Gogo Inc (GOGO) 2024 Q2 法說會逐字稿

Good day and welcome to the Gogo, Inc. second-quarter conference call. (Operator Instructions) As a reminder, this call may be recorded. I would now like to turn the call over to Will Davis, Vice President, Investor Relations. Please go ahead.

美好的一天，歡迎參加 Gogo, Inc. 第二季度電話會議。（操作員說明）謹此提醒，此通話可能會被錄音。我現在想將電話轉給投資者關係副總裁威爾戴維斯 (Will Davis)。請繼續。

Thank you, Michelle, and good morning, everyone. Welcome to Gogo's second quarter of 2024 earnings conference call. Joining me today to talk about our results are Oakleigh Thorne, Chairman and CEO; Jessi Betjemann, Executive Vice President and CFO.

謝謝米歇爾，大家早安。歡迎參加 Gogo 2024 年第二季財報電話會議。今天與我一起談論我們業績的是董事長兼執行長奧克利‧索恩 (Oakleigh Thorne)； Jessi Betjemann，執行副總裁兼財務長。

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 this 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 10-K and 10-Q and other documents that 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，我們可能會對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本次電話會議前瞻性聲明中的結果有重大差異的風險因素。這些風險因素在我們今天早上提交的收益報告中進行了描述，並且在我們向 SEC 提交的 10-K 和 10-Q 年度報告以及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 August 7, 2024. Any forward-looking statements that we make today are based on assumptions as of this date, and we undertake no obligation to update these statements as a result of more information or future events.

另外，請注意，本次電話會議的日期是2024年8月7日。我們今天所做的任何前瞻性陳述均基於截至目前的假設，我們不承擔因更多資訊或未來事件而更新這些陳述的義務。

During this call, we'll 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 second quarter earnings release call is being broadcast on the Internet and available on the Investor Relations website at ir.gogoair.com.

在本次電話會議中，我們將介紹 GAAP 和非 GAAP 財務指標。我們在第二季財報電話會議中對非公認會計準則衡量標準的調整和其他考慮因素與最具可比性的公認會計準則衡量標準進行了調整和解釋，該報告正在互聯網上播出，也可在投資者關係網站ir.gogoair 查閱。

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. And it's now my great pleasure to turn the call over to Oakleigh.

收益新聞稿也可在網站上取得。在管理層提出意見後，我們將僅與金融界舉行問答會議。現在我很高興將電話轉給奧克利。

Thank Will. Good morning, everyone, and thanks for joining us today. Gogo's second-quarter performance reflects the strength of our recurring cash generative service revenue model, even as we navigate a product lifecycle transition and continue to invest in bringing out our next-generation Gogo Galileo LEO satellite product and our Gogo 5G North American air-to-ground product.

謝謝威爾。大家早安，感謝您今天加入我們。Gogo 第二季度的業績反映了我們經常性現金生成服務收入模式的實力，即使我們正在經歷產品生命週期轉型並繼續投資推出下一代 Gogo Galileo LEO 衛星產品和 Gogo 5G 北美空對地- 研磨產品。

Gogo is approaching an exciting inflection point in our product lineup. In the months ahead, we will have the most complete product portfolio in the best business aviation IFC industry with products that offer the right performance, the right coverage, the right total cost of ownership and with great customer support for every segment of the highly unpenetrated 40,000-plus aircraft global business aviation market.

Gogo 的產品系列正接近一個令人興奮的轉折點。在未來的幾個月裡，我們將擁有最好的公務航空IFC 行業中最完整的產品組合，其產品能夠提供適當的性能、適當的覆蓋範圍、適當的總擁有成本，並為高度未滲透的每個細分市場提供強大的客戶支援全球公務航空市場擁有超過 40,000 架飛機。

We believe 5G and Galileo will accelerate our revenue growth beginning next year as they deliver order of magnitude improvements in the speed of Gogo service, expand our total addressable market by 60%, and extend customer lifetimes by providing easy and compelling upgrade paths for our AVANCE install base.

我們相信5G 和Galileo 將在明年開始加速我們的收入成長，因為它們使Gogo 服務的速度實現數量級的提高，將我們的總目標市場擴大60%，並透過為我們的AVANCE 提供簡單且引人注目的升級路徑來延長客戶生命週期安裝底座。

It's worth noting that because of record upgrade activity in the second quarter, AVANCE now makes up 60% of Gogo's fleet. We consider every AVANCE installation, a strategic win because it provides customers with easier and cheaper path to upgrade to new technologies like 5G and LEO, with Gogo today and new network technologies in the future rather than to move to another connectivity provider.

值得注意的是，由於第二季的升級活動創紀錄，AVANCE 目前佔 Gogo 機隊的 60%。我們認為每一次AVANCE 的安裝都是一次策略性勝利，因為它為客戶提供了更簡單、更便宜的途徑來升級到5G 和LEO 等新技術，以及今天的Gogo 和未來的新網路技術，而不是轉向其他連線提供者。

As we get close to launch, we're seeing our aftermarket customers adjust their purchasing behavior in anticipation of the Gogo 5G and Galileo products. This dynamic is reflected in our second-quarter equipment revenue and in our revised guidance expectations for 2024.

隨著我們即將推出，我們看到我們的售後客戶根據 Gogo 5G 和 Galileo 產品的預期調整他們的購買行為。這種動態反映在我們第二季的設備收入和我們修訂後的 2024 年指引預期中。

And this customer behavior isn't unique to Gogo? It's typical of what you see at other companies as they launch next-generation products. Just look at Apple, when it debuts the new iPhone. Sales of the older products start to slow as customers anticipate the arrival of newer, superior technologies.

這種客戶行為不是Gogo獨有的嗎？這是您在其他公司推出下一代產品時看到的典型情況。看看蘋果公司，當它推出新 iPhone 時。隨著客戶期待更新、更先進的技術的到來，舊產品的銷售開始放緩。

This morning, I'm going to start by highlighting some demand trends we're seeing in the BA market that underpin our bullish outlook; then provide an overview of our Q2 results; and finally, dive into progress on our strategic initiatives, which are aimed at reigniting our growth by launching products that meet the unique needs of every segment of the BA market. Jessi will then walk through the numbers and discuss our 2024 and long-term guidance. This now reflects our most current expectations for 5G launch timing.

今天早上，我將首先強調我們在 BA 市場看到的一些需求趨勢，這些趨勢支撐了我們的看漲前景；然後概述我們第二季的業績；最後，深入探討我們的策略性舉措的進展情況，這些舉措旨在透過推出滿足 BA 市場各個細分市場獨特需求的產品來重新激發我們的成長。然後 Jessi 將瀏覽這些數字並討論我們的 2024 年和長期指導。這反映了我們對 5G 發佈時間的最新預期。

Overall demand for business aviation flights and demand for connectivity on those flights remains strong and continues to support our growth trajectory. Demographic trends bode well for connectivity penetration and younger fliers are coming into the market. Though all ages want better in-flight connectivity, demand for connectivity increases as the age of the flyer decreased.

對公務航空航班的整體需求以及這些航班的連接需求仍然強勁，並繼續支持我們的成長軌跡。人口趨勢對於連接滲透率來說是個好兆頭，年輕的乘客正在進入市場。儘管所有年齡層的人都希望獲得更好的機上連接，但隨著乘客年齡的減少，連接的需求也會增加。

The good news is that Gogo has different products to satisfy all types of flyers depending on their connectivity needs. In the second quarter, Gogo-equipped BA flight counts were up slightly at 1.1% year over year. And more importantly, flights remained significantly elevated from pre-COVID levels, with Q2 flight hours per day up 35% from Q2 2019.

好消息是，Gogo 擁有不同的產品，可以根據不同類型的傳單需求滿足他們的需求。第二季度，配備 Gogo 的 BA 航班數量年增 1.1%。更重要的是，航班數量仍較新冠疫情爆發前的水準顯著增加，第二季每天的飛行時數較 2019 年第二季增加了 35%。

As for data demand, average megabyte consumption per day in our networks has risen 165% from Q2 2019, demonstrating a step change in passenger demand and average megabytes consumed per flight hour, which has risen 96% over that same period and ran at 17% annual growth in Q2.

至於數據需求，我們網路中每天的平均兆位元組消耗量較2019 年第二季度增長了165%，這表明乘客需求和每個飛行小時平均消耗的兆位元組量發生了階躍變化，同期增長了96%，成長率為17%第二季的年度成長。

We're seeing the biggest surge in demand at the high end of the market where cloud data, storage and video conferencing are driving demand for much higher bandwidth than our traditional products designed to provide, and where Gogo Galileo and 5G are well positioned to meet that demand.

我們看到高端市場的需求激增，其中雲端數據、儲存和視訊會議正在推動對比我們傳統產品設計提供的更高頻寬的需求，而 Gogo Galileo 和 5G 能夠很好地滿足這一需求。

Finally, on demand, we see OEM order books and fractional sales of aircraft looking very strong, and those trends will continue to drive growth in Gogo units online. The trend towards increasingly voracious data usage on aircraft is important to Gogo in two ways. First, of course, it creates a strong demand tailwind for our products. And second, it highlights the importance of the decisions we made when we sold our commercial aviation business for years ago to invest heavily in new technologies to dramatically improve the capacity and quality of our products for our customers.

最後，在需求方面，我們看到 OEM 訂單和飛機的部分銷售看起來非常強勁，這些趨勢將繼續推動 Gogo 線上銷售的成長。飛機上數據使用日益增長的趨勢對 Gogo 來說非常重要，這體現在兩個方面。首先，當然，它為我們的產品創造了強勁的需求推動力。其次，它凸顯了我們多年前出售商用航空業務時所做的決定的重要性，即大力投資新技術，以大幅提高為客戶提供的產品的容量和品質。

Gogo's continuous focus on future proofing our technology and infrastructure, we're prescient and will continue to remain key to our long-term success. Now, let me turn to our Q2 performance. Revenue was slightly down about 1% year over year as record service revenue was offset by a decline in equipment revenue. On the equipment side, we saw a decrease in revenues of 17% year over year and 11% sequentially in the second quarter.

Gogo 持續專注於面向未來的技術和基礎設施，我們具有先見之明，並將繼續成為我們長期成功的關鍵。現在，讓我談談我們第二季的表現。由於創紀錄的服務收入被設備收入的下降所抵消，收入年比小幅下降約 1%。在設備方面，第二季營收年減 17%，季減 11%。

We attribute much of this to the product lifecycle dynamic I described earlier. Customers are delaying purchases in anticipation of Gogo 5G and Gogo Galileo. With that said, we still expect our second highest year for AVANCE shipments ever and grew total AVANCE units online at quarter end, 17% over the prior year to 4,215 aircraft, or approximately 60% of our ATG installed base.

我們將這很大程度歸因於我之前描述的產品生命週期動態。由於對 Gogo 5G 和 Gogo Galileo 的期待，客戶推遲了購買。話雖如此，我們仍然預計AVANCE 出貨量將達到有史以來第二高的一年，並在季度末在線上增加AVANCE 飛機總數，比上一年增長17%，達到4,215 架飛機，約占我們ATG安裝基數的60%。

Our AVANCE base will only grow faster as we incent our almost 3,000 Gogo Classic customers to migrate to LTE as part of our FCC Secure Networks program over the next 20 months. As a reminder, we also warned on our last call that our usual pattern of higher second-half shipments might be reversed this year as we saw a boost in equipment orders last quarter, driven by NetJets pull through demand and a shift of a few OEM annual bulk shipments into Q1 from later in the year.

作為 FCC 安全網路計畫的一部分，我們將在未來 20 個月內激勵近 3,000 名 Gogo Classic 客戶遷移到 LTE，因此我們的 AVANCE 基礎只會成長得更快。提醒一下，我們在上次電話會議中還警告稱，今年下半年出貨量增加的慣常模式可能會發生逆轉，因為我們看到上季度的設備訂單有所增加，這是由NetJets 拉動需求和一些OEM 的轉變所推動的從今年稍後開始，每年第一季都會批量發貨。

Within service, we achieved record revenue. This is the fuel of our long-term business model, driven by AVANCE upgrade even as total ATG units online and total declined slightly due to modest net deactivations in our Classic product line. On the earnings side, Q2 EBITDA decreased 30% sequentially, mostly due to lower equipment revenues and increased operating expenses, mostly in legal fees as a result of the smart Sky litigation and a series of vendor financing issues, almost all of which will go away over the next year.

在服務方面，我們實現了創紀錄的收入。這是我們長期業務模式的動力，受到 AVANCE 升級的推動，儘管由於我們經典產品線的適度淨停用，在線總 ATG 單位和總數略有下降。在獲利方面，第二季 EBITDA 環比下降 30%，主要是由於設備收入下降和營運費用增加，其中大部分是 smart Sky 訴訟和一系列供應商融資問題導致的法律費用，幾乎所有這些問題都會消失在接下來的一年裡。

On a positive note, as we invest deeply in the 5G and Galileo programs, free cash flow remains solid. Now, for our progress on strategic initiatives. Gogo is focused on accelerating growth with a three-pronged strategy. First, we want to expand our addressable market by expanding globally and by leveraging the flexibility of our AVANCE platform to deliver products at pricing that suit each segment of the highly unpenetrated 40,000 business aircraft, global business aviation market.

從積極的方面來看，隨著我們對 5G 和伽利略項目的深入投資，自由現金流仍然穩定。現在，我們在策略舉措方面取得進展。Gogo 致力於透過三管齊下的策略加速成長。首先，我們希望透過全球擴張來擴大我們的潛在市場，並利用 AVANCE 平台的靈活性，以適合高度未滲透的 40,000 架公務飛機的全球公務航空市場的各個細分市場的價格提供產品。

Second, we wanted to drive customer loyalty by continually improving our ATG networks to drive conversion of Classic customers to the AVANCE platform because they then have easy upgrade path to new technology such as 5G, Ku-band, LEO networks and other new network technologies as they emerge. And third, we're focused on offering the best product and customer support to each segment of the market at the lowest total cost of ownership. We're making great strides in our strategic initiatives to achieve these goals.

其次，我們希望透過不斷改進我們的ATG 網路來推動Classic 客戶轉換到AVANCE 平台，從而提高客戶忠誠度，因為這樣他們就可以輕鬆升級到新技術，例如5G、Ku 頻段、LEO 網路和其他新網路技術，他們出現了。第三，我們致力於以最低的總擁有成本為市場的每個細分市場提供最好的產品和客戶支援。為了實現這些目標，我們的策略舉措正在取得重大進展。

Let me start with Gogo Galileo. This is a very exciting time at Gogo as we ramp up our go-to-market plan, a regulatory approval process and production to support the Galileo ATX and FDX launches. As a reminder, this product category was born out of two conclusions, doing a deep dive strategic planning process in 2020 and 2021 after we sold the commercial aviation division.

讓我從戈戈·伽利略開始。這是 Gogo 非常令人興奮的時刻，我們正在加強上市計劃、監管審批流程和生產，以支持 Galileo ATX 和 FDX 的發布。提醒一下，這個產品類別誕生於兩個結論，在我們出售商業航空部門後，我們在 2020 年和 2021 年進行了深入的策略規劃。

First, that ESA antennas and LEO satellite constellations are going to change everything in business aviation connectivity. They would support lightning-fast connectivity with the extremely low latency critical to supporting applications like video conferencing. They would have high capacity to support heavy data applications like cloud-based file-sharing.

首先，歐空局天線和低地球軌道衛星星座將改變公務航空連接的一切。它們將支援閃電般的快速連接和極低的延遲，這對於支援視訊會議等應用程式至關重要。它們將具有高容量來支援大數據應用程序，例如基於雲端的文件共享。

They would enable small antennas that would fit well on all business aviation aircraft. They could be cheaper and easier to install than GEO antennas. They would provide truly global broadband coverage for the first time ever. They would enable service pricing that is very competitive with GEO satellite pricing. And perhaps most important, the dramatic increase in value created by these offerings could accelerate IFC. penetration dramatically in the global BA market.

它們將使小型天線適合所有公務飛機。它們比 GEO 天線更便宜、更容易安裝。他們將有史以來第一次提供真正的全球寬頻覆蓋。它們將使服務定價與 GEO 衛星定價非常有競爭力。也許最重要的是，這些產品創造的價值大幅增加可以加速國際金融公司的發展。在全球 BA 市場的滲透率顯著提高。

The second thing we anticipated in that planning process was in Starlink will become a significant competitor, which has become evident as they ramped up installations in Q2. Though we will launch a little later than Starlink, we will launch with a product that addresses much more of the market than they are offering. And they have done us a big favor. They've made the BA market aware of how much better ESA LEO technology is for BA in-flight connectivity than traditional GEO satellite solutions.

我們在規劃過程中預計的第二件事是 Starlink 將成為一個重要的競爭對手，隨著他們在第二季增加安裝量，這一點變得非常明顯。儘管我們的推出時間會比 Starlink 晚一點，但我們推出的產品將比他們提供的產品覆蓋更多的市場。他們幫了我們一個大忙。他們讓 BA 市場認識到 ESA LEO 技術在 BA 飛行連接方面比傳統的 GEO 衛星解決方案要好得多。

Our head of sales captured it well when he displays a picture of a fat mouse eating the cheese out of an already strong mousetrap and observes that the second mouse gets the cheese. And we feel that Gogo is incredibly well positioned to get the cheese.

我們的銷售主管很好地捕捉到了這一點，他展示了一張胖老鼠從已經很堅固的捕鼠器中吃起司的照片，並觀察到第二隻老鼠得到了起司。我們認為 Gogo 非常有能力獲得起司。

Business aviation customers tend to be demanding. Reliability is critical. Space on the aircraft is at a premium. Ease of installation is important and customer support is imperative. It's clear that Starlink offering is just a repurposing of their consumer off-the-shelf products for aviation use and does not meet those demands. And that opens the door for meaningful product differentiation on our part centered in three areas.

公務航空客戶往往要求很高。可靠性至關重要。飛機上的空間非常寶貴。易於安裝非常重要，客戶支援也必不可少。很明顯，星鏈產品只是將現成的消費產品重新用於航空用途，並不能滿足這些需求。這為我們在三個領域實現有意義的產品差異化打開了大門。

Our equipment is aviation grade and designed from the aircraft up and satellite down to the specific needs of the business aviation market. There's consumer grade. You can buy it at Best Buy and is repurposed and poorly suited for aviation.

我們的設備是航空級的，設計從飛機到衛星，以滿足公務航空市場的特定需求。有消費級。你可以在百思買購買它，但它已經被重新利用，不太適合航空。

Second, our business model is business aviation focused with the type of personal customer support someone who just bought an $80 million -- just spend $80 million in an aircraft would expect from a service provider. While there's a web-based appointment-only chat service that does not allow customers direct access to aviation technicians.

其次，我們的商業模式是公務航空，專注於個人客戶支援類型，就像剛購買了 8000 萬美元的人（只需花費 8000 萬美元購買一架飛機）所期望的服務提供者提供的服務一樣。雖然有網路為基礎的預約聊天服務，但不允許客戶直接聯繫航空技術人員。

And finally, our partner, OneWeb network is an enterprise-grade network designed to serve B2B customers with service level guarantees, while theirs is a consumer grade network aimed at 5 billion global consumers and many other markets with highly variable speed levels, our best efforts only service obligation, and no commitment to fixed pricing.

最後，我們的合作夥伴OneWeb 網路是一個企業級網絡，旨在為B2B 客戶提供服務水準保證，而他們的網絡是一個消費級網絡，面向50 億全球消費者和許多其他市場，速度水平高度可變，我們盡最大努力僅服務義務，不承諾固定定價。

Galileo comes in two versions, a smaller HDX terminal and a larger FDX terminal. So I should add, our FDX is still dramatically smaller than the Starlink terminal. The Galileo as HDX terminal is our first-to-market mid-size and smaller aircraft antenna and will deliver a very consistent almost 50 megabits per second, 12 to 60 times our current product offerings.

Galileo 有兩個版本：較小的 HDX 終端和較大的 FDX 終端。所以我要補充一點，我們的 FDX 仍然比 Starlink 終端小得多。Galileo as HDX 終端是我們首款推向市場的中型和小型飛機天線，將提供非常一致的每秒近 50 兆位元的傳輸速度，是我們目前產品的 12 至 60 倍。

It primarily target two market segments. The roughly 12,000 mid-size jets, small jets, and turboprops registered outside North America that have absolutely no broadband solution today; and those aircraft in the roughly 11,000 mid-size and smaller size range that don't sell inside North America that often fly international missions or want faster mean connectivity speeds than the 25 megabits per second that our 5G product will provide.

它主要針對兩個細分市場。目前在北美以外註冊的大約 12,000 架中型噴射機、小型噴射機和渦輪螺旋槳飛機完全沒有寬頻解決方案；大約 11,000 架中型和小型飛機，不在北美境內銷售，經常執行國際任務，或需要比我們 5G 產品提供的每秒 25 兆位元更快的平均連線速度。

The Galileo FDX terminal is our best-in-class antenna and targets the roughly 9,700 super mid-size and larger jet that fly global missions with a product that will deliver very consistent speeds in a 145 to 195 megabits per second range, 40 to 200 times faster than our current product offering.

Galileo FDX 終端是我們一流的天線，面向執行全球任務的約 9,700 架超中型和大型噴射機，該產品將在每秒 145 至 195 兆位元、40 至 200 兆位元範圍內提供非常穩定的速度。比我們目前的產品快數倍。

A huge advantage for us that is really resonating with AVANCE customers right now is that Galileo is a simple upgrade from any AVANCE installed plane. One only need to add our HDX or SDX antenna on top of the fuselage and then run data to the already installed AVANCE box on the aircraft and power cabling from the aircraft to the Galileo terminal and you are done, cutting roughly $100,000 off the cost of a Galileo installation.

對我們來說，目前真正引起 AVANCE 客戶共鳴的一個巨大優勢是，Galileo 是任何 AVANCE 安裝的飛機的簡單升級。只需在機身頂部添加我們的 HDX 或 SDX 天線，然後將數據運行到飛機上已安裝的 AVANCE 盒，並將電源電纜從飛機連接到伽利略終端，就大功告成，節省了大約 100,000 美元的成本伽利略安裝。

Another advantage is that AVANCE is already both a line-fit option at every OEM and an STC option on every currently produced model of aircraft in the aftermarket, rendering it relatively easy from an engineering and certification perspective for OEMs and dealers to offer Galileo.

另一個優點是，AVANCE 已經成為每個 OEM 的線上安裝選項，並且是售後市場中目前生產的每種飛機型號的 STC 選項，從工程和認證的角度來看，OEM 和經銷商相對容易提供 Galileo。

We have already signed eight STC agreements for Galileo, covering 11 popular models of aircraft and have another 21 verbally committed, covering another 17 unique aircraft models. Which in total, these will all have a global service addressable market of 17,585 aircraft. And I should note, we started taking orders from many of the dealers that have committed to developing STCs.

我們已經為伽利略簽署了 8 項 STC 協議，涵蓋 11 種流行機型，另有 21 項口頭承諾，涵蓋另外 17 種獨特機型。總共，這些飛機的全球服務目標市場將達到 17,585 架。我應該指出，我們開始接受許多致力於開發 STC 的經銷商的訂單。

We've already signed one OEM to launch it on four models of aircraft, and they've already set cut-in dates for three of those models next year. And those aircraft account for more than 100 deliveries a year. And we're actively engaged with several other OEMs on line-fit deals.

我們已經與一家原始設備製造商簽約，在四種型號的飛機上推出該技術，並且他們已經為其中三種型號設定了明年的切入日期。這些飛機每年交付量超過 100 架。我們也積極與其他幾家 OEM 廠商就生產線安裝交易進行合作。

We remain on track to start shipping HDX terminals in Q4 and FDX terminals in the first half of 2025. We achieved a number of exciting milestones since our last conference call. We've announced our equipment and service pricing with a modest premium to our competitor, justified by our superior aviation grade equipment, our superior network reliability, and our superior levels of customer support.

我們仍有望在第四季開始出貨 HDX 終端，並於 2025 年上半年開始出貨 FDX 終端。自上次電話會議以來，我們取得了許多令人興奮的里程碑。我們宣布的設備和服務定價比競爭對手稍高，這得益於我們卓越的航空級設備、卓越的網路可靠性以及卓越的客戶支援水平。

We're finishing up our go-to-market campaign, and we'll launch our sales source this month focused on aggressively driving market penetration in order to capture the lifetime value of every Galileo customer and drive long-term value creation for Gogo.

我們即將完成市場推廣活動，本月將啟動我們的銷售來源，重點是積極推動市場滲透，以獲取每位 Galileo 客戶的終身價值，並推動 Gogo 的長期價值創造。

In July, we started aircraft installation, and our Challenger 300 and the next big certification milestones will be engineering flight testing in August and parts manufacturing authority or PMA in Q4. To conclude on Galileo, we're very excited. It will be a game changer for the business aviation industry and will be a major accelerant to Gogo's growth.

7 月，我們開始飛機安裝，我們的挑戰者 300 和下一個重大認證里程碑將在 8 月進行工程飛行測試，並在第 4 季進行零件製造授權或 PMA。最後，我們對伽利略感到非常興奮。這將改變公務航空業的遊戲規則，並將成為 Gogo 發展的主要促進劑。

Now, let me turn to Gogo 5G, which is targeted at segments of the 21,000 midsized and smaller business aircraft market that fly predominantly in North America and want a good connectivity experience at a more affordable price than satellite solutions.

現在，讓我談談 Gogo 5G，它針對的是 21,000 架中小型公務飛機市場，這些飛機主要在北美飛行，並且希望以比衛星解決方案更實惠的價格獲得良好的連接體驗。

Gogo 5G should achieve mean speeds of around 25 megabits per second, 5 to 25 times our current product lines and peak speeds of 75 to 80 megabits per second. On the aircraft, it consists of two belly-mounted MB13 antennas in an internal box containing a 5G aircraft. On the ground, it consists of 150 Gogo installed 5G base stations, installed at the towers across United States and Southern Canada.

Gogo 5G 的平均速度應達到每秒 25 兆位元左右，是我們目前產品線的 5 至 25 倍，峰值速度為每秒 75 至 80 兆位元。在飛機上，它由兩個安裝在機腹的 MB13 天線組成，內部盒子裝有 5G 飛機。在地面上，它由 150 個 Gogo 安裝的 5G 基地台組成，安裝在美國和加拿大南部的塔樓上。

As you all probably recall, on our Q1 call, we discussed a minor chip hardware redesign issue that would further delay our 5G launch. And we announced that we will provide guidance on the timing of our 5G launch on this call.

大家可能還記得，在我們的第一季電話會議上，我們討論了一個小的晶片硬體重新設計問題，這將進一步推遲我們的 5G 發布。我們宣布，我們將在這次電話會議上就 5G 的推出時間提供指導。

That chip is going back into patent and mass generation now, and we have recalibrated all of our milestones and planned shipping 5G in the second quarter of 2025. We're continuing to work very closely with our vendor partners to smooth the path toward fabrication and launch.

該晶片現在正在重新獲得專利和批量生產，我們已經重新調整了所有里程碑，並計劃在 2025 年第二季交付 5G。我們將繼續與供應商合作夥伴密切合作，以鋪平製造和發布的道路。

Importantly, the market continues to respond enthusiastically to the 5G value proposition with ongoing pre-provisioning programs and a flood of STC programs that position us for a highly successful launch. We've already shipped 290 to 5G pre-provision kit with MB13 5G antennas, which is up from 240 kits last quarter. And 105 of those kits have already been installed and are flying using our 4G network with an L5 4G LRU.

重要的是，市場繼續對 5G 價值主張做出熱烈反應，持續進行的預配置計劃和大量 STC 計劃使我們能夠取得非常成功的發布。我們已經發貨了 290 個帶有 MB13 5G 天線的 5G 預配置套件，高於上季度的 240 個套件。其中 105 個套件已安裝完畢，並正在使用我們的 4G 網路和 L5 4G LRU 進行飛行。

We have commitments from five OEMs with one already installing the MB13 with the L5 line fit today. Because the L5 is the same form factor as the LX5, once the 5G chip is certified, those customers that have installed L5s with MB13 can simply swap the LX5 in for the L5 and they'll be on the 5G network.

我們得到了五家 OEM 廠商的承諾，其中一家廠商今天已經安裝了 L5 系列的 MB13。由於 L5 的外形尺寸與 LX5 相同，一旦 5G 晶片獲得認證，那些安裝了帶有 MB13 的 L5 的客戶只需將 LX5 更換為 L5，即可使用 5G 網路。

On the certification front, we have 16 STCs for MB13s completed with one version of those and another, covering 18 unique models of aircraft and 16 more in the works, covering 15 unique models of aircraft, and in total, all of those representing 8,700 North American registered aircraft. We're confident that between our FPGA flights and a virtual simulator our team has built that replicates our entire 5G network, that we will be able to test and validate 90% of our 5G functionality network before we receive the final 5G chip.

在認證方面，我們已經完成了16 個MB13 的STC，其中一個版本涵蓋了18 種獨特的飛機型號，還有16 種正在製作中，涵蓋了15 種獨特的飛機型號，所有這些型號總共代表了8,700架北方飛機美國註冊的飛機。我們相信，在我們的 FPGA 飛行和我們團隊構建的可複製整個 5G 網路的虛擬模擬器之間，我們將能夠在收到最終 5G 晶片之前測試和驗證 90% 的 5G 功能網路。

Now, turning briefly to the SEC Secured Networks program, which we refer to as Gogo Evolution. As a reminder, Gogo was awarded a $334 million grant from the SEC under this program to incentive us to accelerate the removal of Chinese telecom equipment from our 4G network. Overall, we're making great progress upgrading our customers from the old Classic product line to LTE versions of the hardware and our AVANCE L3 and L5 products.

現在，簡要介紹 SEC 安全網路計劃，我們將其稱為 Gogo Evolution。提醒一下，根據該計劃，Gogo 獲得了 SEC 3.34 億美元的撥款，以激勵我們加速從 4G 網路中移除中國電信設備。總體而言，我們在將客戶從舊的 Classic 產品線升級到 LTE 版本的硬體以及我們的 AVANCE L3 和 L5 產品方面取得了巨大進展。

This program has considerable benefits for Gogo and its customers. It will improve the speed of our 4G network 40% for customers using our value-oriented AVANCE L3 product. It will double the aircraft that the ATG 4G network can simultaneously manage, and it will accelerate the number of Gogo Classic customers upgrading to AVANCE, which has the strategic benefit of extending Gogo customer lifetimes due to the ease of upgrade to 5G and Galileo and other new technologies.

該計劃為 Gogo 及其客戶帶來了相當大的好處。它將為使用我們價值導向的 AVANCE L3 產品的客戶提高 40% 的 4G 網路速度。它將使 ATG 4G 網路可同時管理的飛機數量增加一倍，並將加速 Gogo Classic 客戶升級到 AVANCE 的數量，由於可以輕鬆升級到 5G 和 Galileo 等，因此具有延長 Gogo 客戶生命週期的戰略優勢新技術。

We have a little under 3,000 customers still on our old Classic product line that will need to convert from EVDO to LTE versions of the hardware before year end 2025. A little more than 900 of which are in fleets and a little more than 2000 of which are smaller customers. We've had conversations with all about 150 of our customers and how they plan to convert. The vast majority have already indicated they will move to one AVANCE product or another.

我們還有不到 3,000 名客戶仍在使用我們的舊 Classic 產品線，他們需要在 2025 年底之前將硬體從 EVDO 轉換為 LTE 版本。其中 900 多台屬於車隊，其中 2,000 多台是小型客戶。我們與大約 150 名客戶進行了對話，以了解他們計劃如何進行轉換。絕大多數人已經表示他們將轉向一種或另一種 AVANCE 產品。

We currently have customer promotions in place to incent conversions and our dealers are doing a great job configuring their operations to transition customers at scale. We also have a special product we'll introduce later this year called C1, which will house both an EVDO and an LTE air card in a form factor that is an exact replica of our Classic product. This will not improve service levels like upgrading to AVANCE but will allow customers who delay swapping to AVANCE before we cut over networks, more time to convert to AVANCE after the cut over.

目前，我們開展了客戶促銷活動來刺激轉化，我們的經銷商在配置其營運以大規模轉化客戶方面做得非常出色。我們還將在今年稍後推出一款名為 C1 的特殊產品，它將同時容納 EVDO 和 LTE 空中卡，其外觀與我們的經典產品一模一樣。這不會像升級到 AVANCE 那樣提高服務水平，但會讓在我們切換網路之前延遲切換到 AVANCE 的客戶在切換後有更多時間切換到 AVANCE。

As I mentioned at the outset, Gogo is continuing to deliver outstanding service and solid performance as we invest and prepare to launch Gogo 5G in Galileo. I want to thank the Gogo team that’s done an incredible job getting us to this point.

正如我在一開始提到的，隨著我們投資並準備在伽利略推出 Gogo 5G，Gogo 將繼續提供出色的服務和穩定的性能。我要感謝 Gogo 團隊，他們做了令人難以置信的工作，讓我們走到了這一步。

Our long-term outlook is supported by strong demand trends, and we're strategically, operationally, and technologically well positioned to continue to meet and exceed the needs of IFC passengers for the long-term, with the most complete product portfolio in the business aviation market. Gogo has the right strategy in place to continue to capitalize on a significant opportunity in our market and deliver long-term value creation. And now I'll turn it over to Jessi for the numbers.

我們的長期前景受到強勁需求趨勢的支持，我們在策略、營運和技術上都處於有利地位，能夠憑藉業內最完整的產品組合繼續滿足並超越國際金融公司乘客的長期需求航空市場。Gogo 制定了正確的策略，可以繼續利用我們市場上的重大機會並創造長期價值。現在我將把它交給 Jessi 來獲取數字。

(technical difficulty) service revenue and solid free cash flow in the second quarter. We believe our performance continues to demonstrate the strength of our core business, fueled by recurring service revenue as we invested in our new products, Gogo 5G and Galileo. With the pull-in of OEM equipment orders and timing shift of expenses, which resulted in higher adjusted EBITDA in the first quarter, our second quarter adjusted EBITDA declined sequentially but was ahead of expectations.

（技術難度）第二季的服務收入和穩定的自由現金流。我們相信，我們的業績繼續證明了我們核心業務的實力，這得益於我們投資新產品 Gogo 5G 和 Galileo 帶來的經常性服務收入。隨著OEM設備訂單的拉動和費用時間的轉移，導致第一季調整後EBITDA較高，我們第二季調整後EBITDA環比下降，但超出預期。

We continue to believe 2024 is the trough year for our growth and profitability within our long term plan extending through 2028. As the majority of our current strategic investments wrap by early 2025, we continue to target a significant acceleration in our free cash flow in 2025.

我們仍然認為，在我們持續到 2028 年的長期計劃中，2024 年是我們成長和獲利能力的低谷一年。由於我們目前的大部分策略投資將於 2025 年初完成，因此我們繼續目標是在 2025 年大幅加速自由現金流。

In my remarks today, I'll start by walking through Gogo's second-quarter financial performance, then I will turn to our balance sheet and capital allocation priorities. And finally, I'll conclude with additional context on our revised 2024 guidance and long-term targets, which now reflect the currently expected timing for Gogo 5G launch.

在今天的演講中，我將首先介紹 Gogo 第二季度的財務業績，然後我將轉向我們的資產負債表和資本配置優先事項。最後，我將提供有關我們修訂後的 2024 年指導和長期目標的更多背景信息，這些目標現在反映了 Gogo 5G 發布的當前預期時間。

For the second quarter, Gogo's total revenue was $102.1 million, a decrease of about 1% year over year and 2% sequentially, driven by a decline in equipment revenue. Gogo delivered record service revenue of $81.9 million, up 4% over the prior year and just slightly higher than in the first quarter.

第二季度，Gogo 的總營收為 1.021 億美元，年減約 1%，季減 2%，受設備收入下降的推動。Gogo 的服務收入達到創紀錄的 8,190 萬美元，比上年增長 4%，僅略高於第一季。

Our ATG aircraft online was 7,031, a 0.5% decline year over year and down 1% sequentially. The quarterly decline was driven by higher Classic deactivations and lower new activations due to, as Oak mentioned, the product lifecycle dynamic we are experiencing as customers defer purchases in anticipation of the launch of Gogo 5G and Galileo.

我們線上 ATG 飛機數量為 7,031 架，年減 0.5%，季減 1%。正如 Oak 所提到的，由於客戶因預期 Gogo 5G 和 Galileo 的推出而推遲購買，我們正在經歷產品生命週期動態，導致經典停用量增加和新激活量減少，從而推動了季度下降。

Total AVANCE aircraft online grew to 4,215 an increase of 17% year over year and 3% sequentially and now comprises 60% of our total fleet. Our progress driving AVANCE penetration reflects the record upgrade activity in the second quarter from Classic to AVANCE within our existing fleet.

線上 AVANCE 飛機總數增至 4,215 架，年增 17%，季增 3%，目前占我們機隊總數的 60%。我們推動 AVANCE 滲透率的進展反映了第二季度我們現有機隊中從 Classic 到 AVANCE 的創紀錄的升級活動。

AVANCE aircraft online has doubled in less than three years. Converting our Classic base to AVANCE remains a priority, and we expect these conversions to accelerate in 2025. We continue to maintain a conservative view on improvements in the maintenance cycle times that have slowed installations.

AVANCE 飛機在線數量在不到三年的時間內翻了一番。將我們的 Classic 基礎轉換為 AVANCE 仍然是我們的首要任務，我們預計這些轉換將在 2025 年加速。我們繼續對維護週期時間的改進保持保守看法，因為維護週期時間已減慢了安裝速度。

Every upgrade to AVANCE is a strategic win for Gogo as a prolonged customer retention by providing a seamless upgrade path to Gogo 5G and Galileo once launched. However, as previously mentioned, the upgrade process and product lifecycle dynamic will continue to put pressure on ATG aircraft online over the coming quarters.

AVANCE 的每次升級對 Gogo 來說都是策略性勝利，因為一旦推出，Gogo 5G 和 Galileo 就可以提供無縫升級路徑，從而延長客戶保留期。然而，如前所述，升級過程和產品生命週期動態將在未來幾季繼續給 ATG 飛機在線帶來壓力。

Total ATG ARPU grew 3% year over year to $3,468 and 0.3% growth sequentially, reflecting the price increase we initiated in the first quarter. The launches of Gogo 5G and Galileo are anticipated to further expand our ARPU growth opportunity over time.

ATG ARPU 總額年增 3%，達到 3,468 美元，季增 0.3%，反映了我們在第一季啟動的價格上漲。隨著時間的推移，Gogo 5G 和 Galileo 的推出預計將進一步擴大我們的 ARPU 成長機會。

Moving to equipment revenue, Gogo delivered second quarter equipment revenue of $20.1 million with 231 AVANCE shipments. Equipment revenue was in line with expectations and declined 17% year over year and 11% sequentially, which we attribute to a combination of the pull forward OEM shipments in the first quarter and our overall place in the product lifecycle.

談到設備收入，Gogo 第二季設備收入為 2,010 萬美元，出貨量為 231 台 AVANCE。設備收入符合預期，年減 17%，環比下降 11%，我們將其歸因於第一季 OEM 出貨量的拉動以及我們在產品生命週期中的整體地位。

Gogo's equipment revenue typically ramps towards the back half of the year. But given the strong first quarter shipments and the product life cycle dynamic in the channel, we expect that trend to reverse for 2024.

Gogo 的設備收入通常會在下半年成長。但鑑於第一季的強勁出貨量和通路中的產品生命週期動態，我們預計這一趨勢將在 2024 年逆轉。

Turning to profitability, Gogo delivered service margins of 77% in the second quarter, higher than our expectations due to lower network and data-center costs. We continue to expect service margins to be in the 75% range this year with a slight decrease in future years as Gogo Galileo's service revenue increases as a percentage of the mix.

談到獲利能力，Gogo 第二季的服務利潤率為 77%，由於網路和資料中心成本下降，高於我們的預期。我們繼續預計今年的服務利潤率將在 75% 左右，但隨著 Gogo Galileo 的服務收入佔組合的百分比的增加，未來幾年將略有下降。

Service revenue and service profit margin are the primary levers for free cash flow generation and long-term value creation. Equipment margins were 18% in the second quarter in line with expectations and lower than prior year and prior quarter periods, primarily as a function of lower revenue due to lower shipments. We expect equipment margins to decline in the back half of 2024 due to lower shipments largely due to the product lifecycle dynamics.

服務收入和服務利潤率是自由現金流產生和長期價值創造的主要槓桿。第二季度設備利潤率為 18%，符合預期，但低於去年同期和上一季度，主要是由於出貨量下降導致收入下降。我們預期 2024 年下半年設備利潤率將下降，主要原因是產品生命週期動態導致出貨量下降。

Now, on to operating expenses. Second quarter combined engineering design and development, sales and marketing, and general and administrative expenses increased 36% year over year and increased 28% sequentially to $41.2 million. The year-over-year increase was mainly driven by legal expenses.

現在，談談營運費用。第二季工程設計和開發、銷售和行銷以及一般和管理費用合計年增 36%，季增 28%，達到 4,120 萬美元。同比增長主要是由法律費用推動的。

External legal expenses in the second quarter comprised $9.5 million out of the total general and administrative spend of $22 million driven by litigation matters, support for vendor financing issues, and global expansion efforts.

第二季的外部法律費用佔總一般和行政支出 2,200 萬美元中的 950 萬美元，這些支出主要來自訴訟事務、對供應商融資問題的支持以及全球擴張工作。

As we have discussed, 2024 is a significant investment year as we continue to invest in our Gogo 5G and Galileo program. Our free cash flow target in 2025 assumes that many of these costs roll off as we head into next year. We expect that these product investments will support revenue growth acceleration and significant free cash flow growth in 2025 and beyond.

正如我們所討論的，2024 年是重要的投資年，我們將繼續投資 Gogo 5G 和伽利略計畫。我們 2025 年的自由現金流目標假設，隨著明年的到來，其中許多成本都會減少。我們預計這些產品投資將支持 2025 年及以後的收入成長加速和自由現金流的顯著成長。

In terms of Gogo 5G, in the second quarter, our $3.2 million of 5G spending was comprised of the $1 million in OpEx and $2.2 million in CapEx. We now expect 2024 will include approximately $5 million of OpEx and approximately $8 million in CapEx, with total 5G spend for 2024 at approximately $13 million. This is a shift from our previously mentioned $6 million of 5G OpEx and $14 million in CapEx.

就Gogo 5G而言，第二季我們的320萬美元5G支出包括100萬美元的營運支出和220萬美元的資本支出。我們現在預計 2024 年將包括約 500 萬美元的營運支出和約 800 萬美元的資本支出，2024 年 5G 總支出約為 1,300 萬美元。這與我們之前提到的 600 萬美元的 5G 營運支出和 1400 萬美元的資本支出有所不同。

This adjustment reflects the push of Gogo 5G timing to the second quarter of 2025 as well as a more efficient allocation of resources and the timing of expected milestone payments to our vendor partner. We continue to maintain our estimate of $100 million in total external development and deployment costs for our 5G program and anticipate no negative impact on the overall program costs from the most recent delay.

這項調整反映了 Gogo 5G 時間推遲到 2025 年第二季度，以及更有效的資源分配和向我們的供應商合作夥伴支付預期里程碑付款的時間。我們繼續維持 5G 專案外部開發和部署總成本 1 億美元的估計，並預計最近的延遲不會對總體專案成本產生負面影響。

Moving on to our Gogo Galileo initiative. In the second quarter, Gogo recorded $2.2 million in OpEx and $1 million in CapEx related to Gogo Galileo. We now expect 2024 will include approximately $15 million of Gogo Galileo OpEx due to a shift of expense to 2025 and approximately $4 million in CapEx.

繼續我們的 Gogo Galileo 計劃。第二季度，Gogo 與 Gogo Galileo 相關的營運支出為 220 萬美元，資本支出為 100 萬美元。由於費用轉移至 2025 年，我們現在預計 2024 年將包括約 1500 萬美元的 Gogo Galileo 營運支出和約 400 萬美元的資本支出。

We continue to expect external development costs for both the HDX and FDX solutions to be less than $50 million in total, of which $13 million was incurred in 2022 and 2023, $19 million is projected in 2024, and the remainder is expected in 2025. Additionally, we anticipate approximately 90% of Gogo Galileo's external development costs will be in OpEx.

我們仍預期 HDX 和 FDX 解決方案的外部開發成本總計低於 5,000 萬美元，其中 2022 年和 2023 年產生 1,300 萬美元，預計 2024 年產生 1,900 萬美元，其餘則預計在 2025 年產生。此外，我們預計 Gogo Galileo 約 90% 的外部開發成本將用於營運支出。

Moving on to our bottom line, Gogo delivered $30.4 million in adjusted EBITDA in the second quarter, a 31% decrease year over year and 30% decrease sequentially. The decrease was primarily driven by lower equipment revenue and increased operating expenses as anticipated.

說到獲利，Gogo 第二季調整後 EBITDA 為 3,040 萬美元，年減 31%，季減 30%。下降的主要原因是設備收入下降和預期營運費用增加。

Net income of $0.8 million in the second quarter decreased 99% year over year and 97% sequentially. The decline was primarily due to an $11 million after-tax unrealized loss related to a fair market value adjustment to the convertible note investment we made in our key chip set supplier to support continued progress on our 5G chip that we called out on our first quarter earnings call. Potential future share price volatility will continue to affect our net income as we account for mark-to-market adjustments to the fair value of this investment.

第二季淨利為 80 萬美元，年減 99%，季減 97%。這一下降主要是由於我們對主要晶片組供應商進行的可轉換票據投資的公平市場價值調整產生了1100 萬美元的稅後未實現虧損，以支持我們在第一季度呼籲的5G 晶片的持續進展財報電話會議。由於我們對該投資的公允價值進行了市價調整，未來潛在的股價波動將繼續影響我們的淨利潤。

Based on our substantial net operating loss balances at the end of 2023, including $446 million in federal net operating losses and $377 million in state net operating losses, we had a net deferred income tax asset of $207 million at the end of the quarter. We do not expect to pay meaningful cash taxes through our five-year planning horizon.

根據我們截至 2023 年底的大量淨營運虧損餘額，包括 4.46 億美元的聯邦淨營運虧損和 3.77 億美元的州淨營運虧損，截至本季末，我們的遞延所得稅淨資產為 2.07 億美元。我們預計在五年規劃期內不會繳納有意義的現金稅。

I will now provide a status update on our FCC Reimbursement Program. In the second quarter, we received $5.7 million in FCC grant funding, and our program-to-date total received is $19.2 million. As of June 30, 2024, we recorded a $17.5 million receivable from the FCC, and we incurred $8 million in reimbursable spend during the quarter. This receivable is included in prepaid expenses and other current assets in our balance sheet, with corresponding reductions to property and equipment, inventory and contract assets, and with a pickup in the income statement.

我現在將提供有關 FCC 報銷計劃的最新狀態。第二季度，我們收到了 570 萬美元的 FCC 撥款資金，我們的計劃迄今為止收到的資金總額為 1,920 萬美元。截至 2024 年 6 月 30 日，我們記錄了來自 FCC 的 1,750 萬美元應收帳款，本季我們產生了 800 萬美元的可報銷支出。此應收帳款包含在我們資產負債表中的預付費用和其他流動資產中，相應減少了財產和設備、庫存和合約資產，並在損益表中有所增加。

In line with the plan we submitted to the FCC, we were granted our first six-month extension last quarter, pushing the program completion deadline to January 21, 2025. In our application, we stated that we will need to have multiple extensions to complete the program and are planning to request the next extension in the fourth quarter.

根據我們向 FCC 提交的計劃，我們在上個季度獲得了首次六個月的延期，將計劃完成期限推遲到 2025 年 1 月 21 日。在我們的申請中，我們表示我們需要多次延期才能完成該計劃，並計劃在第四季度請求下一次延期。

As a reminder, with partial funding of the program, we are forecasting that we will run out of reimbursement funds in late 2025 and will need to continue to spend money in support of the program through 2026, which is expected to negatively impact 2025 and 2026 free cash flow.

提醒一下，由於該計劃的部分資金，我們預計我們將在 2025 年末用完報銷資金，並且需要在 2026 年之前繼續花錢支持該計劃，預計這將對 2025 年和 2026 年產生負面影響自由現金流。

On to free cash flow. In the second quarter, we generated a solid $24.9 million in free cash flow, an increase from $13.3 million in the year-ago period, driven by lower cash interest and improved networking capital. Free cash flow decreased from $32.1 million last quarter, primarily due to lower EBITDA and the timing of the FCC reimbursement from our Rip and Replace program this quarter.

自由現金流。在現金利息下降和網路資本改善的推動下，第二季我們產生了穩定的 2,490 萬美元自由現金流，較去年同期的 1,330 萬美元有所增加。自由現金流較上季的 3,210 萬美元有所下降，主要是由於 EBITDA 下降以及本季度 FCC 報銷我們的拆除和更換計劃的時間。

Now I'll turn to a discussion of our balance sheet. Gogo ended the quarter with $161.6 million in cash and short-term investments and $603 million in outstanding principal on our term loan, with our $100 million revolver remaining undrawn. Gogo's net leverage of 2.9 times remains in line with our target range of 2.5 to 3.5 times.

現在我將討論我們的資產負債表。截至本季末，Gogo 的定期貸款現金和短期投資為 1.616 億美元，未償還本金為 6.03 億美元，而我們的 1 億美元循環貸款尚未提取。Gogo 的淨槓桿率為 2.9 倍，仍符合我們 2.5 至 3.5 倍的目標範圍。

Our cash interest paid for the second quarter, net of hedge cash flow, was $7.8 million. As we previously mentioned in prior quarters, we have a hedge agreement in place and had 87% of our loan hedged. At the end of July, the hedge stepped down to $350 million, with the strike rate increasing from 0.75% to 1.25%, resulting in 58% of the loan currently hedged.

我們第二季支付的現金利息（扣除對沖現金流）為 780 萬美元。正如我們之前幾季提到的，我們簽訂了對沖協議，並對 87% 的貸款進行了對沖。7月底，避險金額降至3.5億美元，履約率從0.75%上升至1.25%，目前已避險貸款的58%。

Starting in the fourth quarter, the hedge cash flow is expected to decline approximately $3 million per quarter. Assuming no further debt pay down, the cash interest paid for 2024, net of hedge cash flow is expected to be approximately $34 million.

從第四季開始，對沖現金流預計每季減少約 300 萬美元。假設不再進一步償還債務，2024 年支付的現金利息（扣除對沖現金流）預計約為 3,400 萬美元。

Now, let me provide a recap of Gogo's capital allocation priorities. First, maintaining adequate liquidity; second, continuing to invest in strategic opportunities to drive competitive positioning and financial value, including Gogo 5G and Galileo; third, maintaining an appropriate level of leverage for the economic environment with a target net leverage ratio of 2.5 to 3.5 times; and finally, returning capital to shareholders.

現在，讓我回顧一下 Gogo 的資本配置優先事項。一是保持流動性充足；其次，持續投資策略機會以推動競爭定位和財務價值，包括Gogo 5G和Galileo；第三是根據經濟環境維持適度槓桿水平，淨槓桿目標為2.5至3.5倍。最後，向股東返還資本。

We have executed across all priorities. In the second quarter, we repurchased approximately 1.5 million shares at a total cost of $13 million, and over 3.1 million shares for approximately $28 million in the last three quarters. Gogo has approximately $22 million remaining of the $50 million repurchase authorization our Board approved in September 2023.

我們已經執行了所有優先事項。第二季度，我們以總成本 1,300 萬美元回購了約 150 萬股股票，在過去三個季度，以約 2,800 萬美元回購了超過 310 萬股股票。我們董事會於 2023 年 9 月批准的 5,000 萬美元回購授權中，Gogo 還剩約 2,200 萬美元。

We believe we are well positioned to execute our product investment requirements, evaluate further debt pay downs, and opportunistically repurchase shares. Our flexibility to pay down further debt and return capital to our shareholders is expected to increase as our free cash flow ramps up in 2025.

我們相信，我們有能力執行我們的產品投資要求、評估進一步的債務償還並伺機回購股票。隨著 2025 年自由現金流的增加，我們償還進一步債務和向股東返還資本的靈活性預計將增加。

Now, I'll turn to our financial outlook. We have updated our 2024 financial guidance and our long-term targets to reflect two changes. First for the Gogo 5G launch timing that is now expected to occur in Q2 2025, and second for the lower aircraft online at the end of 2024 than originally projected. However, note that we have not completed a full bottoms-up long-term plan at this time as we normally do that annually in the January timeframe.

現在，我將談談我們的財務前景。我們更新了 2024 年財務指引和長期目標，以反映兩項變更。第一個是 Gogo 5G 的發射時間，目前預計將在 2025 年第二季進行，第二個是 2024 年底上線的飛機比最初預計的要低。但請注意，我們目前尚未完成完整的自下而上的長期計劃，因為我們通常每年一月都會這樣做。

For our 2024 fiscal year, we now anticipate 2024 revenue in the range of $400 million to $410 million versus our prior guidance of $410 million to $425 million. The reduction is primarily tied to lower equipment revenue in the second half of the year due to the product lifecycle dynamic in the channel ahead of the launches of Gogo 5G and Galileo.

對於 2024 財年，我們目前預計 2024 年營收在 4 億至 4.1 億美元之間，而先前的指引為 4.1 億至 4.25 億美元。這項減少主要與下半年設備收入下降有關，這是由於 Gogo 5G 和 Galileo 推出先前通路中的產品生命週期動態所致。

Secondarily, lower than expected aircraft online is anticipated to reduce our service revenue growth. We now expect 2024 CapEx to be approximately $35 million versus our prior guidance of $45 million. Our revised target includes approximately $20 million for strategic initiatives, including Gogo 5G, Galileo, and the LTE network build-out, and is a decrease compared to the $30 million for these initiatives stated in the prior quarter. The reduction in strategic spending is primarily due to the $6 million shift in 5G spend to 2025, LTE spend shift to 2025, and also some cost savings.

其次，線上飛機數量低於預期預計將減少我們的服務收入成長。我們現在預計 2024 年的資本支出約為 3500 萬美元，而我們之前的指導為 4500 萬美元。我們修訂後的目標包括約 2000 萬美元用於戰略舉措，包括 Gogo 5G、Galileo 和 LTE 網路建設，與上一季所述這些舉措的 3000 萬美元相比有所減少。策略支出的減少主要是由於將 600 萬美元的 5G 支出​​轉移到 2025 年，LTE 支出轉移到 2025 年，以及一些成本節省。

We anticipate 2024 free cash flow in the range of $35 million to $55 million, which is an increase from our prior guidance of $20 million to $40 million. This includes approximately $45 million of expected FCC spend, including non-reimbursable development spend, and approximately $40 million of FCC grant reimbursement received.

我們預計 2024 年自由現金流將在 3,500 萬美元至 5,500 萬美元之間，這比我們先前指導的 2,000 萬美元至 4,000 萬美元有所增加。這包括約 4,500 萬美元的 FCC 預期支出（包括不可報銷的開發支出）以及收到的約 4,000 萬美元的 FCC 撥款報銷。

The decrease in FCC reimbursement spend compared to prior expectations is a result of timing shifts within the program. The increase in our free cash flow guidance is reflective of the lower-expected CapEx and lower-expected net FCC program spend.

與先前的預期相比，FCC 報銷支出的減少是該計劃內時間變化的結果。我們自由現金流指引的增加反映了資本支出預期較低和 FCC 計畫淨支出預期較低。

In addition, we continue to target adjusted EBITDA at the high end of the previously guided range of $110 million to $125 million. However, we now expect operating expenses for strategic and operational initiatives, including Gogo 5G and Galileo to reduce to approximately $26 million, compared to $33 million previously.

此外，我們繼續將調整後 EBITDA 目標定在先前指引範圍 1.1 億至 1.25 億美元的高階。然而，我們現在預計包括 Gogo 5G 和 Galileo 在內的策略和營運舉措的營運費用將從先前的 3,300 萬美元減少至約 2,600 萬美元。

Despite lower revenue, we are maintaining adjusted EBITDA guidance, reflecting the shift in spend to 2025 for strategic initiatives, offset by an increase in legal expenses incurred to date, and expected to continue the rest of the year.

儘管收入下降，但我們仍維持調整後的 EBITDA 指引，反映了戰略舉措支出向 2025 年的轉變，但被迄今為止發生的法律費用的增加所抵消，預計將在今年剩餘時間內持續下去。

For our long-term targets, we are now targeting free cash flow of $150 million in 2025, excluding the effect of the FCC program, versus our prior target of a range of $150 million to $200 million. The change from prior guidance is tied to top and bottom-line impacts of the latest timing of Gogo 5G launch to Q2, 2025 and lower than expected aircraft online at the end of 2024.

對於我們的長期目標，我們現在的目標是 2025 年自由現金流為 1.5 億美元（不包括 FCC 計畫的影響），而先前的目標為 1.5 億至 2 億美元。先前指引的變化與 Gogo 5G 最新推出時間為 2025 年第二季以及低於 2024 年底線上飛機預期的頂線和底線影響有關。

Over the long term, we reiterate that we expect revenue growth at a compound annual growth rate of approximately 15% to 17% from 2023 through 2028, with Gogo Galileo materially contributing to revenue beginning in 2025. And we continue to expect annual adjusted EBITDA margin to be reaching 40% by 2028.

從長遠來看，我們重申，預計 2023 年至 2028 年收入複合年增長率約為 15% 至 17%，其中 Gogo Galileo 從 2025 年開始對收入做出重大貢獻。我們仍預計到 2028 年調整後的年度調整後 EBITDA 利潤率將達到 40%。

In summary, in this challenging period in our product life cycle, Gogo's outlook underscores the significant value creation potential for our customers and shareholders that we expect to unlock by executing our strategy and investing in key initiatives that we believe will drive and sustain long-term growth.

總而言之，在我們產品生命週期的這個充滿挑戰的時期，Gogo 的前景強調了為我們的客戶和股東創造巨大價值的潛力，我們希望透過執行我們的策略和投資於我們相信將推動和維持長期發展的關鍵舉措來釋放這些潛能。

Before we open the floor for questions, I want to echo Oak sentiments and expressing my gratitude to the entire Gogo team for their hard work and commitment to our business as well as their dedication to delivering exceptional service to our customers. Operator, this concludes our prepared remarks. We are now ready to take our first question.

在我們開始提問之前，我想表達一下 Oak 的觀點，並對整個 Gogo 團隊的辛勤工作和對我們業務的承諾以及為客戶提供卓越服務的奉獻表示感謝。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) Sebastiano Perry, JPMorgan.

（操作員指示）Sebastiano Perry，摩根大通。

Hi. Thanks for taking the question. I was hoping you could help us maybe think about expected ARPUs or price points as it relates to Galileo? And then maybe kind of stepping back, 5G being a bit delayed here, but more broadly, any help on helping us think about the 5G pricing strategy that we should be thinking about as it pertains to next year and the long-term revenue guidance? Thank you.

你好。感謝您提出問題。我希望您能幫助我們考慮與伽利略相關的預期 ARPU 或價格點？然後也許退一步，5G在這裡有點延遲，但更廣泛地說，有什麼幫助我們思考我們應該考慮的5G定價策略，因為它與明年和長期收入指導有關？謝謝。

So, generally 5G ARPU would be about $2,000 on average, higher than our current ARPU. And then the HDX and FDX would be priced at higher price points. I don't know that we've shared the average ARPU yet, but you can actually see the pricing on our website now.

所以，一般5G ARPU平均會在2000美元左右，高於我們目前的ARPU。然後 HDX 和 FDX 的定價將會更高。我不知道我們是否已經分享了平均 ARPU，但您現在實際上可以在我們的網站上看到定價。

So, they were reflecting greater coverage around the world and reflecting higher bandwidth. HDX and FDX are priced at premiums to 5G.

因此，它們反映了全球更大的覆蓋範圍和更高的頻寬。HDX 和 FDX 的定價高於 5G。

Okay. And if I could maybe just --

好的。如果我可以的話--

Jesse, I don't know if you want to go into any more detail in terms of the exact ARPU we're projecting for those.

Jesse，我不知道您是否想更詳細地了解我們為這些項目預測的確切 ARPU。

Well, obviously, it depends upon a range, depending upon the plan that we would be providing. But we are expecting an increase in ARPU as Galileo starts to take off. As a reminder though, I mean in 2025 we won't necessarily see that much impact with regards to the service revenue. It will be more of the equipment revenue, and then you will see the service revenue really start to take off more in 2026.

嗯，顯然，這取決於一個範圍，取決於我們將提供的計劃。但隨著伽利略開始起飛，我們預期 ARPU 將會增加。不過要提醒一下，我的意思是，到 2025 年，我們不一定會看到服務收入受到那麼大的影響。更多的是設備收入，然後你會看到服務收入在 2026 年真正開始成長。

Got it. Thank you. And a quick follow-up. Just thinking about AVANCE, can you help us think about the new planes online, between maybe a migration perspective or net new customer standpoint? Just trying to think about the drivers there behind the nice increase we saw. Thank you.

知道了。謝謝。並快速跟進。就 AVANCE 而言，您能否幫助我們從遷移角度或淨新客戶角度考慮線上新飛機？只是想想我們所看到的良好成長背後的驅動因素。謝謝。

Jesse, do you want to go into the activations?

傑西，你想進入激活階段嗎？

Yeah. I mean, so this year we have been. And in this quarter, we noted our units online was impacted by lower new activations than what we were expecting. And that is due to the product lifecycle dynamic that we talked about. We also had the higher deactivation.

是的。我的意思是，今年我們也是如此。在本季度，我們注意到我們的線上單位受到新啟動量低於我們預期的影響。這是由於我們討論的產品生命週期動態所造成的。我們的失活率也較高。

And I think that our expectation for the rest of the year is that will continue. But then come next year, we would expect, obviously with the launch of these two products, that our new activations would accelerate, as well as being able to kind of neutralize our net deactivation rate.

我認為我們對今年剩餘時間的期望是這種情況將持續下去。但明年，我們預計，顯然隨著這兩種產品的推出，我們的新啟動將會加速，並且能夠抵消我們的淨停用率。

Ric Prentiss, Raymond James.

瑞克普倫蒂斯，雷蒙德詹姆斯。

Thanks. Good morning, everybody. Hey, got a couple questions. Obviously, you've called out a couple times the customer behavior while they pause for the new stuff to come in. How many aircraft are you expecting, ADG aircraft, are you expecting as you look through the rest of this year into, let's say, second quarter next year?

謝謝。大家早安。嘿，有幾個問題。顯然，當客戶停下來等待新產品進入時，您已經多次指出了客戶的行為。當您展望今年剩餘時間（比如說明年第二季）時，您預計會有多少架飛機，ADG 飛機？

Jesse can get into the more precise numbers. I think we expect that a little bit more degradation in the total units online count until we get our new products launched.

傑西可以得到更精確的數字。我認為，在我們推出新產品之前，我們預計在線總數量會進一步下降。

That's right.

這是正確的。

So if you had 105 aircraft net on 2Q, that same kind of magnitude, 100 each quarter or does it accelerate from there?

那麼，如果第二季淨擁有 105 架飛機，同樣的規模，每季 100 架，還是會從那裡開始加速？

No. I mean, we're not anticipating it to reach, hopefully reach those levels, but there will be some deterioration, but not necessarily up to the 100.

不。我的意思是，我們預計它不會達到（希望達到這些水平），但會出現一些惡化，但不一定會達到 100。

Okay. So more coming off, but maybe not the pacing you saw in 2Q.

好的。更多的事情正在發生，但可能不是你在第二季度看到的節奏。

That's right.

這是正確的。

That's right.

這是正確的。

As a reminder, in Q1, we had that unique situation in Q1 with the hourly deactivation.

提醒一下，在第一季度，我們遇到了每小時停用的獨特情況。

Okay. You've called out a couple of times, I think, the vendor financing hitting some costs out. Give us a little color on that. What's happening there, and what kind of costs are being incurred?

好的。我想，你已經呼籲過幾次了，供應商融資抵銷了一些成本。給我們一點顏色。那裡發生了什麼，產生了什麼樣的代價？

Yeah. So in general, the legal expenses were very high in the quarter, so I wanted to highlight that, inflating our G&A expense. But with regards to the vendor financing issues, as noted, we had an investment in a convertible note in Q1 and Q2. And so the activity for that, the legal support of that, which is not normal business, that was one area.

是的。因此，總的來說，本季的法律費用非常高，所以我想強調這一點，誇大了我們的一般管理費用。但關於供應商融資問題，如上所述，我們在第一季和第二季投資了可轉換票據。因此，為此開展的活動和法律支持，這不是正常的業務，這是一個領域。

And then also in our 10-Q, you'll see a disclosure around the supporting a revolver commitment for Airspan. That is not necessarily effective until Airspan emerges from bankruptcy. But we have partnered with Fortress to support a revolver, and there's legal support for that as well. So we're really supporting our vendors in this and its unusual activities, so we wanted to kind of call out that unique spend.

然後，在我們的 10-Q 中，您還會看到有關支持 Airspan 左輪手槍承諾的披露。在 Airspan 擺脫破產保護之前，這不一定有效。但我們與 Fortress 合作支援左輪手槍，也有法律支援。因此，我們確實在這方面及其不尋常的活動中支持我們的供應商，因此我們想指出這種獨特的支出。

Got you, right. Okay. Yeah, I mean, in the case of Airspan, they went through a prepackaged bankruptcy, of course, so we ought – when that happens, you also have to spend money making sure that you defend your existing rights and your contracts, et cetera. So it was both, that we helped. In terms of helping them with some financing to get through it all, but we also had to protect ourselves.

明白你了，對吧。好的。是的，我的意思是，就Airspan 而言，他們當然經歷了預先安排的破產，所以我們應該——當這種情況發生時，你還必須花錢確保捍衛你現有的權利和合同，等等等等。所以我們幫助了兩者。在幫助他們提供一些融資來度過這一切方面，但我們也必須保護自己。

Okay. And the last one for me, following on Sebastiano’s question. Obviously, you've got the pricing on the website for the Galileo. Oak, you make a point about your network, your bandwidth, your customer service, and customer support. What kind of anecdotal or outright detail do you have as far as how are customers valuing price versus coverage versus customer service?

好的。我的最後一個問題是關於塞巴斯蒂亞諾的問題。顯然，您已經在網站上找到了伽利略的定價。Oak，您對您的網路、頻寬、客戶服務和客戶支援提出了自己的觀點。至於客戶如何評價價格、覆蓋範圍和客戶服務，您有哪些軼事或直接細節？

You mean on a relative basis to each other?

你的意思是彼此之間的相對關係嗎？

Yeah.

是的。

Yeah. I mean, I think that customers do value having a relationship with somebody that they can trust, who they've been doing business with for a long time, who has a very responsive customer support. Has been very consistent in terms of how they price, and the customer feels that they can count on. I think that's probably the highest value of anything.

是的。我的意思是，我認為客戶確實重視與他們可以信任的人建立關係，他們已經與他們做了很長時間的業務，並且擁有非常積極的客戶支援。他們的定價方式非常一致，客戶覺得他們可以信賴。我認為這可能是任何事物的最高價值。

And when you look at the products themselves, our network, our network will perform about the same as Starlink's frankly. And I think ours will be more stable and reliable in terms of being pinned to a higher mean connectivity rate. So I think that'll be valued by customers.

當你看看產品本身，我們的網絡，坦白說，我們的網路的表現與星鏈的差不多。我認為我們的系統在固定到更高的平均連接率方面將更加穩定和可靠。所以我認為這會受到客戶的重視。

And then the equipment side, we manufacture equipment that can be put anywhere in the aircraft, inside the pressure vessel, outside the pressure vessel. It doesn't require any maintenance, et cetera. Starlink's is consumer grade. It's what you would have in your home.

然後在設備方面，我們製造的設備可以放置在飛機的任何地方，壓力容器內部，壓力容器外部。它不需要任何維護等。Starlink 是消費級的。這就是你家裡該有的東西。

That's what -- it's not going to work for a while, but it's going to be a question about how long it's really going to be reliable and how long it can withstand the rigors of business aviation in terms of planes that go from 130 degrees inside the cabin before the passengers arrive to minus 60 at 40,000 feet.

就是這樣——它在一段時間內不會起作用，但問題是它能真正可靠多久，以及它能承受公務航空在 130 度內傾斜的飛機方面的嚴酷考驗多久。高度之前，機艙內的溫度會升高。

So there's reasons we build equipment aviation grade and they really -- they haven't done that. So I think there's a million little things that are wrong about how they are going at things. But right now, people that have had it installed are using it and they are liking it a lot, because it's a much better experience than any of the current IFC products out there in a way that kind of helps us.

因此，我們製造航空級設備是有原因的，但他們確實沒有這樣做。所以我認為他們處理事情的方式有一百萬個小問題是錯的。但現在，安裝了它的人正在使用它，而且他們非常喜歡它，因為它的體驗比現有的任何 IFC 產品都要好得多，這對我們有幫助。

We don't have to be – I don't think we have to be crusaders for LEO. I think people in the market are already seeing that LEO is a real improvement. So, I think in the end that kind of helps us and I think then we'll win with all those little differentiators around service, aviation grade, our aviation focus that will sway a lot of the market towards our products.

我們不必如此——我認為我們不必成為 LEO 的鬥士。我認為市場上的人們已經看到 LEO 是一個真正的進步。所以，我認為最終這對我們有幫助，我認為我們將憑藉服務、航空等級、我們航空重點方面的所有這些小差異化優勢而獲勝，這些差異將使許多市場轉向我們的產品。

Right. The last one for me is, the 5G launch now 2Q. Are we thinking early 2Q, mid 2Q ’25, late 2Q ’25 and what else might cause that to be at risk?

正確的。對我來說最後一個問題是，5G 將於第二季推出。我們是否在考慮第二季初、第二季中期 - 25 年、第二季末 - 25 年以及還有什麼可能導致其面臨風險？

Well, I would say mid 2Q right now. A lot of the risk we will be able to retire or have been retiring, frankly, in two ways. One is our FPGA flights, where we've got all the chip software loaded on an FPGA that we're flying with.

好吧，我現在想說的是第二季中期。坦白說，我們能夠以兩種方式退休或已經退休的風險很大。其中之一是我們的 FPGA 飛行，我們將所有晶片軟體載入到我們飛行時所使用的 FPGA 上。

That's done a couple of things. First of all, it was one of the ways that we identified some of the issues that our chip provider has to provide. So, we've got to those early before they cause problems, after coming out of fabrication a year down the line or whatever.

這已經完成了幾件事。首先，這是我們確定晶片供應商必須提供的一些問題的方法之一。因此，我們必須在它們引起問題之前、在一年後生產出來或其他什麼情況下儘早解決它們。

And second of all, that allowed us to validate our own software model of our network, which means that we can actually continue to test virtually now, and we are, and that will identify a lot of issues inside the network as well before we ever even get the chip. So those two things help a great deal.

其次，這使我們能夠驗證我們自己的網路軟體模型，這意味著我們現在實際上可以繼續進行虛擬測試，而且我們確實這樣做了，這也將在我們之前識別出網路內部的許多問題。晶片.所以這兩件事有很大幫助。

There's still some risk around the actual chip fabrication, which is slotted to begin early in September. And once it comes out, there will be some bringing up risk. So with the amount of scrutiny that's been paid to this chip at this point, I'd be shocked if there was a problem when it came out.

預計於九月初開始的實際晶片製造仍然存在一些風險。而且一旦出來，就會帶來一些風險。因此，鑑於目前對該晶片進行的大量審查，如果它出現時出現問題，我會感到震驚。

Great. Thanks everybody.

偉大的。謝謝大家。

Thanks, Ric.

謝謝，里克。

Scott Searle, Roth Capital Partners.

史考特‧塞爾，羅斯資本合夥人。

Good morning. Thanks for taking the questions. Hey, good morning, Oak. Hey, a quick clarification for Jesse. Legal expenses were relatively high this quarter. I'm wondering what you are thinking about and factoring into your expectations in the second half of this year. And if you could remind us what they were in the first quarter.

早安.感謝您提出問題。嘿，早上好，奧克。嘿，請快速向傑西澄清一下。本季法律費用相對較高。我想知道您對今年下半年的預期和期望有何考慮。如果您能提醒我們第一季的情況如何。

And then Oak, to follow-up on Rick's question around 5G, it seems like your comfort level of this launching in mid-second quarter is a lot higher than we had in prior conversations. I'm wondering if you could walk us through the steps and the milestones here.

然後，Oak，跟進 Rick 關於 5G 的問題，看來您對第二季度中期推出的 5G 的舒適度比我們之前的談話中的要高得多。我想知道您是否可以引導我們完成這裡的步驟和里程碑。

It sounds like now you are expecting chip delivery in September. Is there a new spin on that chip? I was wondering if you could just kind of lay out some of the milestones that we should expect over the next couple of quarters.

聽起來現在您預計晶片將在 9 月交付。該晶片有新的改進嗎？我想知道您是否可以列出我們在接下來的幾個季度中應該預期的一些里程碑。

Yes, I can take the first one. The legal expenses, it was $9.5 million, and that was across litigation expenses, as well as the vendor financing we spoke about and also global expansion, just kind of our normal efforts that we're doing for global expansion.

是的，我可以選擇第一個。法律費用為 950 萬美元，其中包括訴訟費用，以及我們談到的供應商融資和全球擴張，這只是我們為全球擴張所做的正常努力。

We do expect that to decrease. There was a bit of a high point in Q2, so we'll not be at that level of magnitude going forward in Q3 and Q4.

我們確實預計這一數字會減少。第二季有一個高點，因此我們在第三季和第四季不會達到這樣的水平。

Okay, and then Scott, for milestones, I didn't say the chip would be delivered in September. It said it starts fabrication in September, so that's one milestone. Then coming out of fabrication is another. Bring up is a third, when they complete bring up and then ship chips to us. And so arrival of chips with us would be another milestone. And obviously, we will install it and start flight testing with it right away.

好吧，斯科特，對於里程碑，我並沒有說晶片將在 9 月交付。它說將於九月開始製造，所以這是一個里程碑。然後從製造中出來是另一回事。提出是第三個，當他們完成提出並將晶片運送給我們時。因此，晶片的到來將是另一個里程碑。顯然，我們將立即安裝它並開始飛行測試。

And then it really gets to PMA and STC, which are regulatory. PMA is regulatory and the STC is in terms of approvals for your aircraft getting done. I think those are the main milestones going forward.

然後才是真正涉及監管的 PMA 和 STC。PMA 負責監管，STC 負責批准您的飛機完成任務。我認為這些是未來的主要里程碑。

Great. And lastly if I could, in terms of the competitive landscape, I was wondering if you could just give us an update on that front. We don't hear a lot about SmartSky. I'm wondering where they fit into the equation.

偉大的。最後，就競爭格局而言，我想知道您能否向我們介紹這方面的最新情況。我們很少聽到有關 SmartSky 的消息。我想知道它們在方程式中的位置。

And then specifically on Starlink, while they will be a competitor going forward, given their presence, given their network, there's been a lot of talk recently about the Mini factoring in somehow into the equation. I'm wondering if you could address specifically that issue in terms of FAA regulatory issues around something like that, in terms of that creeping into the market and/or impacting pricing. Thanks.

然後特別是在星鏈上，雖然他們將成為未來的競爭對手，但鑑於他們的存在，考慮到他們的網絡，最近有很多關於 Mini 以某種方式納入其中的討論。我想知道您是否可以根據美國聯邦航空管理局（FAA）的監管問題來具體解決這個問題，例如潛入市場和/或影響定價。謝謝。

Well, SmartSky is really not a factor in the market at this point there. They haven't – I'll just put it this way, I don't think they have any revenue generating customers. In terms of the litigation with us, we think that that case in many ways is basically over at this point.

嗯，SmartSky 目前確實不是市場的因素。他們沒有——我就這麼說吧，我不認為他們有任何創收客戶。就與我們的訴訟而言，我們認為該案在許多方面都已經基本結束了。

As you might recall, Scott, there were two sets of patents. One set that expired in the 2030’s, and one set of patents that expires in August of this year.

斯科特，您可能還記得，有兩套專利。一套專利將於 2030 年代到期，一套專利將於今年 8 月到期。

In discovery, and one of the reasons our legal expenses are so high is that discovery ended up being quite extensive. We had four times as many documents to review as we had anticipated in initially budgeting for discovery.

在證據開示方面，我們的法律費用如此之高的原因之一是證據開示的範圍相當廣泛。我們需要審查的文件數量是我們最初為發現預算時預期的四倍。

However, in that discovery, it was discovered that SmartSky knew about prior art to the patents that are expiring in 2030 and that they did not reveal that prior art to the patent trademark office. So that has raised a very significant equitable conduct issue for them and will most likely lead to those patents being determined to be invalid.

然而，在該發現中，我們發現 SmartSky 了解將於 2030 年到期的專利的現有技術，並且他們沒有向專利商標局透露該現有技術。因此，這給他們帶來了非常重要的公平行為問題，並且很可能導致這些專利被判定無效。

And you might recall that we have often said that we thought they didn't have any valid patents that we infringed on, and this is the reason why. So that, I think, eliminates frankly the risk of those long-term patents being an issue. Then the short-term ones, we have always did not infringe on patents.

您可能還記得，我們​​經常說我們認為他們沒有任何我們侵犯的有效專利，這就是原因。因此，我認為，坦率地消除了這些長期專利成為問題的風險。然後短期來說，我們一直沒有侵害專利。

We think we will win on that. However, even if by some miracle we were to lose, 5G is not coming out until May now and those patents expire in August. So there’s not going to be a whole lot of damages in terms of the impacts on us. So, that's SmartSky.

我們認為我們會在這一點上獲勝。然而，即使我們奇蹟般地輸了，5G 也要到 5 月才會問世，而這些專利將於 8 月到期。因此，就對我們的影響而言，不會造成太大的損失。這就是SmartSky。

The Mini, look, there’s all kinds of little toys people use in business aviation -- general aviation, to get connectivity. There are people that fly low with their cell phones on. But that's not typically what people do in business aviation.

Mini，你看，人們在公務航空（通用航空）中使用各種小玩具來獲得連接。有些人在低空飛行時還開著手機。但這並不是人們在公務航空領域通常所做的事情。

You'll see a lot of guys goofing around, who I would consider general aviation flyers, not business aviation flyers, trying to put the Mini in the windshield and the like. That is not going to be a solution that's going to satisfy business aviation flyers for a couple of reasons.

你會看到很多人在閒逛，我認為他們是通用航空傳單，而不是公務航空傳單，試圖將 Mini 放在擋風玻璃上之類的。由於幾個原因，這不會是能夠滿足公務航空乘客的解決方案。

For instance, really, you've got to get the speed through the fuselage of the aircraft. In other words, the radio waves aren't going to penetrate the fuselage of the aircraft and hit the Mini sitting inside the aircraft. So you have to put it in the windshield essentially, on the dashboard if you will.

例如，實際上，您必須獲得通過飛機機身的速度。換句話說，無線電波不會穿透飛機機身並擊中飛機內的 Mini。所以你必須把它放在擋風玻璃上，如果你願意的話，你也可以放在儀表板上。

These satellites are coming from -- flying at a very high speed and you've got to pick up one after another at a very high rate. And that will work okay if you are flying your plane in the direction the satellites are coming from.

這些衛星以非常高的速度飛行，你必須以非常高的速度接收一顆又一顆。如果你的飛機朝著衛星來的方向飛行，那就好了。

But if you are not flying in that direction, your Mini is not looking the right way, you are not going to have reception. It's going to lead to very unreliable connectivity and that's fine for some people, but it's not fine for the bulk of the business aviation market.

但如果您沒有朝那個方向飛行，表示您的 Mini 沒有朝正確的方向飛行，您將不會收到訊號。這將導致非常不可靠的連接，這對某些人來說很好，但對於大部分公務航空市場來說就不好了。

There are also safety concerns and having an antenna fly around if there's a sharp banking or something like that, that doesn't make the FAA happy. The FAA would kind of have to catch you on the runway doing it, and they probably wouldn't like that very much. But it's pretty unlikely, frankly, that that would happen.

還有安全問題，如果出現尖銳的傾斜或類似情況，讓天線飛來飛去，這並不會讓美國聯邦航空局高興。美國聯邦航空局必須在跑道上抓住你這樣做，他們可能不太喜歡這樣。但坦白說，這種情況不太可能發生。

Frankly, the last thing is that Starlink doesn't want to sell you that at that price. So when they detect that you are flying, they turn you off. So, that's the business model question maybe Starlink will do something about. All in, it's not going to be a very satisfactory performance. It could have safety implications, and right now you are not supposed to be able to do it from the vendor.

坦白說，最後一件事是星鏈不想以這個價格賣給你。因此，當他們檢測到您正在飛行時，就會將您關閉。所以，這就是星鏈可能會採取措施解決的商業模式問題。總而言之，這不會是一個非常令人滿意的表現。它可能會產生安全影響，而且現在您不應該從供應商那裡做到這一點。

Great. Very helpful. Thanks, Oak.

偉大的。非常有幫助。謝謝，奧克。

Simon Flannery, Morgan Stanley.

西蒙‧弗蘭納裡，摩根士丹利。

Great. Thanks a lot. Good morning. To start off, just on the churn or the DX, in the past we've had them waiting for maintenance upgrades and so forth. Are any of these customers churning to competitors or where are these aircraft going?

偉大的。多謝。早安.首先，就客戶流失或 DX 而言，過去我們讓他們等待維護升級等。這些客戶中是否有人轉向競爭對手，或是這些飛機要去哪裡？

We have seen a little bit of churn to competitors, Simon. We had 11 that left us for a KA solution.

西蒙，我們已經看到了競爭對手的一些流失。我們有 11 個需要 KA 解決方案。

Like a Viasat or something?

比如Viasat之類的？

Yeah, and then we had 10 that we think left us for Starlink. They told us they left us for Starlink. So there's a bit of that on the margin there.

是的，然後我們認為還有 10 個留給了我們去星鏈。他們告訴我們他們離開我們前往星鏈。所以那裡有一些邊緣。

Okay, and you'd expect that to continue through the balance of the year until we get these products out?

好的，您認為這種情況會持續到今年剩下的時間，直到我們推出這些產品嗎？

I would. Yeah, I think that that will. The good news behind those numbers is that it's happening because people have tremendous demand for connectivity. And I think, as I talk to flight departments and the like, especially for larger companies, the issue is that now with all the file sharing going on and everybody's spreadsheets live in the cloud, they don't live on their PC. It's just putting a huge strain on older products like our older products, and frankly, a lot of the older GEO products as well.

我會的。是的，我認為會的。這些數字背後的好消息是，這種情況的發生是因為人們對連結有巨大的需求。我認為，當我與飛行部門等交談時，尤其是對於大公司來說，問題是，現在所有文件共享都在進行，每個人的電子表格都儲存在雲端中，他們不再儲存在自己的PC上。這給我們的舊產品等舊產品帶來了巨大的壓力，坦白說，還有很多舊的 GEO 產品。

And then you've got multiple video conferences going on on the aircraft at the same time. So that’s all – those are all applications that LEO is going to support really well. And so I think we're fortunate that we're going to be well positioned to serve those. And I think we'll be very competitive.

然後你會在飛機上同時進行多個視訊會議。這就是全部 - LEO 將很好地支援這些應用程式。因此，我認為我們很幸運，我們將能夠很好地為這些人提供服務。我認為我們將非常有競爭力。

But Starlink is there first with the solution and so they are getting a lot of attention at the high end of the market right now. So I think we'll see some pressure there until we get our FTX antenna out.

但 Starlink 率先推出了該解決方案，因此他們目前在高端市場受到了廣泛關注。因此，我認為在我們取出 FTX 天線之前，我們會面臨一些壓力。

Okay, and you talked before about Starlink having a smaller antenna. Do you think the Mini is that antenna, or do you think they are working on another smaller antenna that's going to be more suited to business aviation?

好的，您之前談到過星鏈有一個較小的天線。您認為 Mini 就是那種天線，還是您認為他們正在開發另一種更適合公務航空的較小天線？

I'm not sure the Mini is that solution, but I also don't get the impression right now they are working on a smaller one for business aviation. I think they feel like they can fit this colossal antenna they've got on smaller aircraft, and they are going to try and FTC them on those aircraft.

我不確定 Mini 是否就是這樣的解決方案，但我現在也不認為他們正在為公務航空開發更小的解決方案。我認為他們覺得他們可以在較小的飛機上安裝這種巨大的天線，他們將嘗試在這些飛機上安裝 FTC。

You can put an antenna on anything, but it looks like an AWACS. And you have a smaller antenna. You've got to move a lot of other stuff on top of the aircraft when you install it, which drives up installation costs. There's a lot of inconveniences to it.

你可以在任何東西上安裝天線，但它看起來像預警機。而且你有一個更小的天線。安裝飛機時，您必須將許多其他東西移到飛機頂部，這會增加安裝成本。對此有很多不便之處。

So we think that our FTX, in particular, which is the antenna that will compete with Starlink, it's our larger antenna, still much smaller than their antenna. It's going to be suitable for a lot more aircraft than their very large one. But my point there was only that I think that they may think they are okay with just the big one right now.

所以我們認為我們的 FTX，特別是，它將與 Starlink 競爭的天線，它是我們更大的天線，但仍然比他們的天線小得多。它將適用於比大型飛機更多的飛機。但我的觀點只是，我認為他們可能認為他們現在只接受大的事情。

Got it. And then maybe you could talk a little bit about OneWeb. I think they had faced some delays before. Any updates on their network status in terms of being able to support your timeline on Galileo later this year? And I think it would be really helpful just to understand more about your contract with them and how the pricing works on your bandwidth consumption.

知道了。然後也許您可以談談 OneWeb。我認為他們之前遇到過一些延誤。他們的網路狀態是否有任何更新，以便能夠在今年稍後支援您在伽利略上的時間表？我認為更多地了解您與他們之間的合約以及定價如何影響您的頻寬消耗將會非常有幫助。

Is it all sort of variable rate bit consumption? Any volume discounts, things like that? Any color on margins and so forth to help us think about what happens at the bottom line from the revenue flow through?

是各種可變速率比特消耗嗎？有批量折扣之類的嗎？利潤率等方面的顏色是否可以幫助我們思考收入流的底線會發生什麼？

Yeah. So we have said before that we have traded off lowest price per megabyte for flexibility because we need to be able to react quickly to pricing changes in the market. And we can't be in a position where we've got a floor price on an aircraft or something like that, that would cause us to not be able to have a margin on whatever we sell.

是的。因此，我們之前說過，我們犧牲了每兆位元組的最低價格來換取彈性，因為我們需要能夠對市場的定價變化做出快速反應。我們不能對飛機或類似的東西有底價，這會導致我們在銷售的任何產品上都無法獲得利潤。

So we haven't gone into much more detail than that. But I’ll just put it that way that no matter what we end up selling a product for, we're going to have margin on it. So that's number one. The first part of your question again, Simon?

所以我們沒有討論更多的細節。但我想說的是，無論我們最終以什麼價格銷售產品，我們都會有利潤。所以這是第一。西蒙，又是你問題的第一部分嗎？

Yeah. Just about their network and their operational readiness to support Galileo.

是的。關於他們的網路和支援伽利略的營運準備情況。

Yeah. Their network -- they are still rolling out some of their ground stations, but we feel good about where they are going to be when we launch at the end of this year. And so we feel good about that. They are also almost complete with upgrading the software and their network to handle aviation, so that's also in good shape. So we feel good about it.

是的。他們的網路——他們仍在推出一些地面站，但我們對今年年底推出時它們的位置感到滿意。所以我們對此感覺良好。他們也幾乎完成了軟體和網路的升級以處理航空問題，因此狀況也良好。所以我們對此感覺良好。

Okay. And that allows you to give kind of QoS guarantees to your customers off their network?

好的。這可以讓您向網路外的客戶提供某種 QoS 保證嗎？

Yeah, it does.

是的，確實如此。

Simon, just one thing to add. With regards to the margins, so we did indicate obviously, that the margins will be slightly lower than the very healthy, strong margins we have in ATG. However, when you look at our long-term model through 2028, we do still expect our service margins to start with a seven handle, even with the mix of Galileo.

西蒙，我要補充一件事。關於利潤率，我們確實明確表示，利潤率將略低於我們在 ATG 中擁有的非常健康、強勁的利潤率。然而，當你看到我們到 2028 年的長期模型時，我們仍然預計我們的服務利潤率將從 7 個手把開始，即使混合了 Galileo。

Great. Thank you.

偉大的。謝謝。

Louie DiPalma, William Blair.

路易·迪帕爾瑪，威廉·布萊爾。

Doing okay. The launch of HDX is a pivotal milestone for Gogo in this dynamic market. You mentioned your expectation to receive the Galileo HDX PMA in the fourth quarter. When do you expect to receive the STCs for the first customers to begin generating Galileo service revenue?

做得還好。HDX 的推出是 Gogo 在這個充滿活力的市場中的關鍵里程碑。您提到您期望在第四季度收到 Galileo HDX PMA。您預計何時收到第一批客戶的 STC 以開始產生伽利略服務收入？

They'll start coming in first quarter, Louie.

他們將在第一季開始出現，路易。

Great. And those STCs and the PMA, that's a regulatory hurdle. Your Twitter account recently blogged how you had successful motion table testing with the HDX antenna. What are the major technical hurdles that remain that could potentially delay receiving the PMA or just the general functionality of the antenna.

偉大的。對於那些 STC 和 PMA，這是一個監管障礙。您的 Twitter 帳戶最近發布了您如何使用 HDX 天線成功進行運動台測試的部落格。仍有哪些主要技術障礙，可能會延遲接收 PMA 或天線的一般功能。

There's not a lot of technical risk with this technology because this is not -- like 5G, there's a whole new 5G chip being developed, which is where the risk has been and it's caused all of our issues. Right now, Hughes is already using different form factors of this antenna in aero, and so it's not unproven technology.

這項技術並沒有太多的技術風險，因為它不像 5G 那樣，正在開發一種全新的 5G 晶片，這就是風險所在，並且它導致了我們所有的問題。目前，休斯已經在航空領域使用了這種天線的不同外形尺寸，因此這並不是未經證實的技術。

So the next step is, we finish installing our Challenger 300, which is happening right as we speak. It started in July. It should be done very shortly.

所以下一步是我們完成挑戰者 300 的安裝，就在我們說話的時候。事情從七月開始。應該很快就能完成。

Then we'll go into flight testing. The [PMA] process starts when you start developing a system. You've been in constant dialogue with the FAA for, in our case, a year plus in this. What they are trying to do in that is validate the authenticity of all the pieces and parts that go in there to make sure that they are all aviation grade, as you originally stated they would be.

然後我們將進行飛行測試。當您開始開發系統時，[PMA] 流程就開始了。在我們的案例中，您與美國聯邦航空管理局（FAA）持續對話已經一年多了。他們試圖做的是驗證所有零件的真實性，以確保它們都是航空級的，正如您最初所說的那樣。

So that is something that I don't think has a lot of risk around it at this point. We're in touch with the FAA and proving to them that it's got the parts that we said it was going to have in there. So I don't think that that's going to be a huge risk.

因此，我認為目前這方面的風險並不大。我們正在與美國聯邦航空局聯繫，並向他們證明裡面有我們所說的零件。所以我認為這不會構成巨大的風險。

Then on the FTC side, once we start flying on the Challenger, I think we'd be able to show you can put it on a plane, you can fly it. And it works. So I don't think there's a ton of risk there to be honest.

然後在聯邦貿易委員會方面，一旦我們開始使用挑戰者號飛行，我想我們就能夠證明你可以把它放在飛機上，你可以駕駛它。它有效。所以說實話，我不認為有很大的風險。

Great. And how far behind should the launch of the FDX be relative to the HDX, in terms of the launch?

偉大的。而從上市時間來看，FDX的上市時間相對於HDX來說應該落後多遠呢？

Well, the FDX is, as we said, first half next year. And I'll leave it at that on this call, and we'll give more details probably on the next call.

嗯，正如我們所說，FDX 將於明年上半年舉行。我將在本次通話中保留此內容，我們可能會在下次通話中提供更多詳細資訊。

Great. And one final one for Jessie. If rip and replace funding is increased to cover your full $334 million, what would be the significance to your free cash flow generation in 2025 and 2026, potentially?

偉大的。最後一張是給傑西的。如果增加拆除和更換資金以覆蓋您的全部 3.34 億美元，那麼對您 2025 年和 2026 年自由現金流的產生有何潛在意義？

Yeah, So right now, we've indicated that, one, we've mentioned that our current plans would not be to deliver all the way up to the $324 million. That was based off of our original application, so the total value has decreased a bit.

是的，所以現在，我們已經表示，第一，我們已經提到我們目前的計劃不會一直達到 3.24 億美元。這是基於我們最初的應用程序，因此總價值有所下降。

But it would cover the negative hit that we're expecting in 2025 and 2026, but not all of it because mainly there's probably going to be around $10 million or so that we would still need to spend in ‘25 that's not reimbursable. So that piece we would still need to cover. But then in 2026, it would fully cover everything that we would need to do there for the most part.

但這將涵蓋我們預計 2025 年和 2026 年的負面影響，但不是全部，因為主要可能有大約 1000 萬美元左右，我們仍然需要在 25 年內支出不可償還的費用。所以我們仍然需要覆蓋這一塊。但到 2026 年，它將完全涵蓋我們需要在那裡做的大部分事情。

Great. And one final one, should service revenue stay flattish, even as aircrafts online trend lower over the next year? You've recently had ARPA slightly pick up. Should that offset the decrease in aircrafts online, or how should we think about that?

偉大的。最後一個問題是，即使飛機在線趨勢在明年下降，服務收入是否應該保持穩定？最近 ARPA 略有回升。這是否應該抵消線上飛機的減少，或者我們應該如何考慮？

Yeah. So I think that that's the expectation through next year because again, we won't necessarily see an uplift from the new products coming in yet on service revenue. So they'll be either flattish to very modest growth next year.

是的。因此，我認為這是明年的預期，因為我們不一定會看到新產品的推出帶來服務收入的提升。因此，明年的成長要么持平，要么非常溫和。

Thanks everyone. We'll be looking forward to updates for the HDX on the Challenger as you do the flight testing over the next month.

謝謝大家。當您在下個月進行飛行測試時，我們將期待挑戰者號 HDX 的更新。

Thank you. There are no further questions. I'd like to turn the call back over to Will Davis for closing remarks.

謝謝。沒有其他問題了。我想將電話轉回威爾戴維斯（Will Davis）做總結發言。

Thank you, everyone, for joining our second-quarter earnings conference call. We look forward to talking with you soon. Thank you. You may disconnect.

感謝大家參加我們的第二季財報電話會議。我們期待盡快與您交談。謝謝。您可以斷開連線。

Thank you for your participation. This does conclude the program. You may now disconnect. Everyone have a great day.

感謝您的參與。這確實結束了該程式。您現在可以斷開連線。每個人都度過了美好的一天。