Gogo(GOGO) - 2024 Q2 - Quarterly Results

Revenue Performance - Total revenue for Q2 2024 was $102.1 million, a decrease of 1% year-over-year, and a decrease of 2% compared to Q1 2024[2] - Total revenue for Q2 2024 was$ 102,059, a slight decrease of 1.1% compared to $103,221 in Q2 2023[14] - Service revenue increased to$ 81,929 in Q2 2024 from $79,062 in Q2 2023, representing a growth of 3.6%[14] - Equipment revenue decreased by 16.7% to$ 20.130 million in Q2 2024 from $24.159 million in Q2 2023[19] Profitability Metrics - Net income for Q2 2024 was$ 0.8 million, a significant decrease of 99% from $89.8 million in Q2 2023, impacted by an$ 11.0 million unrealized loss related to a convertible note investment[2][3] - Operating income for Q2 2024 was $21,681, down 36.3% from$ 34,045 in Q2 2023[14] - Net income for Q2 2024 was $839, a significant decrease from$ 89,849 in Q2 2023[14] - Adjusted EBITDA for Q2 2024 was $30.4 million, a decrease of 31% year-over-year, including$ 2.2 million in operating expenses related to Gogo Galileo[3] - Adjusted EBITDA for Q2 2024 was $30.430 million, down from$ 44.073 million in Q2 2023, reflecting a decrease of 30.9%[19] Cash Flow and Financial Position - Free Cash Flow for Q2 2024 was $24.9 million, an increase from$ 13.3 million in the prior year, but a decrease from $32.1 million in Q1 2024[4] - The company expects full-year free cash flow to be in the range of$ 35 million to $55 million for FY 2024[21] - Net cash provided by operating activities increased to$ 54,606,000 for the six months ended June 30, 2024, up from $34,141,000 in the prior year[16] - The company reported a net cash provided by operating activities of$ 24.949 million for Q2 2024, up from $15.627 million in Q2 2023[19] Asset and Liability Overview - Total current assets increased to$ 344,937 as of June 30, 2024, compared to $314,594 at the end of 2023, reflecting a growth of 9.6%[15] - Cash and cash equivalents rose to$ 161,550 in Q2 2024 from $139,036 at the end of 2023, an increase of 16.3%[15] - Total liabilities increased to$ 750,666 as of June 30, 2024, compared to $740,814 at the end of 2023, marking a rise of 1.1%[15] - Long-term debt remained relatively stable at$ 585,060 in Q2 2024, compared to $587,501 at the end of 2023[15] - Total stockholders' equity increased to$ 52,011 as of June 30, 2024, from $40,725 at the end of 2023, reflecting a growth of 27.7%[15] Aircraft and Connectivity Metrics - Average Monthly Revenue per ATG aircraft online (ARPU) was a record$ 3,468, an increase of 3% year-over-year[2] - Total ATG aircraft online (AOL) reached 7,031, a slight decrease compared to Q2 2023, while AVANCE AOL grew to 4,215, an increase of 17% year-over-year[2] - Average monthly connectivity service revenue per ATG aircraft online increased to $3,468 for the three months ended June 30, 2024, compared to$ 3,371 in the same period of 2023[17] - Total ATG aircraft online at the end of June 30, 2024, was 7,031, slightly down from 7,064 in the previous year[17] - Units sold for ATG systems were 231 in the three months ended June 30, 2024, compared to 277 in the same period of 2023[17] - Average equipment revenue per ATG unit sold was $74, showing a slight increase from$ 73 in the previous year[17] Future Guidance and Strategic Initiatives - The company updated its 2024 guidance, projecting total revenue in the range of $400 million to$ 410 million, down from previous guidance of $410 million to$ 425 million[5] - The company plans to launch Gogo Galileo HDX in Q4 2024 and Gogo 5G in 2025, which are expected to expand the total addressable market by 60%[4] - Long-term financial targets include a Free Cash Flow target of approximately $150 million in 2025, with a compound annual growth rate of 15%-17% in revenue from 2023 through 2028[6][7]