Gogo Inc. · NASDAQ:GOGO
Gogo — Investor Presentation (September 2021)
17 slides from Gogo's investor presentation, Sep 30, 2021
Slide 1: Gogo: Leading Provider of In-Flight Connectivity to the Business Aviation Segment
Gogo: Leading Provider of In-Flight Connectivity to the Business Aviation Segment September 2021
Slide 2: Disclaimer
Disclaimer This document includes financial measures and terms not calculated in accordance with accounting principles generally accepted in the United States (GAAP). The presentation of non-GAAP measures such as, but not limited, to “Adjusted EBITDA”, “Adjusted EBITDA margin”, “Conversion”, and “Fr
Slide 3: Gogo: Compelling Value Creation Opportunity in Business Aviation
Gogo: Compelling Value Creation Opportunity in Business Aviation Pure-play Business Aviation Connectivity Provider Distinct Competitive Advantages Attractive Financial Profile ~85% of all broadband-connected business aviation aircraft in North America use Gogo Singular focus on business aviation pos
Slide 4: Strong Track Record of Financial Performance
Strong Track Record of Financial Performance Total revenue ($ in millions) Adj. EBITDA ($ in millions) AVANCE platform driving continued growth of installed base beyond record highs in 2020 Growth in new units and mix-shift to AVANCE product driving recurring service revenue High Adj. EBITDA margins
Slide 5: Market Tailwinds Driving Flight Demand
Market Tailwinds Driving Flight Demand Increasing demand for private air travel creates significant opportunity for Gogo 1 Per July survey of more than 225 private flyers by the online publication Jet Card Comparisons 2 Book-to-bill defined as ratio of orders received to units shipped & billed. Data
Slide 6: BA IFC Data Usage Also on the Rise
BA IFC Data Usage Also on the Rise Customers increasingly expect in-air connectivity standards that Gogo is uniquely positioned to provide 52% increase Total Gogo ATG network data consumption Q2 FY21 vs. Q2 FY19 Bandwidth usage per flight & flight hour (MB) +26% +35% Business travelers are reliant o
Slide 7: Underpenetrated and Growing Market Creates Opportunity
Underpenetrated and Growing Market Creates Opportunity… ~7,500 planes with connectivity ~16,000 planes without connectivity Market overview (2020A) ~68% We expect ~50% growth to 11,000+ aircraft with connectivity by 2025 driven by: New aircraft line-fit with Gogo’s in-flight connectivity solutions G
Slide 8: Which Gogo is Uniquely Positioned to Capture
…Which Gogo is Uniquely Positioned to Capture As the only ATG-based service provider in North America today, Gogo’s platform addresses all major segments of the market with an unmatched connectivity & services offering suite 1 Source: JetNet IQ 2Gogo holds the exclusive license to 4MHz of U.S. natio
Slide 9: Gogo's network infrastructure is both a significant differentiator and the foundation for future growth
Gogo’s network infrastructure is both a significant differentiator and the foundation for future growth Gogo Operates North America’s Only ATG Network Proprietary, Vertically-Integrated Terrestrial ATG Network Exclusive Spectrum License Owned Connectivity Solution Drives Owner Economics Proprietary
Slide 10: Gogo's AVANCE Platform Supports Future Growth
Gogo’s AVANCE Platform Supports Future Growth Enabled and compatible across any network: 3G, 4G, 5G, and beyond (LEO) Future-Proof, Software-Centric Adaptability Optimized equipment enables high connectivity speeds across all available ATG networks Unmatched performance Common componentry across all
Slide 11: Significant Competitive Advantages vs. Satellite and Potential ATG Competitor
Less competitive on latency and customer experience; 5G launch will further differentiate Gogo on speed GEO is only a connectivity option on the largest airframes due to satellite hardware size, weight, and cost Large planes have GEO for international flight, but often use Gogo domestically Satellit
Slide 12: Highly Attractive Long-Term Growth Opportunities
Highly Attractive Long-Term Growth Opportunities Expand TAM through a global LEO satellite solution partnership AVANCE would allow Gogo to enter the global LEO market at a significantly lower cost than competitors Global Coverage via LEO Satellite Partnership Improved connectivity to “front of plane
Slide 13: Gogo Compares Favorably to Other Digital Infrastructure Companies
Gogo Compares Favorably to Other Digital Infrastructure Companies Conversion4 1,6 2,6 3,6 4 1 2 3 83% 88% 74% 21% Long term growth expectation of ~15% Underpenetrated market with attractive demand drivers Differentiated product platform and profitable customer acquisition Recurring revenue with long
Slide 14: Long-term Financial Targets
Long-term Financial Targets Revenue CAGR ~15% 2020 - 2025 40-45% 2021 - 2025 ~$125M in 2023 ~$200M in 2025 Adjusted EBITDA Margin Free Cash Flow
Slide 15: Thank you
Thank you
Slide 16: Adj. EBITDA Reconciliation
Adj. EBITDA Reconciliation ($MM) 2017 2018 2019 2020 GAAP net loss (A) (172) (162) (146) (250) Income tax provision (2) (3) 1 - Interest income (3) (4) (4) (1) Interest expense 112 123 130 126 Depreciation & amortization 11 14 17 14 EBITDA (54) (33) (2) (111) Stock-based compensation expense 10 9 9
Slide 17: Key Definitions
Key Definitions 3G / 4G / 5G = Nomenclature for current standard of cellular networks & speed; near-term upgrade to 5G in 2022 Adjusted EBITDA = Represents EBITDA adjusted for (i) stock-based compensation expense included in the results of continuing operations, (ii) the results of discontinued oper