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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.
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.
Gogo Inc. (NASDAQ: GOGO) announces the appointment of Crystal Gordon as Executive Vice President, General Counsel, and Secretary, effective Nov. 3, 2022. She succeeds Margee Elias, who is retiring after 15 years. Gordon has extensive experience in aviation and corporate law, previously holding senior roles at Bristow Group and Era Helicopters. CEO Oakleigh Thorne expressed confidence in Gordon's fit for the role, emphasizing her vital expertise for Gogo's success. Gordon will report directly to Thorne and serve as a senior legal advisor.
Gogo Inc. (NASDAQ: GOGO), the leading provider of broadband connectivity for business aviation, will participate in four financial conferences in November and December 2022. Key events include the J.P. Morgan Equity Opportunities Forum on November 14 in Miami Beach, Roth 11th Annual Technology Event on November 16 in New York, Bank of America Securities Leveraged Finance Conference on November 29 in Boca Raton, and Raymond James Technology Investors Conference on December 6 in New York. Company executives, including Chairman Oakleigh Thorne and CFO Barry Rowan, will be attending.
Gogo Inc. (GOGO), the leading provider of broadband connectivity services for business aviation, will announce its Q3 2022 financial results on November 3, 2022, before market open. A conference call will be held at 8:30 a.m. ET on the same day to discuss the results. Investors can access a live web cast of the call on the Investor Relations website. As of June 30, 2022, Gogo had 2,893 aircraft equipped with its AVANCE systems and 6,654 equipped with ATG systems, underscoring its strong market position in business aviation.
Gogo Business Aviation has successfully completed its nationwide 5G network construction, comprising 150 towers, in under 12 months. This network enhances inflight connectivity across the contiguous United States and will expand into Canada in 2023. Gogo 5G aims to deliver average speeds of ~25 Mbps, with peaks between 75-80 Mbps, catering to data-heavy services. The AVANCE platform allows customers to upgrade easily to Gogo 5G, with the first Supplemental Type Certification completed for 5G-related equipment. Gogo is also offering incentives for early adopters of the 5G system.
Gogo Inc. (NASDAQ: GOGO) has announced a share repurchase agreement to buy back 1,500,000 shares from BlackRock for $18,345,000, at $12.23 per share. The closing date for this transaction is expected on or before September 21, 2022. This repurchase will be funded using the company's cash reserves. Additionally, due to BlackRock exceeding a 4.9% ownership threshold, Gogo has requested that they divest sufficient shares to fall below this threshold. Gogo estimates another 100,000 shares may need to be sold by BlackRock post-repurchase.
Gogo reported strong financial results for Q2 2022, with revenue of $97.8 million, a 19% year-over-year increase. Net income from continuing operations was $22.0 million, a significant turnaround from a $66.4 million loss in Q2 2021. Adjusted EBITDA reached $41.2 million, up 12% year-over-year. The company announced plans for a Global Broadband service leveraging LEO satellites, boosting service revenue by 13% to $73.1 million. Gogo raised its 2022 financial guidance, projecting revenue at the high end of $390-400 million.
Gogo Business Aviation (NASDAQ: GOGO) announced that its nationwide 5G network construction is now halfway complete, with the 75th site operational. The project remains on budget and is expected to launch in the second half of 2022. Gogo 5G aims to provide average speeds of ~25 Mbps, with peaks of 75-80 Mbps, catering to data-heavy services like video conferencing. The AVANCE platform will support future upgrades to Gogo 5G and Low-Earth Orbit (LEO) satellite connectivity. Gogo is collaborating with Duncan Aviation for Supplemental Type Certification for its onboard 5G hardware.
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