Slide 1: Investor Presentation
May 23, 2016 Investor Presentation Exhibit 99.1
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are based on management’s beliefs and assumptions and on information currently available to manage
Slide 3: Why Invest in Gogo
High revenue growth High operating leverage ~10,000 Uncommitted Aircraft $134,000 Annualized ARPA Global scale Specialize in Connected Aircraft Leading technology WHY INVEST IN GOGO Leading Position, Experience & Scale Large Growth Opportunity Attractive Model Competitive Advantages (1) (1) Global c
Slide 4: Gogo Leads Global Aviation Market
Revenue ($M) Adjusted EBITDA ($M) GOGO LEADS GLOBAL AVIATION MARKET Gogo is the global leader in providing broadband connectivity and wireless entertainment to the aviation industry Top tier domestic and global airline and business jet customers Uniquely qualified to serve global aviation industry b
Slide 5: Business Depth and Expertise
BUSINESS DEPTH AND EXPERTISE Reached scale, strong revenue growth and operating leverage, upgrading to satellite 67% market share Exclusive Air-to-Ground (ATG) broadband spectrum (4 MHz) 14% margin Mature margins, strong revenue growth, attractive cash flow profile 90% market share Relationships wit
Slide 6: Most Experience and Scale in the Industry – Global
MOST EXPERIENCE AND SCALE IN THE INDUSTRY – GLOBAL Global Eagle* Panasonic* Others* Total Gogo Broadband Aircraft Online Gogo BA ATG Aircraft Online Gogo CA Aircraft Online * Data based on management estimates, trade publications and other public sources as of 3/31/2016 and include both commercial a
Slide 7: The Gogo Advantage
THE GOGO ADVANTAGE GOGOAIR.COM | Comprehensive products and services (e.g., custom portals, IPTV, Text and Talk, crew apps) easily customized and integrated with airline systems Leading scale and expertise with 6,000 broadband aircraft and 100 million sessions Robust R&D and 20 year history of innov
Slide 8: Continuous Technology Innovation Enables Strong Economics
Connected Aircraft Peak Speed per Aircraft Mbps CONTINUOUS TECHNOLOGY INNOVATION ENABLES STRONG ECONOMICS BANDWIDTH PRODUCTS & SERVICES CA Connectivity BA Connectivity ARPA Gogo Vision BA Talk & Text Universal Cabin System CA Texting First Global 100+ Mbps Solution ATG ATG-4 Ku 2Ku 2Ku w/ Spot Beams
Slide 9: ATG and Satellite Technologies Address Large Market Opportunity
ATG AND SATELLITE TECHNOLOGIES ADDRESS LARGE MARKET OPPORTUNITY Technology ATG (Air to Ground) Satellite – 2Ku Current State Achieved Scale, Yielding Benefits Game Changing Growth Antenna Coverage North America Global Market Business Jets, Smaller Commercial (i.e. RJs) Commercial Capacity Limited to
Slide 10: 2Ku Best in Class Global IFC Solution
(1) Based on management estimates and include satellites operated by Inmarsat, Viasat, Eutelsat, and Yahsat as of 12/31/2015. We estimate that there are approximately 10 Ka satellites in the world, but due to lack of interoperability between Ka satellite providers, only 2 to 5 can currently be used
Slide 11: Significant Growth Opportunities in Aircraft and ARPA
SIGNIFICANT GROWTH OPPORTUNITIES IN AIRCRAFT AND ARPA ARPA Growth ARPA Suite Of Offerings Passenger Crew Aircraft Passenger Connectivity Airline / Owner / Operator Services Connected Aircraft Services More connected aircraft, more applications, more revenue $134k(3) (CA-NA) Global broadband aircraft
Slide 12: Strong Track Record & Momentum
Global Network Technology Record Financial Results STRONG TRACK RECORD & MOMENTUM Recent Airline Wins Large satellite capacity commitments to Intelsat, SES and OneWeb Next generation modem enables speeds of 400+ Mbps, expected to be available in 2017. Gogo surpassed $500M in revenue in 2015 2Ku awar
Slide 13: Strong and Consistent Execution
Note: Business Aviation numbers represent the difference in ATG units online from year to year 12 airlines on 4 continents have awarded 1,000+ aircraft to Gogo for 2Ku 2016 Net Installation Guidance 200+ CA NA and ~75 CA ROW Annual Net Aircraft Installations 2Ku Awarded Aircraft + (1) As of February
Slide 14: Strong Growth and Profitability Trends
STRONG GROWTH AND PROFITABILITY TRENDS Note: Minor differences exist due to rounding (1) Please see reconciliation of Adjusted EBITDA in appendix Adjusted EBITDA(1) ($M) $49 Revenue ($M) 33% CAGR $89 CA-ROW Segment Loss Adjusted EBITDA $113 $24 $121
Slide 15: Strong Q1'16 Results
STRONG Q1’16 RESULTS Consolidated Quarterly Performance ($M) Q1’16 Q1’15 ∆$ ∆% Service Revenue 119 95 23 24% Equipment Revenue 23 20 3 15% Total Revenue 142 116 26 23% Adjusted EBITDA* 14 8 6 76% Cash Capex* 24 32 (8) (25%) Commercial Aircraft Online 2,737 2,316 421 18% BA Broadband Aircraft Online
Slide 16: Key Priorities for Gogo
KEY PRIORITIES FOR GOGO Win more aircraft Install backlog ~10,000 uncommitted commercial aircraft globally & growing ~ 16,000 uncommitted business aircraft in North America & growing Develop open communications platforms to enable: Tailored passenger experience Digitized front line employees Improve
Slide 17: Business Segments
Business Segments
Slide 18: BA: Established Industry Leader
BA: ESTABLISHED INDUSTRY LEADER Founded in 1991 and pioneered air-to-ground connectivity for planes Established OEM and dealer relationships Track record of innovation: Universal Cabin System, Gogo Cloud, Gogo Vision, Text & Talk....4G ATG connectivity expected to be available in 2017 The only equip
Slide 19: BA: High Margin Service Revenue Drives Profitability
Segment Profit ($M) Revenue ($M) 24% Total CAGR Satellite ATG BA: HIGH MARGIN SERVICE REVENUE DRIVES PROFITABILITY Units Online Monthly Average Revenue Per Unit (ARPU) 48% Service CAGR 30% CAGR Note: Minor differences may exist due to rounding
Slide 20: CA-NA: Strong Incumbent Position
GOGOAIR.COM | CA-NA: STRONG INCUMBENT POSITION 67% market share in North America, awarded aircraft of 230(1) Nearly 50% of installed fleet on ATG-4 with more upgrades coming ~600 Delta aircraft (primarily NA fleet) awarded to 2Ku Strong revenue growth and operating leverage, achieved scale and profi
Slide 21: CA-NA: Strong Revenue and Segment Profit Growth
Segment Profit ($M) Revenue ($M) 37% CAGR Note: Minor differences may exist due to rounding. For 2011 and 2013 ARPA is based on aircraft online and for 2015 and LTM Q1’16 ARPA is based on aircraft online equivalent. Aircraft Online ARPA ($k) CA-NA: STRONG REVENUE AND SEGMENT PROFIT GROWTH (1) Profit
Slide 22: CA-Rest of World: Gaining Momentum
2Ku is a game changer Global satellite network established to provide international connectivity 2Ku service launched on Aeromexico with “ground-like” performance Gogo is focused on signing airlines and investing for growth CA-REST OF WORLD: GAINING MOMENTUM Overview Airline Wins (1) (1) (1) Letter
Slide 23: On a Mission to Connect Global Aviation
ON A MISSION TO CONNECT GLOBAL AVIATION 237 Aircraft Online 60+ Airline Partner Country Destinations 33 Global Maintenance Locations Teleports Offices Install Locations Maintenance Locations Gogo Partner Destinations 11 Country Installation Sites 6 Offices Worldwide 12 Global Teleport Locations Note
Slide 24: Revenue Visibility and Clear Path to Free Cash Flow
Bandwidth and more aircraft drives revenue International expansion is in early stage, market opportunity is 3x of CA-NA Revenue Visibility REVENUE VISIBILITY AND CLEAR PATH TO FREE CASH FLOW Increased utilization of satellite network Global scale Free Cash Flow + Current Awarded(2) Total 2,500 230 2
Slide 25: Why Invest in Gogo
High revenue growth High operating leverage ~10,000 Uncommitted Aircraft $134,000 Annualized ARPA Global scale Specialize in Connected Aircraft Leading technology WHY INVEST IN GOGO Leading Position, Experience & Scale Large Growth Opportunity Attractive Model Competitive Advantages (1) 6X more conn
Slide 26: Appendix
APPENDIX
Slide 27: Adjusted EBITDA Reconciliation
GOGOAIR.COM | ADJUSTED EBITDA RECONCILIATION ($M) 2011 2012 2013 2014 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 Net Income (18) (96) (146) (85) (20) (25) (29) (34) (24) Interest Expense 1 9 29 33 10 16 17 16 16 Income Tax Provision 1 1 1 1 – – – – – Depreciation & Amortization 33 37 56 64 19 21 22 25
Slide 28: Cash Capex Reconciliation
GOGOAIR.COM | Note: Minor differences may exist due to rounding CASH CAPEX RECONCILIATION ($M) 2011 2012 2013 2014 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 Purchases of Property and Equipment (33) (67) (105) (132) (53) (33) (19) (30) (31) Acquisition of Intangible Assets (Capitalized Software) (10) (