Gogo Inc Stock Price, News & Analysis

Gogo Inc. (NASDAQ: GOGO), a leading global provider of broadband connectivity services for the business aviation market, has announced that it will release its financial results for the third quarter of 2024 before the market opens on November 5, 2024. The company will host a conference call with financial analysts on the same day at 8:30 a.m. (ET).

A live webcast of the conference call, as well as a replay, will be available on the Investor Relations section of the company's investor website at https://ir.gogoair.com/. Gogo has provided links for the 3Q Earnings Call Webcast and for participants to retrieve their unique conference ID to access the call.

Gogo Business Aviation (NASDAQ: GOGO) is launching a nationwide tour to showcase its Gogo Galileo experience, a Low-Earth-Orbit (LEO) satellite broadband solution for business aircraft. The mobile demo room will allow industry professionals to test the high-speed, low-latency inflight connectivity solution with both HDX and FDX antenna configurations.

Participants can trial the inflight internet experience using their own devices, engaging in activities like video conferencing and streaming, simulating the experience at 40,000 feet. The tour will debut at the National Business Aviation Association (NBAA) Convention & Exhibition in Las Vegas from Oct. 22-24, 2024, and continue across the country through early March, with stops at FBOs and airports.

Gogo Business Aviation (NASDAQ: GOGO) is experiencing unprecedented demand for its new global broadband Low-Earth-Orbit (LEO) satellite service, Gogo Galileo HDX. The demand surpasses that of Gogo AVANCE L5, launched in 2017. Gogo's dealer network has contracted for 27 Supplemental Type Certificates (STCs), opening up a market of over 18,000 aircraft globally.

Flight tests on a Challenger 300 are progressing as planned. Gogo continues to accept purchase orders for HDX, which is designed as an easy upgrade to any AVANCE system. The service, backed by Eutelsat OneWeb's LEO network, is scheduled to launch later this year. A special promotional rebate of $25,000 is available for a time to current Gogo customers operating legacy air-to-ground systems when installing AVANCE SCS and HDX.

Gogo Inc. (NASDAQ: GOGO) has announced a definitive agreement to acquire Satcom Direct for $375 million in cash, 5 million Gogo shares, and up to $225 million in performance-based payments. This acquisition will create the only multi-orbit, multi-band, global in-flight connectivity provider serving the business aviation and military/government mobility markets. Key highlights include:

• Satcom Direct's expected 2024 revenue of $485 million with 17% EBITDA margins
• Combined 2024 pro forma revenue of $890 million with 24% adjusted EBITDA margin
• Anticipated $25-30 million annual run-rate cost synergies
• Expansion into international markets and military/government sectors
• Integration of LEO-GEO-ATG product lines for comprehensive market coverage

The transaction is expected to close by the end of 2024, subject to regulatory approvals and customary closing conditions.

Gogo Business Aviation has secured 25 Supplemental Type Certificate (STC) contracts for its Gogo Galileo HDX system, covering a wide range of business aircraft makes and models. This development unlocks a total addressable market of over 18,000 aircraft globally, many of which previously lacked access to broadband inflight connectivity.

The STCs, supported by Gogo's extensive dealer network in North America, Europe, and South America, will be completed in 2025. They cover aircraft ranging from super-light jets to ultra-long-range large-cabin aircraft, including models from Bombardier, Embraer, Gulfstream, HondaJet, Textron, and others.

Gogo Galileo HDX offers peak speeds up to 60 Mbps, with mean speeds close to 57 Mbps. The service, set to launch later this year, utilizes Eutelsat OneWeb's Low-Earth-Orbit network for consistent global performance. Gogo is offering a -time $25,000 rebate for current customers upgrading from legacy air-to-ground systems to AVANCE SCS and HDX.

Gogo Business Aviation (NASDAQ: GOGO) and Airshare have signed a multi-year inflight connectivity agreement. The deal allows Airshare's aircraft management clients to install Gogo AVANCE, Gogo 5G, and Gogo Galileo, the company's LEO broadband satellite service. Airshare operates a fleet of nearly 150 aircraft, with 65% of its Phenom 300 aircraft already upgraded to Gogo AVANCE. The remaining fleet is planned for upgrade within the next 12 months.

The partnership aims to enhance Wi-Fi performance for both Managed and Fractional fleets. Gogo Galileo can be added to any size aircraft with an AVANCE system using a single fuselage-mounted antenna, available in two options (HDX or FDX) to meet specific customer and aircraft operator needs.

Gogo Business Aviation (NASDAQ: GOGO) has completed the first installation of Gogo Galileo HDX on a Bombardier Challenger 300 and begun flight testing. This marks a significant step towards the commercial launch of its Low-Earth-Orbit (LEO) global broadband solution later this year. The installation process was straightforward for aircraft with existing AVANCE platform equipment.

Gogo Galileo HDX is on track to launch in Q4 2024, offering mean speeds of 57 Mbps and peak speeds up to 60 Mbps. The company has secured eight STC programs covering 5,318 aircraft, with 21 more agreements in process. Gogo is now accepting purchase orders, with pricing and service plans available on their website. A $25,000 rebate is offered to current Gogo customers upgrading from legacy systems.

Gogo Business Aviation (NASDAQ: GOGO) has partnered with Skyservice Business Aviation to develop Supplemental Type Certificates (STCs) for Gogo 5G on six aircraft models. The STCs, issued by Transport Canada Civil Aviation (TCCA) and the Federal Aviation Administration (FAA), will enhance air-to-ground inflight entertainment and connectivity for North American operators. Gogo's 5G network includes over 159 sites, with 9 in Canada.

Skyservice is developing STCs for the Gulfstream G280, Embraer Legacy 450/500, Cessna Citation CJ3/3+, Bombardier Challenger 300/350, Bombardier Challenger 604/605, and Cessna Citation X. The 5G upgrade requires installation of an AVANCE L5 and two MB13 phased-array antennas. Gogo is offering savings of up to $50,000 for operators upgrading to AVANCE and provisioning for 5G.

Gogo Inc. (NASDAQ: GOGO) reported Q2 2024 financial results with total revenue of $102.1 million, down 1% YoY. While service revenue reached a record of $81.9 million (up 4% YoY), equipment revenue declined by 17% YoY. Net income plummeted 99% YoY to $0.8 million, primarily due to unrealized losses on a convertible note investment. Adjusted EBITDA was $30.4 million, a 31% YoY decrease. The company maintained cash and cash equivalents at $161.6 million.

Gogo updated its 2024 guidance with total revenue expected between $400 million and $410 million. Free Cash Flow guidance improved to $35 million-$55 million. Long-term targets include a CAGR of 15%-17% in revenue through 2028 and Free Cash Flow of $150 million in 2025. The company also highlighted its anticipated launches for Gogo Galileo HDX, Galileo FDX, and Gogo 5G, expected to drive growth starting late 2024 and into 2025.