Gogo Inc (GOGO) 2022 Q4 法說會逐字稿

Thank you for standing by, and welcome to the Gogo's Fourth Quarter 2022 Earnings Conference Call. (Operator Instructions) As a reminder, today's call is being recorded.

感謝您的支持，歡迎來到 Gogo 2022 年第四季度收益電話會議。 （操作員說明）提醒一下，今天的通話正在錄音中。

I would now like turn the conference to your host, Mr. Will Davis, Vice President of Investor Relations. Please go ahead.

我現在想把會議轉給你的主持人，投資者關係副總裁威爾戴維斯先生。請繼續。

Thank you, Valerie, and good morning, everyone. Welcome to Gogo's Fourth Quarter 2022 Earnings Conference Call. Joining me today to talk about our results are Oakleigh Thorne, Chairman and CEO; Barry Rowan, Executive Vice President and CFO; and Jessi Betjemann, who will assume the role of Gogo's CFO on March 11, 2023.

謝謝你，瓦萊麗，大家早上好。歡迎來到 Gogo 2022 年第四季度收益電話會議。今天和我一起談論我們的成果的是董事長兼首席執行官 Oakleigh Thorne； Barry Rowan，執行副總裁兼首席財務官； Jessi Betjemann 將於 2023 年 3 月 11 日擔任 Gogo 的首席財務官。

Before we get started, I would like to take this opportunity to remind you that during the course of this call, we may make forward-looking statements regarding future events and the future performance of the company. We caution you to consider the risk factors that could cause actual results to differ materially from those in the forward-looking statements on the conference call. Those risk factors are described in our earnings release filed this morning and are more fully detailed under risk factors in our annual report on Form 10-K and 10-Q and other documents we have filed with the SEC.

在我們開始之前，我想藉此機會提醒您，在本次電話會議期間，我們可能會就未來事件和公司未來業績做出前瞻性陳述。我們提醒您考慮可能導致實際結果與電話會議前瞻性陳述中的結果大不相同的風險因素。這些風險因素在我們今天上午提交的收益報告中有所描述，並在我們的 10-K 和 10-Q 表格年度報告以及我們向美國證券交易委員會提交的其他文件中的風險因素下進行了更全面的詳細說明。

In addition, please note that the date of this conference call is February 28, 2023. Any forward-looking statements that we make today are based on assumptions as of this date. We undertake no obligation to update these statements as a result of more information or future events.

此外，請注意本次電話會議的日期是 2023 年 2 月 28 日。我們今天所做的任何前瞻性陳述均基於截至該日期的假設。我們不承擔因更多信息或未來事件而更新這些聲明的義務。

During the call, we will present both GAAP and non-GAAP financial measures. We've included a reconciliation and explanation of adjustments and other considerations of our non-GAAP measures to the most comparable GAAP measures in our fourth quarter earnings release. This call is being broadcast on the Internet and available on the Investor Relations website at ir.gogoair.com. The earnings press release is also available on the website. After management comments, we'll host a Q&A session with the financial community only.

在電話會議期間，我們將介紹 GAAP 和非 GAAP 財務指標。我們在第四季度收益發布中包含了對我們的非 GAAP 措施與最具可比性的 GAAP 措施的調整和其他考慮因素的調節和解釋。此電話會議正在互聯網上播出，並可在投資者關係網站 ir.gogoair.com 上獲得。收益新聞稿也可在網站上獲取。在管理層發表評論後，我們將僅與金融界人士舉行問答環節。

It is now my great pleasure to turn the call over to Oakleigh.

現在我很高興將電話轉給 Oakleigh。

Thanks, Will, and good morning, everyone. Thanks for joining us. Our 2022 fourth quarter capped off a great year for Gogo. We exceeded our growth expectations and positioned ourselves for continued long-term growth and value creation. Our industry has seen seismic shifts in demand coming out of COVID. And thanks to our talented Gogo team and strong operating infrastructure, Gogo stood at the top of the avionics and electronic industry and its ability to scale and meet that demand.

謝謝，威爾，大家早上好。感謝您加入我們。我們的 2022 年第四季度為 Gogo 的偉大一年畫上了句號。我們超出了我們的增長預期，並為持續的長期增長和價值創造做好了準備。我們的行業已經看到 COVID 帶來的需求巨變。得益於我們才華橫溢的 Gogo 團隊和強大的運營基礎設施，Gogo 站在航空電子行業的頂端，並有能力擴展和滿足該需求。

We expect those demand drivers to continue, and we'll continue investing in improving our products and services to meet that demand and maintain our leading position in the business aviation inflight connectivity industry.

我們預計這些需求驅動因素將繼續存在，我們將繼續投資改進我們的產品和服務以滿足這一需求，並保持我們在公務航空機上連接行業的領先地位。

As I mentioned, 2022 was a very busy year. Together, the Gogo team achieved a lot. We reached the 1.5 million flight milestone on our advanced platform since last launch in 2017, cementing its position as the most successful broadband product launch ever in business aviation.

正如我提到的，2022 年是非常忙碌的一年。 Gogo 團隊一起取得了很多成就。自 2017 年上次推出以來，我們的先進平台達到了 150 萬次飛行的里程碑，鞏固了其作為公務航空史上最成功的寬帶產品發布的地位。

We completed the multiyear simplification of our capital structure and reduced our net leverage ratio to below our target of 4x in connection with the conversion of our final outstanding notes. With net leverage of roughly 3.1x at the year-end and with ample cash on the balance sheet, we're well positioned to execute on strategic initiatives that will ensure our long-term competitiveness.

我們完成了多年的資本結構簡化，並將我們的淨槓桿率降低到低於我們與最終未償還票據的轉換相關的 4 倍目標。憑藉年末大約 3.1 倍的淨槓桿率和資產負債表上的充足現金，我們完全有能力執行戰略計劃，以確保我們的長期競爭力。

We have definitely managed supply chain and a year of strong demand and weak supply. And many dealers tell us we were the only avionics company able to meet their demand last year.

我們確實管理了供應鍊和需求強勁供應疲軟的一年。許多經銷商告訴我們，我們是去年唯一能夠滿足他們需求的航空電子設備公司。

We shipped more than 1,300 total AT&T units, an all-time record, up more than 50% from 2021 and more than 20% above our initial guidance, all of which we believe will drive a record increase in aircraft online in 2023.

我們總共出貨了 1,300 多台 AT&T 設備，創歷史新高，比 2021 年增長了 50% 以上，比我們最初的指導高出 20% 以上，我們相信所有這些都將推動 2023 年在線飛機數量創下歷史新高。

We completed the 150 tower build for our 5G network, and we're on track for our fourth quarter launch. As I'll discuss later, our customers are excited at how we've upgrade to this next level of service, and we're actively selling, shipping and installing 5G equipment.

我們完成了 5G 網絡的 150 塔建設，我們正按計劃在第四季度推出。正如我稍後將討論的那樣，我們的客戶對我們如何升級到下一個服務水平感到興奮，並且我們正在積極銷售、運輸和安裝 5G 設備。

We in partnerships with OneWeb and Hughes to deliver the world's first low earth orbit global broadband product size to fit on all BA aircraft. This initiative will take us from serving single-digit megabits per second today to deliver hundreds of megabits per second for the high-performance segment of the BA market over the next few years. We did that by aiming to build a much smaller antenna than competitive LEO and GEO satellite providers as we aim to be the disruptor not the disruptee in the rapidly evolving satellite IFC space.

我們與 OneWeb 和 Hughes 合作，提供世界上第一個適合所有 BA 飛機的低地球軌道全球寬帶產品尺寸。這一舉措將使我們從今天的每秒個位數兆比特服務轉變為未來幾年為 BA 市場的高性能部分提供每秒數百兆比特的服務。我們這樣做的目的是建造一個比競爭性 LEO 和 GEO 衛星供應商小得多的天線，因為我們的目標是成為快速發展的衛星 IFC 空間的破壞者而不是被破壞者。

And finally, not to be overlooked, we continued our strong track record of financial performance. We raised our fiscal 2022 financial guidance every quarter and ultimately delivered record performance at the high end or above those raised expectations.

最後，不容忽視的是，我們繼續保持著良好的財務業績記錄。我們每個季度都上調了 2022 財年的財務指引，並最終實現了創紀錄的高端業績或高於上調預期的業績。

While we're happy with our progress, it's far more important to focus on our future. And the 2023 financial guidance and long-term targets that Jessi will cover demonstrated confidence in our business and in our value creation opportunity.

雖然我們對我們的進步感到滿意，但更重要的是關注我們的未來。 Jessi 將涵蓋的 2023 年財務指南和長期目標表明了我們對我們的業務和我們的價值創造機會的信心。

So I'll focus the rest of my remarks on 2 areas. First, is some key highlights and market drivers of Gogo's strong fourth quarter results; and second, update on our strategic thinking and progress against our strategic initiatives.

因此，我將把餘下的發言重點放在兩個方面。首先，是 Gogo 強勁的第四季度業績的一些關鍵亮點和市場驅動因素；其次，更新我們的戰略思想和我們戰略舉措的進展。

So let's start with our Q4 performance. We ended the year on a high note. We delivered record fourth quarter revenue of $108.2 million, up nearly 17% over prior year, fueled by record service revenue and record equipment revenue. We added 158 new service revenue producing advanced units and ended the year with 47% of our fleet on AVANCE. Adding additional AVANCE units online is central to our growth strategy. First, it drives incurring high-margin service revenue; and second, it extends customer lifetimes by offering upgrades to new technologies like 5G and GBB that are easier and cheaper to execute than moving to competitors' solutions.

那麼讓我們從第四季度的表現開始吧。我們以高調結束了這一年。在創紀錄的服務收入和創紀錄的設備收入的推動下，我們第四季度的收入達到創紀錄的 1.082 億美元，比去年同期增長近 17%。我們增加了 158 個新的服務收入，生產先進的裝置，並在年底時有 47% 的機隊使用 AVANCE。在線添加額外的 AVANCE 設備是我們增長戰略的核心。首先，它推動產生高利潤的服務收入；其次，它通過提供對 5G 和 GBB 等新技術的升級來延長客戶的生命週期，這些技術比轉向競爭對手的解決方案更容易執行且成本更低。

As I mentioned, we shipped a record 390 AVANCE units in the quarter, and we anticipate those will help drive record activations in 2023. On the bottom line, Gogo delivered record fourth quarter adjusted EBITDA of $46.2 million, up 17% year-over-year, driven predominantly by growth in service and equipment revenue. We're really pleased that we could deliver this kind of bottom line performance even as we invest in strategic initiatives like 5G and GBB.

正如我所提到的，我們在本季度出貨了創紀錄的 390 台 AVANCE 設備，我們預計這將有助於推動 2023 年創紀錄的激活。總而言之，Gogo 第四季度調整後的 EBITDA 達到創紀錄的 4620 萬美元，同比增長 17%年，主要受服務和設備收入增長的推動。我們真的很高興，即使我們投資於 5G 和 GBB 等戰略計劃，我們也能提供這種底線性能。

We believe the strong demand we're seeing is a result of a structural change in BA passenger demand, evidenced by Gogo flight counts being up 31% for the quarter when compared to pre-COVID Q4 2019. That change is driven by a number of facts, including a large cohort of flyers that tried private aviation during COVID and plan to keep flying private aviation, a shift in passenger demographics to Gen X, Y and Z through demand connectivity with traveling and a digital transformation and all passengers live their lives, whether that their social lives or work lives in ways that drive demand for more high band width applications. The impact of that digital transformation is evident in Gogo data consumption. Consumption per passenger hour grew 17% year-over-year in the fourth quarter and was up 50% from 2019 for full year.

我們認為，我們看到的強勁需求是 BA 乘客需求結構性變化的結果，與 2019 年第四季度 COVID 之前相比，本季度 Gogo 航班數量增加了 31% 就證明了這一點。這一變化是由許多因素推動的事實，包括一大批在 COVID 期間嘗試過私人航空併計劃繼續乘坐私人航空的乘客，通過與旅行的需求連接和數字化轉型，乘客人口結構向 X、Y 和 Z 世代轉變，所有乘客都過著自己的生活，他們的社交生活或工作方式是否推動了對更高帶寬應用的需求。這種數字化轉型的影響在 Gogo 數據消費中顯而易見。第四季度每乘客小時的消費量同比增長 17%，全年比 2019 年增長 50%。

One recent trend of note is the return of corporate flight department activity with Part 91 owners, which represent 59% of Gogo aircraft online, flying 23% more flights in 2022 than in pre-COVID 2019 and using 46% more data per hour than they did in 2019. As a result of all this activity, we saw a significant demand pull across our distribution channels. And both our dealer and OEM partners have told us they could have installed more aircraft at Gogo if it were not for shortages in labor and/or parts from their other suppliers.

最近的一個值得注意的趨勢是 Part 91 所有者的公司飛行部門活動的恢復，他們佔在線 Gogo 飛機的 59%，2022 年的航班比 2019 年 COVID 之前多 23%，每小時使用的數據比他們多 46%在 2019 年做了。由於所有這些活動，我們看到了整個分銷渠道的巨大需求拉動。我們的經銷商和 OEM 合作夥伴都告訴我們，如果不是因為其他供應商的勞動力和/或零件短缺，他們本可以在 Gogo 安裝更多飛機。

We saw a big surge in shipments in Q3 and Q4 and especially in December, as partners placed large orders to beat a January 1 price increase. As we look at our inventory in the field, we see shipments to channel inventory levels that are consistent with prior years. And when we look specifically at where the largest stockpiles are, they are at our largest OEMs and dealers who choose through those inventories fairly quickly.

我們看到第三季度和第四季度的出貨量大幅飆升，尤其是在 12 月，因為合作夥伴下了大量訂單以應對 1 月 1 日的價格上漲。當我們查看現場庫存時，我們看到運送到渠道的庫存水平與往年一致。當我們具體查看最大庫存的位置時，它們位於我們最大的原始設備製造商和經銷商處，他們可以相當快地通過這些庫存進行選擇。

As we look ahead, we expect to return to more normal pre-COVID order patterns. Our lead times are down to 3 months, and we've built enough buffer stock that we can easily handle drop-in orders. And from a supply perspective, we've got clear line of sight to meet almost all component demand for 2023, and our current backlog is sitting at more than 50% of our equipment budget. That said, we had a very strong December, which has led to January and February being a little lighter than planned. However, March orders are back on track, and we expect to return to more normal high volumes for the rest of the year.

展望未來，我們預計會恢復到更正常的 COVID 之前的訂單模式。我們的交貨時間縮短至 3 個月，而且我們已經建立了足夠的緩衝庫存，可以輕鬆處理直接下單。從供應的角度來看，我們有明確的視線來滿足 2023 年幾乎所有的組件需求，而我們目前的積壓訂單佔設備預算的 50% 以上。也就是說，我們有一個非常強勁的 12 月，這導致 1 月和 2 月比計劃的要輕一些。然而，3 月份的訂單已重回正軌，我們預計今年剩餘時間將恢復到更正常的高銷量。

Now let me turn to our current strategic thinking and an update on our major strategic initiatives. As the supply chain environment has stabilized in recent months, we've now turned our attention to better understanding why 70% of North American and 95% of Rest of World aircraft have no broadband connectivity. As examples, for some, it's the cost of install. For others, it's quality of current solutions. For others, there's no broadband solution that fits on their aircraft. There are many other inhibitors as well.

現在讓我談談我們當前的戰略思想和我們主要戰略舉措的最新情況。隨著近幾個月供應鏈環境的穩定，我們現在將注意力轉向更好地理解為什麼 70% 的北美和 95% 的世界其他地區的飛機沒有寬帶連接。例如，對於某些人來說，這是安裝成本。對於其他人來說，這是當前解決方案的質量。對於其他人來說，沒有適合他們飛機的寬帶解決方案。還有許多其他抑製劑。

We're taking a systematic approach to tackling those inhibitors to accelerate our growth with the following 3-pronged strategy: first, expanding our service addressable market by bundling our products in different configurations to appeal to all segments of the BA market based on variables like size of aircraft, whether they fly in North America or the rest of the world, whether they want to pay more for high performance or less for a more value-oriented product and whether they fly corporate missions, private missions or some others.

我們正在採取系統的方法來解決這些抑制因素，以通過以下三管齊下的戰略加速我們的增長：首先，通過將我們的產品捆綁在不同的配置中來擴大我們的服務可尋址市場，以根據變量吸引 BA 市場的所有部分，例如飛機的大小，無論他們是在北美還是世界其他地方飛行，他們是想為高性能支付更多費用還是為更注重價值的產品支付更少費用，以及他們執行的是公司任務、私人任務還是其他一些任務。

Given our choice of networks, LEO or ATG and our various advanced equipment form factors from the performance oriented L5 to the value-oriented SES, we believe we can bundle different combinations of equipment services and networks to fit the needs of every segment of the global market.

考慮到我們對網絡、LEO 或 ATG 的選擇，以及我們從以性能為導向的 L5 到以價值為導向的 SES 的各種先進設備外形因素，我們相信我們可以捆綁不同的設備服務和網絡組合，以滿足全球每個細分市場的需求市場。

Second, we want to continue to extend the service revenue life of Gogo equipment installed on an aircraft. By continuing to drive AVANCE penetration by enhancing the performance of our ATG network to serve the North American midsize and light jets value-oriented segments of the market and by providing easy upgrade path to new technologies for AVANCE customers that are cheaper than replacing our equipment with competitive products. And third, we want to provide equivalent or better network performance and superior customer service to each segment of the BA market at a lower total cost of ownership than our competition.

第二，我們要繼續延長安裝在飛機上的Gogo設備的服務收入壽命。通過提高我們的 ATG 網絡的性能以服務於北美中型和輕型噴氣機價值導向的細分市場，並通過為 AVANCE 客戶提供比更換我們的設備更便宜的新技術的簡便升級途徑，繼續推動 AVANCE 的滲透有競爭力的產品。第三，我們希望以低於競爭對手的總擁有成本為 BA 市場的每個細分市場提供同等或更好的網絡性能和卓越的客戶服務。

Beyond our major 5G and GBB initiatives, we've launched a series of smaller operating initiatives to address many of the inhibitors I described a moment ago, such as accelerating install times, further improving our award-winning customer service and developing product pricing and packaging to appeal to each segment of the BA market. These operating initiatives led modestly to expense in 2023 and '24, but will help accelerate top line growth and a step function change in free cash flow in 2025 and beyond.

除了我們主要的 5G 和 GBB 計劃之外，我們還推出了一系列較小的運營計劃來解決我剛才描述的許多障礙，例如加快安裝時間、進一步改善我們屢獲殊榮的客戶服務以及開發產品定價和包裝以吸引 BA 市場的每個細分市場。這些運營舉措在 2023 年和 24 年略微導致了支出，但將有助於在 2025 年及以後加速收入增長和自由現金流的階躍函數變化。

We believe our focus on these areas will build an even more competitive Gogo, better positioned to capture a large portion of the Gogo business aircraft market and creating more value for customers and for our shareholders.

我們相信，我們對這些領域的關注將打造更具競爭力的 Gogo，更好地佔據 Gogo 公務機市場的很大一部分，並為客戶和我們的股東創造更多價值。

Now let me turn to updates on our 2 major strategic initiatives, 5G and GBB, initiatives that will take us from delivering single-digit megabits per second today to 10s and then hundreds of megabits per second over the next few years. I'll start with 5G. As I mentioned earlier, we're now on track to commercially launch Gogo 5G in the fourth quarter of this year. In December, the chip passed critical design review, a collaborative effort in which intense scrutiny was applied and transparently exhibited across all parties working on this chip, including Samsung, GCT, Airspan and ourselves. The chip is now deep into fabrication and has allowed them to be delivered to us on time to hit our Q4 target. Once live, our 5G network is expected to deliver speeds roughly 5 to 10x faster than Gogo's current ATG networks. The peak speeds up to 30x faster, enabling multiple streaming sessions and video conference applications to be opened at the same time on the same aircraft and all at a lower cost than companion LEO or GEO satellite solutions.

現在讓我談談我們 5G 和 GBB 這兩個主要戰略計劃的最新情況，這些計劃將使我們從今天提供的每秒個位數兆比特增加到每秒 10 兆比特，然後在未來幾年達到每秒數百兆比特。我將從 5G 開始。正如我之前提到的，我們現在有望在今年第四季度商用推出 Gogo 5G。 12 月，該芯片通過了關鍵設計審查，這是一項協作努力，在該審查中應用了嚴格的審查並透明地展示了所有參與該芯片工作的各方，包括三星、GCT、Airspan 和我們自己。該芯片現已深入製造，並已準時交付給我們，以實現我們的第四季度目標。一旦投入使用，我們的 5G 網絡預計將提供比 Gogo 當前的 ATG 網絡快大約 5 到 10 倍的速度。峰值速度快了 30 倍，使多個流媒體會話和視頻會議應用程序能夠在同一架飛機上同時打開，而且所有這些都比配套的 LEO 或 GEO 衛星解決方案成本更低。

In the meantime, customers who want Gogo 5G service can install the AVANCE L5 system today with full 5G provisions and operate on Gogo's 4G network until X3, the box where the chip will [link] is available. For those who pre-provision, once the X3 is ready, it can be installed quickly and 5G service can begin immediately saving downtime and expense. To date, we've delivered 24 pre-provision chipsets to customers. We have 105 end customers that have signed up for pre-provisioning promotions, and we have 92 orders from dealers. Some of the dealer orders may be duplicative of customer orders, but regardless that is a big jump from the 60 orders we had on our Q3 call.

與此同時，需要 Gogo 5G 服務的客戶今天可以安裝具有完整 5G 規定的 AVANCE L5 系統，並在 Gogo 的 4G 網絡上運行，直到 X3，芯片將 [link] 可用的盒子可用。對於那些預先配置的人來說，一旦 X3 準備就緒，就可以快速安裝，5G 服務可以立即開始，從而節省停機時間和費用。迄今為止，我們已向客戶交付了 24 個預配置芯片組。我們有 105 位終端客戶註冊了預配置促銷活動，我們有 92 個來自經銷商的訂單。一些經銷商訂單可能與客戶訂單重複，但與我們在第三季度電話會議上收到的 60 個訂單相比，這是一個巨大的飛躍。

We also have commits for 4 OEMs and are in discussions with several other OEMs about orders, and we have certifications in process for 19 aircraft models, representing more than 7,000 aircraft in the U.S. fleet. And we expect further certification announcements and incremental momentum with our partners in the coming months.

我們還有 4 家原始設備製造商的承諾，並正在與其他幾家原始設備製造商就訂單進行討論，我們正在對 19 種飛機型號進行認證，代表美國機隊中的 7,000 多架飛機。我們期待在未來幾個月內與我們的合作夥伴一起發布進一步的認證公告和增長勢頭。

Now I'll turn to GBB. First, a reminder of why LEO. LEO satellites are particularly well suited to business aviation because of their low altitude, which enables an equivalent [lean] budget with less power than with GEO satellites, thereby enabling smaller antennas, which can fit better into the small spaces available for antenna installations on most BA aircraft. Over the next few years, we expect LEO satellite technology will allow us to launch service plans that deliver hundreds of megabits per second to meet demand from the high-performance and heavy Intercontinental jet segments of the BA market.

現在我將轉向GBB。首先，提醒一下為什麼是 LEO。 LEO 衛星特別適合公務航空，因為它們的高度低，與 GEO 衛星相比，可以用更少的功率實現等效的[精簡]預算，從而實現更小的天線，可以更好地適應大多數可用的天線安裝空間英航飛機。在接下來的幾年裡，我們預計 LEO 衛星技術將使我們能夠推出每秒提供數百兆比特的服務計劃，以滿足 BA 市場的高性能和重型洲際噴氣機市場的需求。

Our goals for the global broadband offering are to: one, expand our total addressable market to include the 14,000 business aircraft registered outside of North America; two, as a satellite feature for the hundreds of U.S. super-mid and heavy jets to fly global missions, but have Gogo AVANCE ATG installs for use over North America; and third, drive enhanced stickiness in our core North America medium-sized and smaller aircraft segments by offering an easy upgrade path to a LEO product if their needs surpass what ATG alone can deliver.

我們的全球寬帶服務目標是：第一，擴大我們的總目標市場，包括在北美以外註冊的 14,000 架公務機；第二，作為衛星功能，數百架美國超中型和重型噴氣式飛機執行全球任務，但安裝了 Gogo AVANCE ATG 以在北美上空使用；第三，如果他們的需求超出了 ATG 單獨提供的範圍，則通過提供簡單的升級到 LEO 產品的途徑來提高我們在北美核心中型和小型飛機細分市場的粘性。

GBB will enable streaming directly to the favorite video services, multiple simultaneous media conferencing sessions, VPN access and all the other connectivity-enabled solutions you use today at the same service levels you expect in your office or living room today. We continue to make great progress alongside our partners.

GBB 將支持直接流式傳輸到最喜愛的視頻服務、多個同步媒體會議會話、VPN 訪問和您今天使用的所有其他支持連接的解決方案，其服務水平與您今天在辦公室或客廳中所期望的相同。我們繼續與我們的合作夥伴一起取得長足進步。

OneWeb, who will supply the LEO network will complete launch of its 588 satellite global constellation in April and should have the network deployed and AEROready in 2024. And assuming their pending merger with Eutelsat closes, should have access to funding for their Gen 2 network, which will further improve our GBB performance.

將提供 LEO 網絡的 OneWeb 將於 4 月完成其 588 顆衛星全球星座的發射，並應在 2024 年部署網絡並準備好 AERO。假設他們與 Eutelsat 的未決合併結束，他們應該可以獲得為其 Gen 2 網絡提供資金，這將進一步提高我們的 GBB 性能。

On the antenna side, we just completed preliminary design review with our partner, Hughes and have been able to move our schedule to the left by 2 months and now aim to launch commercially in the second half of 2024.

在天線方面，我們剛剛與我們的合作夥伴 Hughes 完成了初步設計審查，並且已經能夠將我們的時間表向左移動 2 個月，現在的目標是在 2024 年下半年進行商業發布。

Our GBB product has received a very enthusiastic response from our OEMs, dealer partners and fleet managers. As we've gotten more clarity on competitive plans, it's clear that we're building is -- what we're building is disruptive and highly differentiated on 2 key factors. First, our small form factor antenna is designed to work on all sized aircraft. While our only current LEO competitor has delivered a large antenna that will work best in the already very competitive heavy business jet segment of the market. And second, Gogo is focused on value. We believe our pricing will be more competitive than others in the space. Importantly, we're well positioned to leverage our existing international customer support footprint to support GBB outside the U.S. The 20-plus dealers already in place and 900 narrowband customers in 90 countries today.

我們的 GBB 產品得到了原始設備製造商、經銷商合作夥伴和車隊經理的熱烈響應。隨著我們對競爭計劃的了解越來越清晰，很明顯我們正在構建的是——我們正在構建的是顛覆性的，並且在兩個關鍵因素上高度差異化。首先，我們的小型天線設計用於所有尺寸的飛機。而我們目前唯一的 LEO 競爭對手已經提供了一種大型天線，該天線將在市場上已經非常競爭激烈的重型公務機領域發揮最佳作用。其次，Gogo 專注於價值。我們相信我們的定價將比該領域的其他定價更具競爭力。重要的是，我們處於有利地位，可以利用我們現有的國際客戶支持足跡來支持美國以外的 GBB。目前，已有 20 多家經銷商和 90 個國家/地區的 900 名窄帶客戶。

Let me wrap up my strategic initiative update by saying that we see ATG 5G and GBB as complementary elements of our product portfolio with 5G targeted to serve value-oriented segments of the North American market, where 86% of all flights take place and GBB targeted to serve all segments outside North America and the high-performance super-mid and heavy jet segments inside North America.

讓我總結一下我的戰略計劃更新，我們將 ATG 5G 和 GBB 視為我們產品組合的互補元素，其中 5G 旨在服務北美市場的價值導向細分市場，其中 86% 的航班都是以 GBB 為目標的為北美以外的所有細分市場以及北美境內的高性能超中型和重型噴氣機細分市場提供服務。

I should add that our AVANCE multi-barrier capability will allow us to serve the super-high premium segment of North American aircraft with LEO and ATG connectivity at the same time, significantly enhancing capacity and providing redundancy for those owners who want it.

我要補充的是，我們的 AVANCE 多屏障能力將使我們能夠同時為北美飛機的超高端部分提供 LEO 和 ATG 連接，顯著提高容量並為需要它的機主提供冗餘。

Despite investments in these 2 very large strategic initiatives and the smaller operational investments I described earlier, we are guiding to substantial growth in free cash flow this year. And as these investments roll off, we expect step function growth in free cash flow beginning in 2025.

儘管對這 2 個非常大的戰略計劃和我之前描述的較小的運營投資進行了投資，但我們正在指導今年自由現金流量的大幅增長。隨著這些投資的減少，我們預計從 2025 年開始自由現金流量將出現階躍函數增長。

To wrap up, our accomplishments throughout 2022 have reshaped Gogo. We're not just an ATG company. We're driving the next era of IFC technology with the launch of 5G and development of broadband LEO satellite and the continued penetration of our AVANCE platform positions us well to extend customer lifetimes and drive free cash flow to invest in further strengthening our business and to return capital to shareholders.

總而言之，我們在 2022 年取得的成就重塑了 Gogo。我們不僅僅是一家 ATG 公司。隨著 5G 的推出和寬帶 LEO 衛星的開發，我們正在推動 IFC 技術的下一個時代，我們 AVANCE 平台的持續滲透使我們能夠很好地延長客戶壽命並推動自由現金流投資以進一步加強我們的業務，並向股東返還資本。

In short, we're more resilient, more in demand, more innovative and more poised for value creation than ever, and our team is energized and excited to deliver on the opportunity ahead in 2023.

簡而言之，我們比以往任何時候都更具彈性、需求量更大、更具創新性，並且更願意創造價值，我們的團隊充滿活力和興奮地在 2023 年抓住未來的機遇。

Finally, in a moment, I'll turn the call over to Barry for his last earnings call as Gogo CFO. But first, I want to thank him for his immense contributions to our company. Barry has been an invaluable leader during a period of unprecedented change, challenge and growth. He led through numerous refinancing without which we would not have survived. He was central to the sale of our Commercial Aviation business, and he has been a trusted adviser on operational and strategic matters to me since the day I arrived in 2018. So I want to give him my personal thanks as well as the thanks from the entire Gogo community. We wish Barry all the best in his well-earned retirement.

最後，稍後，我將把電話轉給巴里作為 Gogo 首席財務官的最後一次財報電話會議。但首先，我要感謝他對我們公司的巨大貢獻。在前所未有的變革、挑戰和增長時期，巴里一直是一位寶貴的領導者。他領導了無數次再融資，沒有這些我們就無法生存。他是我們商用航空業務出售的核心，自從我 2018 年上任以來，他一直是我在運營和戰略事務上值得信賴的顧問。所以我想向他表示我個人的感謝，同時也向他表示感謝整個 Gogo 社區。我們祝愿巴里在他應得的退休生活中一切順利。

So while we'll miss Barry, we're very fortunate to have a highly qualified successor in Jessi Betjemann, who has run FP&A at Gogo for the last 6.5 years (inaudible) credit with making sure we always hit our numbers. Jessi is also on the line today, and will walk through our 2023 guidance and long-term targets as well as be available for questions at the end of our prepared remarks. There is no doubt our finance organization is set up for continued success in Jessi's capable hands.

因此，雖然我們會想念 Barry，但我們非常幸運能有一位高素質的繼任者 Jessi Betjemann，他在過去 6.5 年（聽不清）中一直在 Gogo 負責 FP&A，確保我們始終達到目標。 Jessi 今天也在線上，將介紹我們的 2023 年指導和長期目標，並在我們準備好的評論結束時回答問題。毫無疑問，我們的財務組織是為了在傑西能幹的手中繼續取得成功而建立的。

And now I'll turn it over to Barry for the numbers.

現在我將把它交給 Barry 以獲得數字。

Thanks, Oakleigh, including for your very kind words, really appreciate that. Good morning, everyone. We are very pleased with Gogo's performance in 2022 as we set new records, both operationally and financially. Our performance demonstrates 2 foundational elements to Gogo's investment thesis. First, we have proven our ability to deliver strong financial performance even as we've undertaken significant strategic investments, including Gogo 5G and our global broadband product.

謝謝，Oakleigh，包括你的客氣話，真的很感激。大家，早安。我們對 Gogo 在 2022 年的表現感到非常滿意，因為我們在運營和財務方面都創下了新紀錄。我們的表現展示了 Gogo 投資論點的兩個基本要素。首先，我們已經證明，即使我們進行了重大戰略投資，包括 Gogo 5G 和我們的全球寬帶產品，我們也有能力提供強勁的財務業績。

Looking ahead, we will continue these investments in 2023 and 2024 as we advance our technology and execute other operational initiatives to maintain our leadership position in the growing and underpenetrated business aviation inflight connectivity market. We expect our free cash flow to accelerate substantially beginning in 2025 as we get these major projects behind us.

展望未來，我們將在 2023 年和 2024 年繼續進行這些投資，以推進我們的技術並執行其他運營計劃，以保持我們在不斷增長但滲透率低的公務航空機上連接市場中的領導地位。我們預計，隨著這些重大項目的完成，我們的自由現金流將從 2025 年開始大幅加速。

Secondly, our ability to achieve these results is a testament to the strength of our underlying business model and financial position. In 2022, we met unprecedented demand for our equipment in the face of significant worldwide supply chain challenges. As these units are activated, these aircraft online produce recurring high-margin service revenue that is sticky and is the engine of our strong cash flow. And further, our strong balance sheet provides the flexibility to invest in our business for the long term while delivering for customers and shareholders today.

其次，我們取得這些成果的能力證明了我們潛在的商業模式和財務狀況的實力。 2022 年，面對全球供應鏈的重大挑戰，我們滿足了對設備前所未有的需求。隨著這些單位的激活，這些在線飛機會產生經常性的高利潤服務收入，這種收入具有粘性，是我們強勁現金流的引擎。此外，我們強大的資產負債表提供了長期投資我們業務的靈活性，同時為今天的客戶和股東提供服務。

The 2023 financial guidance and long-term targets we announced this morning underscore our confidence in the business and our strategy. Before we discuss these in more detail, I'll walk you through our fourth quarter results.

我們今天上午宣布的 2023 年財務指導和長期目標強調了我們對業務和戰略的信心。在我們更詳細地討論這些之前，我將向您介紹我們的第四季度業績。

For the fourth quarter, our record total revenue of $108.2 million grew 17% year-over-year. Our top line was driven by record service revenue of $77.3 million, up 12% year-over-year and 3% sequentially. As we have said, increasing AOL and particularly the penetration of our AVANCE products, is the centerpiece of our strategy in both the North American market and globally as we also further our GBB initiatives.

第四季度，我們創紀錄的總收入達到 1.082 億美元，同比增長 17%。我們的營收受到創紀錄的服務收入 7730 萬美元的推動，同比增長 12%，環比增長 3%。正如我們所說，增加 AOL，尤其是我們 AVANCE 產品的滲透率，是我們在北美市場和全球戰略的核心，因為我們還進一步推進了 GBB 計劃。

In the fourth quarter, total ATG AOL increased to 6,935 units, up 8% versus the prior year and 2% versus the prior quarter. AVANCE units online grew at 3,279, up 31% year-over-year, and AVANCE now comprises 47% of our total fleet.

第四季度，ATG AOL 總數增加到 6,935 台，比去年同期增長 8%，比上一季度增長 2%。 AVANCE 在線設備數量增長了 3,279 台，同比增長 31%，AVANCE 現在占我們機隊總數的 47%。

Our dealers are as busy as ever and the proportion of shipments to channel inventory levels in 2022 was in line with trends for 2019 through 2021. As Oak mentioned, we expect our exceptional equipment shipment performance in 2022 to drive strong activations and service revenue growth throughout 2023. Total ATG ARPU grew 2% year-over-year to $3,370, driven by growth in revenue -- recurring revenue from subscription plans.

我們的經銷商一如既往地忙碌，2022 年出貨量佔渠道庫存水平的比例與 2019 年至 2021 年的趨勢一致。正如 Oak 所提到的，我們預計 2022 年我們出色的設備出貨量將推動整個市場的強勁激活和服務收入增長2023 年，ATG ARPU 總額同比增長 2% 至 3,370 美元，這主要得益於收入增長——來自訂閱計劃的經常性收入。

We expect higher priced data plans and the launch of Gogo 5G followed by GBB to further expand our ARPU growth over time. We expect the primary growth driver of service revenue to be from additional aircraft online.

我們預計更高價格的數據計劃以及 Gogo 5G 和 GBB 的推出將隨著時間的推移進一步擴大我們的 ARPU 增長。我們預計服務收入的主要增長動力將來自在線增加的飛機。

Turning to the equipment side. Gogo delivered $3.8 million in equipment revenue in the fourth quarter, a 34% increase year-over-year as we saw continuing very strong demand for our AVANCE L3 and L5 products. We shipped a record 390 AVANCE units in the quarter and 1,334 for the year, a remarkable 50% year-over-year growth in AVANCE units shipped.

轉向設備方面。 Gogo 在第四季度實現了 380 萬美元的設備收入，同比增長 34%，因為我們看到對 AVANCE L3 和 L5 產品的持續強勁需求。我們在本季度出貨了創紀錄的 390 台 AVANCE 設備，全年出貨量為 1,334 台，AVANCE 設備出貨量同比增長 50%。

Gogo delivered service margins of 78% in the fourth quarter. This was a 2 percentage point decrease year-over-year due to the planned higher network costs associated with the deployment of the Gogo 5G network and 1 percentage point of increase sequentially due to lower maintenance and logistics costs.

Gogo 第四季度的服務利潤率為 78%。由於與部署 Gogo 5G 網絡相關的計劃網絡成本增加，同比下降 2 個百分點，由於維護和物流成本降低，環比增加 1 個百分點。

Our service margins were within our target range of 75% to 80% for 2022, and we continue to expect service margins in the 75-plus percent range over our 5-year planning horizon.

我們的服務利潤率在 2022 年 75% 至 80% 的目標範圍內，我們繼續預計在我們的 5 年規劃期內服務利潤率在 75% 以上的範圍內。

As expected, equipment margins were down in the fourth quarter to 32%, 5% lower than the prior year period and 4% lower sequentially driven by our strategic initiative to drive AVANCE penetration.

正如預期的那樣，第四季度設備利潤率下降至 32%，比去年同期下降 5%，環比下降 4%，這是由於我們推動 AVANCE 滲透率的戰略舉措所致。

This quarter also included higher excess and obsolete inventory reserves, which we regularly repeated as a matter of course and is related to our planned product upgrades and technology roadmap.

本季度還包括更高的過剩和過時庫存儲備，我們理所當然地定期重複這一點，這與我們計劃的產品升級和技術路線圖有關。

Now moving on to operating expenses. Fourth quarter combined engineering, design and development, sales and marketing and general and administrative expenses increased 4% year-over-year to $29.1 million, reflecting development expenses for GBB. On a sequential basis, these operating expenses were 2% lower in the fourth quarter, primarily due to lower legal fees. We anticipated that 2022 would be an investment year for Gogo. It was, but not to the extent we originally planned due to pushing out of Gogo 5G expenses related to the chip delay.

現在轉向運營費用。第四季度綜合工程、設計和開發、銷售和營銷以及一般和行政費用同比增長 4% 至 2910 萬美元，反映了 GBB 的開發費用。按順序計算，這些運營費用在第四季度下降了 2%，這主要是由於法律費用較低。我們預計 2022 年將是 Gogo 的投資年。它是，但沒有達到我們最初計劃的程度，因為推出了與芯片延遲相關的 Gogo 5G 費用。

Looking ahead, we expect that 2023 and 2024 will continue to be investing years as we complete our 5G program and ramp spending for GBB. We expect to see the benefit of these investments through sustained strong top line growth and an inflection point in free cash flow growth in 2025 and beyond as we have consistently stated.

展望未來，我們預計 2023 年和 2024 年將繼續投資數年，因為我們將完成 5G 計劃並增加 GBB 支出。正如我們一貫聲明的那樣，我們希望通過持續強勁的收入增長和 2025 年及以後的自由現金流增長拐點看到這些投資的好處。

I'll now describe the spending profiles of our Gogo 5G and GBB initiatives, starting with Gogo 5G. As Oak mentioned, Gogo's 5G chip is now in fabrication, and we're on track and on budget for commercial launch in the fourth quarter of 2023. It's worth noting that we have remained on track with the cost expectations we set back in 2019. The Gogo 5G external development and deployment costs would be approximately $100 million. As we detailed in our third quarter call, we pushed some of the global 5G spending previously expected in 2022 into 2023 due to delay in the 5G chipset availability.

我現在將從 Gogo 5G 開始描述我們的 Gogo 5G 和 GBB 計劃的支出概況。正如 Oak 所提到的，Gogo 的 5G 芯片目前正在製造中，我們正在按計劃在 2023 年第四季度進行商業發布並按預算進行。值得注意的是，我們一直保持在 2019 年設定的成本預期的軌道上。 Gogo 5G 的外部開發和部署成本約為 1 億美元。正如我們在第三季度電話會議中詳述的那樣，由於 5G 芯片組的可用性延遲，我們將之前預計在 2022 年進行的部分全球 5G 支出推遲到了 2023 年。

In the fourth quarter of 2022, we spent $6 million for Gogo 5G, primarily in CapEx. The complete impact of the accounting shift for 5G spending from 2022 to 2023 is reflected in our 2023 financial guidance. It's particularly evident in our adjusted EBITDA expectations, which reflects both delayed 5G sales and higher 5G spending in this fiscal year.

在 2022 年第四季度，我們為 Gogo 5G 花費了 600 萬美元，主要用於資本支出。從 2022 年到 2023 年 5G 支出的核算轉變的全部影響反映在我們的 2023 年財務指南中。這在我們調整後的 EBITDA 預期中尤為明顯，這反映了本財年 5G 銷售的延遲和 5G 支出的增加。

Now on to our GBB initiative. In the fourth quarter, we recorded approximately $1 million of operating expenses related to GBB. We continue to expect external development costs per GBB to be less than $50 million over 3 years. However, we have updated our expectations on the timing of those costs. GBB spend was approximately $4 million in 2022, and we now expect to ramp to $14 million in 2023, with most of the remaining spending to occur in 2024. This is a slight pull forward from our prior view of the timing of our GBB investment.

現在談談我們的 GBB 計劃。在第四季度，我們記錄了與 GBB 相關的大約 100 萬美元的運營費用。我們繼續預計 3 年內每個 GBB 的外部開發成本將低於 5000 萬美元。但是，我們更新了對這些費用發生時間的預期。 2022 年 GBB 支出約為 400 萬美元，我們現在預計到 2023 年將增加到 1400 萬美元，其餘大部分支出將發生在 2024 年。這比我們之前對 GBB 投資時間的看法略有提前。

Additionally, we now anticipate that approximately 95% of GBB external development costs will be in OpEx. This spending profile was reflected in our 2023 adjusted EBITDA and free cash flow guidance.

此外，我們現在預計大約 95% 的 GBB 外部開發成本將用於運營支出。這種支出狀況反映在我們 2023 年調整後的 EBITDA 和自由現金流指導中。

I'll now touch on our record profit growth. Gogo's record adjusted EBITDA increased 17% year-over-year to $46.2 million, primarily driven by a record service and equipment revenue. We delivered net income of $27.7 million in the fourth quarter, translating to $0.22 in basic earnings per share and $0.21 in diluted earnings per share. As a reminder, our financial statements reflect noncash income tax expense as we continue to generate positive pretax [income] .

我現在談談我們創紀錄的利潤增長。 Gogo 創紀錄的調整後 EBITDA 同比增長 17% 至 4620 萬美元，這主要是受創紀錄的服務和設備收入推動。我們在第四季度實現了 2770 萬美元的淨收入，相當於每股基本收益為 0.22 美元，每股攤薄收益為 0.21 美元。提醒一下，隨著我們繼續產生正的稅前 [收入]，我們的財務報表反映了非現金所得稅費用。

Based on our substantial NOL position, we do not expect to pay meaningful cash taxes for an extended period, but we may pay a modest amount by the end of our planning horizon. We continue to expect to see additional reversal of portions of our remaining valuation allowance against deferred tax assets within the next 12 months.

基於我們大量的 NOL 頭寸，我們預計不會在較長時間內支付有意義的現金稅，但我們可能會在我們的計劃期限結束時支付適度的金額。我們繼續期望在未來 12 個月內看到我們剩餘的部分估值備抵對遞延稅資產的進一步逆轉。

In the fourth quarter, we generated $25 million in free cash flow, down slightly from $25.7 million from the prior year period due to increased CapEx associated with Gogo 5G and increased net working capital.

第四季度，由於與 Gogo 5G 相關的資本支出增加以及淨營運資本增加，我們產生了 2500 萬美元的自由現金流，略低於去年同期的 2570 萬美元。

Now I'll turn to a discussion of our balance sheet. Gogo maintained its strong liquidity position as we ended the quarter with $175.3 million in cash and short-term investments, and our $100 million revolver remains undrawn. As of the end of the fourth quarter, we had $714 million in outstanding debt on our term loan B.

現在我將討論我們的資產負債表。 Gogo 保持了強勁的流動性狀況，我們在本季度結束時擁有 1.753 億美元的現金和短期投資，我們的 1 億美元左輪手槍仍未動用。截至第四季度末，我們的定期貸款 B 的未償債務為 7.14 億美元。

Our strong balance sheet provides a foundation to Gogo's significant financial and strategic flexibility.

我們強大的資產負債表為 Gogo 顯著的財務和戰略靈活性奠定了基礎。

In a moment, I'm going to turn the call over to Jessi to provide Gogo's forward-looking perspective, including our capital allocation strategy as well as our 2023 outlook and long-term targets. But first, I'll provide a quick recap of our 2022 full year results.

稍後，我將把電話轉給 Jessi，提供 Gogo 的前瞻性觀點，包括我們的資本配置策略以及我們的 2023 年展望和長期目標。但首先，我將簡要回顧一下我們 2022 年的全年業績。

The increasing demand from customers with connectivity and Gogo's robust business model, both contributed to another year of great performance. We generated total revenue of $404.1 million, up 20% in 2021 and at the high end of our guidance range, which we increased during the year. We delivered service revenue of $296.3 million, up 14% from 2021, with service gross profit also growing 14%, which is a significant contributor to the free cash flow. Equipment revenue was $107.7 million, up a remarkable 42% in 2021.

客戶對連接的需求不斷增加，加上 Gogo 穩健的商業模式，都促成了又一年的出色表現。我們的總收入為 4.041 億美元，在 2021 年增長了 20%，處於我們在這一年中增加的指導範圍的高端。我們實現了 2.963 億美元的服務收入，比 2021 年增長了 14%，服務毛利潤也增長了 14%，這是自由現金流的重要貢獻者。設備收入為 1.077 億美元，到 2021 年增長了 42%。

We reached adjusted EBITDA of $173.8 million for the full year, up 15% from 2021 and significantly above our guidance range, which we also increased throughout the year.

我們全年調整後的 EBITDA 達到 1.738 億美元，比 2021 年增長 15%，大大高於我們全年的指導範圍。

Net income from continued operations was $92.1 million for the year. The decrease versus prior net income from continued operations of $156.6 million was primarily driven by the $187.2 million income tax benefit recorded last year as a result of the partial release of our deferred tax valuation allowance.

全年來自持續經營業務的淨收入為 9210 萬美元。與之前持續經營業務淨收入相比減少 1.566 億美元，這主要是由於我們部分釋放了遞延稅估值津貼，導致去年記錄的 1.872 億美元所得稅收益。

We also delivered record free cash flow of $57.8 million for 2022, even as we invested approximately $40 million in Gogo 5G CapEx.

我們還在 2022 年實現了創紀錄的 5780 萬美元自由現金流，儘管我們在 Gogo 5G 資本支出中投資了約 4000 萬美元。

Overall, 2022 was an outstanding year for Gogo. We're proud of the results we achieved, thanks to the very hard work from our entire team. Thank you all for your relentless commitment to customer focus and innovation.

總體而言，2022 年對 Gogo 來說是出色的一年。我們為取得的成果感到自豪，這要歸功於我們整個團隊的辛勤工作。感謝大家對以客戶為中心和創新的不懈承諾。

Now I'd like to pass the mic to Jessi.

現在我想把話筒傳給 Jessi。

Thank you, Barry. It is a pleasure and a privilege to join you all this morning. While I've been behind the numbers for several years and have engaged with many of you on the line previously, I'm looking forward to getting to know you better as I move into my new role. I'm going to provide a brief update on our capital allocation strategy and then provide some context to the 2023 guidance and long-term targets we announced this morning.

謝謝你，巴里。很高興和榮幸今天早上能和大家一起參加。雖然多年來我一直在關注這些數字，並且之前曾與你們中的許多人進行過在線交流，但我期待著在我擔任新角色時更好地了解你們。我將簡要介紹一下我們的資本配置策略，然後介紹我們今天上午宣布的 2023 年指導方針和長期目標的一些背景信息。

We are pursuing a balanced capital allocation strategy intended to further our strategic goals and enhance shareholder value. We are focused on 4 priorities: first, maintaining adequate liquidity; second, investing in strategic opportunities to drive competitive positioning and financial value, including 5G and GBB; third, maintaining an appropriate level of leverage; and finally, returning capital to shareholders as appropriate in the future.

我們奉行均衡的資本配置策略，旨在推進我們的戰略目標並提高股東價值。我們聚焦四大重點：第一，保持充足的流動性；其次，投資於戰略機會以推動競爭定位和財務價值，包括 5G 和 GBB；第三，保持適當的槓桿水平。最後，在未來酌情向股東返還資本。

Given the rise in interest rates and the current volatility of the financial markets, you can see that we are taking a more conservative approach to our balance sheet. Our higher cash reserves provide us with the optionality to evaluate potential new strategic investments and preserve strategic and financial flexibility.

鑑於利率上升和當前金融市場的波動，您可以看到我們對資產負債表採取了更為保守的方法。我們較高的現金儲備使我們可以選擇評估潛在的新戰略投資並保持戰略和財務靈活性。

In addition, we have previously stated our goal of maintaining our target net leverage ratio below 4x. We ended 2022 with a net leverage ratio of 3.1x. Looking forward, we are planning to maintain net leverage in the range of 2.5 to 3.5x. Our strategic considerations also include the potential to pay down debt in the future.

此外，我們之前曾表示，我們的目標是將目標淨槓桿率維持在 4 倍以下。截至 2022 年，我們的淨槓桿率為 3.1 倍。展望未來，我們計劃將淨槓桿率維持在 2.5 至 3.5 倍的範圍內。我們的戰略考慮還包括未來償還債務的可能性。

We will continue to evaluate capital -- returning capital to shareholders in conjunction with our ongoing assessment of financially attractive strategic investments in the context of the fluid macroeconomic environment.

我們將繼續評估資本——在流動的宏觀經濟環境下，結合我們對具有財務吸引力的戰略投資的持續評估，向股東返還資本。

Now I'll turn to the guidance and long-term targets we announced this morning, starting with some additional color on our 2023 projections. As a reminder, our guidance and long-term targets do not reflect the impact of the Federal Communications Commission's secure and trusted communications network reimbursement program. As we await further information regarding [what the Congress of] appropriate additional funds for eligible expenditures under this program.

現在我將轉向我們今天早上宣布的指導和長期目標，首先是我們 2023 年預測的一些額外顏色。提醒一下，我們的指導和長期目標並未反映聯邦通信委員會安全可靠的通信網絡報銷計劃的影響。在我們等待有關 [國會] 為該計劃下的合格支出適當增加資金的進一步信息時。

We expect 2023 revenue to be in the range of $440 million to $455 million. We anticipate that 2023 will be a strong year for aircraft online growth as the record equipment units we shipped in 2022 are activated, translating into solid service revenue growth. However, this growth is partially offset by lower 5G equipment sales relative to our previous expectations due to the Gogo 5G chipset delay.

我們預計 2023 年的收入將在 4.4 億美元至 4.55 億美元之間。我們預計 2023 年將是飛機在線增長強勁的一年，因為我們在 2022 年出貨的設備數量創紀錄，這將轉化為穩健的服務收入增長。然而，由於 Gogo 5G 芯片組延遲，5G 設備銷售額低於我們之前的預期，部分抵消了這一增長。

We anticipate 2023 adjusted EBITDA in the range of $150 million to $160 million. As Barry mentioned earlier, 2023 will be another important investment year for Gogo, particularly as we increase our investment in GBB and complete the launch of Gogo 5G.

我們預計 2023 年調整後的 EBITDA 在 1.5 億至 1.6 億美元之間。正如Barry之前提到的，2023年將是Gogo的又一個重要投資年，尤其是我們加大了對GBB的投資，並完成了Gogo 5G的發布。

Our adjusted EBITDA expectations reflect approximately $30 million of explicit targeted OpEx investments to drive future growth, broken down into 3 areas: first, $9 million in expected 5G spending, which reflects the shift of $6 million from 2022 to 2023 related to the chip delay; second, an increase in GDP spending to $14 million from our prior expectations of $10 million. And finally, as Oak outlined in his remarks, increased investments in additional operational initiatives focused on penetrating the 70% of the business aviation inflight connectivity market that remains untapped and maintaining our long-term competitiveness.

我們調整後的 EBITDA 預期反映了約 3000 萬美元的明確目標運營支出投資，以推動未來增長，分為 3 個領域：第一，預期 5G 支出 900 萬美元，這反映了與芯片延遲相關的 2022 年至 2023 年 600 萬美元的轉移；其次，GDP 支出從我們之前預期的 1000 萬美元增加到 1400 萬美元。最後，正如 Oak 在他的發言中概述的那樣，增加對額外運營計劃的投資，重點是滲透 70% 的公務航空機上連接市場，該市場仍未開發，並保持我們的長期競爭力。

We expect 2023 free cash flow of $80 million to $90 million, which at the midpoint is nearly 50% growth over 2022 even after reflecting the increased investments I just walked through.

我們預計 2023 年的自由現金流為 8000 萬至 9000 萬美元，即使在反映了我剛剛經歷的增加的投資之後，中點也比 2022 年增長了近 50%。

We forecast 2023 cash interest to be approximately $38 million, net of the benefit of our interest rate caps and CapEx in the range of $30 million to $40 million, which includes approximately $20 million of spend for Gogo 5G.

我們預測 2023 年的現金利息約為 3800 萬美元，扣除我們的利率上限和 3000 萬至 4000 萬美元資本支出的收益，其中包括約 2000 萬美元的 Gogo 5G 支出。

Looking further into the future, our 2024 free cash flow will reflect the ramped external spending for our GBB project, which, as we mentioned, we expect to be below $50 million in aggregate.

展望未來，我們 2024 年的自由現金流將反映出我們 GBB 項目的外部支出激增，正如我們所提到的，我們預計其總額將低於 5000 萬美元。

Now turning to our long-term targets. We recently updated our baseline long-term model, which now reflects the launch of Gogo 5G in late 2023, launching our GBB product to penetrate new global markets and investment in initiatives to continue to improve our competitive positioning.

現在轉向我們的長期目標。我們最近更新了我們的基線長期模型，該模型現在反映了 2023 年底推出的 Gogo 5G，推出我們的 GBB 產品以滲透新的全球市場，並投資於旨在繼續提高我們競爭地位的舉措。

Our long-term targets are as follows. We expect revenue growth at a compound annual growth rate of approximately 17% from 2022 through 2027, with global broadband contributing to revenue beginning in 2025. This updated view maintains our 17% CAGR target for an additional year in spite of dropping 2022 during which revenue grew 20% as the first year.

我們的長期目標如下。我們預計從 2022 年到 2027 年，收入將以約 17% 的複合年增長率增長，全球寬帶將從 2025 年開始為收入做出貢獻。儘管 2022 年的收入有所下降，但這一更新的觀點將我們的複合年增長率目標再維持一年第一年增長了 20%。

We expect annual adjusted EBITDA margin to be in the mid-40% range by 2027. This is slightly lower than prior expectations driven by lower equipment margins to fund our strategic initiative of driving AVANCE penetration. It also includes investments in engineering, design and development to fund continued innovation and market competitiveness in the out years. Importantly, we still expect to achieve significant operating leverage as we see the potential for operating expenses as a percentage of revenue to be reduced by as much as 15 points from 2023 to the end of our planning horizon.

我們預計到 2027 年，年度調整後 EBITDA 利潤率將在 40% 左右。這略低於之前的預期，原因是設備利潤率下降，為我們推動 AVANCE 滲透率的戰略計劃提供資金。它還包括對工程、設計和開發的投資，以資助未來幾年的持續創新和市場競爭力。重要的是，我們仍然期望實現顯著的運營槓桿，因為我們認為從 2023 年到我們的規劃期限結束，運營費用佔收入的百分比可能會減少多達 15 個百分點。

We continue to expect free cash flow of more than $200 million in 2025 and growing in 2026 and beyond. This expectation is based on similar capital structure assumptions and underpinning our previous long-term targets. Importantly, we originally set this target in September of 2021 and have maintained it in spite of since committing to the GBB project and operating in a higher interest rate environment.

我們繼續預計 2025 年的自由現金流將超過 2 億美元，並在 2026 年及以後增長。這一預期基於類似的資本結構假設，並支持我們之前的長期目標。重要的是，我們最初在 2021 年 9 月設定了這個目標，儘管自從致力於 GBB 項目並在更高的利率環境中運營以來，我們一直保持著這一目標。

In conclusion, Gogo's business continues to perform extremely well. Our outlook underscores the immense value creation potential for our customers and shareholders that we expect to unlock as we execute our strategies.

總之，Gogo 的業務繼續表現出色。我們的展望強調了我們期望在執行戰略時為客戶和股東釋放巨大的價值創造潛力。

Now I'll turn the call back to Barry for some closing remarks. But before I do that, I just want to give Barry my heartfelt thanks for his guidance and partnership over the years and especially in the last year to ensure a smooth transition.

現在，我將把電話轉回給巴里，聽取一些結束語。但在此之前，我只想對巴里表示衷心的感謝，感謝他多年來的指導和合作，尤其是在去年，他確保了順利交接。

Thanks so much, Jessi. Before we open up the call for questions, I would like to take this opportunity to express my appreciation to Oak for your truly exemplary leadership, to Jessi, for stepping up that you have to Will, for your partnership with the Street and the entire Gogo team for your incredible support. As you know, I'll be closing a chapter of my professional life in the coming weeks, which has spanned 40 years, helping build or turnaround technology-driven companies, including nearly 6 years at Gogo. I may be retiring from Gogo, but I'm not retiring from life. I look forward to this next season, which I expect to include serving on boards, contributing to the poor and investing in the next generation of leaders.

非常感謝，傑西。在我們開始提問之前，我想藉此機會感謝 Oak 真正堪稱楷模的領導，感謝 Jessi，感謝 Will，感謝你與 Street 和整個 Gogo 的合作團隊，感謝您的大力支持。如你所知，我將在接下來的幾週內結束我職業生涯的新篇章，我的職業生涯已跨越 40 年，幫助建立或扭轉技術驅動型公司，其中包括在 Gogo 的近 6 年。我可能會從 Gogo 退休，但我不會從生活中退休。我期待著下個賽季，我希望這包括在董事會任職、為窮人做貢獻以及投資於下一代領導人。

Gogo is in an outstanding position to achieve a significant potential for value creation through enriching our customers' lives and continue to contribute to society along the way. It's been an absolute privilege to be a part of Gogo's transformation in partnership with our highly innovative and energized team who are truly the best.

Gogo 處於卓越的地位，可以通過豐富客戶的生活來實現巨大的價值創造潛力，並在此過程中繼續為社會做出貢獻。與我們真正最優秀的高度創新和充滿活力的團隊合作，成為 Gogo 轉型的一部分是絕對的榮幸。

I'm also proud to pass the baton to Jessi, who has more than demonstrated her competence, leadership and outstanding business acumen during her years at Gogo. Plus, she's a wonderful human beam. I look forward to cheering as she, Oak, and the rest of the leadership team, guide Gogo into the bright future that lies ahead.

我也很自豪能夠將接力棒傳遞給 Jessi，她在 Gogo 的歲月裡展示了她的能力、領導能力和出色的商業頭腦。另外，她是一個很棒的人類光束。我期待著在她、Oak 和領導團隊的其他成員帶領 Gogo 走向前方光明的未來時歡呼。

Operator, this concludes our prepared remarks, and we're now ready for our first question.

接線員，我們準備好的發言到此結束，我們現在準備好回答第一個問題。

(Operator Instructions) Our first question comes from the line of Rick Prentiss of Raymond James.

（操作員說明）我們的第一個問題來自 Raymond James 的 Rick Prentiss。

Yes, first, Barry, I think our time together spans almost 20 years from all the different places I've covered and you've been at. So it's been a true pleasure working with you as well. So congrats on the next phase of life. And Jessi, glad to be working with you in your new role as well.

是的，首先，巴里，我認為我們在一起的時間跨越了近 20 年，從我和你去過的所有不同地方。因此，與您合作也非常愉快。所以恭喜你進入了人生的下一階段。 Jessi 也很高興能在您的新職位上與您共事。

Thank you, Ric.

謝謝你，里克。

Thanks a lot, Ric.

非常感謝，里克。

First question is, Oak, you talked a little bit about competition and how you think you guys shape up versus others that might be out there now and in the future. How should we think about what the '23 guidance and the long-term guidance assumes as far as competition from whether it's LEOs or air-to-ground or other GEO-type people. What's kind of baked into that? And it sounds like you want to be available to be very competitive in pricing. But how do we think about how competition is factored into this guidance?

第一個問題是，Oak，你談到了一些關於競爭的問題，以及你認為你們如何與現在和未來可能存在的其他人相比。我們應該如何考慮 23 年指導和長期指導假設的競爭，無論是 LEO、空對地還是其他 GEO 類型的人。那是什麼東西？聽起來您希望在價格上具有非常有競爭力的價格。但是我們如何考慮如何將競爭納入該指南？

Yes. So I think you all know Starlink has entered the market at the high end, I would say that given with the large antenna aimed at competing with GEO satellite providers, in the heavy jet sort of segment of the market at a pretty, I think, a price that's competitive with GEO, but it's a lot higher than our pricing. The -- I think that there's going to be huge changes in the competitive landscape over the next couple of years by virtue of the LEO entry. And of course, we hope to be a driver of that, a disruptor not a disruptee. And I think that's going to have a pretty significant impact on GEO providers. So from our perspective, we see ourselves accelerating revenue growth with the launch of the GBB product and now in '24, accelerating revenue growth of 5G starting in -- well, the revenue growth from GBB would be '25 on, revenue growth from 5G would be from '24 on. And so we think we compete very effectively.

是的。所以我想你們都知道 Starlink 已經進入高端市場，我想說的是，鑑於大型天線旨在與 GEO 衛星供應商競爭，在重型噴氣式飛機這樣的市場細分市場中，我認為，與 GEO 相比具有競爭力的價格，但比我們的定價高很多。我認為，由於 LEO 的加入，未來幾年的競爭格局將發生巨大變化。當然，我們希望成為這方面的推動者，一個破壞者而不是被破壞者。我認為這將對 GEO 提供商產生相當大的影響。因此，從我們的角度來看，我們看到自己隨著 GBB 產品的推出加速了收入增長，現在是 24 年，從開始加速 5G 的收入增長——好吧，GBB 的收入增長將是 25 年，5G 的收入增長將從'24開始。所以我們認為我們的競爭非常有效。

In terms of competing with Starlink, their product is installed on some aircraft. We've talked to people who own that, and we kind of understand what their speeds are. Frankly, our speeds of GBB will be very competitive with those speeds and they'll be increasing their speeds over time, and we'll be increasing our speeds over time as OneWeb launches Gen 2 and we progressed that partnership.

在與星鏈競爭方面，他們的產品安裝在一些飛機上。我們已經與擁有它的人交談過，我們有點了解他們的速度。坦率地說，我們的 GBB 速度將與這些速度相比非常具有競爭力，並且他們會隨著時間的推移提高速度，隨著 OneWeb 推出第 2 代以及我們推進這種合作關係，我們將隨著時間的推移提高我們的速度。

So we think on a product quality sort of pure basis, we're competitive. And then when you look at all the other things that come into bear in terms of what it takes to win in the business aviation market, we think we have a real advantage. First of all, customer service is hugely important in our business. It ranges from engineering support to billing support to everything. And people expect very high levels of what we call white glove service in our industry. We're very good at that.

因此，我們認為在純粹的產品質量基礎上，我們具有競爭力。然後，當您審視所有其他影響公務航空市場取勝的因素時，我們認為我們擁有真正的優勢。首先，客戶服務在我們的業務中非常重要。它的範圍從工程支持到計費支持，無所不包。在我們的行業中，人們期望我們所謂的白手套服務水平非常高。我們非常擅長這一點。

We can afford to spend a lot of money serving our market because of our scale in the vertical market. We have by far the largest share in the market, and we generate a lot of cash flow out of the market, which enables us to invest in all the different elements of sales, marketing support, engineering, et cetera, that it takes to really understand and deeply sort of integrate ourselves into the BA market. So we feel has a big advantage there. We have 30 years of building very deep relationships with all the OEMs. We have contracts with all the OEMs, which are hard to do. We have 120 dealers and very deep relationships there. We have deep relationships with the big fleet operators and with thousands of owner operators. So I think we feel that we can be very, very competitive and we feel good. And we've factored all those factors that I've mentioned a moment ago into our plan.

由於我們在垂直市場的規模，我們可以花很多錢來服務我們的市場。迄今為止，我們在市場上擁有最大的份額，我們從市場中產生了大量現金流，這使我們能夠投資於銷售、營銷支持、工程等所有不同的要素，這些都是真正需要的了解並深入融入 BA 市場。所以我們覺得那裡有很大的優勢。我們與所有原始設備製造商建立了 30 年的深厚關係。我們與所有原始設備製造商都有合同，這很難做到。我們在那裡有 120 家經銷商和非常深厚的關係。我們與大型車隊運營商和數以千計的業主運營商有著深厚的關係。所以我認為我們覺得我們可以非常非常有競爭力，我們感覺很好。我們已經將我剛才提到的所有這些因素都考慮到了我們的計劃中。

Great. And specific to the initiatives, should we assume that most of the GBB spending goes into EDD and that the operational initiatives also go into kind of the EDD line?

偉大的。具體到這些舉措，我們是否應該假設大部分 GBB 支出都進入了 EDD，並且運營舉措也進入了 EDD 系列？

Yes. So most of that spending, as we mentioned, with GBB, now 95% is going to be OpEx, and that will be all in GBB -- I'm sorry, all in EDD. And yes, but the operational initiatives as well is predominantly in EDD.

是的。因此，正如我們提到的，大部分支出與 GBB 相關，現在 95% 將用於運營支出，而這將全部用於 GBB——對不起，全部用於 EDD。是的，但運營計劃也主要在 EDD 中。

Okay. And final question. Any update on the lawsuit, what's going on, on the patents and the court case. I know you said, I think, came in lower cost than you thought in the quarter maybe.

好的。最後一個問題。關於訴訟的任何更新，正在發生的事情，專利和法庭案件。我知道你說過，我認為，本季度的成本可能比你想像的要低。

Yes, sure. There's a lot of -- lot to update there. So first of all, I just want to repeat, we do not infringe on these patents, and I want to be very clear about that. And I'm also not going to comment on our litigation strategy or the case itself as I don't want to [obtain] our litigation. But let me go through where things stand.

是的，當然。那裡有很多 - 很多更新。所以首先，我只想重複一遍，我們沒有侵犯這些專利，我想非常清楚這一點。而且我也不打算對我們的訴訟策略或案件本身發表評論，因為我不想 [獲得] 我們的訴訟。但是，讓我了解一下目前的情況。

So SmartSky originally filed a patent suit against us around 4 patents. They've just added -- they just filed with the court requesting to add 2 new patents. Those 2 new patents are essentially additive to existing families of patents that were already part of the suit. So 3 of those patents, there are 6 patents in all right now, I believe. And 3 of those patents expire in August of 2025 and the other 3 expire in 2034 and 2035.

所以 SmartSky 最初圍繞 4 項專利對我們提起專利訴訟。他們剛剛添加 - 他們剛剛向法院提交申請，要求添加 2 項新專利。這兩項新專利本質上是對已經成為訴訟一部分的現有專利族的補充。所以其中 3 項專利，我相信現在總共有 6 項專利。其中 3 項專利將於 2025 年 8 月到期，另外 3 項將於 2034 年和 2035 年到期。

There are 2 prongs of the litigation right now. One is the original infringement complaint. And the other is the request for a temporary injunction and I'll just cover each of them.

目前有兩個訴訟分支。一是原始侵權投訴。另一個是臨時禁令請求，我將逐一介紹。

The infringement -- I mean, I'm sorry, the injunction application, the judge at the -- the presiding judge over the main trial decided against SmartSky on that and did not grant a temporary injunction. They've appealed that. That's in the Federal District Court, and that court can either essentially remand the case back to the original judge saying that there was an abuse of discretion, which would be the standard that they have to apply in the district and then the original judge would have to deal with that and either change his mind or confirm his original denial.

侵權 - 我的意思是，我的意思是，我的意思是，禁令申請，法官在 - 主要審判的主審法官決定反對 SmartSky，並且沒有授予臨時禁令。他們對此提出了上訴。那是在聯邦地方法院，該法院可以基本上將案件發回原法官，說存在濫用自由裁量權的情況，這將是他們必須在該地區適用的標準，然後原法官會處理這個問題，要么改變主意，要么確認他最初的否認。

If the district court did not find that there was an abusive discretion then the rolling against SmartSky on the temporary injunction would stand.

如果地方法院沒有發現濫用自由裁量權，那麼針對 SmartSky 的臨時禁令的滾動將成立。

In the original case, the presiding judge has now scheduled trial for April 25. And like I said before, I do not believe -- we do not believe we infringe. But I want to be clear that if the judge ultimately found in favor of SmartSky, the overwhelming remedy is that there would be some sort of licensing agreement. The SmartSky sort of tried to [infer] in their recent release that there could be a permanent injunction against us to prevent us from selling our 5G product that would be highly unusual. And I would also note that the patents that are expiring, of course, any decision by the court there would, a, be fairly limited in terms of what the fees might be because those patents will not be around very long after the case since the trials April 25 and then patents on August of '25. And let me just see -- I think that's about it. Any follow-up on that, Ric?

在原案中，主審法官現在已安排 4 月 25 日開庭審理。正如我之前所說，我不相信——我們不相信我們侵權。但我想明確一點，如果法官最終裁定支持 SmartSky，則壓倒性的補救措施是會有某種許可協議。 SmartSky 在他們最近的發布中試圖 [推斷] 可能會有針對我們的永久禁令，以阻止我們銷售我們非常不尋常的 5G 產品。我還要指出，即將到期的專利，當然，法院的任何決定都會，a，在費用方面相當有限，因為這些專利不會在案件發生後很長時間內存在，因為4 月 25 日進行試驗，然後在 25 年 8 月獲得專利。讓我看看——我想就是這樣。 Ric，還有後續嗎？

No. I think that's clear. We'll just keep our eyes on it. Have a good time. I look forward to seeing Jessi and Barry down for one final swan song in Orlando next week. Everyone stay well.

不，我認為這很清楚。我們將繼續關注它。玩的很開心。我期待著下週在奧蘭多見到 Jessi 和 Barry 最後一首絕唱。每個人都好好的。

Looking forward to it.

期待它。

Sounds great.

聽起來不錯。

Yes. We managed to keep Barry, we hung on to him for 2 weeks, so you can attend your conference, I want you to know that.

是的。我們設法留住了 Barry，留住了他 2 週，所以你可以參加你的會議，我想讓你知道這一點。

Sorry about that, Barry.

對不起，巴里。

It will be a pleasure.

這將是一種樂趣。

Our next question comes from the line of Scott Searle of ROTH.

我們的下一個問題來自 ROTH 的 Scott Searle。

Barry, I'd like to add my congratulations. Best of luck going forward in your new endeavors. And Jessi, congrats. I look forward to working with you going forward.

巴里，我想表示祝賀。祝你在新的事業中取得好成績。傑西，恭喜。我期待著與你一起前進。

Thank you so much, Steve.

非常感謝你，史蒂夫。

Maybe to dive in on the guidance for this year, right? We've got some elevated OpEx as a result of 5G pushing out from '22 into '23 on top of that, the investment cycle for GBB going up this year. I was wondering if you could extrapolate that into '24, right? 5G should start to come down, but I think the GBB cycle continues to increase a little bit, how we should be thinking about that? And also in terms of the guidance this year, I wonder if you could clarify how you're thinking about equipment gross margins. I think you've talked about possibly being a little bit more aggressive if need be, where gross margins could be under 30%. What are you guys kind of factoring in at the current time in that guidance?

也許是為了深入了解今年的指導，對吧？由於 5G 從 22 年推出到 23 年，我們的運營支出有所提高，此外，今年 GBB 的投資週期也在上升。我想知道您是否可以將其推斷為 24 年，對嗎？ 5G 應該開始下降，但我認為 GBB 週期繼續增加一點，我們應該如何考慮？而且就今年的指導而言，我想知道你是否可以澄清你是如何考慮設備毛利率的。我想你已經談到如果需要的話可能會更激進一點，毛利率可能低於 30%。你們目前在該指南中考慮了哪些因素？

Yes, that's right. So for 2024, as we mentioned, '23 and 2024 are investment years for us. So we will have the remaining spend, it's going to be around the $30 million to $35 million for the remaining spend in GBB in 2024, and that's predominantly OpEx. We will -- that's going to get offset as we see some of the 2022 shipments are coming online in '23, and we'll continue to be providing service revenue in 2024, but it still will be an investment year.

恩，那就對了。因此，對於 2024 年，正如我們提到的，'23 和 2024 年是我們的投資年。所以我們將有剩餘的支出，到 2024 年，GBB 的剩餘支出將在 3000 萬到 3500 萬美元左右，這主要是 OpEx。我們將——這將被抵消，因為我們看到 2022 年的部分出貨量將在 23 年上線，我們將在 2024 年繼續提供服務收入，但這仍將是一個投資年。

With regards to the equipment margins, that's right. So as you noticed with our long-term target for the adjusted EBITDA did come down slightly, and part of that is reflecting the lower equipment margins to be able to grow our units online and support the AVANCE penetration strategy that we have. Also included as part of that is continued spending in ED&D so that we can remain competitive in the outer years. We're being cautious in that and being able to keep that level of innovation going forward.

關於設備利潤率，這是正確的。因此，正如您注意到的那樣，我們調整後的 EBITDA 的長期目標確實略有下降，部分原因是設備利潤率較低，以便能夠在線增長我們的單位並支持我們擁有的 AVANCE 滲透戰略。其中還包括在 ED&D 方面的持續支出，以便我們能夠在未來幾年保持競爭力。我們對此持謹慎態度，並能夠保持這種創新水平。

Right. I might just add that on the average sales price, to remind people, we've often talked about going down market as well as upmarket. And part of this, what I'll call our segmentation strategy here is also going down market and penetrating downmarket. And as you go down market, the markets are more price sensitive. And so we sort of factored in some increased promotions or some price reductions on what I'll call more value-oriented advanced form factors down market.

正確的。我可能只是在平均銷售價格上加上一點，以提醒人們，我們經常談論低端市場和高端市場。其中一部分，我在這裡稱之為我們的細分策略，也是在低端市場和滲透低端市場。當你走低市場時，市場對價格更加敏感。因此，我們在某種程度上考慮了一些增加的促銷活動或一些我稱之為更注重價值的高級外形市場的降價。

Got you. And I apologize if I missed this on the call, but did you give a unit number that you're targeting in 2023? And then lastly, if I could, on the ARPA front, you've done pretty well on that front. I think, over the course of '22, it's gone up. A lot of moving parts, right, moving down market plus you've got more unlimited plans and you have 5G kind of coming into the back of this year. Given the current backdrop, if I look at some of the BA data in North America, utilization is flat to maybe down a little bit, still underpenetrated, right? So you're growing overall units in connected aircraft, but utilization is going down a little bit. I'm wondering, is that having any near-term impact on ARPAs in terms of how you're seeing for utilization? Or are customers moving towards higher-end plans? And how do you expect 5G to impact that as we start to get into the back of this year and into 2024?

明白了如果我在電話中錯過了這一點，我深表歉意，但你是否提供了 2023 年的目標單位編號？最後，如果可以的話，在 ARPA 方面，你們在這方面做得很好。我認為，在 22 年的過程中，它已經上升了。很多移動部件，正確的，移動市場加上你有更多的無限計劃，你有 5G 有點進入今年年底。鑑於當前的背景，如果我看一下北美的一些 BA 數據，利用率持平甚至可能略有下降，仍然滲透不足，對吧？所以你在增加聯網飛機的整體單位，但利用率正在下降一點點。我想知道，就您對利用率的看法而言，這是否對 ARPA 有任何近期影響？或者客戶正在轉向更高端的計劃？當我們開始進入今年年底和 2024 年時，您預計 5G 將如何影響它？

By utilization, I'm assuming you mean aircraft utilization, network utilization. Our network utilization play up. Aircraft utilization and frankly, I think on Gogo-equipped aircraft is up slightly. But yes, the trend is sort of leveling off. And to us that looks like kind of a plateau, the demand for lift, but that demand is still way over where it was in 2019, and that's the structural change in the industry that's driving IFC demand. Because 70% of the planes don't have anything. And the people following those aircraft there's more demand now for IFC given all the changes I talked about in my script in terms of the demographics and the applications people are using, et cetera.

關於利用率，我假設您指的是飛機利用率、網絡利用率。我們的網絡利用率發揮了作用。飛機利用率，坦率地說，我認為配備 Gogo 的飛機略有上升。但是，是的，趨勢有點趨於平穩。對我們來說，這看起來像是一種平穩期，對電梯的需求，但這種需求仍遠高於 2019 年的水平，這就是推動國際金融公司需求的行業結構性變化。因為70%的位面什麼都沒有。考慮到我在腳本中談到的人口統計和人們使用的應用程序等方面的所有變化，跟隨這些飛機的人現在對 IFC 的需求更多。

In terms of the impact on us of a slight decrease in flight counts industry-wide, really not much impact, and that's for that same reason. There's so much of this market that's unpenetrated and there's demand in that large unpenetrated portion of the market. So we don't see any impact there.

就全行業航班數量略有減少對我們的影響而言，影響確實不大，出於同樣的原因。這個市場有很多未被滲透的市場，而且市場中很大一部分未滲透的市場存在需求。所以我們在那裡看不到任何影響。

I would say it's -- ARPA is not a major driver of our growth, unit counts are the main driver. And like you said, Scott, 5G will push things up a bit, going down market, deals like we have with Cirrus and others will pull it down a little bit. Then ultimately, GBB will push it up a bit. So all these things are going to play out, and that's why we don't project very large ARPA growth through the planning segment.

我想說的是——ARPA 不是我們增長的主要驅動力，單位數量是主要驅動力。就像你說的，Scott，5G 會把事情推高一點，市場走低，像我們與 Cirrus 和其他人達成的交易會把它拉低一點。然後最終，GBB 會將其推高一點。所以所有這些事情都會發生，這就是為什麼我們不會通過規劃部分預測 ARPA 的大幅增長。

Our next question comes from the line of Lance Vitanza of Cowen.

我們的下一個問題來自 Cowen 的 Lance Vitanza。

It's Lance Vitanza calling here. Thanks very much for the information thus far. Barry, congratulations. It's been a pleasure working with you. And Jessi, I look forward to working with you as well. I wanted to sort of focus on the long-term targets. The revenue and free cash flow targets, since you've introduced these longer-term targets have been consistent -- fairly consistent thankfully, but EBITDA margin target seems to be bouncing around a bit. And I think first, it was 45% in 2025. And then I think it was approaching 50% by 2026, and now it's down to 45% by 2027, I think. So just wondering if you can comment just at a high level on what's going on there? And should we expect this target, in particular, could remain volatile? And then I have a follow-up as well.

是 Lance Vitanza 來電。非常感謝到目前為止提供的信息。巴里，恭喜你。和你一起工作很愉快。 Jessi，我也期待與你合作。我想把重點放在長期目標上。收入和自由現金流目標，因為你已經介紹了這些長期目標，所以一直保持一致——謝天謝地，相當一致，但 EBITDA 利潤率目標似乎有點反彈。我認為首先，2025 年是 45%。然後我認為到 2026 年接近 50%，現在到 2027 年下降到 45%，我想。所以只是想知道你是否可以就那裡發生的事情發表高水平的評論？我們是否應該期望這個目標尤其會保持波動？然後我也有一個後續行動。

I don't really view balancing between 45% and 50% is being extremely volatile...

我真的不認為 45% 和 50% 之間的平衡非常不穩定......

Approaching.

接近。

Approaching maybe, I should point out, as Jessi says. So yes, we did guide that -- so 48%, that was approaching 50%. Now maybe we're just below 47%. 25% range. So look, we think those are all very healthy EBITDA margins to begin with.

接近也許，我應該指出，正如 Jessi 所說。所以是的，我們確實指導了這一點——所以 48%，接近 50%。現在我們可能剛好低於 47%。 25% 的範圍。所以看，我們認為這些都是非常健康的 EBITDA 利潤率。

Second of all, I think there are 2 things over the course of the LTM that are impacting that. First is what I just mentioned around the average sales plays on equipment. We have been introducing smaller form factors that go down market, and those will be priced at lower prices, and they'll be competitive because we want really drive penetration down there with the AVANCE platform. So that's a bit of a drag on equipment margin in the out years. So that brought things down. And then frankly, we -- it's very hard to predict exactly what's going to happen in the competitive environment. We talked about it. Obviously, Starlink's entered at the high end of the market. We don't see a lot of progress there, but they have entered. And the way we thought about that is we may need to invest more in engineering in the out years. So we've beefed up our ED&D spend, even though we don't have main projects for some of that spend right now, but this is kind of a placeholder to manage expectations. So that's the other driver.

其次，我認為在 LTM 的過程中有兩件事正在影響它。首先是我剛才提到的關於設備平均銷售的內容。我們一直在推出面向市場的更小尺寸產品，這些產品的價格會更低，而且它們將具有競爭力，因為我們希望通過 AVANCE 平台真正推動市場滲透。所以這對過去幾年的設備利潤率有點拖累。所以這讓事情變得很糟糕。然後坦率地說，我們很難準確預測在競爭環境中會發生什麼。我們談過了。顯然，Starlink 進入了高端市場。我們在那裡沒有看到很多進展，但他們已經進入了。我們的想法是，我們可能需要在未來幾年對工程進行更多投資。所以我們增加了我們的 ED&D 支出，儘管我們現在沒有一些支出的主要項目，但這是一種管理預期的佔位符。那是另一個司機。

And just to add to that, though, we want to make sure that you understand that we are planning to have significant operating leverage because our operating expense as a percentage of revenue, we're expecting that to decline approximately 15 points from 2023. And also, we really want to focus on the absolute EBITDA generation and not just on the margin. As you noted, and we've been pointing out, we've been very consistent on anchoring around more than $200 million in free cash flow, a target that we set over 2 years ago. And so when you look at that and then also over the latter years of our planning period, the free cash flow conversion is approaching almost 90%. So...

不過，除此之外，我們希望確保您了解我們計劃擁有顯著的運營槓桿，因為我們的運營費用佔收入的百分比預計將從 2023 年下降約 15 個百分點。此外，我們真的想關注絕對 EBITDA 的產生，而不僅僅是利潤率。正如你所指出的，我們一直在指出，我們一直非常一致地錨定超過 2 億美元的自由現金流，這是我們 2 年前設定的目標。因此，當您查看這一點以及我們計劃期的後幾年時，自由現金流轉換率接近 90%。所以...

And that actually ties into my follow-up, which is just trying to get a better sense for what might be happening below the EBITDA line, given that there has been a little bit of a reset on the EBITDA margin and yet the free cash flow has been holding in firm. So is that -- I mean, I can't imagine that it's interest expense, but perhaps you're seeing some advantage -- some better performance in terms of cash taxes, CapEx or working capital?

這實際上與我的後續行動有關，這只是試圖更好地了解 EBITDA 線以下可能發生的情況，因為 EBITDA 利潤率和自由現金流都有一些重置一直持有堅挺。那是——我的意思是，我無法想像這是利息支出，但也許你看到了一些優勢——在現金稅、資本支出或營運資本方面的一些更好的表現？

Yes. As we have noted with our net operating loss balance that we have, we don't expect to pay meaningful cash taxes until the end of our planning period. But also with regards to our CapEx, so after this year, we're really going to see a decline in that CapEx and that's why you're going to have that high turnover to free cash flow in 2025 really have that step function and then going forward.

是的。正如我們在我們的淨營業虧損餘額中所指出的那樣，我們預計在計劃期結束之前不會支付有意義的現金稅。但也關於我們的資本支出，所以在今年之後，我們真的會看到資本支出的下降，這就是為什麼你將在 2025 年擁有如此高的自由現金流的營業額真的有這個階梯功能，然後向前走。

Right. We also have more projects hitting OpEx right now than CapEx. So...

正確的。與資本支出相比，我們現在還有更多項目觸及運營支出。所以...

Our next question comes from the line of Landon Park of MS.

我們的下一個問題來自 MS 的 Landon Park。

Congratulations to Jessi and best wishes on the retirement, Barry. I just wanted to follow up on the long-term revenue guidance. I was just wondering if you could disaggregate that between service and equipment for us and just to better understand what -- how those 2 elements are playing into it. And I just had a couple of follow-ups on the back of that.

恭喜 Jessi，祝愿 Barry 退休。我只是想跟進長期收入指導。我只是想知道您是否可以為我們在服務和設備之間進行分解，以便更好地了解這兩個元素如何發揮作用。在這之後，我剛剛進行了幾次跟進。

In terms of revenue mix, our goal is to grow service revenue. Equipment is a means to service revenue. That percentage is in the out years, I don't have a figure and maybe Jessi, I don't know if you...

在收入組合方面，我們的目標是增加服務收入。設備是服務收入的一種手段。這個百分比是過去幾年的，我沒有數字，也許 Jessi，我不知道你是否...

Yes, we haven't provided that.

是的，我們沒有提供。

We haven't provided that, yes.

我們沒有提供，是的。

It's mainly being driven -- you're going to have that stronger growth in service revenue.

它主要是被驅動的——你將在服務收入方面有更強勁的增長。

So service revenue will be above 17%?

那麼服務收入會在17%以上嗎？

Yes, it's going to probably be more.

是的，它可能會更多。

Okay. And then when -- I was just wondering if you could just on the penetration rate that you guys see. Can you maybe unpack that in terms of what is the penetration rate at the sort of the large cabin aircraft? And how does that change as you get down into the small jets? And what do you think the realistic targets are for those different aircraft sizes over time? And then, Jessi, just one last one for you. On the $30 million in strategic and operational spend this year, can you just clarify if we look at that bucket as a whole, what was it in '22? And as we look at '24, what did it look like in '24? I know you talked about the GBB spend for '24, but just the other elements as well, if we could just get an apples-to-apples on that $30 million bucket.

好的。然後什麼時候 - 我只是想知道你們是否可以看到你們看到的滲透率。您能否根據大型機艙飛機的滲透率來解釋一下？當您進入小型噴氣式飛機時，情況會如何變化？隨著時間的推移，您認為這些不同尺寸的飛機的現實目標是什麼？然後，Jessi，最後一張給你。關於今年 3000 萬美元的戰略和運營支出，如果我們從整體上看這個桶，你能否澄清一下，22 年的支出是多少？當我們回顧 24 年時，24 年是什麼樣子的？我知道你談到了 24 年的 GBB 支出，但也談到了其他因素，如果我們能在 3000 萬美元的桶上得到一個蘋果對蘋果的話。

So I'll start with the segments and then Jessi can answer the financial question. About half the heavy jets in the U.S. market have inflight connectivity today, about half the medium-sized jets. It's down in the mid-20s on the light jet and it's very small in the turboprops. So we see, frankly, plenty of them to grow in all of those jet-sized segments, if you will. And globally, it's even more dramatic. I think it's 95% roughly of the market, doesn't have connectivity today. There are a couple of thousand heavy jets of which, I don't know, 800, 900, I think have connectivity roughly. The rest of the market, frankly, doesn't even have an IFC product that's available to them in terms of broadband IFC. So medium-size jets on down overseas are -- have nothing and it's basically open territory. So...

所以我將從細分開始，然後 Jessi 可以回答財務問題。如今，美國市場上大約一半的重型噴氣式飛機擁有機上連接，大約一半的中型噴氣式飛機。它在輕型噴氣機上下降到 20 年代中期，在渦輪螺旋槳飛機上非常小。因此，坦率地說，如果您願意的話，我們看到在所有這些噴氣機大小的細分市場中都有大量增長。在全球範圍內，它甚至更具戲劇性。我認為它大約佔市場的 95%，但今天沒有連接。有幾千架重型噴氣式飛機，我不知道，大概有 800、900 架可以連接。坦率地說，市場的其餘部分甚至沒有在寬帶 IFC 方面可供他們使用的 IFC 產品。所以在海外降落的中型噴氣式飛機是——什麼都沒有，它基本上是開放的領域。所以...

And large jets are what in the U.S.?

大型噴氣式飛機在美國是什麼？

I'm sorry. What?

對不起。什麼？

Large jets, did you say penetration rate for this?

大型噴氣機，你說的是滲透率嗎？

Yes, I did. I said heavy jet is about 50%.

是的，我做到了。我說重型噴氣機大約是50%。

And then as far as the $30 million spending, Landon, we -- for 5G, we spent about $2 million in OpEx this year and GBB $4 million. So the 5G, as mentioned, is going to increase. It will be $9 million and GBB is around $14 million this year. And then for next year, the GBB is going to be the brunt of the spend around $30 million, $35 million to be the -- to reach kind of that aggregate of $50 million in total. And then in terms of the other operational initiatives, it's probably going to be somewhere in the range of $5 million to $10 million next year.

然後就 3000 萬美元的支出而言，Landon，我們 - 對於 5G，我們今年在 OpEx 上花費了大約 200 萬美元，在 GBB 上花費了 400 萬美元。因此，如前所述，5G 將會增加。它將是 900 萬美元，而 GBB 今年約為 1400 萬美元。然後明年，GBB 將首當其沖地花費大約 3000 萬美元，3500 萬美元——總計達到 5000 萬美元。然後就其他運營計劃而言，明年可能會在 500 萬到 1000 萬美元之間。

Our next question comes from the line of Louie DiPalma of William Blair.

我們的下一個問題來自 William Blair 的 Louie DiPalma。

Great. Can you hear me?

偉大的。你能聽到我嗎？

Yes. How are you doing, Louie?

是的。你好嗎，路易？

Excellent. Barry and Jessi, I am sure both of you will do great on the next phases of your respective careers.

出色的。 Barry 和 Jessi，我相信你們在各自職業生涯的下一階段都會做得很好。

Thanks, Louie.

謝謝，路易。

Thanks.

謝謝。

Starting off, global broadband is obviously critical for Gogo's future. Oak, what caused you to expedite your planned launch timing for the GBB service? Typically, projects in the satellite industry are delayed often by several years, but for GBB, you pushed it forward. So what's behind that?

首先，全球寬帶顯然對 Gogo 的未來至關重要。 Oak，是什麼原因導致您加快了 GBB 服務的計劃啟動時間？通常，衛星行業的項目通常會延遲數年，但對於 GBB，您將其提前了。那麼這背後是什麼？

Well, we have a good partner in Hughes, who's got really mature development processes and manufacturing processes. And I think we've been very organized as well. And frankly, OneWeb has really pitched in and it's been a great working relationship. So we started with a late '24 early '25 kind of target. We do have some incentives built into our contracts to accelerate that. And Hughes has responded to that and come up with ways to get the antenna done sooner. So -- and we'll continue to work on other ways that might speed it up further. We -- time is of the essence for us in this, we really want to get to market as fast as possible.

好吧，我們在休斯有一個很好的合作夥伴，他有非常成熟的開發流程和製造流程。而且我認為我們也非常有條理。坦率地說，OneWeb 確實投入了精力，而且這是一種很好的工作關係。所以我們從 24 世紀末 25 年初的目標開始。我們的合同中確實有一些激勵措施來加速這一過程。休斯對此做出了回應，並提出了更快完成天線的方法。所以 - 我們將繼續研究其他可能進一步加快速度的方法。我們 - 時間對我們來說至關重要，我們真的希望盡快進入市場。

Great. And one on the financial side, either for the new CFO or the old CFO. But in terms of the 2025 free cash flow target, what does that assume for maintenance CapEx and interest expense?

偉大的。一個是財務方面的，要么是新的首席財務官，要么是舊的首席財務官。但就 2025 年的自由現金流目標而言，維護資本支出和利息支出的假設是什麼？

In 2025, I think by that point in time, our CapEx is going to be sort of in that maintenance range. So it's around $20 million for maintenance CapEx. And then interest expense, obviously, it depends upon the forward rates and what happens with regards to that. But it should be depending upon where we are with the interest spend, somewhere in the range of $30 million to $45 million in interest expense, depending upon what happens to the rates. Probably $40 million to $45 million...

到 2025 年，我認為到那個時候，我們的資本支出將處於該維護範圍內。因此，維護資本支出約為 2000 萬美元。然後是利息支出，顯然，這取決於遠期利率以及與之相關的情況。但這應該取決於我們的利息支出，利息支出在 3000 萬到 4500 萬美元之間，具體取決於利率的變化。大概是4000萬到4500萬美元……

Sounds good. awesome.

聽起來不錯。驚人的。

And that is our time for questions today. I'd like to turn the call back over to Will Davis for any closing remarks.

那是我們今天提問的時間。我想將電話轉回給 Will Davis 以聽取任何結束語。

Thank you, Valerie, and thank you, everyone, for joining the call. This concludes our fourth quarter earnings conference call. Thanks very much. You may disconnect.

謝謝瓦萊麗，也謝謝大家加入電話會議。我們的第四季度收益電話會議到此結束。非常感謝。您可能會斷開連接。

Ladies and gentlemen, this does conclude today's conference. Thank you all for participating. You may now disconnect. Have a great day.

女士們，先生們，今天的會議到此結束。謝謝大家的參與。您現在可以斷開連接。祝你有美好的一天。