Slide 1: 4th Quarter and Full Year 2015 Earnings Results
4th Quarter and Full Year 2015 Earnings Results Michael Small – Chief Executive Officer Norman Smagley – Chief Financial Officer February 25, 2016 Exhibit 99.2
Slide 2: Safe Harbor Statement
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 current
Slide 3: Transformative 2015
TRANSFORMATIVE 2015 ü ü Half billion dollar revenue company 2Ku launched ü Introduced Gogo Biz 4G for Business Aviation ü Most advanced platform in the business
Slide 4: Gogo's Open Strategy
GOGO’S OPEN STRATEGY ü ü Gogo operating with an open architecture Greater assurance that our partners won’t be technologically trapped as the industry evolves ü Airline partners will have greater control over systems they choose and services they offer Flexibility to meet any connectivity need today
Slide 5: Gogo and American Airlines
GOGO AND AMERICAN AIRLINES ü ü We value our partnership with American 800+ aircraft in 2Ku backlog ü 2Ku proposal will offer faster, cheaper, open-ended technology
Slide 6: Gogo Technological Developments
GOGO TECHNOLOGICAL DEVELOPMENTS ü ü Backlog affirms the work and investment we have made to produce technological advantage Speed Powerful next gen modem capable of handling 400 Mbps to the plane ü Capacity Ku HTS capacity agreement with SES means cheaper bandwidth and lower costs for airlines and i
Slide 7: Operating an "Open" System
OPERATING AN “OPEN” SYSTEM ü ü 2Ku built on the redundancy of the Ku-band network of satellites Building technologies that enable our airline partners to easily upgrade when the time comes ü Built to leverage new Ku-band LEO (Low Earth Orbit) satellite constellations offering coverage and latency ad
Slide 8: Future Ready & Ahead of the Curve
FUTURE READY & AHEAD OF THE CURVE ü Open architecture strategy benefits include better flexibility and risk management ü Open system approach for products and services: Portal development Entertainment products Connected aircraft services Digital platform for future products ü Airline partner can ma
Slide 9: Operating Capabilities Are Building Value
OPERATING CAPABILITIES ARE BUILDING VALUE ü ü 11,000+ connected Gogo-equipped systems flying around the world 15 STC programs underway to jumpstart 2Ku installations ü Installed or upgraded more than 1,900 aircraft in 2015, more aircraft than any competitor has flying ü Linefit programs progressing
Slide 10: The Connectivity Decision
THE CONNECTIVITY DECISION 10 ü Making the right decision matters to airlines a lot ü ATG keeps improving and will get even better with Gogo Biz 4G for BA and the prospects for next gen ATG ü Speed, adaptability and access to new technologies are the key differentiators ü Open architecture needed to
Slide 11: Q4'15 Record Revenue and CA-NA & BA Segment Profit
Q4’15 Record Revenue AND CA-NA & BA Segment profit 26% Y/Y Growth Q4’15 revenue is up 26% y/y Service revenue up 29% y/y CA-NA + BA free cash flow positive in Q4 and full year 2015 CA-NA + BA segment profit up 18% y/y to $29 million CA-NA + BA segment profit margin 21% 18% Y/Y Growth $121 $109 $116
Slide 12: Q4'15 Adjusted EBITDA Is Up 6x from Q4'14
Q4’15 Adjusted ebitda is up 6x from Q4’14 12 556% Y/Y Growth Q4’15 Adjusted EBITDA increased 6x to $8 million Note: Minor differences exist due to rounding
Slide 13: CA-NA - Strong Growth in Revenue & Aircraft Online
CA-NA - Strong GROWTH IN Revenue & AIRCRAFT ONLINE 22% Y/Y Growth Service revenue driven by increases in aircraft online and ARPA 2,387 Aircraft Online as of 12/31/2015 128 aircraft installed ~950 ATG-4 aircraft online as of 12/31/2015 Surpassed 1,000 ATG-4 in January 2016 Over 400 ATG-4 installs an
Slide 14: CA-NA - Strong Revenue & ARPA Growth
14 CA-NA - Strong Revenue & ARPA Growth 7% Y/Y Growth ARPA grew 7% to $141K: Driven by 14% increase in ARPS 20% y/y growth in ARPA excluding newly installed regional jets Gogo Vision revenue doubled from prior year Segment profit margin of 11% Cost of service leverage contributed nearly six percenta
Slide 15: BA Service Revenue - Continued High Growth
BA SERVICE Revenue – Continued High Growth Service revenue increased 41% y/y to record $29 million Service revenue continues strong growth track record Total revenue reaches new record 41% Y/Y Growth 51% 52% 55% 25% Y/Y Growth $43 $40 $42 Note: Minor differences exist due to rounding $44 59% 58% $50
Slide 16: Increased ATG Units Online & Service ARPU Drive Segment Profit Growth
Increased ATG units online & SERVICE ARPU drive segment profit GROWTH ATG units online increased 24%, to nearly 3,500 ATG Service ARPU increased 15%, to more than $2,400 Segment profit up 20%, to $19.4 million Segment profit margin 39% 24% Y/Y Growth Note: Minor differences exist due to rounding 20%
Slide 17: International Expansion Progress
International Expansion PROGRESS 138% Y/Y Growth 202 aircraft online, up 42 q/q Revenue of $4.2 million for Q4’15, up three-fold from Q4’14 450+ awarded and not yet installed at Q4’15, mostly 2Ku Expect to install majority by 2018 Reduced the segment loss to $20 million due to higher revenue
Slide 18: 2015 Full Year Highlights
ü ü Half a billion in revenue 1,100 broadband aircraft added during the year ü $37 million in adjusted EBITDA, up three-fold from 2014 2015 FULL YEAR HIGHLIGHTS ü BA service revenue broke through $100 million for the full year, exceeding equipment revenue for 2015
Slide 19: Consolidated Cash CAPEX Q4'15
Consolidated Cash CAPEX Q4 ’15 Y/Y changes in capital expenditures: Lower spend on network Increase in equipment proceeds from airline partners Shift in airborne expenditures to 2016 for 2Ku ramp $1MM Y/Y Increase Note: Minor differences exist due to rounding.
Slide 20: 2016 Guidance
ü ü Adjusted EBITDA between $55-$65 million, y/y growth of 50-77% ü Installations CA-NA over 200 incremental installations CA-ROW 75 aircraft in 2016, at least 200 in 2017 2Ku installations: 75 in 2016, 300 in 2017 2016 GUIDANCE ü Cash CapEx between $110-$135 million Includes $15 million carryover f
Slide 21: Strong Financial Results
21 ü $366 million on balance sheet ü Have the funding to execute our business plan and get to profitability STRONG FINANCIAL RESULTS
Slide 22: Q&A
Q&A
Slide 23: Appendix
Appendix
Slide 24: 2016 Financial Guidance
2016 FINANCIAL Guidance Revenue$575 - $595 million CA-NA$350 - $365 million BA$190 - $205 million CA-ROW $25 - $30 million Adjusted EBITDA $55 - $65 million Cash CAPEX$110 - $135 million
Slide 25: Adjusted EBITDA Reconciliation ($MM)
ADJUSTED EBITDA RECONCILIATION ($MM) 2009 2010 2011 2012 2013 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 Net Income (142) (140) (18) (96) (146) (17) (19) (25) (24) (20) (25) (29) (34) Interest Income (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) Interest Expense 30 – 1 9 2
Slide 26: Cash CAPEX Reconciliation ($MM)
CASH CAPEX RECONCILIATION ($MM) 2009 2010 2011 2012 2013 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 Purchases of Property and Equipment (69) (33) (33) (67) (105) (32) (28) (35) (37) (53) (33) (19) (30) Acquisition of Intangible Assets (Capitalized Software) (8) (7) (10) (12) (16