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Gogo Announces Third Quarter Results

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Total Revenue of $100.5 million, up 3% Year-over-Year; Third Quarter Service Revenue of $81.9 million, up 3% Year-over-Year

Q3 Net Income of $10.6 million; Adjusted EBITDA(1) of $34.8 million

Updates 2024 Guidance

Recent Strategic Galileo HDX wins with Textron Aviation and Wheels Up

BROOMFIELD, Colo., Nov. 5, 2024 /PRNewswire/ — Gogo Inc. (NASDAQ: GOGO) (“Gogo” or the “Company”), a leading global provider of broadband connectivity services for the business aviation market, today announced its financial results for the quarter ended September 30, 2024.

Q3 2024 Highlights

Total revenue of $100.5 million increased 3% compared to Q3 2023 and decreased 1% compared to Q2 2024.Service revenue of $81.9 million increased 3% compared to Q3 2023 and decreased slightly compared to Q2 2024.Equipment revenue of $18.7 million increased 1% compared to Q3 2023 and decreased 7% compared to Q2 2024.Total AVANCE aircraft online (“AOL”) as of September 30, 2024 grew to 4,379, an increase of 16% compared to Q3 2023 and 4% compared to Q2 2024. AVANCE units comprised approximately 62% of total AOL as of September 30, 2024, up from 53% as of September 30, 2023 and up from 60% as of June 30, 2024.Total ATG AOL was 7,016, a decrease of 2% compared to Q3 2023 and a slight decrease compared to Q2 2024.AVANCE equipment units shipped totaled 214, an increase of 11% compared to Q3 2023 and a decrease of 7% compared to Q2 2024.Average Monthly Revenue per ATG aircraft online (“ARPU”) for the third quarter was a record $3,497, an increase of 4% compared to Q3 2023 and a slight increase compared to Q2 2024.Net income of $10.6 million decreased 49% from $20.9 million in Q3 2023, and increased from $0.8 million in Q2 2024. Net income for Q2 2024 included $11.0 million of an after-tax unrealized loss related to a fair market value adjustment to a convertible note investment compared with a $0.2 million after-tax unrealized gain in Q3 2024.Diluted earnings per share was $0.08 compared to $0.16 in Q3 2023.Adjusted EBITDA(1) of $34.8 million, which includes approximately $2.6 million of operating expenses related to Gogo Galileo and excludes $6.7 million of expenses related to the Satcom Direct acquisition, decreased 19% compared to Q3 2023 and increased 14% compared to Q2 2024.Net cash provided by operating activities of $25.1 million in Q3 2024 increased from $18.7 million in Q3 2023 and increased from $24.9 million in Q2 2024.Free Cash Flow(1) of $24.6 million in Q3 2024 was an increase from $21.0 million in the prior-year period and a slight decrease from $24.9 million in Q2 2024.Cash and cash equivalents totaled $176.7 million as of September 30, 2024 compared to $161.6 million as of June 30, 2024.In Q3 2024, the Company repurchased approximately 1.0 million shares for a total cost of approximately $7.6 million. The Company repurchased approximately 4.1 million shares for approximately $35.6 million in the last four quarters.

Recent Company Highlights

On September 30, 2024, the Company announced a definitive agreement to acquire Satcom Direct, Inc. (“Satcom Direct”) to create the only multi-orbit, multi-band in-flight connectivity provider able to satisfy the performance and cost needs of every segment of the global business aviation (BA) and military/government mobility markets.Textron Aviation announced it will install Gogo’s global Low-Earth-Orbit (LEO) solution, Gogo Galileo HDX, as a factory option for the following models in its midsize and super-midsize jet category: Cessna Citation Longitude, Latitude and Ascend.Wheels Up, a leading provider of on-demand private aviation and one of the largest fleets in the industry, announced it will add Gogo’s Galileo HDX LEO connectivity solution fleetwide. Installations of Galileo HDX are expected to begin by the middle of 2025, as soon as certifications for Wheels Up aircraft are completed.

“Our Satcom Direct acquisition will turbo-charge Gogo Galileo penetration of the global underpenetrated Business Aviation and Military/Government markets,” said Oakleigh Thorne, Gogo’s Chairman and CEO.  “Unprecedented demand for both Galileo and Gogo 5G will drive equipment revenue in 2025, and growth in profitable recurring service revenue beginning in 2026.” 

“Strong third quarter results across the board drove upside to our 2024 Adjusted EBITDA and Free Cash Flow guidance,” said Jessi Betjemann, Gogo’s Executive Vice President and CFO. “We expect the Satcom Direct acquisition to be accretive day one and expect to reach our net leverage target of 2.5x-3.5x within 1-2 years after closing.”

Financial Guidance

The Company includes below its revised 2024 guidance, which includes the impact of the Federal Communications Commission’s Secure and Trusted Communications Networks Reimbursement Program (“FCC Reimbursement Program”) and excludes the impact of the closing of the Satcom Direct transaction.

Due to the pending acquisition of Satcom Direct, the Company is withdrawing its multi-year long-term financial targets previously provided on August 7, 2024.

2024 Financial Guidance

Total revenue in the range of $400 million to $410 million (no change)Adjusted EBITDA(1) in the range of $120 million to $130 million versus prior guidance at the high end of the range of $110 million to $125 million. This guidance reflects increased legal expenses from ongoing legal proceedings and approximately $20 million of operating expenses for strategic and operational initiatives including Gogo 5G and Gogo Galileo.Free Cash Flow(1) in the range of $55 million to $65 million, which includes $35 million in reimbursements tied to the FCC Reimbursement Program, versus prior guidance of $35 million to $55 million.Capital expenditures of approximately $30 million versus prior guidance of $35 million, which includes approximately of $20 million for strategic initiatives.

(1)  See “Non-GAAP Financial Measures” below

Conference Call

The Company will host its third quarter conference call on November 5, 2024 at 8:30 a.m. ET. A live webcast of the conference call, as well as a replay, will be available online on the Investor Relations section of the Company’s investor website at https://ir.gogoair.com.

3Q Earnings Call Webcast Link:
https://edge.media-server.com/mmc/p/r7xg4923

Participants can use the below link to retrieve your unique conference ID to use to access the conference call.
https://register.vevent.com/register/BI9f9348b06a694d9a9f21c0b7ecda8a5d

Non-GAAP Financial Measures

We report certain non-GAAP financial measurements, including Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow in the discussion above. Management uses Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow for business planning purposes, including managing our business against internally projected results of operations and measuring our performance and liquidity. These supplemental performance measures also provide another basis for comparing period-to-period results by excluding potential differences caused by non-operational and unusual or non-recurring items. These supplemental performance measurements may vary from and may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow are not recognized measurements under accounting principles generally accepted in the United States, or GAAP. When analyzing our performance with Adjusted EBITDA or Adjusted EBITDA Margin or liquidity with Free Cash Flow, as applicable, investors should (i) evaluate each adjustment in our reconciliation to the corresponding GAAP measure, and the explanatory footnotes regarding those adjustments, (ii) use Adjusted EBITDA and Adjusted EBITDA Margin in addition to, and not as an alternative to, net income (loss) attributable to common stock as a measure of operating results, and (iii) use Free Cash Flow in addition to, and not as an alternative to, consolidated net cash provided by (used in) operating activities when evaluating our liquidity. No reconciliation of the forecasted amounts of Adjusted EBITDA for fiscal 2024 is included in this release because we are unable to quantify certain amounts that would be required to be included in the corresponding GAAP measure without unreasonable efforts, due to high variability and complexity with respect to estimating certain forward-looking amounts, and we believe such reconciliation would imply a degree of precision that would be confusing or misleading to investors. 

Cautionary Note Regarding Forward-Looking Statements 
Certain disclosures in this press release and related comments by our management include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding our business outlook, industry, business strategy, plans, goals and expectations concerning our market position, international expansion, future technologies, future operations, margins, profitability, future efficiencies, capital expenditures, liquidity and capital resources and other financial and operating information. When used in this discussion, the words “anticipate,” “assume,” “believe,” “budget,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “future” and the negative of these or similar terms and phrases are intended to identify forward-looking statements in this press release. Forward-looking statements are based on our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Although we believe the expectations reflected in the forward-looking statements are reasonable, we can give you no assurance these expectations will prove to have been correct. Some of these expectations may be based upon assumptions, data or judgments that prove to be incorrect. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others, the following: our ability to continue to generate revenue from the provision of our connectivity services; our reliance on our key OEMs and dealers for equipment sales; the impact of competition; our reliance on third parties for equipment components and services; the impact of global supply chain and logistics issues and inflationary trends; our ability to expand our business outside of the United States; our ability to recruit, train and retain highly skilled employees; the impact of pandemics or other outbreaks of contagious diseases, and the measures implemented to combat them; the impact of adverse economic conditions; our ability to fully utilize portions of our deferred tax assets; the impact of increased attention to climate change, ESG matters and conservation measures; our ability to evaluate or pursue strategic opportunities and/or integrate them into our business; our ongoing delay and the risk of future delays in deploying 5G, and our ability to develop and deploy Gogo 5G, Gogo Galileo or other next generation technologies; our ability to maintain our rights to use our licensed 3Mhz of ATG spectrum in the United States and obtain rights to additional spectrum if needed; the impact of service interruptions or delays, technology failures, equipment damage or system disruptions or failures; the impact of assertions by third parties of infringement, misappropriation or other violations; our ability to innovate and provide products and services; our ability to protect our intellectual property rights; the impact of our use of open-source software; the impact of equipment failure or material defects or errors in our software; our ability to comply with applicable foreign ownership limitations; the impact of government regulation of communication networks, and the internet; our possession and use of personal information; risks associated with participation in the FCC Reimbursement Program; our ability to comply with anti-bribery, anti-corruption and anti-money laundering laws; the extent of expenses, liabilities or business disruptions resulting from litigation; the impact of global climate change and legal, regulatory or market responses to it; the impact of our substantial indebtedness; our ability to obtain additional financing to refinance or repay our existing indebtedness; the impact of restrictions and limitations in the agreements and instruments governing our debt; the impact of increases in interest rates; the impact of a substantial portion of our indebtedness being secured by substantially all of our assets; the impact of a downgrade, suspension or withdrawal of the rating assigned by a rating agency; the volatility of our stock price; our ability to fully utilize our tax losses; the dilutive impact of future stock issuances; the impact of our stockholder concentration and of our CEO and Chair of the Board being a significant stockholder; our ability to fulfill our obligations associated with being a public company; and the impact of anti-takeover provisions, ownership provisions and certain other provisions in our charter, our bylaws, Delaware law, and our existing and any future credit facilities.

Additional information concerning these and other factors can be found under the caption “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2023 as filed with the Securities and Exchange Commission (“SEC”) on February 28, 2024 and in our subsequent quarterly reports on Form 10-Q as filed with the SEC.

Any one of these factors or a combination of these factors could materially affect our financial condition or future results of operations and could influence whether any forward-looking statements contained in this report ultimately prove to be accurate. Our forward-looking statements are not guarantees of future performance, and you should not place undue reliance on them. All forward-looking statements speak only as of the date made and we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. 

About Gogo

Gogo, a leading global provider of broadband connectivity services for the business aviation market. We offer a customizable suite of smart cabin systems for highly integrated connectivity, inflight entertainment and voice solutions. Gogo’s products and services are installed on thousands of business aircraft of all sizes and mission types from turboprops to the largest global jets, and are utilized by the largest fractional ownership operators, charter operators, corporate flight departments and individuals.

As of September 30, 2024, Gogo reported 7,016 business aircraft flying with its broadband ATG systems onboard, 4,379 of which are flying with a Gogo AVANCE L5 or L3 system; and 4,180 aircraft with narrowband satellite connectivity installed. Connect with us at www.gogoair.com.

 

Gogo Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)

For the Three Months
Ended September 30,

For the Nine Months
Ended September 30,

2024

2023

2024

2023

Revenue:

Service revenue

$

81,857

$

79,546

$

245,459

$

237,107

Equipment revenue

18,672

18,403

61,451

62,660

Total revenue

100,529

97,949

306,910

299,767

Operating expenses:

Cost of service revenue (exclusive of amounts shown below)

19,051

18,116

55,793

51,732

Cost of equipment revenue (exclusive of amounts shown below)

15,165

12,320

47,383

47,983

Engineering, design and development

9,759

9,154

29,279

26,259

Sales and marketing

8,551

7,015

25,870

21,748

General and administrative

24,917

13,336

61,416

40,734

Depreciation and amortization

4,015

4,692

11,743

12,022

Total operating expenses

81,458

64,633

231,484

200,478

Operating income

19,071

33,316

75,426

99,289

Other expense (income):

Interest income

(2,419)

(1,622)

(6,587)

(5,509)

Interest expense

9,670

8,025

26,193

24,807

Loss on extinguishment of debt

2,224

Other expense (income), net

(332)

(728)

1,286

(733)

Total other expense

6,919

5,675

20,892

20,789

Income before income taxes

12,152

27,641

54,534

78,500

Income tax provision (benefit)

1,522

6,728

12,575

(52,711)

Net income

$

10,630

$

20,913

$

41,959

$

131,211

Net income attributable to common stock per share:

Basic

$

0.08

$

0.16

$

0.33

$

1.01

Diluted

$

0.08

$

0.16

$

0.32

$

0.98

Weighted average number of shares:

Basic

127,918

129,951

128,513

129,632

Diluted

130,389

133,320

131,538

133,382

 

Gogo Inc. and Subsidiaries
Unaudited Condensed Consolidated Balance Sheets
(in thousands)

September 30,

December 31,

2024

2023

Assets

Current assets:

Cash and cash equivalents

$

176,678

$

139,036

Accounts receivable, net of allowances of $2,807 and $2,091, respectively

45,875

48,233

Inventories

74,848

63,187

Prepaid expenses and other current assets

50,013

64,138

Total current assets

347,414

314,594

Non-current assets:

Property and equipment, net

93,830

98,129

Intangible assets, net

64,888

55,647

Operating lease right-of-use assets

67,171

70,552

Investment in convertible note

3,761

Other non-current assets, net of allowances of $720 and $591, respectively

24,229

25,979

Deferred income taxes

209,444

216,638

Total non-current assets

463,323

466,945

Total assets

$

810,737

$

781,539

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

$

26,445

$

16,094

Accrued liabilities

61,476

47,649

Deferred revenue

1,843

1,003

Current portion of long-term debt

7,250

7,250

Total current liabilities

97,014

71,996

Non-current liabilities:

Long-term debt

583,864

587,501

Non-current operating lease liabilities

68,005

73,047

Other non-current liabilities

9,130

8,270

Total non-current liabilities

660,999

668,818

Total liabilities

758,013

740,814

Stockholders’ equity

Common stock

14

14

Additional paid-in capital

1,413,842

1,402,003

Accumulated other comprehensive income

4,959

15,796

Treasury stock, at cost

(194,159)

(163,197)

Accumulated deficit

(1,171,932)

(1,213,891)

Total stockholders’ equity

52,724

40,725

Total liabilities and stockholders’ equity

$

810,737

$

781,539

 

Gogo Inc. and Subsidiaries 
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)

For the Nine Months
Ended September 30,

2024

2023

Operating activities:

Net income

$

41,959

$

131,211

Adjustments to reconcile net income to cash provided by operating activities:

Depreciation and amortization

11,743

12,022

Loss on asset disposals, abandonments and write-downs

101

285

Provision for expected credit losses

1,310

541

Deferred income taxes

10,740

(53,255)

Stock-based compensation expense

14,755

15,729

Amortization of deferred financing costs and interest rate caps

3,785

2,671

Accretion of debt discount

309

304

Loss on extinguishment of debt

2,224

Change in fair value of convertible note and equity investment

1,239

(773)

Changes in operating assets and liabilities:

Accounts receivable

1,177

4,356

Inventories

(11,661)

(13,299)

Prepaid expenses and other current assets

(13,605)

(37,454)

Contract assets

(4,313)

2,822

Accounts payable

9,750

2,526

Accrued liabilities

12,956

(5,091)

Deferred revenue

844

(1,708)

Accrued interest

(316)

(9,565)

Other non-current assets and liabilities

(1,033)

(728)

Net cash provided by operating activities

79,740

52,818

Investing activities:

Purchases of property and equipment

(9,254)

(14,006)

Acquisition of intangible assets—capitalized software

(9,640)

(4,711)

Proceeds from FCC Reimbursement Program for property, equipment and intangibles

1,215

3

Proceeds from interest rate caps

19,454

20,165

Redemptions of short-term investments

49,524

Purchases of short-term investments

(49,383)

Purchases of convertible note and equity investments

(5,000)

(5,000)

Net cash used in investing activities

(3,225)

(3,408)

Financing activities:

Payments on term loan

(5,438)

(105,438)

Repurchases of common stock

(30,763)

Payments on financing leases

(8)

(117)

Stock-based compensation activity

(2,693)

(8,326)

Net cash used in financing activities

(38,902)

(113,881)

Effect of exchange rate changes on cash

29

78

Increase (decrease) in cash, cash equivalents and restricted cash

37,642

(64,393)

Cash, cash equivalents and restricted cash at beginning of period

139,366

150,880

Cash, cash equivalents and restricted cash at end of period

$

177,008

$

86,487

Cash, cash equivalents and restricted cash at end of period

$

177,008

$

86,487

Less: non-current restricted cash

330

330

Cash and cash equivalents at end of period

$

176,678

$

86,157

Supplemental cash flow information:

Cash paid for interest

$

42,893

$

53,911

Cash paid for taxes

2,264

429

Non-cash investing activities:

Purchases of property and equipment in current liabilities

$

5,658

$

5,425

 

Gogo Inc. and Subsidiaries
Supplemental Information – Key Operating Metrics

For the Three Months
Ended September 30,

For the Nine Months
Ended September 30,

2024

2023

2024

2023

Aircraft online (at period end)

ATG AVANCE

4,379

3,784

4,379

3,784

Gogo Biz

2,637

3,366

2,637

3,366

Total ATG

7,016

7,150

7,016

7,150

Narrowband satellite

4,180

4,395

4,180

4,395

Average monthly connectivity service revenue per aircraft online

ATG

$

3,497

$

3,373

$

3,474

$

3,378

Narrowband satellite

332

294

319

297

Units sold

ATG

214

192

703

692

Narrowband satellite

39

40

132

132

Average equipment revenue per unit sold (in thousands)

ATG

$

75

$

77

$

75

$

73

Narrowband satellite

46

39

43

48

ATG AVANCE aircraft online. We define ATG AVANCE aircraft online as the total number of business aircraft equipped with our AVANCE L5 or L3 system for which we provide ATG services as of the last day of each period presented.Gogo Biz aircraft online. We define Gogo Biz aircraft online as the total number of business aircraft not equipped with our AVANCE L5 or L3 system for which we provide ATG services as of the last day of each period presented. This number excludes commercial aircraft operated by Intelsat’s airline customers receiving ATG service.Narrowband satellite aircraft online. We define narrowband satellite aircraft online as the total number of business aircraft for which we provide narrowband satellite services as of the last day of each period presented.Average monthly connectivity service revenue per ATG aircraft online (“ARPU”). We define ARPU as the aggregate ATG connectivity service revenue for the period divided by the number of months in the period, divided by the number of ATG aircraft online during the period (expressed as an average of the month end figures for each month in such period). Revenue share earned from the ATG Network Sharing Agreement with Intelsat is excluded from this calculation.Average monthly connectivity service revenue per narrowband satellite aircraft online. We define average monthly connectivity service revenue per narrowband satellite aircraft online as the aggregate narrowband satellite connectivity service revenue for the period divided by the number of months in the period, divided by the number of narrowband satellite aircraft online during the period (expressed as an average of the month end figures for each month in such period).Units sold. We define units sold as the number of ATG or narrowband satellite units for which we recognized revenue during the period.Average equipment revenue per ATG unit sold. We define average equipment revenue per ATG unit sold as the aggregate equipment revenue from all ATG units sold during the period, divided by the number of ATG units sold.Average equipment revenue per narrowband satellite unit sold. We define average equipment revenue per narrowband satellite unit sold as the aggregate equipment revenue earned from all narrowband satellite units sold during the period, divided by the number of narrowband satellite units sold.

 

Gogo Inc. and Subsidiaries
Supplemental Information – Revenue and Cost of Revenue
(in thousands, unaudited)

For the Three Months
Ended September 30,

% Change

For the Nine Months
Ended September 30,

% Change

2024

2023

2024 over
2023

2024

2023

2024 over
2023

Service revenue

$

81,857

$

79,546

2.9

%

$

245,459

$

237,107

3.5

%

Equipment revenue

18,672

18,403

1.5

%

61,451

62,660

(1.9)

%

Total revenue

$

100,529

$

97,949

2.6

%

$

306,910

$

299,767

2.4

%

For the Three Months
Ended September 30,

% Change

For the Nine Months
Ended September 30,

% Change

2024

2023

2024 over
2023

2024

2023

2024 over
2023

Cost of service revenue (1)

$

19,051

$

18,116

5.2

%

$

55,793

$

51,732

7.9

%

Cost of equipment revenue (1)

$

15,165

$

12,320

23.1

%

$

47,383

$

47,983

(1.3)

%

(1)  Excludes depreciation and amortization expense.

 

Gogo Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
(in thousands, unaudited)

For the Three Months
Ended September 30,

For the Nine Months
Ended September 30,

For the Three
Months Ended
June 30,

2024

2023

2024

2023

2024

Adjusted EBITDA:

Net income attributable to common stock (GAAP)

$

10,630

$

20,913

$

41,959

$

131,211

$

839

Interest expense

9,670

8,025

26,193

24,807

8,113

Interest income

(2,419)

(1,622)

(6,587)

(5,509)

(2,120)

Income tax provision (benefit)

1,522

6,728

12,575

(52,711)

132

Depreciation and amortization

4,015

4,692

11,743

12,022

3,887

EBITDA

23,418

38,736

85,883

109,820

10,851

Stock-based compensation expense

5,030

5,235

14,755

15,729

4,885

Acquisition-related costs

6,654

6,654

Loss on extinguishment of debt

2,224

Change in fair value of convertible note and equity investments

(323)

(773)

1,239

(773)

14,694

Adjusted EBITDA

$

34,779

$

43,198

$

108,531

$

127,000

$

30,430

Free Cash Flow:

Net cash provided by operating activities (GAAP) (1)

$

25,134

$

18,677

$

79,740

$

52,818

$

24,949

Consolidated capital expenditures (1)

(8,196)

(5,355)

(18,894)

(18,717)

(6,527)

Proceeds from FCC Reimbursement Program for property,
equipment and intangibles (1)

1,120

3

1,215

3

67

Proceeds from interest rate caps (1)

6,536

7,676

19,454

20,165

6,379

Free cash flow

$

24,594

$

21,001

$

81,515

$

54,269

$

24,868

(1)  See Unaudited Condensed Consolidated Statements of Cash Flows

 

Gogo Inc. and Subsidiaries
Reconciliation of Estimated Full-Year GAAP Net Cash
Provided by Operating Activities to Non-GAAP Measures
(in millions, unaudited)

FY 2024 Range

Low

High

Free Cash Flow:

Net cash provided by operating activities (GAAP)

$

59

$

67

Consolidated capital expenditures

(30)

(30)

Proceeds from FCC Reimbursement Program for
property, equipment and intangibles

3

5

Proceeds from interest rate caps

23

23

Free cash flow

$

55

$

65

Definition of Non-GAAP Measures

EBITDA represents net income attributable to common stock before interest expense, interest income, income taxes and depreciation and amortization expense.

Adjusted EBITDA represents EBITDA adjusted for (i) stock-based compensation expense, (ii) acquisition-related costs, (iii) change in fair value of convertible note and equity investment and (iv) loss on extinguishment of debt. Our management believes that the use of Adjusted EBITDA eliminates items that management believes have less bearing on our operating performance, thereby highlighting trends in our core business which may not otherwise be apparent. It also provides an assessment of controllable expenses, which are indicators management uses to determine whether current spending decisions need to be adjusted in order to meet financial goals and achieve optimal financial performance.

We believe that the exclusion of stock-based compensation expense from Adjusted EBITDA provides a clearer view of the operating performance of our business and is appropriate given that grants made at a certain price and point in time do not necessarily reflect how our business is performing at any particular time. While we believe that investors should have information about any dilutive effect of outstanding options and the cost of that compensation, we also believe that stockholders should have the ability to consider our performance using a non-GAAP financial measure that excludes these costs and that management uses to evaluate our business.

Acquisition-related costs include direct transaction costs, such as due diligence and advisory fees. We believe it is useful for an understanding of our operating performance to exclude acquisition-related costs from Adjusted EBITDA because they are infrequent and do not reflect our operating performance.

We believe it is useful for an understanding of our operating performance to exclude from Adjusted EBITDA the changes in fair value of convertible note and an equity investment because this activity is not related to our operating performance.

We believe it is useful for an understanding of our operating performance to exclude the loss on extinguishment of debt from Adjusted EBITDA because of the infrequently occurring nature of this activity.

We also present Adjusted EBITDA as a supplemental performance measure because we believe that this measure provides investors, securities analysts and other users of our consolidated financial statements with important supplemental information with which to evaluate our performance and to enable them to assess our performance on the same basis as management.

Adjusted EBITDA Margin represents Adjusted EBITDA divided by total revenue. We present Adjusted EBITDA Margin as a supplemental performance measure because we believe that it provides meaningful information regarding our operating efficiency.

Free Cash Flow represents net cash provided by operating activities, plus the proceeds received from the FCC Reimbursement Program and the interest rate caps, less purchases of property and equipment and the acquisition of intangible assets. We believe that Free Cash Flow provides meaningful information regarding our liquidity. Management believes that Free Cash Flow is useful for investors because it provides them with an important perspective on the cash available for strategic measures, after making necessary capital investments in property and equipment to support the Company’s ongoing business operations and provides them with the same measures that management uses as the basis of making capital allocation decisions.

Investor Relations Contact:

Media Relations Contact:

Will Davis

Dave Mellin

+1 917-519-6994

+1 303-301-3606

wdavis@gogoair.com

dmellin@gogoair.com

View original content:https://www.prnewswire.com/news-releases/gogo-announces-third-quarter-results-302296154.html

SOURCE Gogo Inc.

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City of Redmond to Streamline Capital Program Management Using Aurigo Masterworks

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AUSTIN, Texas, Nov. 5, 2024 /PRNewswire/ — Aurigo Software, the leading provider of capital planning and construction management software for infrastructure and private owners, announced it has entered into a multiyear contract with the City of Redmond, Washington, to modernize its Capital Improvement Program. Aurigo’s flagship product suite, Masterworks, will help the agency prioritize project investments and create long-range capital plans while providing real-time reports and forecasts throughout the program’s phases. The system will also manage all aspects of project delivery, including construction administration, document management, and tracking program performance.

The City of Redmond is located less than 20 miles east of downtown Seattle. Known for its lush green landscapes and as a hub for technology, Redmond is home to several major corporations, including Microsoft’s headquarters, which significantly contribute to its economic profile. Today, the City has around 75,000 residents and 95,000 jobs, and by 2030, it is expected to have 78,000 residents and 119,000 jobs. Redmond also prides itself on providing extensive recreational activities, as it is surrounded by forests and trails, making it well-known for hiking, biking, horseback riding, and birdwatching.

“We are excited to partner with the City of Redmond and provide a modern, intuitive, integrated solution to meet its capital planning and project delivery goals,” said Balaji Sreenivasan, CEO and founder of Aurigo Software. “As Redmond continues to flourish as a technology hub, Masterworks will enable the City to keep pace with its growth by optimizing resources and ensuring efficient project execution. We are committed to supporting Redmond in delivering infrastructure improvements that meet the needs of its expanding community.”

Aurigo Masterworks will enable the agency to gather proposed projects, prioritize them, and estimate costs accurately. The platform’s what-if analysis will help identify the best project combinations based on available funding and strategic priorities. Once projects are underway, the system will help monitor schedules, resource availability, and contract status to ensure timely and on-budget completion.

This initiative will also establish standardized processes to reinforce best practices for the City, including streamlining workflows, integrating with existing systems, and enabling role-based access and permissions. Enterprise-wide dashboards and reports will provide agency executives with the right data to aid decision making. These processes will be fully auditable and will ensure complete transparency, delivering a consistent approach to capital program management.

Redmond joins King County and the city of Seattle, both Washington-based Aurigo partners, along with several other agencies across North America (including the cities of Portland and Las Vegas and regional agencies in Colorado, Florida, and Ontario, Canada) using Masterworks to digitize their capital programs. The company has seen an increase in demand from the public sector as agencies are looking to adopt modern cloud-based solutions to boost productivity and achieve cost savings.

About Aurigo Software

Aurigo builds software that helps build the world. Aurigo provides modern, cloud-based solutions for capital infrastructure and private owners to help plan with confidence, build with quality, and maintain their assets efficiently. With more than $300 billion of capital programs under management, Aurigo’s solutions are trusted by over 300 customers in transportation, water and utilities, healthcare, higher education, and government on over 40,000 projects across North America. Aurigo helps capital program executives make better decisions based on proprietary artificial intelligence and machine learning technology. Aurigo is a privately held U.S. corporation headquartered in Austin, Texas, with global offices in Canada and India. Learn more at www.aurigo.com

View original content:https://www.prnewswire.com/news-releases/city-of-redmond-to-streamline-capital-program-management-using-aurigo-masterworks-302296256.html

SOURCE Aurigo Software Technologies, Inc.

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European Chips Skills Academy Unveils Comprehensive Skills Strategy to Boost Competitiveness of Semiconductor Ecosystem

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BRUSSELS, Nov. 5, 2024 /PRNewswire/ — The European Chips Skills Academy (ECSA), an EU-funded initiative coordinated by SEMI, today announced the publication of the Skills Strategy report by DECISION Etudes & Conseil that outlines the strategic approaches required to tackle Europe’s growing talent shortage in the semiconductor sector. The report provides critical insights into the industry’s workforce demand and supply, while outlining methods to address the talent gap by 2030.

With increasing demand for chips and the investments from the EU Chips Act beginning to gain traction, the semiconductor industry is expected to experience substantial growth in the coming years. The report shows a projected employment annual growth rate of 5% by 2030, with more than 271,000 job openings expected over the forecast period. However, the current pipeline of graduates is not growing at a sufficient rate to match this growth. The report predicts a shortage of over 75,000 technical jobs across key areas such as hardware and software engineering, technicians, and data specialists.

Despite Europe producing over 1.1 million STEM graduates in 2022 and 320,000 in semiconductor related fields of study, only 6% of European STEM graduates are expected to enter the semiconductor industry. With many of these graduates opting for engineering careers in unrelated domains or positions beyond traditional engineering sectors, it is essential for Europe to respond to solve the talent gap.

ECSA’s Skills Strategy recommends both short- and long-term solutions. In the short-term, Europe should optimize the existing labor supply by improving EU-wide mobility, simplifying visa processes for non-EU workers, and reskilling current employees to meet evolving needs.

“Strategic communications campaigns will be pivotal in driving long-term growth in student interest in semiconductor-related disciplines,” said Laith Altimime, President of SEMI Europe. “The influx of STEM graduates into the sector is heavily shaped by the industry’s ability to project a compelling image, further enhancing its attractiveness as a desirable and innovative field for emerging talent.”

“Collaboration between education and industry needs to be strengthened to meet the long-term demand of the industry,” said Raphaël Beaujeu, Senior Consultant at DECISION Etudes & Conseil. “Aligning the academic curricula with the needs of the sector will ensure a sustainable pipeline of skilled workers that can drive innovation and productivity in Europe.”

Initiatives such as ECSA are well positioned to help address the talent gap by offering relevant training with input from industry. The wide network of companies involved with the ECSA aid in promoting STEM careers and ensuring a diverse workforce.

With the semiconductor industry at the core of global digital transformation, Europe’s ability to close the skills gap in its ecosystem will be crucial in maintaining competitiveness on the global stage.

About SEMI
SEMI® is the global industry association connecting over 3,000 member companies and 1.5 million professionals worldwide across the semiconductor and electronics design and manufacturing supply chain. We accelerate member collaboration on solutions to top industry challenges through Advocacy, Workforce Development, Sustainability, Supply Chain Management, and other programs. Our SEMICON® expositions and events, technology communities, standards, and market intelligence help advance our members’ business growth and innovations in design, devices, equipment, materials, services, and software, enabling smarter, faster, more secure electronics. Visit www.semi.org, contact a regional office, and connect with SEMI on LinkedIn and X to learn more.

About ECSA
The European Chips Skills Academy is an innovative alliance of 18 partners across Europe, working together to bridge the skills gap in the semiconductor sector. Through the development of decentralized education programs and fostering collaboration between industry and academia, ECSA aims to cultivate the next generation of semiconductor professionals essential for Europe’s technological leadership.

Contact Information:
Kartikey Srivastava / SEMI Europe
Phone: +49 151 1436 6324
Email: ksrivastava@semi.org     

Samer Bahou / SEMI Corporate
Phone: +1 408 943 7870
Email: sbahou@semi.org  

SOURCE SEMI

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Could use a vacation right now: Elsa Pataky and Chris Hemsworth Partner with Experience Abu Dhabi

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ABU DHABI, UAE, Nov. 5, 2024 /CNW/ — Hollywood couple Elsa Pataky and Chris Hemsworth have collaborated with Experience Abu Dhabi, sharing all the city has to offer blending rich culture, adventure, and peaceful escapes, with incredible weather and endless experiences for every kind of traveller to enjoy at their own pace.

 

The two-year partnership was announced with a campaign film that features the duo on set, dreaming of a much-needed holiday. Using a mix of comedy and action, the film sees the couple agree that they could use an escape and imagine the blissful moments they could be experiencing in a destination that has it all…Abu Dhabi.

Elsa commented on putting family first: “When it comes to family holidays, Abu Dhabi has it all. Whether it is for us as a couple or a family, every day here is a new adventure, there is something for each one of us to enjoy and discover. My kids have fallen in love with Abu Dhabi, as it gives them a playground for all the things they want to do. Whether it’s theme parks with exciting roller coasters, dune bashing and horse riding in the desert to catching the best wave, Abu Dhabi has it all and is now our must-do holiday spot.”

Chris reflected on creating memories: “We’re thrilled to partner with Experience Abu Dhabi. Abu Dhabi’s got everything we love all in one place. The adventures have left us with amazing memories that will last a lifetime—you can tell how special it was since the kids didn’t want to leave. We’ve loved everything about the culture, the people and the experiences. It’s a place where we can unwind, and relax, with the feeling of being at home. We’ve travelled the world, but Abu Dhabi has captured our hearts. We’re already planning for our next trip!”

As heard in the film, the message “Could Use A Vacation Right Now” resonates with the world. So many of us are drowning in deadlines, work commitments, and a never-ending to-do list—dreaming of that next great holiday. In Abu Dhabi, you can swap your daily routine for the perfect escape, from inspiring cultural experiences to galloping across desert dunes, riding waves at Surf Abu Dhabi and reconnecting with loved ones under a stunning sunset on a white-sand beach.

The campaign film showcases how Abu Dhabi inspires every family to find their own pace—a destination brimming with new adventures and countless opportunities to create lasting memories. From kayaking around Louvre Abu Dhabi to thrilling rollercoasters, all wrapped in the warmth of Emirati hospitality, the couple had the perfect family getaway. They savoured traditional Emirati cuisine before sunset strolls on the beach, feeling welcomed and at ease.

H.E. Nouf Mohamed Al-Boushelaibi, Executive Director of Strategic Marketing & Communications at DCT Abu Dhabi, said: “We’re incredibly passionate about sharing Abu Dhabi with the world and are proud to have Elsa and Chris partnering with us. Their dynamic energy and love for discovery highlights everything Abu Dhabi has to offer from inspiring cultural experiences to adventures, creating meaningful and lasting memories, all at their own pace.”

Get inspired by Chris and Elsa’s dream-come-true adventure in Abu Dhabi and watch the new film here.

About Experience Abu Dhabi:
Experience Abu Dhabi is the destination brand of the Department of Culture and Tourism – Abu Dhabi. 

DCT Abu Dhabi drives the sustainable growth of Abu Dhabi’s culture and tourism sectors and its creative industries, fuelling economic progress and helping to achieve Abu Dhabi’s wider global ambitions. 

By working in partnership with the organisations that define the emirate’s position as a leading international destination, DCT Abu Dhabi strives to unite the ecosystem around a shared vision of the emirate’s potential, coordinate effort and investment, deliver innovative solutions, and use the best tools, policies and systems to support the culture and tourism industries.

DCT Abu Dhabi’s vision is defined by the emirate’s people, heritage and landscape. We work to enhance Abu Dhabi’s status as a place of authenticity, innovation, and unparalleled experiences, represented by its living traditions of hospitality, pioneering initiatives and creative thought.

For more information about the Department of Culture and Tourism – Abu Dhabi and the destination, please visit: dct.gov.ae and visitabudhabi.ae

Video – https://www.youtube.com/watch?v=LQEYVigHGZQ
Photo – https://mma.prnewswire.com/media/2549319/Elsa_Pataky.jpg
Photo – https://mma.prnewswire.com/media/2549316/Chris_Hemsworth.jpg
Photo – https://mma.prnewswire.com/media/2549317/Elsa_Pataky_Chris_Hemsworth_Desert.jpg
Photo – https://mma.prnewswire.com/media/2549318/Elsa_Pataky_Chris_Hemsworth_dining.jpg
Logo – https://mma.prnewswire.com/media/2239093/4629993/Experience_Abu_Dhabi_Logo.jpg

View original content to download multimedia:https://www.prnewswire.com/news-releases/could-use-a-vacation-right-now-elsa-pataky-and-chris-hemsworth-partner-with-experience-abu-dhabi-302296597.html

SOURCE Experience Abu Dhabi

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