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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.
Gogo Business Aviation (NASDAQ: GOGO) partners with Duncan Aviation to develop 5G Supplemental Type Certifications (STCs) for various business aircraft models. This initiative aims to enhance in-flight connectivity as Gogo plans to launch its 5G service by Q4 2023. Key aircraft models covered include Bombardier Global Express, Challenger series, and Gulfstream models. Gogo offers incentives, including rebates up to $100,000, for operators upgrading to its 5G network. The 5G system is designed for high throughput and low latency, catering to the increasing demand for data-heavy applications. As of December 31, 2022, Gogo had over 3,279 aircraft equipped with its AVANCE systems.
Gogo Business Aviation (NASDAQ: GOGO) announced on April 24, 2023, its expansion of the Gogo 5G network into Canada, enhancing coverage for business aviation operators across North America. This advancement is expected to provide average speeds of ~25 Mbps with peaks of 75-80 Mbps, enabling users to access data-intensive services like video conferencing and gaming with lower latency. The Gogo 5G service is scheduled for commercial launch in Q4 2023, with full network expansion completion in 2024. This initiative, leveraging the AVANCE platform, allows existing customers to upgrade easily. As of December 31, 2022, Gogo reported over 3,279 business aircraft utilizing its systems, emphasizing its position as the largest provider of broadband connectivity in the sector.
Gogo Inc. (NASDAQ: GOGO), the leading provider of broadband connectivity services for business aviation, is set to report its financial results for the first quarter of 2023 before market opening on May 3, 2023. Following the release, Gogo will conduct a conference call at 8:30 a.m. (ET) for financial analysts. As of December 31, 2022, Gogo had a significant number of aircraft utilizing its connectivity systems: 3,279 with the AVANCE L5 or L3, 6,935 with ATG systems, and 4,475 with narrowband satellite connectivity. This highlights Gogo's extensive market presence and the wide adoption of its services among various operators.
Gogo reported record Q4 revenue of $108.2 million, up 17% year-over-year, with net income from continuing operations at $27.7 million. Full-year revenue reached $404.1 million, a 20% increase from 2021. Key highlights include record service revenue of $296.3 million and equipment revenue of $107.7 million. The company plans to launch its 5G service in Q4 2023, with long-term revenue growth targets of 17% through 2027. Gogo expects $440 million to $455 million in total revenue for 2023 and $80 million to $90 million in Free Cash Flow.
SmartSky Networks has amended its patent infringement lawsuit against Gogo (NASDAQ: GOGO) in the U.S. District Court of Delaware, adding two newly issued patents to the case. The complaint alleges Gogo illegally sold its "5G" air-to-ground internet product, infringing on SmartSky's patented technology. If the court finds any infringement, Gogo could face a permanent injunction against selling its 5G system. SmartSky believes these new patents strengthen its claims, which now total six. The court's decision on a preliminary injunction is expected by late Spring 2023.
Gogo Inc. (NASDAQ: GOGO) will release its fourth quarter financial results for 2022 on February 28, 2023, before market opening. A conference call for analysts is scheduled for the same day at 8:30 a.m. ET. Gogo is recognized as the leading provider of broadband connectivity services in the business aviation sector, with its services installed on thousands of aircraft. As of September 30, 2022, there were 3,079 aircraft equipped with Gogo's AVANCE systems and 6,777 with ATG systems, highlighting widespread adoption.
Gogo Inc. (NASDAQ: GOGO) has announced the promotion of Jessi Betjemann to Executive Vice President and Chief Financial Officer, effective March 11, 2023, following the retirement of current CFO Barry Rowan on March 10. Betjemann, who has over two decades of experience, previously served as Senior Vice President of Finance and played a pivotal role in Gogo's transition to a private aviation-centric business. Additionally, Leigh Goldfine has been appointed as Chief Accounting Officer, rejoining Gogo after a stint at Intelsat. Goldfine's familiarity with Gogo's accounting practices positions him well for the role. This leadership change aims to enhance Gogo's financial operations and shareholder value.
The 5G chip for Gogo's aviation services has successfully passed a critical design review and is currently in fabrication, with delivery anticipated by mid-2023. Gogo's 5G service is set to launch commercially in Q4 2023, promising average speeds of ~25 Mbps and peak speeds of 75-80 Mbps. The company is collaborating with various aircraft manufacturers to secure Supplemental Type Certifications (STCs) for over 30 aircraft models. Customers can install the existing AVANCE L5 system now and operate on the 4G network until the 5G service is available. Gogo is also offering incentives for early installations of the 5G provisional kit.
Gogo Business Aviation has announced the selection of its Gogo AVANCE L3 connectivity solution by Jet It for installation across its fleet of light jets, including HondaJets and Embraer Phenom 300s. This partnership highlights Gogo's longstanding relationship with Jet It, which seeks reliable and affordable inflight connectivity. AVANCE L3 offers scalable solutions for various user needs, including options for performance and pricing. Additionally, it comes equipped with Gogo Vision 360, providing unlimited streaming and digital content access. This announcement reflects Gogo's commitment to enhancing inflight experiences.
Gogo reported a 21% year-over-year increase in Q3 2022 revenue, totaling $105.3 million, driven by both service and equipment sales. Net income from continuing operations rose to $20.2 million, and adjusted EBITDA improved by 7% to $43.7 million. Equipment revenue reached a record $30.1 million, up 43% from Q3 2021. The company updated its 2022 guidance, projecting revenue between $395 million and $405 million and free cash flow of $50 million to $60 million.
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