Slide 1: 2nd Quarter 2015 Earnings Results
2nd Quarter 2015 Earnings Results Michael Small – Chief Executive Officer Norman Smagley – Chief Financial Officer August 6, 2015 Exhibit 99.2
Slide 2: Executing on Our Global Opportunity
EXECUTING ON OUR GLOBAL OPPORTUNITY Connected aircraft 70%+ win rate since 2Ku announcement It is real It is big It is underway Flying on over 50% of connected commercial aircraft worldwide Note: Based on management estimates as of 6/30/2015
Slide 3: Gogo Leads the Industry
GOGO LEADS THE INDUSTRY Innovative platforms & services Most connected aircraft Best network solutions
Slide 4: 500+ 2Ku aircraft awarded since April 2014
500+ 2Ku aircraft awarded since April 2014 WINNING AIRCRAFT Signed definitive agreement with GOL Large full fleet award of 140 aircraft Demonstrates importance of 2Ku in the tropical region GOL selected three products: - in-flight connectivity, - wireless in-flight entertainment, - and Gogo’s newest
Slide 5: Adding More Bandwidth
ADDING MORE BANDWIDTH 2Ku commercial launch is expected by year-end 2015 2Ku brings more capacity to North America 2Ku wins on cost, coverage, capacity and reliability
Slide 6: Hitting Our Numbers
HITTING OUR NUMBERS Revenue up 22% to $121 million Adjusted EBITDA up 248% to $10.8 million CA-NA + BA combined segment profit up 31% to $29 million Q2 2015 Strong Financial Results:
Slide 7: Hitting Our Numbers
HITTING OUR NUMBERS Added nearly 300 aircraft online in CA & BA CA added ~120 aircraft with Gogo Vision BA shipped 227 ATG units Segmentation strategy gains traction - Average of more than 3 per day Q2 2015 Strong Operating Performance:
Slide 8: Key Priorities
KEY PRIORITIES Bring 2Ku online Increase bandwidth to unlock ARPA Increase scale advantage
Slide 9: Q2 2015 Record Revenue & Adjusted EBITDA
$79 $82 $90 $95 $101 $20 $22 $20 $20 $20 22% Q2 2015 RECORD REVENUE & ADJUSTED EBITDA Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Total Revenue ($MM) Service Revenue Equipment Revenue Y/Y Growth • Q2 2015 record revenue quarter • Service revenue exceeds $100 million, up 28% y/y • CA-NA + BA segment profit up
Slide 10: CA-NA Strong Revenue & ARPA Growth
22% $115 $115 $122 $121 $127 $5 $6 $9 $14 $9 13% CA-NA STRONG REVENUE & ARPA GROWTH $62 $62 $68 $72 $75 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Service Revenue ($MM) Y/Y Growth • Service revenue driven by: - 13% y/y growth in ARPA - 9% y/y growth in aircraft online • ARPA growth continues: - Changes in p
Slide 11: CA-NA Aircraft Online & Segment Profit Growth
9% CA-NA AIRCRAFT ONLINE & SEGMENT PROFIT GROWTH Y/Y Growth Note: Minor differences exist due to rounding • 105 aircraft installed • 56 aircraft retired by airlines • Strong operating leverage continues • Segment profit margin expands to 15% Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Aircraft Online (End of
Slide 12: BA Service Revenue & ATG Aircraft Online Growth
$17 $19 $20 $22 $24 $20 $21 $19 $20 $20 17% BA SERVICE REVENUE & ATG AIRCRAFT ONLINE GROWTH • Service revenue increased 39% y/y to record $24 million • Service revenue continues strong growth track record • Total revenue reaches new record Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Total Revenue ($MM) Servi
Slide 13: BA Revenue & Segment Profit Growth
31% BA REVENUE & SEGMENT PROFIT GROWTH • ATG aircraft online increased 31% y/y to nearly 3,200 • ATG service ARPU of $2,200+ per month • Q2 2015 segment profit up 13% y/y, 41% margin 2,415 2,637 2,797 2,983 3,170 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 ATG Aircraft Online (End of Period) Y/Y Growth
Slide 14: Focus on International Expansion
28% $19 $19 $23 $18 $18 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 CA-ROW Segment Loss ($MM) FOCUS ON INTERNATIONAL EXPANSION Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Satellite Aircraft Online (End of Period) Q/Q Growth • Installed 32 Ku-based aircraft • Revenue of $2.3 million, up from $0.3 million in Q2’14 • Y/
Slide 15: Consolidated Cash Capex & Cash Balance
$4MM CONSOLIDATED CASH CAPEX & CASH BALANCE $27 $30 $12 $32 $23 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Cash CapEx ($MM) • Q2 ’15 Y/Y changes in capital expenditures: Increased airborne equipment proceeds Decreased ATG network spend • Strong cash position $196 $243 $211 $400 $392 Q2 '14 Q3 '14 Q4 '14 Q1
Slide 16: Strong Q2 Financial Performance
STRONG Q2 FINANCIAL PERFORMANCE Strong service revenue growth Strong operating leverage Growth in profitability
Slide 17: Q&A
Q&A **** **** **** **** **** **** **** **** **** **** ************************************ ********************************
Slide 18: Appendix
Appendix ************************* ************************* ************************* ************************* ************************* ************************* ************************* ************************* ****************** **** **** **** **** **** **** **** **** ***
Slide 19: Adjusted EBITDA Reconciliation ($MM)
2009 2010 2011 2012 2013 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 ADJUSTED EBITDA RECONCILIATION ($MM) Net Income (142) (140) (18) (96) (146) (17) (19) (25) (24) (20) (25) Interest Income (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) Interest Expense – Income Tax Provision – – – – – – – Depreci
Slide 20: Cash Capex Reconciliation ($MM)
2009 2010 2011 2012 2013 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 CASH CAPEX RECONCILIATION ($MM) Purchases of Property and Equipment (69) (33) (33) (67) (105) (32) (28) (35) (37) (53) (33) Acquisition of Intangible Assets (Capitalized Software) (8) (7) (10) (12) (16) (4) (5) (5) (3) (4) (4)