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Gogo Inc. (NASDAQ: GOGO) is the world's largest provider of broadband connectivity services for the business aviation market. Headquartered in Broomfield, Colorado, Gogo offers a robust suite of smart cabin systems that integrate connectivity, in-flight entertainment, and voice solutions. These services are installed on thousands of business aircraft, ranging from turboprops to the largest global jets.
Gogo's business model primarily operates through two revenue streams: service revenue and equipment revenue. Service revenue comprises monthly subscription and usage fees paid by aircraft owners and operators for telecommunication, data, and in-flight entertainment services. On the other hand, equipment revenue stems from the sale of Air-to-Ground (ATG) and narrowband satellite connectivity equipment, recognized when control of the equipment is transferred to Original Equipment Manufacturers (OEMs) and dealers.
Gogo has recently made significant strides in its 5G program. The AVANCE LX5 has received Supplemental Type Certification (STC) and Parts Manufacturer Approval (PMA) from the Federal Aviation Administration (FAA). This approval paves the way for customer installations of the LX5, which is expected to deliver approximately 25 Mbps on average, with peak speeds reaching 75-80 Mbps. Moreover, Gogo's collaboration with NetJets will enable the upgrade of their U.S. and European fleets to Gogo's AVANCE L5, Gogo 5G, and Galileo, the company's Low Earth Orbit (LEO) broadband satellite service.
In the legal domain, Gogo recently secured a favorable ruling from the United States Court of Appeals for the Federal Circuit, which upheld a previous judgment denying SmartSky Networks' motion for a preliminary injunction against Gogo's 5G product. This enables Gogo to continue its operations without disruption.
Financially, Gogo has demonstrated consistent growth. As of March 31, 2024, Gogo reported 7,136 business aircraft flying with its broadband ATG systems onboard, 4,110 of which are equipped with a Gogo AVANCE L5 or L3 system, and 4,285 aircraft with narrowband satellite connectivity installed. The company’s strategic investments are expected to yield substantial free cash flow in the coming years, especially with the forthcoming launches of Gogo 5G and Galileo.
Gogo's commitment to innovation is further evidenced by its state-of-the-art virtual flight simulator, which accelerates the development of its 5G software. Additionally, Gogo Galileo has achieved end-to-end connectivity using the HDX antenna on the Eutelsat OneWeb LEO satellite network, positioning it for a commercial launch later this year.
Gogo's extensive network of authorized dealers, partnerships with leading OEMs, and robust technological advancements ensure that it remains at the forefront of the business aviation connectivity market. Whether it's through providing reliable Wi-Fi for business travelers or enhancing in-flight entertainment options, Gogo continues to deliver exceptional value to its customers and stakeholders.
On October 11, 2021, Gogo (NASDAQ: GOGO) announced that Banyan Air Service is nearing completion of Supplemental Type Certification (STC) for Gogo's AVANCE L3 on the HondaJet, enhancing its presence in the light jet sector. The AVANCE systems, which include L3 and L5, are now certified on various business aircraft, totaling over 2,000 systems in operation. The expansion highlights Gogo's leadership in inflight connectivity and the growing demand from customers.
Gogo Business Aviation (NASDAQ: GOGO) has introduced SmartShield, a premium membership program designed for AVANCE and classic ATG system users. Priced at $5,000 annually with a three-year commitment, it offers benefits such as fixed pricing, unlimited equipment warranty, and monthly data rollover. Additionally, Gogo provides a $10,000 installation rebate and $15,000 service credit for upgrades to the AVANCE system. With over 6,000 aircraft connected, Gogo reinforces its leadership in business aviation connectivity.
Gogo Inc. (NASDAQ: GOGO), a leader in broadband connectivity for business aviation, has updated its long-term financial targets. The revenue growth forecast has been increased to a compounded annual growth rate of approximately 15% from 2020 to 2025, up from the previous target of at least 10%. The company anticipates an annual Adjusted EBITDA margin rise from 40% in 2021 to 45% in 2025. Free Cash Flow is projected at approximately $125 million in 2023 and $200 million in 2025. A conference call is scheduled for September 30, 2021, to discuss these updates.
Gogo reported a strong Q2 2021, with total revenue of $82.4 million, up 16% from Q2 2019 and 51% from Q2 2020. Record service revenue reached $64.8 million, a growth of 18% compared to Q2 2019. Despite a net loss of $66.4 million primarily due to a debt extinguishment cost, Adjusted EBITDA improved to a record $36.7 million, a 70% rise from the previous year. Gogo anticipates total revenue between $325 million to $335 million for 2021, an increase from prior guidance, alongside a positive net income forecast for Q3 2021.
Cirrus Aircraft has chosen Gogo Business Aviation's AVANCE L3 system as a factory option for its new G2+ Vision Jet aircraft. This makes the G2+ the first personal jet to include Gogo's inflight connectivity service. Gogo’s AVANCE L3 enhances connectivity for smaller aircraft, allowing passengers access to email and web browsing. With more than 2,000 business aircraft equipped with GOGO systems, this partnership underscores the rising demand for inflight connectivity across various aircraft sizes.
Gogo Inc. (NASDAQ: GOGO), the leading provider of broadband connectivity for business aviation, will release its Q2 2021 financial results on August 5, 2021, prior to market opening. A conference call for analysts is scheduled for the same day at 8:30 a.m. ET. The company, which supports thousands of business aircraft, has over 2,000 planes using its AVANCE L5 or L3 systems. Gogo reported 5,892 aircraft with ATG systems and 4,614 with satellite connectivity as of March 31, 2021. Details and a live web cast will be available on their investor website.
Gogo Business Aviation has reached significant milestones in developing its 5G air-to-ground (ATG) network. The company installed its first two 5G antennas on a tower, initiating prototype testing for system performance. They successfully conducted flight tests for 5G belly-mounted antennas and established a connection between ground and onboard systems. Expected to launch in the second half of 2022, Gogo’s 5G network will enhance broadband services for business aviation across the United States.
Gogo Business Aviation (NASDAQ: GOGO) has reported that its AVANCE L5 and L3 inflight connectivity systems are now installed on 2,000 business aircraft. Since the first AVANCE L5 installation in October 2017, these systems have collectively flown nearly 600,000 flights, using 262.61 terabytes of data. The AVANCE L5 platform supports a 4G experience and will leverage Gogo's upcoming 5G network in 2022. Gogo's products are certified for virtually all aircraft types, underscoring its leadership in business aviation connectivity.
Gogo Inc. (NASDAQ: GOGO), the leading provider of broadband connectivity for business aviation, will participate in three upcoming virtual financial conferences. Oakleigh Thorne, Chairman and CEO, is scheduled for:
- J.P. Morgan 49th Annual Conference: May 25, 2021, 3:40 p.m.-4:15 p.m. EDT.
- William Blair 41st Annual Growth Stock Conference: June 2, 2021, 1:40 p.m.-2:10 p.m. EDT.
- Cowen 49th Annual Technology Conference: June 3, 2021, 4:30 p.m.-5:00 p.m. EDT.
Gogo’s systems are installed on thousands of business aircraft, with 1,900 using AVANCE technology.
Gogo Inc. (NASDAQ: GOGO) has appointed Gustavo Nader as Chief Strategy Officer and Melissa Hale as Senior Vice President of Product and Marketing, strengthening its leadership team. Nader brings 30 years of telecommunications experience, expected to enhance Gogo’s strategic planning and partnerships. Hale, with a rich aviation background, will align product and marketing efforts. These appointments aim to bolster Gogo's growth trajectory, particularly as it advances its 5G go-to-market strategy and enhances the AVANCE offerings.
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