|
|
|
|
4,395
|
|
|
|
4,484
|
|
Average monthly
connectivity service revenue per aircraft online
|
|
|
|
|
|
|
|
|
|
|
|
|
ATG
|
|
$
|
3,373
|
|
|
$
|
3,376
|
|
|
$
|
3,378
|
|
|
$
|
3,342
|
|
Narrowband
satellite
|
|
|
294
|
|
|
|
297
|
|
|
|
297
|
|
|
|
263
|
|
Units sold
|
|
|
|
|
|
|
|
|
|
|
|
|
ATG
|
|
|
192
|
|
|
|
388
|
|
|
|
692
|
|
|
|
944
|
|
Narrowband
satellite
|
|
|
40
|
|
|
|
43
|
|
|
|
132
|
|
|
|
144
|
|
Average equipment
revenue per unit sold (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
ATG
|
|
$
|
77
|
|
|
$
|
68
|
|
|
$
|
73
|
|
|
$
|
69
|
|
Narrowband
satellite
|
|
|
39
|
|
|
|
39
|
|
|
|
48
|
|
|
|
50
|
|
- ATG aircraft online. We define ATG aircraft online as
the total number of business aircraft for which we provide ATG
services as of the last day of each period presented. This number
excludes aircraft receiving ATG service as part of the ATG Network
Sharing Agreement with Intelsat.
- 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 September 30,
|
|
|
% Change
|
|
|
For the Nine Months
Ended September 30,
|
|
|
% Change
|
|
|
|
2023
|
|
|
2022
|
|
|
2023 over
2022
|
|
|
2023
|
|
|
2022
|
|
|
2023 over
2022
|
|
Service
revenue
|
|
$
|
79,546
|
|
|
$
|
75,252
|
|
|
|
5.7
|
%
|
|
$
|
237,107
|
|
|
$
|
218,983
|
|
|
|
8.3
|
%
|
Equipment
revenue
|
|
|
18,403
|
|
|
|
30,066
|
|
|
|
(38.8)
|
%
|
|
|
62,660
|
|
|
|
76,921
|
|
|
|
(18.5)
|
%
|
Total
revenue
|
|
$
|
97,949
|
|
|
$
|
105,318
|
|
|
|
(7.0)
|
%
|
|
$
|
299,767
|
|
|
$
|
295,904
|
|
|
|
1.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended September 30,
|
|
|
% Change
|
|
|
For the Nine Months
Ended September 30,
|
|
|
% Change
|
|
|
|
2023
|
|
|
2022
|
|
|
2023 over
2022
|
|
|
2023
|
|
|
2022
|
|
|
2023 over
2022
|
|
Cost of service revenue
(1)
|
|
$
|
18,116
|
|
|
$
|
17,297
|
|
|
|
4.7
|
%
|
|
$
|
51,732
|
|
|
$
|
47,683
|
|
|
|
8.5
|
%
|
Cost of equipment
revenue (1)
|
|
$
|
12,320
|
|
|
$
|
19,261
|
|
|
|
(36.0)
|
%
|
|
$
|
47,983
|
|
|
$
|
50,410
|
|
|
|
(4.8)
|
%
|
|
(1)
Excludes depreciation and amortization expense.
|
View original
content:https://www.prnewswire.com/news-releases/gogo-announces-third-quarter-results-301979357.html
SOURCE Gogo Inc.